Advantages and Disadvantages of Software Outsourcing

The software industry is developing at a rapid pace and companies are increasingly feeling the need to hire qualified professionals who can offer them the requisite support. The option of software outsourcing firms is gaining huge popularity to help satiate large establishments and their rising software related requirements. Not just big businesses, even small businesses can benefit from the assistance of outsourced software services to cut costs. In fact outsourcing software requirements to establishments effectively monetizes spending of business players.

Consider this, 40% of the Fortune 500 companies including Motorola, Microsoft, GE, Oracle, Lucent are taking advantage of outsourcing today and the list of companies is steadily growing, with software outsourcing being the lead area. The objective for this move is to ensure maximum ROI while reducing costs and an effort to ensure that the company remains a leading player in the industry. Companies stand to save anywhere between 40%-70% by adopting offshore software outsourcing.

However, software outsourcing requires proper synchronization between teams to help the company attain its goals. Every year an increasing number of software engineers emerge from Indian universities. Knowledge of English and a tendency to update their knowledge according to requirements makes Indians a popular option for foreign companies to hire them for software projects, as and when required.

Employees of software outsourcing firms benefit from special tax benefits and even the ability to switch jobs according to the pay offered and convenience. However, employees shifting to jobs which offer greater remuneration might not work well for the employers of software outsourcing services. For the software engineer, the fear of a project closure would result in serious health problems and even monetary woes. Time difference between countries could also spell problems for companies opting for outsource software services.

In today’s scenario most businesses have technology in their hands, require delivery in possible least time, less skilled personnel available, discrete communication and inefficient management of various modules within a large enterprise – it appears that outsourcing software services is surely a safe bet in these circumstances.

Offshore software outsourcing can be difficult to implement, controversial and confusing. There is no dearth of information resources available online to help you choose the ideal outsourced software consultancy for your needs. For enthusiastic individuals who want to set up a software outsourcing consultancy at home, remember, you need to have the ability and time to manage the product requirements of a large or small establishment. You need to understand the premise of the project before you undertake it and cater to the changing demands and requirements of the market.