Outsourcing is already a common method among the top software companies and many of them outsourcing large portions of their work. Smaller developers are also doing the same as other companies across the globe are beginning to adopt.
It is estimated that the IT outsourcing industry in the US is estimated to reach $132.9 billion by 2020 and it is growing. What is the reason companies consider outsourcing as a part of their business strategy? Increased capacity, working on larger goals in business in a cost-effective manner, as well as getting access to skills that aren’t available internally.
There are a lot of potential risks and problems when outsourcing partnerships aren’t well integrated, which can lead to lower morale of employees, ineffective written code, a lack of delivery dates, and, in the end the loss of your investment.
Let’s examine the benefits and drawbacks outsourcing software development and then discuss why our services are the most effective on the market for effectively using an outsourcing partnership.
Benefits of outsourcing Software Development
While cost isn’t the primary reason for firms to outsource software development, savings in costs is certainly a desirable result. The average cost for an engineer is significantly less within Latin America, Eastern Europe or Asia than it is in Europe, Eastern Europe or the United States, the UK or Australia.
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The right set of skills to be found
Due to the lack of skilled workers due to the shortage of talent in US, Western Europe, and Australia outsourcing allows companies to fill in the gaps within their teams without having to compromise quality by choosing developers who have little experience or knowledge. In addition, outsourcing allows companies to make use of a variety of skills that they might not be able to or the need to employ full-time.
Time to save
Conducting interviews and finding candidates as well as negotiating compensation and the process of integrating a new employee takes time , only for some to depart within a year or two to pursue a new job. Partnering with an outsourcing company can allow you to transfer a significant portion of the process of recruiting and enables tech executives to dedicate their time and resources to other high-value projects for the business.
Possibilities of disadvantages to outsourcing
Outsourcing may cause problems in the event of a cultural divergence with the partner business or the team that is developing has inadequate English capabilities. Differences in time zones where there is a limited overlap in workdays can lead to an inability to communicate when expectations aren’t properly established. In-house project managers that are accountable the outsourced staff may assist in this and partners who are well-adjusted have the experience of dealing with the difficulties of working in different time zones.
Morale of the company
A majority of outsourcing is not intended to replace employees in-house but rather to assist in order to increase the headcount internal. Some employees may consider outsourcing an obstacle to their position within the company, which could result in a decline in productivity, and even a refusal to bring an outsourced partner to the team. A clear communication from leaders and management is crucial to explain the function outsourcing plays and the impact it has on each team member.
Concerns about the quality of code are not unfounded. There are many development companies around the globe employ inexperienced developers who are not able to deal with clients or even pitch the idea to an “A team” before transferring the project in a short time to developers with less experience (a technique referred to “bait and switch”).