In today's tech-driven world, so many companies are looking for custom software solutions. But, their in-house development or IT teams might not have the abilities or capacity to take on these kinds of projects. This is when businesses look to outsource their software development. And there are various pros and cons to doing so. In the last few years, software development outsourcing has seen impressive growth, as over 60% of mid-level companies outsource their development process. Here, we look into the upsides and drawbacks of software development outsourcing...
The pros and cons of outsourcing software development
1). It saves time
By outsourcing your software development needs to experienced, established professionals, you certainly shorten the timeline. Rather than recruiting and hiring new in-house staff, then training them correctly, it would be more time-efficient to outsource the job to experts who already have the required skills. They know what they're doing and can get started as soon as possible.
2). It saves money
This links to the first point, as hiring new team members is always costly. Not only do you spend money on scouting, training and on-boarding new hires, but you then have a continuous monthly salary to maintain. Therefore, most companies see outsourcing software development as a cost-cutting exercise. There might be a significant initial sum, but the fee to maintain and update software systems is bound to be less than maintaining permanent staff.
3). You can access the latest technology
A great software development company will have spent time accumulating expertise and keeping up with the latest technologies. By working with a wide variety of clients, you naturally increase your skill set and knowledge of which technologies work best with which requirements. To make clients' ideas come to life, outsourced teams will have access to cutting-edge development tools. And they'll be able to adapt these tools to whatever your project demands.
4). It means better quality
With an outsourced development team, this is what they specialise in. Unlike using in-house IT or development staff who have loads of other demands on their time, an outsourced team can purely focus on software development. They have dedicated resources for testing and quality assurance. And, because this is what they do 24/7, they may even have innovative suggestions or solutions to offer. All round, a better result.
5). You can focus on your business
This is an important pro. As a business owner, you want to be able commission a software development project and leave professionals in charge so you can get back to doing what you're really good at. By transferring demanding development projects to a third party, you take the load off your own tech staff. In-house employees can then concentrate on other projects that could increase revenue or encourage business growth.
1). Communication glitches
With an outsourced project, communication can become a challenge. It's important to make sure there are clear communication channels and that the outsourced team has the correct instructions and information. Weekly catch-ups will help, as will tracking and collaboration tools like Slack or Google Docs.
2). Privacy risks
This is another thing to be aware of when you outsource a software development project. With these types of projects, you allow external third parties to have access to crucial company data, software and algorithms. This is the nature of the job so, before you start, make sure you have measures in place to manage privacy risks. You could ask vendors to sign a Non-Disclosure Agreement (NDA), you could include intellectual property rights in the contract, or use monitoring tools like Time Doctor to keep track of what they're doing and accessing.
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