Software development outsourcing – why you should use it.
If there is a thing that we cannot do more efficiently, cheaper or better than a competition, there is no point in doing it further – we should hire the one who does it better than we do.
This sentence was said by Henry Ford in 1923 and he didn’t know that it was the first definition of outsourcing.
The key benefits of outsourcing are:
- minimising number of employees required ( only qualified personnel for essential tasks)
- getting highest quality services based on the experience and specialization of companies providing them
- reduction of capital expenditures for the maintenance of technical and organizational base of entrusted activities
- unburden various departments in the company, for example: supply, recruitment etc.
Reduction of operating costs is the main reason why outsourcing is used by companies. But it’s worth to mention that the cheapest company is not the best outsourcing supplier. Value for money is more important parameter than low prices.
When it comes to programming outsourcing, companies mostly operate using offshoring and nearshoring method.
Offshoring
Transferring selected business processes abroad which main purpose is costs reduction. Offshoring beneficiaries are usually poorly developed countries with lower labor costs, for example. China, India and Brazil.
Nearshoring
Transferring selected business processes abroad to countries that are similar geographically and culturally ie. CEE countries. Those countries besides that are more expensive than offshoring are do very well through high quality of their services.
Offshoring czy nearshoring?
Both sides – client and contractor – must be certain that they understand each other. Therefore cultural similarity and lack of barriers arising from it result in risk reduction and in higher standards of implementation. In this regard Poland is closer to western countries than to Asian countries. Similar environment affect in similar problem of perception and their effective solving.
Management of cheap, poor quality product may generate additional costs (fixing bugs, deadlines postponing, etc.) therefore the best solution is to find trustworthy business partner. One can be more expensive at first glance than others but eventually thanks to professional attitude, good communication and hourly project accounting will result in substantial reduction of costs.
Guarantee of operational reliability and implementation of the project is important. A good working environment is based on recently available supporting tools, thanks to which work on the project keeps its track. (More about development process here https://devpark.pl/srodowisko-developerskie/).
