The software development industry is thriving on outsourcing, and even the tech giant companies have already outsourced a substantial portion of their operations.
Outsourcing is a way of distributing specific tasks within a company to an expert third party. Organizations consider outsourcing when they can benefit from being a “center man” and sending work to external experts. The main reason why these workers are outsourced is because they can completely fit the bill to do brilliant work. Outsourcing frequently happens when an organization or unit inside the organization already has a lot on their plate, or they just simply don’t have the skill.
Here, we are giving you a list of reasons to get a balanced look at the benefits and costs of outsourcing software development.
PROS
YOU GET TO HIRE THE EXPERTS.
There might be few individuals in your organization with the right skills to finish a specific task. There is often a shortage of programmers in specific fields. Through Outsourcing, you can hire or use the skills of a programmer with the ability to fill in just the skill set you needed. By outsourcing your software development needs, you can be sure that the person you are hiring is really competent in his field and has enough experience.
LOWER WAGE RATE.
Cost is probably one of the main reasons why most companies consider hiring an outsourced software developer. The average cost of a software engineer is far less in the Philippines, India, or China compared to countries like the USA or Germany. The average salary for a software engineer in the Philippines is more or less $10,000 per year. The low salary rate is going to save you thousands of dollars, while getting the best quality of work in return.
IT EMPOWERS YOUR IN-HOUSE EMPLOYEES
Since the offshore group will now do the technical part of the job, in-house teammates can step up their load and focus on the other important tasks like administration, sales and marketing, and such.
TIME-BOUND
Employing an in-house software developer every time your business has a “need” for it is a little extravagant. In a well-run organization, the quantity of projects to be finished is regularly manageable, and outsourcing continues to keep the staffing costs low and guarantees that diligent productivity and resourcefulness are being applied.
CONS
IN-HOUSE EMPLOYEES FEEL THREATENED.
Outsourcing can negatively impact company morale. Employees could feel that their jobs are being robbed from them. They fear they might lose their position, and there is often a significant resentment against a company when co-workers are released and replaced with external parties.
COMMUNICATION GAPS
Language barriers regularly end up being a significant hindrance when managing offshore organizations. Software programming might be an international language, but software engineers aren’t really multilingual. Not only is language barrier an inconvenience, but it can also as well prompt fatal misunderstandings regarding pivotal details of a project.
QUALITY
Outsourcing, in its full sense, enables businesses to enhance efficiency. This allows them to stay concentrated on the aspects that are driving the success and development of their business. Allowing outsourcing to play a part in your company is wise and beneficial, you just have to take preventative measures, or get well-acquainted with the third party you want to hire.
At Devtac, we know the importance of CRM in business, and we know what will contribute to your business’s growth. As one of the leading Software Solutions Provider in the Philippines, we can help you achieve your goal. Worried your customers aren’t satisfied? Give us a call or send us a message!
