Can anybody argue the point that software development outsourcing was invented for cost cutting? If there is anyone who can, he must oppose the army of IT-analysts who are firmly convinced in positive effect of different kinds of outsourcing. Moreover, both customers and developers are interested in outsourcing market expansion.
Perspectives of customers
Every customer intends to save as much money as he can. Qualified developers on-staff scarcely see through meeting such an objective. They wish their labor to be paid higher than results of other specialists who are not in such a demand. And managers won’t lose any opportunity to cut down expenses by outsourcing of time consuming tasks.
According to the data of Computer Economics, the major part of developments passed to foreign companies is related to applications. You can’t fail to notice one distinction – outsourcing is efficient when terms are limited and working scale is rather large, but scarcely for costs reasons.
The numbers tell the stories best. During the research 46% of respondents have admitted that the cost of outsourcing development is higher. And 58% of respondents paid attention to the fact that quality of outsourcing services and services of companies own staff is equal. It works out that cost efficiency isn’t real, doesn’t it?
Developers have their own aims in outsourcing
For developers outsourcing has two directions. One is to develop software of their private label. The other – to process orders of foreign customers. Many developers from Eastern Europe know that for mobile development in USA requires services of offshore companies.
It is a good way to earn and to save money as well for them. They don’t have to pay for advertisement and promotion of their products. The only thing they have to obey – requirements to developers’ qualification and language proficiency.