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Advantages and Disadvantages of Outsourcing Software

Outsourcing a part or the whole business process has been a common trend after the successful implementation of the globalization, privatization, and liberalization. Enjoying the benefits of these, many businesses or individuals get their works done by a different business entity or a professional offering solution from an offshore country. It allows them utilizing the best resources and talents, crossing the interfaces of their countries.

Needless to say, there are a few products and services easily manageable over the internet. The software is one of the most significant among these. Both “product” and “service” are applicable to software solutions. Before delivering it to a business, it is considered as a product. After the delivery, the matter of maintaining, upgrading and updating the software comes under the service part. This is why a significant number of SMEs and corporate giants love to outsource software development tasks to a company (third-party vendor) located in a foreign country. They expect the product delivery (software) and associated services from a vendor. It helps them save costs, labors and times. They can concentrate better on their core competencies.

However, there are some significant advantages and disadvantages of outsourcing software development tasks. This article will include these in brief.

Given below are the advantages outsourcing software development projects:

Cost saving

The common trend is outsourcing software development projects from a developed country like the US, the UK, Canada, Australia, and Germany to a developing country like India, China, Pakistan, Nepal, and Bangladesh. The reason is the less labor cost. The hourly rate of a software engineer in India, Pakistan, and Bangladesh is much lower than the engineers offering solutions from the countries like the US, the UK, Canada, Australia, or Germany.

Time saving

As the outscoring company does not need to brainstorm on the software development process (for hiring a programmer, providing him or her with the necessary tools and technologies and supervising the work), it (the company) can save more time to concentrate on their core competencies. This comes in favor of their business development.

Moreover, the company can easily meet its deadline without thinking much about the development process.

Utilization of the best talents

Outsourcing gives a very good scope of utilizing the best talents, crossing the interface of a century. It allows the outsourcing company to reach the best talents easily over the internet and utilize the talents for the growth and development of its business.

Have a look at the disadvantages of outsourcing software development:

No good control on the work

As the outsourcing company has to depend fully on the vendor or the hired company, it has no good control over the work. Moreover, it needs to depend on the hired company in the case of an addition, deduction and customization.

Communication gap

As it is not a face-to-face to communication between the two parties sometimes misunderstanding and distortion of the messages may come in the way. The language barrier can bring about some difficulties for both the parties.

Compromise on quality

In the case of a wrong selection, you may compromise on the quality of the work. Here what you receive at the end fails to meet your expectation. As the hiring company is beyond your reach, you cannot reach there physically to challenge the unprofessional company.

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