Profits, Problems, and Suggestion – Outsourcing Software Production and Maintenance

Outsourcing is a strategy that could truly improve your brand. Software outsourcing means that the production of a software solution is assigned to an outside service provider, instead of done in-house. It’s an approach to reduce cost, boost quality, and keep the focus on the core business initiatives and strategies.

For a while, it’s been a topic of discussion for a lot of business owners, to outsource software development or not. The decision often is difficult, unless you are aware of the benefits, the drawbacks, and how to begin the process.

Profits of Outsourcing Software Development and Maintenance

Outsourcing the production and maintenance of a software development company has a lot of profits to gain.

1. Great Savings

You could add up the hiring, training, and housing staff expense. It doesn’t matter if you need a team of 5 or 100 workers, Software outsourcing is a whole lot cheaper than individually hiring each developer and putting them on internal teams.

When you outsource, there’s no need to purchase equipment and other supplies for software development. The key objective of offshore service providers is to provide clients with the best solution possible as well as the best maintenance at a reasonable rate.

2. Saves Time

Development is quicker with an outsourcing software development company, where people work 24/7 to deliver the product on the set deadline. Moreover, you need not spend time in search of new developers, hiring, and training them to suit the project requirements.

3. Flexibility

Hiring a full-time developer or team of developers for short-term projects is not practical. You have to provide them with a salary as well as other benefits even if they aren’t working. Outsourcing provides an option to choose developers for a one-time project. Either you could retain them for future projects or opt for another if you want.

4. Advances in Technology

Businesses trying to stay on the competitive edge look for external providers when their software project and maintenance require complex know-how and skillsets. When you work with an outsourcing vendor that has a proven track record of excellence, you could build cutting-edge solutions in the current technologies without the need for you to master them.

5. Bringing in a Fresh Perspective

Often, writing great software requires thinking out-of-the-box thinking and new approaches. You certainly would almost profit from getting fresh and new perspectives. The remote members of the team could surprise you with fresh ideas and unexpected feedback on how to boost your project.

Problems of Software Development and Maintenance Outsourcing

Offshore outsourcing may not be a good fit if you have not ample information about outsourcing, do not adhere to the standard engagement model and practices to get the work done. The following are some of the headaches you could encounter when you partner with a wrong service provider.

1. Monitoring Shortcomings

Mostly, service providers work at remote locations utilizing their employees and infrastructure. It becomes very hard for customers to keep track of ongoing activities, as well as monitor resources and assignments.

2. IPR Risk

The Intellectual Property Rights or IPR of the outsourcing partner could be compromised if an employee or tech partner breaches the data. Moreover, the foreign country may not have laws that protect intellectual property as well as other private data, making it difficult to prosecute an illegal activity should it occur.

3. Less Customer Focus

An outsourced service provider gives services to numerous companies at a time. In such instances, your outsourcing partner could lack complete focus on the customer’s tasks.

4. Language Barrier

The language barrier could lead to misunderstanding and confusion if the outsourcing company is not fluent in the native language of the client. Furthermore, it’s all the more difficult if the service provider is not versed in English, which is the universal language.

5. Late Deliverables

Common issues include sub-standard quality, improper categorization of responsibilities, and delivery time frames. Controlling these issues is easier with an in-house team than an outsourced partner. You won’t have complete control should a project get delayed.

Suggestions and Recommendations on Outsourcing Software Production and Maintenance

For business owners and organizations, it’s critical to introspect the business, the core values, and the vision. If analysis provides clues to outsource, then the process is advisable under certain standard practices and protocols. Outsourcing software development services could be invaluable for business as long as implemented in the right possible way.

1. Clear Definition on the Project’s Scope and Schedule

Always, a successful outsourced project begins with a transparent statement of what the company hopes to accomplish. Define the requirements from the very start since vendors need accurate, complete information to present you with realistic proposals and of course give you a reasonable price quotation.

2. Evaluate the Vendor Like Hiring a Full-Time Staff

Don’t hesitate to ask questions, the same way as when you’re hiring full-time employees. Check customer references and ask for feedback from clients who have availed of the services previously. If you have any concerns about the specific capabilities of the vendor, engage in a dialog, and never hesitate to voice out your concerns.

3. Review Samples and Portfolios

Check out the previous works of the vendor and make certain that they meet your style and quality expectations. If you have evaluated the portfolio, previous experience, and references and are still uncertain, ask them to perform a quick mock-up or give a basic work plan outline.

Still, don’t ever cross the line by asking or a mock-up job and insist on getting a finished ‘on spec’ work. There are no professional qualified experts that work for free, keep that in mind.

4. Don’t choose a Vendor based on Price Alone

While this could be tempting, never choose a service provider based only on price. Experienced companies who have outsourced and evaluated numerous vendor proposals recommend getting rid of the highest and the lowest-priced bidders all the time. They state that their most successful projects are with service providers that offered a good value and quality results balance.

5. Put in Writing

In a project’s scope, deliverables, service engagement, and even on the agreed-upon price could change. Make sure to communicate changes in the scope of payment and schedule and get a confirmation in writing from the outsourcing vendor. Moreover, keep a record of changes in the agreement and whether or not you accept these.

Conclusion

By outsourcing software production and maintenance, you get to access top-notch expertise, anytime, anywhere