Question

Why Software Development Outsourcing is the New Normal?

By jamesscottflorida ·
Tags: Software
Any one please give answer why need software development outsourcing?
4 total posts (Page 1 of 1)  
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Easy...its all about the money

by wizard57m-cnet Moderator In reply to Why Software Development ...

If the cost to maintain in-house development staff results in excessive negative impact on a company's financial statement, the company will look to lower that cost by contracting the software development to an outside organization.
Small and mid-size businesses probably do not have the capital to successfully accomplish in-house software development. In these instances, out-sourced
development may be the only option.

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Money

by fleetbridgeca In reply to Easy...its all about the ...

True. Most small businesses would opt for outsourced software development.

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Software Development outsourcing

by deborasumopayroll In reply to Why Software Development ...

Software development outsourcing as you know, is about the process in which businesses select a third-party service provider offering software development services. They are hired to manage all the tasks involved in a development project without actually being a part of the company payrolls.

Top 5 Reasons Why Businesses opt for Software Development Outsourcing
1. Subject Matter Expertise
“Most companies outsource jobs to reduce cost” – this may not be the biggest myth, but it’s half-truth. Because, more and more software companies nowadays opt for outsourcing to gain the advantage of subject matter expertise (Special Skillsets) and extract the intelligence, which they might be lacking in their in-house team.
Again, this brings in the ‘cost’ factor, as hiring a skilled dedicated resource through staff augmentation is cost-effective relative to the cost overhead of hiring a similar skill employee on the payrolls.
2. No Overheads and Faster-to-Market Deployment
The other top reason why most software development companies opt for outsourcing is that in the absence of any overhead jobs, it allows software development outsourcing companies to complete their tasks under pre-decided timelines, and with better accountability. They can thereby build their products faster while focusing on the other core business areas, and keeping development and other improvements at constant pace, simultaneously.
3. Improved Focus on the Core Business
Focus is an imperative part for any successful business. Focus brings clarity and clarity bring collaborative efforts in the same direction, which ultimately make any business a successful one. This is why leading software companies opt for the outsourcing options and handover the development task to the domain experts to be executed within a shorter time span.
This help businesses and teams to focus on the other core areas of business such as marketing and fund collection. One of the many reasons how most of the unicorn software companies has grown big in a very short time.
4. Risk Management
Software development outsourcing as you know, is about the process in which businesses select a third-party service provider offering software development services. They are hired to manage all the tasks involved in a development project without actually being a part of the company payrolls.

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Outsourcing is the new trend

by vishnuvix In reply to Why Software Development ...

For small businesses ( even a few medium businesses), it's very much economical & beneficial to get the work done by outsourcing rather than an in-house employee.

Calculate all the expenses to maintain an office etc, so an outsourced candidate works better for small business.

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