In a recent survey by DiamondCluster International, there is a high increase in the premature termination of the offshore outsourcing software development contracts. The number of satisfied buyers has decreased from 79% to 62%. According to Tom Weakland, it is not right to blame only offshore software development service providers. Although many buyers are outsourcing their software development work, they still lack quality to get maximum benefits of outsourcing.
This was the third annual study by DiamondCluster and first, of its kind where buyers mentioned, they are planning to reduce their software outsourcing.
Software outsourcing Benefits
To consider the biggest benefit of software outsourcing, companies mentioned the reallocation of internal resources to more critical functions. Also, cost saving was another primary reason but it was second in consideration.
The report also mentioned that companies are learning that, there are no tremendous cost savings. As the attrition rate is high in countries like India, companies are also learning the cost of losing good people and the cost of losing people with specific knowledge.
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