Outsourcing Software Development

If we get into the literal definition of the terms offshore development, then we would define it as a process of delegating tasks to professionals located at a distant location. It can be a different continent or country or even state and even the time zones are different. Time zone differences and working hours differences can create problems when you will schedule meetings.

disadvantages of outsourcing software development

I recommend using an SRS template which can help with the documentation process. Failure to communicate these details may result in scope creep and misalignment on the product vision. Without resolving these issues, the software engineers will continue working in silos and there will be a widening gap between your expectations and the actual deliverables.

Crafting An Effective Software Development Outsourcing Strategy

In many cases, it may be tempting for an organization to push their own IT staff to complete a project for which they have not developed robust experience and skills. Just like in the case of transmission repairs, most local shop owners could complete a transmission benefits of outsourcing software development repair if they had to. But without the experience and the right tools, it might take a general mechanic twice as long as a transmission-repair specialist. And going with a specialist translates into much more than just immediate cost savings.

Small Business Trends is an award-winning online publication for small business owners, entrepreneurs and the people who interact with them. Our mission is to bring you “Small business success, delivered daily.” When you decide to transfer your internal business information to a partner, make sure that the partner will keep the information completely confidential.

Outsourcing Software Development: 10 Dangerous Mistakes

These vendors tend to resolve price overruns in fixed price work by frequent change requests or poor quality work. Drafting a tight contract that is free from any legal loopholes helps ensure that you do not miss out on any of the vital issues during application development.

20 Advantages and Disadvantages of Outsourcing from Your Small Business – Small Business Trends

20 Advantages and Disadvantages of Outsourcing from Your Small Business.

Posted: Tue, 21 Feb 2017 08:00:00 GMT [source]

You may need to use an external recruitment agency, which can be very costly, and it might take months before you find the right person to become a member of your team. By outsourcing the development of your software, you can completely remove this whole stressful process, and get started with your project sooner.. Deciding to outsource software development is a strategic decision for software companies.

Contact Us Now To Start Building Your Team!

Some companies hoax the client with double-billing or give out false overestimation. Hidden costs may also include phone calls, meetings, additional consultations and even the travel expenses. In the end it all piles up, but when you are in the middle of work, there is no backing out. Of course, this can be easily avoided by discussing the preferred structure of the business process at the very beginning. This way you can rest assured that cooperation between your firm and the outsourcing vendor will match your expectations.

To build your product the way you see it and make it the best it can be, you need toconvey your visionclearly. This outline will also help your team estimate the cost of development. Depending on your project, your development team might need sensitive information about your business. You’ll have to take this into account when choosing who you work with.

disadvantages of outsourcing software development

They’ll ensure to upgrade their skill sets and train employees regularly. Likewise, they always prepare a stellar portfolio to impress potential clients. Software development outsourcing fills the gap caused by the glaring shortage of skilled software developers in the US, Australia, and Europe. As a startup founder, you’ll be building business relationships with software experts who have dedicated their entire careers to technology. The article has explained what pitfalls to avoid and what to look out for while outsourcing software development very clearly. Making the contract right is important so that there are no loopholes.


This variant usually requires more time and money due to time-consuming interviews, on-boarding processes, and training. The in-house software development team means a team of engineers that works in your office. They remove specific departments from the regular staff to optimize resources and narrow down costs. In software outstaffing, the IT department is a conditionally independent unit.

Except for blog posts, browse reports of the best outsourcing companies, read reviews, go to the official websites, LinkedIn, Facebook pages, etc. When you hire an outsourcing company, you do not pay a remote employee directly but interact with an intermediary that provides good working conditions for its, that is, your employees. It varies significantly depending on the company’s location, size, and reputation. The payment ranges from $1000 to $3000 for each team member a month in Eastern European countries. Outsourcing is a very flexible model that adapts to any business size and needs. If you intend to write software from scratch or make significant changes to an existing project, it is better to partner with a dedicated team.

Disadvantages Of Outsourcing Software Development

Clarity in documentation is the first step in ensuring that your expectations and the deliverables that the outsourced company provides are in sync with each other. If you’re not careful, what starts as an effort to save time and money can quickly mutate into a major headache. While you might find some experienced technicians in your city, there’s a significant chance that the talent pool for your area is mostly full of inexperienced workers looking for an entry-level position. These qualifications may not be suitable for your business’s needs. Finally, curating your team of in-house tech professionals allows you to ensure that your employees adhere to your company’s specific guidelines and branding. Having the same working hours and being in the one office allows making the communication process much more comfortable and clear.

disadvantages of outsourcing software development

You need to have all members of your team pulling in the same direction in order to successfully complete a project. If you don’t there will be friction points and disagreements, and the project will slow down and possibly head towards failure. Lack of transparency – Depending on the company’s location, there may be a lack of transparency due to language or time zone differences. This point is often overlooked but is critical to keep in mind for immediate communication situations. Increased operational efficiency – Production time can be reduced considerably more than if development is kept in-house due to around-the-clock development. This enables your company to keep up with today’s rapid pace of change and surpass competition in product development. Share your thought and experience with us…or send your questions over.

It all comes down to a single question – who will you put in charge of your software projects? In addition, you would most likely hire another software developer to join the squad and contribute to faster delivery and increased quality. The other option is to choose a trustworthy development team outside your company.

Furthermore, digital transformation may be less about novel technologies and more about connectivity. Organizations understand that their ability to adapt to this new economic model ensures the survival of their company. They must go digital in order to automate and improve processes microsoft malicious software removal tool to provide better CX, deliver projects faster and increase business agility. The main benefit of outsourcing a project to a software development company is financial. This is because a local professional is likely to charge you more than the one located in India or Africa.

  • In chase of clients, some firms may promise to set the world on fire for little money.
  • Outsourcing development has benefits like getting quality products.
  • Whatever IT vendor you outsourced will dedicate their time, expertise and resources to deliver what you expect without compromising on quality and time.
  • Developing certain software is part of the company’s core business.
  • Also, once the spec is made, freeze it and treat it like a bible.

The biggest benefit of outsourcing development, gaining access to a global pool of talent, also creates one of the major pitfalls — issues in communication. You’ll need to overcome different time zones, languages, and cultural conventions.

What Is The Difference Between Insourcing And Outsourcing Software Development?

Let’s take a closer look at all advantages of software outsourcing you will receive. Regardless of the project’s nature, it is crucial to have a clearly defined execution scheme. Remote partners have less room for control, so they must be confident in their colleagues. When choosing an outsourcing company, don’t rush to enter into a partnership. Discuss all the work stages and make sure the views of the developers coincide with yours. All things considered, there is a simple solution for all of these disadvantages to outsourcing your software development — choosing the right service provider. They may see the project as simply another job to complete and move on to the next one, so won’t go the extra mile to make the final product as good as it can possibly be.

Unlike having an in-house team where you have to repeat the entire process of hiring all over again before selecting the right expert, you only have to outsource the job to a contractor with the right expertise. Whatever IT vendor you outsourced will dedicate their time, expertise and resources to deliver what you expect without compromising on quality and time. If you have an in-house team of developers already working on multiple projects simultaneously, you may end up compromising on quality or delaying some projects in order to complete others faster. The decision to outsource or build a team of developers in-house can have a significant effect of your business either now or in the long run. Employee morale can often be severely affected by any decision to outsource work based solely on labor-cost considerations. With once-off or infrequent projects, outsourcing will nearly always be the optimal decision. However, for projects that may involve tasks that are needed on a recurring basis, spending the time, money and human resources to develop those abilities in the short run can save big money over the long run.

Scroll to Top
Scroll to Top