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Things to Consider when Outsourcing Software Development

by: Sarah Joson

Wednesday, July 15, 2015 |

In most organizations, projects are often driven by one key aspect - budget. Every decision and strategy executives make are anchored on the company’s finances. Even if the firm requires a new operation, or a sudden problem arises, it will still depend on the budget.  

Like what we’ve seen in other industries, having the most affordable supplier is not always the best option and strategy, and the pricing for offshore outsourced projects is no different from what you usually encounter in your local setting.

Searchsoa.Techtarget.com shares some important factors that business owners must consider when deciding to outsource software development.

First, if you are looking to hire a decent software developer, you will end up paying an average rate. Having him/her create complicated software programs will of course cost you a lot more. Moreover, the timeline of a project will affect the going rate and this often includes revisions and final approval.

Another factor is whether we like it or not, our cultures and values differ from one another and this type of incongruence can affect the communication between the buyer and supplier - both of which can be located in different parts of the globe.

For instance, you are describing a feature you want for your software without a clear understanding of the details it entails. You then explain this to your outsourced offshore developers and assume that they understand everything you are saying, or they will speak up to clarify things. You also assume that they will do their best to achieve your goals. But these assumptions can cause problems, and it’s hard to avoid them because it’s a miscommunication issue.

If it is your first time to outsource, you can try back office processes, and keep core processes in-house. But, if you are a small company that is trying to expand and requiring immediate external assistance then you can outsource processes. Work closely with the service provider to ensure that no vital data is taken or made public. In a nutshell, outsourcing can serve as a means to develop the current operations of companies, and not to eradicate the company’s real identity by totally replacing operations through an outsourcing service delivery model.

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