How Do Different Countries Approach Software Development Outsourcing
Outsourcing has emerged as one the major strategic moves employed by companies globally irrespective of industries. At the present era, software development outsourcing services has gained huge impetus. It is true that IT/Software development outsourcing has driven jobs as well as economic growth for a number of emerging countries.
- In fact, outsourcing of software development has helped companies gain in on significant advantage competitively by cost cutting.
- Globalization is also a serious contributor to this as numerous companies look to enter into strategic alliances that help them drive the market growth in a better manner.
- It is true that outsource software development provides global corporations get access to the technical expertise of high quality at lower costs that impact their growth significantly.
- The consulting acumen of the outsourcing partners help the companies to improve their skill set and processes thereby lowering costs internally.
- It is also to be noted in this aspect that outsourcing to India is more than just dollars, as quality in-house capabilities are often a scarcity with a number of global corporations.
- The European outsourcing report on IT in 2012 also claimed that 60% of companies in Norway are looking for near shore opportunities in Eastern as well as Central Europe while 80% of Swedish companies outsource both onshore as well as offshore.
- Ultimately any organization is looking to focus on their core areas of competency by deriving benefits from cost to outsource software development.
- The software development companies also provide a proven methodology that drives their business excellence in the right manner.
- It is also important to note that web design, as well as web development, has become one of the major sources of engagement in the present age.
- Development of applications based on Android, IOS, and other cross-platform devices are a must for an organization for the effective promotion of their brand.
- Effective platforms of CRM as well as business intelligence that provides an automated solution are ruling the market.
- Companies are looking for an effective consulting solution that will help them address the needs of the changing consumer priorities.
Top Outsourcing destinations: India, can well be acclaimed as one the major outsourcing hubs of the software development market. The skill set and expertise that the developers provide to their clients with tailor-made solutions at low costs are driving the Indian IT industry in full vein.
Key outsourcing drivers: Payroll deductions as well as quality delivery adherence are driving the market of software development. It helps companies to provide tasks that are specific and goal oriented to employees especially the top line executives in the right sense. Some of the key drivers will be
Cutting costs: Reduction of a load of work and cutting down on costs are the major driver for outsourcing. It may be a reduction of 90% of costs with a similar development in Europe as well as in North America especially for tasks that are low end.
Saving on time: It is generally a great advantage when you have a flexible workforce who are working on your application in different time zones. It gives you the leeway to market your product in a better way than your competitors.
Complementing in-house inexperience: One of the major benefits associated with the outsourcing of software work is the globalize outlook that is achieved with the vendors. It helps you to bring the right dimensions with applications and processes meant for global business.
Access to talent: The access to the efficient and enterprising pool of talent in the IT field at low costs helps you to bridge the gaps and loopholes in your business processes. It also helps you in building a global tool of high value.
Quality & compliance: Use of compliance systems that reduces follow-ups of your workforce as it works automatically helps the quality of delivery. It also improves your business accuracy with better advances in technological acumen.
Outsourcing trends 2016
The world of mobility, as well as e-commerce, have augmented well for the IT outsourcing industry. Companies today are looking for competitive software solutions right from software for payroll to trainee programs.
To conclude, we can safely say that with the advancement of newer technologies as well as the advent of devices that handles remote operational activities better, software outsourcing is only going to become bigger with time. It will be more important on quality perspective than just saving money on a priority basis.