Software development firms are very much required for the better working of any company, outsourcing these facilities are sometimes beneficial and sometimes not so good. In this article, let’s see the different advantages and disadvantages of outsourcing software development firm:
- Lower Operating Costs: The costs of operating these services are less as when outsourcing the work, you don’t have to purchase computer or the other things required for the software developer and you also save space in the company. Thus, you save money as the operating costs are less.
- Lower Training Costs: Giving training to the new employees is a very expensive thing. Mostly, two or three weeks are wasted in giving trainings, so by hiring these services from other software development firms, this wastage of time and efforts can be saved. Lots of money is saved by outsourcing the facilities.
- Cheaper Labor: It is the most popular factor behind considering the outsourcing software solutions that it helps in providing cheaper labor. The workers of developed countries charge a good amount of fees whereas, in developing countries the fee structure is less, this helps in providing the cheaper labor facilities.
- Less Production Time: In outsource companies the developers work round the clock, so you can get your work done at lesser period of time. You can get high quality work at small amount of time.
These were few advantages of hiring outsource software development firms, now let’s check the Disadvantages:
- Culture: While outsourcing, the culture should be considered as every country has its own working culture and rules. In some places, the work culture is not so good, they don’t know about the latest techniques used in the work all over the world. So, this leads to better quality of work and the results are disastrous.
- Staff Turnover: The requirement for staff in these outsourced companies are very much, this leads to transfer of knowledge and reduces the quality of the software.
- Lower Quality: In business, one can get anything just by paying for the services, so it is better to check the past record of the outsource company. It can help in finding out the better solutions as sometimes the workers lack in education so their work skill is not good.
- Skills Availability: It is very crucial to check whether better skilled workers are available or not. For getting the projects, people often show fake work details. They show fake numbers of skilled workers working for them which leads to bad quality of work and results.
These are the different advantages and disadvantages of outsourcing software development firm, which should be considered before hiring anyone.
Author Bio: Anna is a person with a passion for writing. She has written many articles on various topics as, software development firm, for more information you can check her other blogs.
Hi Anna, I have just read your articles about out sourcing and I was hoping you might be able to point me in the right direction. I have a Business Delopment job with a Ukraine based outsourcing company. We have some good clients like Disney and Nike, just to name a few but I am having a hard time figuring out how to target new business. I am a long term marketing and sales person and I can generally figure a marketplace out but I am not making the progress I want to make….Do you think a blog network would help?? I am open to your suggestions as you clearly have a handle on this business and I would welcome any thoughts or direction…
Thanks very much for your time and keep the articles coming…
Hi Anna! Great article. We are a software development company with offices in Texas and Argentina, and understand what you are talking about. We’d like to add some advantages of outsourcing to your list, from one of our last blog posts (http://ow.ly/bSUTg):
-Boost your capabilities without wasting time and resources training in-house teams.
-Get to delegate all those mundane, time-consuming tasks, so you can focus on your core operations.
-Free up internal resources which you can redirect more productively.
We look forward to read more articles from you.