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Why has outsourcing software development become such a widespread practice? You guessed correctly — it brings you together with some of the most proficient experts in their field. But you probably know that already since you’re reading this post. Keep it up if you want to discover what software outsourcing is and what the advantages and disadvantages of outsourcing software development are. Let’s dive in!
Software outsourcing is the practice of transferring software design, development, and support services to a specialized vendor. The contractor can be entrusted with the entire system (full outsourcing) or its individual components/services (partial outsourcing).
What we love most about outsourcing is that you can outsource literally anything: from developing an entire enterprise solution or an all-encompassing platform to building an MVP or a tiny mobile app. On top of that, you can outsource specific phases of the software development life cycle (SDLC) like discovery, engineering, testing, or maintenance separately, as well as additional IT-related services like marketing, project management, and business analysis. Heck, even CTO duties can be outsourced today.
Outsourcing had its ups and downs: the market size of outsourced services was $45.6B 20 years ago, peaked at $104.6B in 2014, and went down to $92.5B in 2019. But as the global lockdown hit, even the most traditional companies started looking at outsourcing as a way to contract outstanding software professionals, regardless of their location. Outsourcing also helped many enterprises continue business operations even when their earnings dropped. All thanks to the competitive rates outsourcing vendors usually offer.
You must have already heard about the famous software outsourcing perks of cost-saving (thanks to the low cost of living in the countries that outsource most often) and access to the global talent pool (because you’re not limited to your local talent anymore). But there are less obvious reasons why it’s a good idea to outsource software development:
The bad news: outsourcing does have its downsides. The good news: we’ll tell you how to overcome them in the next chapter. But for now, let’s see what disadvantages software development outsourcing isn’t proud of.
But fear not: you can overcome these disadvantages. All it takes is a little extra work.
Follow this table to discover how to handle the cons of outsourcing software development.
|Lack of loyalty||Try to be as involved in hiring outsourced team members as you can (or feel comfortable) to make the process close to hiring an in-house employee (minus the headhunting and shortlisting candidates)|
|Outsourced employees feeling distant||Put extra effort into making your outsourced team feel included. Communicate with them often, organize video chats with other teams, come visit them if you can, or invite them over. Celebrate your accomplishments together, and don’t forget to mention their part in achieving them.|
|In-house employees feeling threatened||Take your time to explain to your in-house employees that you are going to outsource certain services and why. The more information they have, the less hostile they’ll be toward the outsourced team.|
|Different quality standards||First, be strict and open about your code quality requirements. Second, select an outsourcing vendor with high quality standards and seasoned QAs. A trusted software company will be happy to share information about its standards and the quality assurance process and include it in the outsourcing agreement.|
As with everything in life, there are two sides to the software development outsourcing coin. A quickly assembled team of professionals delivers your solution at a reasonable price whilst you’re focused on more important business aspects. However, you also risk working with mediocre developers who don’t care about your company and its success. The only way to make outsourcing really work is by taking the time to find a reliable partner.
Postindustria would be glad to become such a partner for you. We can boast dozens of successful projects, so don’t hesitate to contact us today. Let’s build your next great solution together.