Advantage and Disadvantage of Offshore Software Development Service

Article Written By: Arbertech

Offshore Software Development has emerged as one of the most successful business strategies in today s world. It facilitates the companies to focus on their core activities while at the same time providing them with a means of fulfilling their business requirements and that too in a cost effective manner. It has thus, become a necessary strategic tool for companies to gain the competitive advantage by staying ahead in their own market in ways different than their competitors.

It has become a trend in the technology sector owing to an array of its multi-dimensional advantages:

Cost Savings: Offshore development helps the companies cut the ever-rising costs in the technology sector significantly, while getting their projects completed successfully.

Quality Software: Outsourcing scores more than in-house software development in terms of quality. It focuses on software development process and let you focus on your core competencies peacefully.

Competitive Edge: The companies that outsource their projects are in a better position to find appropriate talent for their projects which apart from giving them a competitive edge enhance company portfolio.

Enough Time-to-Market: The companies get enough Time-to-Market and formulate effective marketing strategies apart from implementing new concepts and ideas related to their products by outsourcing their software development burden.

Risk Mitigation: Offshore development shares the risk factors of a software development process. Outsourcing projects sublet s down the risk factors as the projects are handled by experts who are engaged to solely concentrate upon such projects.

Offshore development s disadvantage:

Loss of Managerial Control: The service provider is a separately managed entity. The contract between the provider and the client may overlook certain factors, which could result in a total mismatch of policies of both parties. It may be much easier for the client to get the job done by its own employees rather than someone else over whom he has no control.

Communication Gap: The communication gap between the country where it is being outsourced and the company that required it can also negatively impact the business.

Hidden Costs: The very idea of outsourcing is that it would help enhance the profit margin of the client company. However, very little attention is paid to the costs involved while engaging a vendor.

- Often a client seeks a consultant (who has to be paid a handsome amount in return) to help hire a vendor. If, on the other hand, the company takes it upon itself to hire a vendor it would mean waste of precious time and labor.

- Contracts have to drawn between the vendor and outsourcer, and old ones may have to be renewed from time to time. Coordination between the two sides has to very high to avoid the legal costs cut into the profit. The expectations on both sides are often unrealistic.

- The employees of the vendor company may require training to sharpen their skills and make them more competitive.

Threat to Security and Confidentiality: Some matters are by nature meant to be confidential. For example, vendors dealing with salaries, bank accounts and financial matters have to maintain high levels of confidentiality and secrecy. Any breach can result in irreparable damage to the reputation of the provider. Both the outsourcer and the vendor have to guard against frauds.

Inflexibility creeps in: Another great disadvantage that outsourcing can cause is that the outsourcing partner may turn out to be inflexible to changes in business environment. The focus on the consumer is lost as also the need for sharing the cost savings.

Political, cultural and Language problems: With offshore outsourcing, there is greater risk of the outsourcer being entwined in the politics of the vendor nation or of at least be affected by the political instability in the region. Thus, smooth functioning could be hindered.

To avoid offshore development s disadvantage company should have pay attention while select right service provider:

Do s and Don ts to select a right service provider:

We Should Do (Do's)

- Pick established partners. Check them out. Talk to their existing customers

- Familiarize with the services providers' way of doing business

- Target service providers with relevant experience

- Be aware of the benefits new technology can bring

- Be sure you get what you pay for. What you are aiming to find is a company that will generate a good quality result

We Should Not Do (Dont's)

- Never ever trust an unknown company

- Failing to talk to a provider's current and former clients

- Failing to consider the long-term relationship dynamics

- Think before you run for cheaper services

- Not to use old business models and superimpose new technology on them. New technologies demand new business models.

About the Author

Arber Technologies is one of the best software development company in India.

You Can Link Directly to "Advantage and Disadvantage of Offshore Software Development Service" by using the url:
http://www.allbestarticles.com//computer/software/advantage-and-disadvantage-of-offshore-software-development-service.html

This Article Has Been Published on Tue, 26 Oct 2010 and Read 419 Times

Find All Best Articles at http://www.allbestarticles.com

Rating: Not yet rated

Comments

No comments posted.

Add Comment

You do not have permission to comment. If you log in, you may be able to comment.

Related information on Software

The Advantages of SaaS Cloud Recruitment Software
IBM XIV storage system concepts and implementation technique
Integrate cloud computing infrastructure solutions into IT environment
Database Applications and Kinds of Database Systems
IBM system storage DS8000 implementation technique
Campus management ways simplified with a technical system
Online Forms For A Better Response
Save Time and Energy With The Best Malware Software Available
Current scenario in IT job market
Customer Relationship Management
Freight Management Solution
Best Rules of Software Development process
Web and Mobile Technology in Shipping and Logistic Industry
Check out the latest Windows 8 News
Time Attendance Recording Systems – Increase in Productivity
Protect Your Data with Disk Image Software
Why Biometric Technologies are catching the eyes of security equipment manufacturers?
Why a Small Company Should Go For IT Outsourcing
Software Quality Assurance
High End Security Solutions - Biometric Access Control
Voice Biometrics Solutions Against Fraud
Voice Recognition Technology
Why You Should Choose Voice Biometric Solutions
Office instant messenger is a paramount to fix office communication problems.
UC Browser 7.7 English Version