The advantage of software development outsourcing is not a new concept to business software users and developers.
Rapid development in computer and internet technology made software development outsourcing a viable cost-cutting solution as early as the 1990's when the Bureau of Labor Statistics recorded labor productivity increases that were substantially higher than had been seen in almost twenty years. This trend continues today.
As the years passed, economists searched for an explanation for this sustained growth, as traditional measures and expectations did not seem sufficient to justify the story the reported numbers were telling.
The answer came as a surprise to those who tracked the numbers, but not to the savvy businesses that were already implementing outsourcing strategies.
Overseas outsourcing had extended beyond the manufacture of durable consumer goods and has spread like wildfire through the technology sector, with software development outsourcing in the forefront.
The benefits of software development outsourcing are many, and the approach can be incremented to ensure a fit with any business model.
Developing software internally is taxing in both resources and revenue. Engaging key personnel in secondary tasks reduces productivity at the expense of payroll dollars.
Software development outsourcing allows your company to keep key personnel focused on revenue generating objectives such as increasing sales and market presence.
Adding internal staff for a new production project increases overhead and risk. Recruiting unproven talent is an expensive and time-consuming measure that may not produce optimal results.
Outsourcing your software development to overseas companies with proven talent greatly reduces this risk.
Offshore software development vendors should be hired on a trial basis. This can be done with a small project or a segment of a large program. This will allow you to evaluate their approach to the project and to establish the confidence level needed for a long-term relationship.
After establishing a comfort level with an offshore software development firm, you can begin to realize the advantages of forwarding both large and small projects to them.
Software development outsourcing introduces your business to a large pool of qualified programmers and software engineers who will produce the same product at a reduced labor rate.
The outsourcing affords the luxury of employing more resources for the same cost as one employee hired to work internally. This means that time-sensitive projects are brought to market many times faster than with internal development.
The reduced overhead associated with software development outsourcing means higher potential profits at the retail level and less costly project termination.
This reduced overhead opens more options for competitive pricing and market presence without large sacrifices in margin, allowing you to recoup your development dollars in a timely fashion.
Retaining a Dedicated Team
The benefits of software development outsourcing to overseas companies extend beyond one time product development and increased resources.
Maintaining a continued relationship with your offshore vendor means having a dedicated team to work on your projects. This increases the comfort level and productivity of future projects, as your expectations and deliverables become well understood by the dedicated development team assigned to your firm.
Overseas software development can also be utilized to customize current software applications for specific client uses, enhancing the marketability and profitability of existing software packages.
Housekeeping tasks such as website development and website maintenance can also be outsourced overseas, freeing up valuable internal resources.
The overseas development team that you employ for software development can also be employed as a postproduction support team for your business and as a help desk for your customers.
The benefits of software development outsourcing have stood the test of time. The undeniable long-term benefits and low risk make offshore development a proven model for success.