Offshore Software Outsourcing … Does it make sense?

Brett MillerOffshore, Outsourcing, Software Development0 Comments

Many organizations are being enticed by the promise of short-term financial savings and long-term staffing elasticity anticipated through offshore software outsourcing. However, it is prudent to remain cautionary before taking that leap abroad with your next development project. There are pitfalls that exist with offshore development, and those pitfalls may cost you more than you are willing to pay. Understanding the inherent challenges (and potential benefits) of these efforts will permit you to make the right decision for your development needs.

Poor Offshore Software Development Scenarios:

  • Significant end-user involvement during the lifecycle.
  • Integration with other systems.
  • Undefined or unclear business rules.

Better Offshore Software Development Conditions

  • Clearly defined objectives and project specifications.
  • Modularized tasks (black box of functionality).
  • Industry neutral tasks (understanding business is not critical to successful task completion).
  • Flexible delivery dates (as more renditions of betas may be necessary).

Offshore Software Outsourcing Critical Prerequisites:

  • Users must be willing to make a much larger commitment of time for communication.
  • Requirements must be very clearly defined.
  • Testing procedures must be more thorough.
  • The offshore team must have strong communication skills in your home language.
  • There must be a proven track record of success with many American companies.

It is common to overestimate the potential savings and underestimate the higher project failure rate when evaluating “offshoring”. Offshore labor rates that are lower than those in the U.S. can be a blind trap. Cultural differences, plus language and communication problems can become major issues that thwart project success. We suggests a hybrid approach. The solution is to offshore those portions of the project that are clearly defined, while the onshore team handles the more grey areas of analysis, design, and defining specifications. It takes advantage of the best of both worlds, allowing for full coordination, project control, and time management onshore, while accessing the reduced-cost offshore labor pool where it will proffer the most savings.

Now more than ever business success means utilizing technologies and resources more cost effectively. Knowing how to get there is the key to profitability. Software development companies can bring their highly qualified staff and industry experience to your development project and provide you with the energy and capacity to achieve your goals. Plus, they can assist you in analyzing what may and what may not be appropriate to take offshore.

Want more info to help you decide if you should outsource your application development? Give us a call!

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