Advantages and Disadvantages of Outsourcing Software Development

Outsourcing software development projects can be tricky. This guide will outline the advantages and disadvantages of outsourcing software development.

In this era of automation and artificial intelligence, the need for software development technologies is at an all-time high. This all-time high was tremendously accelerated over the last year due to the coronavirus pandemic, which made the need for a digital transformation more necessary than ever. While large companies have been tackling this head-on due to huge budgets, small and medium businesses are now coming on board and realizing that these technologies offer amazing benefits.

In these instances, it may be significantly more beneficial to outsource software development instead of wasting resources to achieve in-house software development.

Outsourcing has numerous advantages as well as disadvantages. The key to deciding if you should outsource or not varies from situation to situation. This article seeks to assist those who are thinking about outsourcing software development. It outlines a few of the advantages and disadvantages that you can experience during outsourcing software development.

Advantages and Disadvantages of Outsourcing Software Development

Advantages of outsourcing software development

Access to a wide pool of experts

Access to a wide pool of experts

The first pro of outsourcing software development is the opportunity to access a wider pool of world-class experts. Outsourcing your software development project gives you access to some of the top software development countries on the planet and their vast pool of experts. These software developers are all well-trained and have been in the business for years. They can substantially improve your business’s performance and skyrocket sales by implementing the necessary expertise using their particular set of skills to deliver outstanding results.

These days, outsourcing work is no longer only a good idea to save some extra money. It’s about finding the right talent at a reasonable price. For example, the price for hiring a US developer in the US is pretty high. Furthermore, paying a higher price doesn’t always equal quality. Therefore, it’s not that companies can’t find devs in the US but rather because they want to find talented developers at a more reasonable price.

Faster turn-around time

Faster turn-around time

Relying on an in-house software engineering team, especially if they are still learning, can be a long and slow process. If you are in a competitive market, time is essential, and if you’re slacking, competitors can overtake that market. To maintain that competitive edge, outsourcing your software development project can always keep you one step ahead of the competition. In this instance, your employees can focus their respective tasks, and the expert third-party vendor can work on the time-consuming tasks.

Focus on business goals

Focus on business goals

With your software development project in the hands of experts, there is more time to focus on other aspects of your business. You can strive to work on the business’s long-term goals and start implementing ways to achieve them. Benefits include strengthening and improving the core processes that help your business improve is a guaranteed step to continued success.

Reduce risk

Reduce risk

As with any project, the most important factors are risk assessment and analysis. Many times you will find that the software engineering company may also offer software testing services as well. This way, you can ensure that the software you introduce to the public or your employees is free from defects and works as it should. The expert’s ability to plan and mitigate potential risks will ensure your project goes smoothly as possible.

Cost

Cost

Above all the pros of outsourcing, the lower cost of outsourcing any software development project is possibly the best one of all. Having an in-house software development team is excellent but hiring local software developers can come at an unbearable price. Outsourcing your software development projects has shown to be significantly lower than any in-house software development project. This cost-effective solution can save your business a great deal of capital which can then be used to enhance your business further.

Simplified project management

Simplified project management

Managing an offshore software engineering team can seem intimidating but clarifying a few steps from the get-go can make managing the project easier. Most companies will schedule meetings and assign a team leader to report on the progression of the project as it goes through the various phases. This keeps you involved in the process so that in the event of a bump in the road, you’ll be kept in the loop.

Better work relationships

Better work relationships

Outsource software developers are out to make their stand and to prove to the world that they should be taken seriously. The benefits of this type of thinking involve the need to churn out the highest quality of work possible and create the best working relationships. In-house employees can sometimes get too close which may lead to issues when work is being done at a sub-par level.

Expand and grow

Expand and grow

With the help of experts, the opportunity to expand and grow is highly possible. These individuals have years of experience and may advise you on different ways you can grow your business. This leads to several benefits and puts your business on a path you never thought possible. Not only can they guide you in new directions, but they can also execute those plans flawlessly.

Disadvantages of outsourcing software development

Hidden cost

Hidden cost

There is no doubt that outsourcing your project can be cheaper. However, read carefully as you may encounter an offshore company with hidden costs. Be sure to discuss everything from the beginning while you are still scouting for a software development company. If offered a contract, read it thoroughly and pay extra attention to the fine print to save yourself from incurring additional costs.

Security risks

Security risks

In today’s world, misuse of personal data has had a crippling effect on many individuals and companies. The security risk is extremely high for your business when outsourcing projects that require the use of personal information. There is potential for that information to get misused and passed on to unauthorized persons who can wreak havoc on your customers and business.

Quality Control

Quality Control

The reason you need to choose a well-established and highly-recommended software engineering company is that you are going to be guaranteed favorable results. If the time is not taken to research the company before settling, you may end up with a company that is motivated by profit more than the quality of work they produce.

Failure to deliver

Failure to deliver

It can be dangerous to put your business’s financial-wellbeing into the hands of another company. What happens if they fail to deliver? Do you get a refund of the amount you’ve paid thus far? Again, a good read of the contract if you were offered one should have stipulations for these situations. If not, be sure to ask these questions before you start the process of working together.

Public Backlash

Public Backlash

Companies outsourcing work to countries overseas may face a public backlash if word gets out. Some consumers may take a moral stance against outsourcing. However, all businesses, at some point, will face public backlash, whether they outsource or not.

Different time zones

Different time zones

Being stuck in different time zones is both an advantage and disadvantage of outsourcing. It is advantageous, as discussed earlier but can also be a disadvantage as well. It can be hard to synchronize schedules to ensure that you’re in the loop all the time. If there is a need for something immediately or a question answered, the third-party vendor may be unreachable.

Lack of focus

Lack of focus

Outsourcing agencies and vendors may take on more than one client at a time. With multiple clients, your project runs the risk of not receiving the focus it needs to guarantee favorable results. This lack of focus and attention to detail can be detrimental to your small business. This is why you need to pick carefully and find a reputable company that has a dedicated team for each client that they sign.

Things get lost in translation

Things get lost in translation

Outsourcing work to overseas companies via telephone or email can lead to things getting lost in translation. This is greatly increased because the native tongue of most software development companies’ employees may not be English.

Moral dilemma

Moral dilemma

Much like consumers, you may feel guilty about outsourcing your software development project rather than going with a local developer. This personal moral dilemma can evoke feelings of guilt when you realize you are not contributing to the economic growth of your community or country.

Conclusion

Conclusion

In the end, there are numerous benefits and risks involved in outsourcing your software development projects. The advantages and disadvantages of outsourcing software development will vary from project to project. Remember to weigh the pros and cons of outsourcing before deciding to outsource your project. If the pros of outsourcing outweigh the cons, then move ahead with finding an offshore software development company to get started. However, if the cons of outsourcing heavily outweigh the pros, then we’d recommend you to stay on the safe side and assign your project to an in-house or local software developer.

Topics: Software Outsourcing

Linh Nguyen

Linh Nguyen

Technical/Content Writer

Linh Nguyen is a technical writer who conveys technical matters and information into writing