What is Software Outsourcing?

Outsourcing of Software Development to an offshore vendor is called offshore Software outsourcing. The benefits of outsourcing, may it be software, or any other service remains same. Cost effectiveness, is what companies look for when they outsource software development. It is very important for offshore service providers and the clients to maintain a proper communication channel with each other besides taking care of the Offshore Outsourcing legal issues  involved in offshore software outsourcing. What also matters is timely execution of projects.

IT outsourcing means hiring somebody outside your company to perform development services that have traditionally been handled by internal staff. An outsourcing partnership can help you to achieve your goals while allowing your company to focus on its core business. Typically, an outside software developer is contracted to produce an application that is designed specifically for you and according to your exact requirements.

Why Outsource Software Development?

There are many reasons for opting software development to develop all or a part of your software:

* Specialized Knowledge and Experience
* Improve Business Focus
* Lowering Cost
* Making Better use of Time and Energy Costs
* Lack of Significant Resources to Handle the Project in the Required Timeframe
* Reduced Risk
* Make More Efficient use of Land, Labor, Capital and Technology
* Reduce time to Market

Benefits of Software Outsourcing

* Access to an Experienced Team:
The lead-time to start the project is reduced significantly as the software development company has already gathered the team you need.

* Improved Focus on Core Business:
Company can get freed of their tension and can focus on the core business by outsourcing some part of their work.

* Access to Technological Expertise:
Relying on an experienced team of professionals who use the appropriate technology you require, increases the chances of having a successful project.

* Cost Benefits:
The costs of Offshore software Development are much lower than hiring new programmers to fulfill the needs.

* Development Risk Minimization:
Proven development process and quality management system reduces the risk involved in development.

* Increase Project Management Capabilities:
To ensure the successful completion of your project, skills from the experienced software development company that understand and uses project management principles can be added to your own for better results.

* Knowledge and Expertise Continuity:
When a project is outsourced, the risk of losing knowledge and expertise is significantly reduced as the consulting company as a whole is responsible for completing the project.

* Reduce HR costs:
HR costs are reduced significantly as hiring new staff for a short period is very costly, particularly if there are no subsequent projects that require their services. Therefore outsourcing gives a better solution to it as the HR costs are limited to the project duration.

* Flexibility:
When facing a huge project but of short duration, you can use Offshore programming to cut down the housing, recruiting and training expenses.


  1. Namit says:

    What an awesome article, Thank you for sharing.

  2. George Davis says:

    Although outsourcing has it’s benefits, it can pose problems if not outsourced to the right service provider. All in all, a well-researched article!

  3. Erin Bond says:

    Small businesses have traditionally been very open to outsourcing and have been taking advantage of others’ skills for their growth.

    This article is a good compilation of ongoing trends in this market.

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