Outsourcing Software Development

Outsourcing software development and support services has gained major prominence in the last few years. Many businesses have adopted outsourcing model and widened their profit margins. One of the crucial factors in software developments outsourcing is the cost factor. Thus outsourcing has proved to be a fortunate thing for many businesses.

Humans have been practicing outsourcing since a very long time. Having someone to fix up electrical fittings in your house is also a kind of outsourcing. However, outsourcing potentially became a buzzword when it spread across IT and ITES domains, crossing various geographies. Outsourcing essentially means defragmenting the operations into individual processes and giving it to a specialized company to handle it. These individual services can be procured at much lower costs than what it would have required otherwise. The overall effect turns out to be a cost effective proposition for the organization outsourcing its operations.

First sector to tap on this vast potential of cost effective solutions was IT (Information Technology) and thus was born outsourcing. The underlying factor for software outsourcing has been ‘buy it cheap’, however, the importance of efficiency, quality, and productivity was equally stressed. Apart from software development outsourcing, businesses also grew in medical field, legal practices, financial markets, gaming, publishing, and so on. Outsourcing soft dev essentially deals with covering every aspect of software development cycle with occasional visits to the client’s base location, if required. Most of the S D outsourcing businesses trade in support, maintenance, and testing services.

Though outsourcing software development or outsourcing of any sort for that matter had been surrounded with controversies for some time, it has accelerated the growths of the individual companies as well the sector as whole. Software development outsourcing has helped the global economy gain financial growth. With the technological advancements in communication and computing techniques, software development cross-selling has broken all regional barriers. Economies of many developing nations like India, China, Philippines, and other European nations have strengthened with the outsourcing phenomenon.

Outsourcing software development certainly proves to be an inexpensive equation when compared to same operation done onshore. It is a win-win situation for the companies, the one which outsourced the work and the other which took up that work, when viewed from a cost-effectiveness angle. Also with globalization and lot of vendors pouring in, the competition is increasing in this space. All this leads to better quality procedures and policies being implemented and followed in an attempt to reap some profits from outsourcing bash.

Jeff Smith is the managing director of Karma Technologies and feels strongly about implementing ways to be green into their business practices, to a point they are almost a paper-free company.

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