At present, we can safely say that the outsourcing market in the world has reached a stage of maturity: customers are ready to hand over, and contractors are ready to take over almost all business processes.
IT outsourcing is especially popular. This is primarily due to economic reasons. According to SODIT, software outsourcing cuts companies' costs by 30-60%, not because of its low cost, but because of the ability to optimize costs and increase business flexibility.
Maintaining your own IT staff is more expensive than hiring a team of professional developers. If the services of IT specialists are not needed all the time, but from time to time, the economic feasibility of creating an IT department is reduced to zero.
Advantages of software outsourcing
- A ready-made staff of professionals. There is no need to look for qualified specialists in the labor market or train your staff. The professionals from the outsourcing company are ready to go. It is especially convenient to use the services of contractors in project work or during the season. And subsequently, the employer will not have a headache on how to fire an unnecessary employee.
- Turnkey work. The involved IT specialists undertake the entire project: survey of business processes, development, implementation and maintenance of the system. The only thing that is required from the employer is comprehensive interaction and assistance. This will help you achieve the best results as soon as possible.
- Various options for the price model of work. In different cases, you can use the most convenient payment method:
- Fixed Price - fixed price and fixed terms, detailed specification;
- Time and Material - labor costs with a focus on the best end result;
- Fixed Budget - work within the established budget with the priority development of the main functions.
In other words, outsourcing is a great opportunity to entrust the complex software development process to professionals using the most optimal payment method.
Disadvantages of software outsourcing
- May be more expensive if used regularly. Usually, hiring a specialized development company is cheaper than setting up your own IT department. The employer saves on wages, tax deductions, no need to create new jobs, management, downsizing risks, etc. If IT outsourcing services are required constantly, it is worth considering the feasibility of expanding the staff.
- Communication problems are possible. Some employers believe that all stages of approvals go through too long with outsourcers, there are difficulties in explaining the specifics of the business, etc. But often the customer is to blame for this.
The problem of communications can arise when not the final section of the process is transferred, but only one step, while the rest of the sections "freeze" without having persons responsible for them. To avoid inconsistencies, you need to build the work correctly:
- Product Owner and Project Manager should be engaged in the formation of requirements for the product;
- formalization of the task - Project Manager and analyst;
- direct software development - Developers;
- testing and debugging - Testers and Developers.
If a company wants to deal exclusively with the formation of requirements, in addition to developers, it is necessary to outsource the Project Manager, analyst and testers, otherwise you should not count on the high-quality performance of the task.
When there are no formalized requirements, programmers "think out" themselves, but their vision often does not coincide with what the customer imagines. Hence - a mismatch of expectations.
If there are no testers, programmers debug only the basic "behavior" of the program. And when it goes to work, errors begin to appear in those scenarios that programmers could not guess about. Hence - dissatisfaction with the quality of work.
The absence of a Project Manager leads to the constant emergence of new wishes from the Product Owner, which often contradict each other. Programmers begin to rush between tasks, and as a result, deadlines and budgets are inflated, but there is still no finished result.
When ordering outsourcing of software development, you should not expect the contractor to work completely autonomously. Only thoughtful interaction and reliable first-hand information will ensure a well-coordinated work process and a high end result. You can consult on outsourcing software development here https://digitalsuits.co/
Conclusion. The pros of software outsourcing are much more powerful than the cons. Therefore, most companies regularly engage with external specialists. But in some organizations, decisions to outsource third-party developers are still painful and time-consuming, as employees think outside pros are here to take away their bread. Nevertheless, Western experience and successful cooperation with contractors of other companies convince even its once inveterate opponents of the benefits and convenience of outsourcing. #outsourcing #development