Wednesday, February 29, 2012

Outsourcing Software – The entire picture


In the last few years, outsourcing of IT services emerged as one of the most victorious tactics in the business world. According to one market research study, most American and European companies save around 70% of their development cost through outsourcing them. After ‘benefits of SEO’, The internet is flooded with content that clearly says how effective and beneficial offshore software development is, but nobody presents the complete depiction, showcasing risks and challenges, associated with it. In this blog-post, I tried to bring the complete picture in the light.

Primarily, there were very few companies that didn't want to understand the idea of in-house development and got inclined to contracting the software developing work. Over time, in-house development got out of the picture because from the age of big mainframes to the late 80s, many companies experienced an unprecedented growth in their developer staff. The dividing line was 1985 when Texas Instruments understood the potential of outsourcing, with the establishment of their subsidiary in Bangalore, India. During the 90s, software outsourcing immediately swapped in-house development, and by 1994, practices of software development picked up the pace. In the year 2000, worth of the North American outsourcing market was determined 101 billion American dollars.

offshore software development
American and European companies save around 70% of their development cost through outsourcing them 

In coming years, without a doubt, software outsourcing will be the first choice of businesses that want to leverage resources in technology domains at very reasonable cost. Without setting up an infrastructure in your company, there are no supplementary costs to be incurred, plus you can get your project completed within deadlines. As far as selection of offshore firm is concerned, Company’s track record can help you in determining their commitments, capabilities, professionalism, and skills. Though no quality standard is completely effective, yet ISO quality standards can still narrow down your offshore partner selection.

Being aware of few specific risks associated with outsourcing can control your choice of signing an OSD (offshore software development) contract because uncertainty about information confidentiality is becoming a growing concern in the industry. Developer sends files with source code to his confidential mailbox on the working server, but a security breach can ruin an entire convention, as it is still difficult to foresee and prevent total security. This problem could create a needless technological and managerial overhead, decreasing superiority of the future product, where uncertain financial payback can come in picture. Similarly, the delivered product can meet all the technical necessities but might turn out to be obsolete, not supporting some technologies or standards that appeared throughout the development period. Being deficient in controlling outsourced resources is foremost threats associated with offshore development.

10 comments:

Stephen Smith said...

You made some decent points there. I looked on the internet for the issue and found most individuals will go along with with your blog.

Ralph Romero said...

I like your post very much about Offshore Outsourcing. The information in this post is very interesting and more useful for the developers. Thanks for share this valuable info.

Joseph Osborne said...

IT outsourcing is becoming more well-known as we can see the providers who substitute IT department remotely. With distant technological innovation improving very easily it's becoming more obvious that this will be the way of these days.

Mike Quiney said...

In this blog I found some useful information which I remember always in my mind.
Zend Framework Developer

smartsuite said...

I believe Web time sheet software makes the complete employee time clock tracking task easier. Its easy to update, approve and maintain the time sheets in no time.Time Attendance Software in pune

Rigel Diaz said...

The project proposal on software development is a good indicator of expertise. Based on the proposal, you will be able to ascertain if the service provider or outsourcing company has the right expertise.

Yograj R said...

Thanks for posting such a great and innovative stuff over here. Your website is very useful.Looking forwards for your another post.
Software Outsourcing Company

Xenos Davis said...

software development outsourcing, process of customization is easy and simple.thanks for sharing worth information.

corporate entertainer said...

Wow, Excellent post. This article is really very interesting and effective. I think its must be helpful for every new freelancer. Thanks for sharing your informative.
mentalist

sarah taylor said...

Outsourcing reduced your operating cost on your projects which you are taking services from expertise. IT outsourcing is become better known as we can see the providers who substitute IT department remotely.

Related Posts Plugin for WordPress, Blogger...