Globalization and new cutting edge technologies have changed the way businesses function. Many companies now outsource software development work and at present IT outsourcing is a wide-spread phenomenon around the world. So, what is outsourcing? Outsourcing is delegating software development or services, in full or partially, to foreign software development companies.

Because of many advantages outsourcing is rather attractive but at the same time it can be quite risky. Project managers and business analysts have to identify and assess risks before their companies outsource software development services. What are the factors that should be considered carefully before taking the final decision?

Cost of the software project

As a rule, the cost of the outsourced software development project is considerably lower due to lower labor costs in places where the project is outsourced. But while considering the reduced cost don’t forget about accompanying expenses that you can incur while selecting a software development vendor or web application development service provider, transferring the product, clarifying legal aspects and so on. Thus, business analysts should carefully assess all business proposals from software development companies and their ability to produce positive ROI (Return on Investment).

Expertise or special knowledge

If your software development project requires some specific skills or technical experience and experience that your employees or web developers lack, do not waste your time and money to train your employees. It is more reasonable to outsource a part of a project or the whole project to an outsourcing software development company. It’s especially true if you need experienced employees only for one project. Thus you’ll save money as well as time spent for finding a new employee.

Risk reduction

If your company doesn’t want to risk, you can reduce it by outsourcing your project to the IT company that has been working in the required sphere for some time already and has enough experience and practice. Hiring qualified professionals possessing the necessary skills and knowledge is more effective and safe than training your own staff.

Focus on other more important matters

Outsourcing lets companies concentrate on other issues while having their software projects done by outside professional software development companies. Your resources and attention can be used for more important tasks.

While choosing an IT company to outsource you should remember to pay attention to the overall objectives of the software development company. An outsourcing provider should understand your corporate culture and your image and will therefore take pains to keep these areas. It is also advisable for the company to build up good relationships with the software development company they outsource services to in order to avoid miscommunication and information leakage. With all these factors taken into consideration a company can benefit from software development services outsourcing.