Outsourcing Software Development vs. Development Center Establishment

Outsourcing Software Development vs. Development Center Establishment

Outsource IT to Ukraine

Having won many appraisal rewards, Ukraine is definitely among the most attractive IT outsourcing destinations in the world. It is ranked the first in Central and Eastern Europe and enters the world top thirty.

For several years running, Ukrainian IT outsourcing industry shows a stable growth, notwithstanding the global financial ups and downs. For the last 5 years the volume of Ukrainian IT service export market has doubled – with today volume about $ 1 billion it is the fifth in the world. It proves not only the potential of the industry, but also the stability for long-term prospects.

About a thousand companies are represented in Ukrainian IT outsourcing – covering almost all technical specializations, industries, types of services and fitting all customers’ directions and sizes. The advantages are evident: cost efficiency, big pool of high-qualified specialists, European business standards and standardized quality systems (ISO, CMMI), applied by IT service providers. Geographical location makes Ukraine no more offshore, but neashore destination for European customers and hi-tech century makes no obstacles for successful cooperation with the Americas.

So, the facts are vivid: it’s advantageous to outsource IT to Ukraine. But the message is not new – lots of research agencies herald it. How to outsource to Ukraine is not also the point of its article – all the hints and instructions are easily found in the manuals of global level outsourcing professionals. The question is what outsourcing will you choose?

Two ways to outsource

IT outsourcers are flexible in offering the customers of the methods and models of cooperation. Whatever you are offered can be divided into two main directions – “pure” outsourcing and your own development center establishment. None is the best or the worst – each just pursues different aims and is applied for different strategies of your company’s IT development.

What is “pure” IT outsourcing? It’s when you place some IT process / processes of your company to a service provider team. What is development center (DC)? It’s when you place some IT process / processes of your company to a team, established and supported by a service provider. The difference in output is: in first case you possess the product created / services provided, in the second one – you own the product created / services provided and the team, who executes it. Operation costs for both models differ slightly, except for the start-up and closure costs, which should be born for a development center. These two outsourcing approaches has been also much elucidated by the analysts, so we’ll offer you the hints to choose a more appropriate way for you company, if you’ve decided to  outsource.

Questions to answer before outsourcing

Is the IT process to outsource a task to solve or a part of strategy?
For the purpose of solving an IT task for better performance of your company – both variants are suitable, depending on your preference. But if it is a part of your company’s long-term IT development strategy – think about the DC establishment and it will be the part of your company, and thus will best serve for the overall strategic purposes.

What extent of control and management is more suitable for you?
The transparency of the processes for the services provided is very high nowadays among IT outsourcers, so, you can gain full control over your project in both approaches. But if you want to manage the process, the team and the costs yourselves and you have the personnel and possibility to do it – go ahead with the DC.

Are you ready to be involved in the process entirely?
Your engagement in the technical aspects of the process in the “pure” outsourcing approach depends on your wish and abilities. Anyhow, you won’t be involved into a staff routine – study, social support, teambuildings, etc. The DC approach presupposes your complete engagement into the both aspects. It requires certain efforts, but you’ll create the team with your own methods and culture – more fitted for the strategies achievement.

What approach to choose – is up to you, and our company – Softengi – can support you in both cases, offering stable, high-level services and reliability.

Being professional IT outsourcing service provider with a fifteen-year experience in the field, we specialize in both – outsourcing software development and development centers establishment and operating. In both we cover the complete cycle of the processes.

We’ve been providing services for our customer from almost all the industries, with a profound experience in banking, finance, insurance, government, environment, health and safety. The geography of our projects now embraces USA (TX, CA), Switzerland, Germany, Belgium, Greece, Ukraine, Georgia. The sized of our project varies depending on our customers – form rapid fixed projects to the ten-year long ones with a hundred FTEs involved. We are always up-to-date and up-to-market, so you will, for sure, find our support in the majority of technologies and services ranges.

Author: Softengi


    Popular posts

    Related posts