What Is Software Outsourcing?
Outsourcing is a situation in which a company hires a third-party programming firm to get work done related to software development. This practice allows a specialized third-party to handle essential business processes, even the most complex tasks while having better control of various processes in a timely and economical fashion.
What Are Software Outsourcing Pros and Cons?
There is quite a long list of them, and here are some of the best ones:
Costs Saving
Cost saving is the biggest reason why companies decide to outsource their work. Outsourcing allows you to transfer work to another country where workforce are generally paid lower wages because of the currency rate difference. Furthermore, you don’t have to purchase equipment and other supplies which drastically reduces the overall cost.
Compensation for Resources
Outsourcing allows you to find and use the necessary resources that are either expensive, not available or cannot be handled in-house.
Faster Results
Outsourcing also helps to cut time and produce faster results for multiple projects.
Improved Company Performance
Outsourcing provides your staff the opportunity to focus on key business functions like content management, marketing, customer service, etc. because your offshore contractor will be managing all the hard work.
Compensation of Staff Shortages and Improved Company Efficiency
Outsourcing also helps to boost your team when you face staff shortage.
Let’s see some drawbacks:
Lowered Quality of Service
If you are not careful in your selection, you can end up with lower quality products, especially if you go for a contractor who is charging far lower than existing market prices.
Miscommunication
If you don’t pay attention to factors like language, time difference, and culture, these elements can lead to miscommunication and lowered performance in the worst-case scenario.
Risk
In software development outsourcing, you have to expose confidential company information to your hired contractor and trust them to use for the right purposes only. However, in case of a leak in database, your information can get in jeopardy
Let’s see some drawbacks:
How to Outsource Effectively?
Here is a list of factors you must pay attention to go right about your outsourcing selection:
- Make a list of potential candidates, check the prices they offer, their solution to your problem plus other details of their proposal
- Make an initial evaluation of software agency based on information you gathered from your own sources
- Check the agency’s reputation and see what their previous clients are saying about them on the internet and from your own sources. You should also search through social media profiles of potential partners to see reviews.
- Check whether your potential partner is financially stable
- Ask them to show you the products they’ve developed in the past to get an idea about their work
- Finally, don’t forget to meet with agency representatives in-person to have full satisfaction.
By the way, we have a detailed article on how to evaluate software providers. Check it out!
Software Outsourcing Models
You can outsource a company for development, maintenance, or testing of software and other functions. However, there are three primary approaches:
1. Staff Augmentation
It refers to transferring the job of putting together the offshore software development team and the place of work to the outsourcing contractor, and he makes sure to complete work on time while client is responsible for controlling the process and managing the projects.
2. Dedicated team
Here outsourcing contractor manages the people, process quality, low-level tasks.
3. Project-based model
In this model, the outsourcing contractor is responsible for the end-result product, and all its requirements and client do not have to worry about the team or process involved.
Vietnam software outsourcing has become more and more popular recently and EZtek is one of the Top Offshore Software Development Companies in Vietnam. It is our mission to share facts about every aspect of custom software development outsourcing and our work so our clients can get to know us better and step into the working relationship with complete trust.
Our software development outsourcing services include web and app development, custom software development with affordable prices, quality material and a dedicated team.
