Busting Software Outsourcing Myths

Oct 12, 2018
Blog

Software development outsourcing gains popularity with each day. Thousands of IT-companies around the world offer software development services and attract a huge number of customers. However, rumour has numerous cases of IT project failures that led to nothing but a waste of time and huge damages. As a result, one gets the impression that outsourcing is a risky activity and doesn’t dare to use outsourcing vendor services. And many people are confronted with a question: does hiring an outsourcing company bring more benefits or damage?

To answer this question, let’s analyze some reasons why IT projects can fail. Here they are:

Uncertainty with technical specifications

In fact, technical specification is supposed to be described in an agreement and discussed by parties before signing. It can’t just be left for the IT-partner without knowing how it works. Technical specification, as well as other contract details, must be discussed and approved of by both a customer and a supplier.

Fight for money

Any business deal is aimed at bringing money to one party and bringing or saving money for the other party. But it doesn’t mean that those two parties are supposed to trick out of one another’s money. Customers often try to get from outsourcers as much as possible for the lowest price, while outsourcers strive to receive more money from their partners. Ideally, both a customer and an outsourcer should be bound with common goals, and thus be a team. Without teamwork successful completion of a project is hardly possible.

Change of requirements

The constant change of requirements is possible only within an Agile process. Otherwise, it impedes work, delays releases, and costs more.

Expectation mismatch

To be shortlisted and finally get a project, an outsourcer can promise you to do everything you want. But it doesn’t mean they will really do. The result can be different from what a customer wants. So active involvement and control over the development process is crucial. You can’t simply wait for the product if you want it to meet your expectations.

Uncertain goals and incomplete requirements

Sometimes a customer doesn’t have a clear picture of what the final product should be like, and in that case, they impose incomplete requirements that create misunderstandings and lead a project to failure. If even you don’t know what exactly you want from your project, how should your developers know that? So, first of all, you need to think over all the details of the application you want to be developed.

As we see, all problems that cause project failure can be prevented. In fact, all you need to avoid disappointment in outsourcing is a clear idea of the project, active involvement, and teamwork with the right outsourcing partner. Therefore, outsourcing is not that risky if you take into consideration our advice.

If you still have doubts whether outsourcing is worth trying, here are some benefits it can bring:

High-quality software

Nowadays, as IT sphere keeps developing, the amount of outsourcing vendors around the globe is growing fast. Therefore, in the context of tough competition, software development companies have to improve the quality of their services, hire high-skilled engineers and make sure they keep up with up-to-date technologies. It gives you an opportunity to select the best of the best and receive great software catering to your needs.

Cost saving

If you choose to hire your own staff for software development, such a decision will cost you a pretty penny, as you will need money for payroll payment, refresher courses, providing favourable working conditions, etc. But if you choose to outsource, all you need is just to pay some fixed price which is surely lower than the total amount of money you would spend on your permanent development team. Many outsourcing vendors provide services at an attractive price, for instance, Andersen: high-quality software that meets all your requirements will be developed at a reasonable price.

Implementation of large-scale projects

Some large-scale projects are difficult to deliver by efforts of a company’s computer department, no matter how big it is. But a vendor is quite capable of doing it. Any outsourcing company (provided it is a good one) usually have everything needed for successful development of a project of any size: skilled development teams, equipment, etc. Speaking about hiring specialists, a software company has an advantage over a company of other line of business: having solid experience and knowing specific nature of work, an outsourcing company usually conduct job interviews faster and is more likely to identify really skilled engineers among other candidates.

Spending control

Outsourcing allows you to plan and control expenses for information technologies, which makes business more transparent.

Contract

A list of services, their quality and price are specified in the contract signed between a customer and a supplier. It ensures your money is invested in a good thing which will benefit your business in course of time.

If you choose the right vendor and pay enough attention to the whole development process, outsourcing risks will be minimized. So don’t take it seriously when someone says that outsourcing is useless or unsafe. In fact, delegating the development of your software to a specialist company is a great opportunity not only to make a profitable deal but also to focus on the development of your own enterprise. Give it a try, and see the difference.

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