The outsourcing of software development is a result of new technologies that allow development to be separated from the companies themselves. Outsourcing used to be for tasks that the companies were not able to accomplish. However, today it’s used for all kind of tasks where outsourcing can prove to be beneficial. This is directly related to the new complexity or the industry and is linked to multiple systems and projects. Outsourcing continues to increase its presence all around the world every day.
Let us take a look at the pros and cons of outsourcing software development.
Pros
The main reasons why most companies decide to outsource are the following:
– Focus on strategic topics.
– Increase their flexibility.
– The outsourcing can improve the quality.
– Get rid of daily routines.
– Facilitate access to new technologies.
– Reduce the risk of obsolescence.
– Have an alternative to the internal informational department.
– Save on the costs of technology.
– Be trendy and join the millions of companies that outsource.
Cons
Outsourcing brings a lot of benefits to organizations but it also has a few important risks that are important to consider:
– Making sure the personnel of the company is qualified or knowledgeable enough.
– Breach in the contract on the part of the provider.
– Lost of technical knowledge.
– The provider might not be able to adjust to new technologies.
– Hidden fees.
– Unclear relationship between costs and benefits.
– Security risks.
– Not being able to cancel your contract whenever you wish.
– Quality Control
The most important reason to outsource is, to delegate the responsibility, process and concern of the administration’s operation. A very important point is, to not have only one provider, as you will end up depending on them, which could in turn give them more leverage. That being said, you should have the following aspects in mind, before hiring a provider to avoid such conflicts:
1) Make sure the provider has equipment that is compatible with the software and hardware, not to mention the operational process.
2) Secure the access to proprietary data and software.
3) Have a contingency plan.
