Outsourcing Software Development has become an integral part of any forward thinking company that understands the importance in being part of a globalized and correlated economy and will seek to expand its global capabilities. Outsourcing software development adds value in terms of time, cost and quality and gives considerable structure to project execution and benefits to all the stakeholders. Good mapping of all organizational processes will be the starting point. Your response to this review should be: “I need to outsource to remain competitive“.
Nevertheless, companies that are thinking about outsourcing their department only for reducing labor costs are blinding themselves to the vast advantages and opportunities that this road can lead their business into. It’s important to keep in mind that off shoring projects these days is no longer just a mean to reduce costs, but has become a tool for adding value to their business by enabling them to concentrate on their core competence.
In an outsourcing engagement, the onsite-offshore hybrid model is the most popular software development model offered by service vendors to their clients. In this model, the outsourcing work is distributed between the onsite centre (usually the client location) and service provider’s offshore development centre. Usually, 20-30% of the work is done at the onsite centre that includes requirement gathering, planning and initial designing, co-ordination, issue resolution, deployment and support. The actual development and testing of the software is done at the offshore centre, based on the requirements provided to them.
This model offers an array of benefits. The outsourcing company is able to release resources for high value-added and priority work and can concentrate on their core business knowledge while delegating technical tasks, maintenance, research or routine tasks to the offshore software development company. Above all, off shoring is about sourcing the talent needed to sustain the innovation engine of a company by adding significant technical knowledge.
