software outsourcing

A blog related to software development company and offshore software outsourcing

Wednesday, May 04, 2005

Software outsourcing issues

Software outsourcing is used as a measure to cut the cost on resources and concentrate on core business. However it can be an expensive affair if it is not managed properly and in turn can be a failure.

According to Gartner one out of every four outsourcing deal is failing at present. Many industry analysts believe that, very few number of outsourcing projects are problem free. There are many reasons for the failure of outsourcing project. Software outsourcing doesn't mean giving requirements and forget about it. It is a delicate issue and should be handled with care. There are many issues which creates problem like source code ownership, communication time difference, communication methods, cultural difference etc. However, though it is risky and problematic, an experienced manager can always get maximum benefits from outsourcing. Thats why, companies around the globe are using offshore software development to reduce the cost, access advanced technology, compensate for a lack of skilled IT workers, improve business efficiency and remain competitive in global market. A successful outsourcing relationship requires vendor and buyer to communicate and work simultaneously together and solve each issue step by step.

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