software outsourcing

A blog related to software development company and offshore software outsourcing

Friday, February 03, 2006

Software Development Outsourcing Projects

The companies that are doing Software Development Outsourcing projects to reduce the costs, sounds like a good idea, but, despite its benefits, IT Outsourcing carries significant risks. Though some of them might not be aware of it, but by exploring significantly less risky options than traditional outsourcing one can investigate some more effective alternatives in Custom Software and IT Outsourcing.

Software Development Outsourcing projects typically follows a single strategy in the traditional approach, but its begin by negotiating a contract, which may be based on documenting and validating fresh requirements, previously defined requirements or may include the effort of gathering. For developing the system the outsourcer then works to vendor requirements, typically off-site at its location. E-mail and teleconferencing for regular communication helps in resolving the potential misunderstandings while doing the process of Software Development Outsourcing process. The system is eventually delivered and taken over by certain companies for operation and maintenance or, if vendor prefer, the outsourcer will perform these lucrative activities for the Software Development Outsourcing team.

The Offshore outsourcer often follows documentation heavy processes in an attempt to bridge the communication gap, which require vendor to review and sign-off each segment before the next stage of work it would proceeds. In theory it sounds great, but most of the firm needs Software Development Outsourcing, and not documentation development. The 500 page architecture document may appear impressive when read thoroughly; vendor accounted for the additional costs would be big question. The Software Development Outsourcing team reviews the documents in a timely manner, and puts the project timeline at safety.

Software Development Outsourcing

The Offshore outsourcers may not know vendors domain, may not speak their native language, while to make the communication challenges worse, and certainly don’t know the exact nature of vendors company’s culture. Furthermore, the Software Development Outsourcing organizations don’t have an understanding of their existing technical environment, a situation that adds integration risk to existing project. Vendor may need to invest significant resources to document their existing environment sufficiently for an effort that will be billed at much higher rate than cost of $25 an hour.

On the other hand advantages, Software Development Outsourcing creates obvious problems. The outsourcer lives in two assumptions that the outsourcer can either succeed or fail. Throughout this process, although Offshore Outsourcer may have a contract in place and still lost valuable time by that process. Second thing is that Offshore Outsourcer become dependent on the overseas group of Software Development Outsourcing Company. And mean while in the process, it goes out of business. Third important thing is that, what if outsourcer wants to inshore the Software application at some point, it will have lost both the development and the domain experience, making it incredibly expensive to move away from Software Development Outsourcing process.