Outsourcing in Software engineering

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Outsourcing in Software engineering

January 10, 2022 0 Comments

With a skyrocketed digitalization a Software Development Outsourcing concept is no longer a novelty. In simple terms Outsourcing in Software engineering stands for delegating a software development project to an external vendor that is qualified and capable of handling the required business tasks. 

TOP-5 reasons why outsourcing software development is beneficial for business. 

1. Cost-optimization 

One of the most significant benefits of outsourcing is cost-efficiency. On average customers can save up to 30% by choosing software development outsourcing. The primary reason for it is the difference between wages and hourly rates in different countries and regions. For instance, the rates of IT professionals from Eastern Europe are lower than in the USA. On top of this, your external vendor covers all administration, and infrastructure processes, which also helps in cost reduction. 

2. Better flexibility and scalability. 

Flexibility is the key to success and competitiveness in our fast-paced world. So, businesses must be able to adjust their services to market demands. Software outsourcing allows scaling your team according to your needs and requirements, changing the scope of your project when it is necessary, and having as much control over the project as you want to.  

3. Faster time-to-market 

Software development outsourcing is a way to speed time-to-market up. Avoiding postponements is one of the keys to success in our fast-paced world. With a trusted Software development partner on your side, you schedule the timeframes and don’t depend on the in-house resources for the product launch.  

4. Utilizing experience of dedicated development team  

Hiring an outsourcing development team allows you to benefit from their experience. Outsourcing companies have long years of expertise in different domains and industries. Your software development partner understands your market challenges and business requirements precisely addressing your needs. 

Alongside significant advantages, Software Development Outsourcing can bring in certain risks, which you must be aware of. 

1. Barriers in communication. 

The key advantage of outsourcing is easy to access to global talent pool, but at the same time, it can cause communication barrier that includes various aspects: cultural differences, working in different time zones, language issues, etc. To avoid miscommunication, use collaboration tools, like Jira, Trello, Asana and conduct regular stand-up meetings via video or audio. 

2. Contract loopholes. 

Data confidentiality, intellectual property rights protection, liability, and regulatory compliance are among the aspects to pay special attention to while signing an agreement with your vendor. Remember, that each collaboration model has its own legal terms, make sure to learn more about the subject or get a qualified legal advisor. 

3. Security issues 

Security comes first nowadays, nonetheless, many companies fail to deal with the requirements that lead to issues with business procedures, data protection, and confidential information safety. ISO, PCI DSS, and GDPR are the most critical regulations your software development vendor needs to comply with.  

Your business can grow much faster with a reliable IT partner for your software development needs. Klik Soft offers extensive expertise, a customer-oriented approach, and exceptional quality of services. Check our proposal out and give us a call for more details. 

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