Thursday, June 01, 2006

Outsourcers go for Offshore Software Development

This particular subject is an ongoing subject until a Software Developer realizes the true profit margin hidden in Offshore Software Development. Why do Outsourcers go for Offshore Software Development? Well, the latest news suggests that there are impeccable results acquired by off shoring, so perhaps the question is very much generalized in the modern society. We must try and understand why the need created to Offshore products and what are the gains received by such a trade.
We have Carl, who is having a live software project in her hand, and is willing to outsource the project, thus she wants her company to have cost-effective work. She does not want the headache of scrutinizing resumes and hiring efficient employees to work under her. Any Offshore Software Development companies do realize the money-saved while Outsourcing. If a every dollar when converted to overseas currency that of India, China, then the American Companies are saving heck of money. But she realizes the whole problem lies in negotiating the payment arrangement. She does not know whether the offshore software development company based in India is reliable and would not sell her idea to any of the Offshore Company.
Now if Carl would handover the projects to any of the college-goers based in her own city, though it may reduce her costing, no-one will be able to stop them from selling or duplicating the project. Handling over to the Software development company based in the same area, will cost her a lot. Put in such condition, Offshore Software Outsourcing comes as an aid to her conflicted mind.

False belief prevailing in Offshore Software Development

There is false belief prevailing in Offshore Software Development companies that cheap price means low quality of products. This is an utter rumor. Lower price of software development is associated with the converter of currency. The software developer or the client overseas has not to abate with the Quality of the software product. Now subject to legal right over the products, the outsourcing company should have a written contract form, stating that everything they produce is under your vision, your payment and nothing they hold for themselves.
The payment can be done through many of the facilities available such as Paypal, Rentacoder, whatever. The licensing rights are hugely important. But yet in many countries they take it lighter. It definitely stands on the ethics developed by the software firm. You can not totally blame the offshore software companies have greater chance on cheating or folly, as the case is quite critical even to those companies.
While dealing with Offshore Software Development unit, the offshore client may fear about the IP security, while the offshore Software Outsourcing sectors are worried about the payments. So, both are in placed equal. Secondly, low price does not always talks about worse quality or low quality. This is an absolutely ridiculous belief that most of India Software companies are worse than the workers in US or UK. The third attraction for any Outsourcers seeking for Offshore Software Development is Money. An offshore outsourcing company would start the work by $20 when the same would cost $100 in the same destination. It hugely depends upon time, money, risk, management and not relies on the pre-notions of good vs. bad.