Click here to load reader

Reasons behind outsourcing software

Embed Size (px)

Citation preview

1. Reasons Behind OutsourcingSoftware DevelopmentWith the fast developments in technology and business,companies look for alternatives to reduce costs and boostproductivity. This is where the need of outsourcing softwaredevelopment arises. Seeing the various trends inoutsourcing, there are several factors on which softwarecompanies base their decisions to outsource their projects.The reasons are as cited below. 2. Increased productivityWith the help of outsourcing, it has possible to do away withthe limit of definite hours of operating. Your organization getsa chance to have ongoing operations for 24 hours. Increasingproductivity by hardly increasing the costs of operating is astriking factor for many organizations. 3. Reduction in costsCost reduction is one of the main factors behind companiespreferring to outsource their projects. These costs can be interms of training, labor, certifications, utilities, fees of officespace rent, and other expenditures of the company. ITprofessionals have lower salaries in comparison to theirWestern counterparts in many destinations of outsourcing. 4. Abundant and varied resource poolOutsourcing allows you to get in touch with the talent poolfrom across the globe. Thus, you can source for talent fromfar and wide instead of limiting your organization to arestricted talent pool from within your geographicalarea. Your business or organization gets a good chance tosearch for an offshore vendor that provides work for a teamof talented IT professionals. This eliminates your requirementto search for these individuals one by one on your own. Withsuch a set up, you can also be ensured that you get the rightpeople to work on your project of software development. 5. Resource qualityJohn Pereless :A leader in the field of software developmentsuggests you to outsource projects. This is due to the factthat by outsourcing projects your organization not only getsaccess to abundant and diverse resource pool, but also getsa chance to connect with highly skilled and qualityindividuals. Majority of the top destinations of outsourcinghave a good rate of students graduating with a degree incomputer science and software engineering. This is becausecountries like China, India and Eastern European countriesvalue education at a greater degree as compared to theirwestern counterparts. As a result, these countries have alarge number of resource people with good quality skill set ininformation technology. 6. Built in methodsBuilding the right processes while developing software canbe time consuming and costly, especially when theserequirements are not yet available in your company. Thus, itbecomes easier to build these methods or processes with ateam for outsourcing software development who is alreadyequipped with these processes.