The Pros and Cons of Outsourcing Software Development

Published: 16th July 2010
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With the ever growing competition in the business world as well the challenge involved in meeting the needs of individual clients, we have seen a rapid change in the world of software development. Software is created and developed in order to cater to these needs. It plays a very important role, from maintaining the inventory to keeping accounting records in various companies to mobile applications. The word 'outsourcing' is not new to us. It is the act of contracting with another company to get their specialized services to do a particular job on payment of money. It helps the company to focus on its core functions while having the details taken care of by outside experts.

Outsourcing provides with many opportunities to expand your business and save money but it has its limitations as well. It eliminates direct communication between the company and its clients which often leads to dissatisfaction. Now-a-days every organization outsources in some way or the other. Typically, the non core activities of any business are outsourced. An IT company, for example, may want to outsource its landscape operations to a firm that specialize in those types of work since they are not directly related to IT or strategic to the business. Outsourcing software development is not a new practice and when it comes to offshore outsourcing India is considered among the leading players. Many firms want to outsource software development to India due to India's growing technological prowess.

Many companies today prefer to outsource software development which helps them save time and money and focus on their core functions. There is an array of firms all over the world which specialize in software development services. However, companies should analyze various aspects to see if it is viable to opt for outsourcing so that it does not become a reason for the company to regret.

There are many pros and cons of software development outsourcing. We tend to lose the managerial control when we outsource a business process. While outsourcing software development services, you must also be careful in determining that confidential information about your company is not given out. It is on the part of the company to minimize the limitations of outsourcing by considering various aspects with great care.

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