Outsourcing Software Development Essay Example | Topics and Well Written Essays - 1250 words

Outsourcing Software Development - Essay Example Faster work pace: Companies, relying on outsourcing software development, may be able to develop and deploy software applications faster than they would if developed locally because the cost savings enable them to employ bigger teams with lesser cost, which speeds up the process. High demand short term phases: When larger quantities of resources are needed for relatively short bursts, it is easier to outsource it than go through the process of hiring and then firing or finding personnel to do contract work. India's advantage: Thanks to its long tradition in offshore software development, a high percentage of English literate population and the availability of high level IT education, India is a popular choice for outsourcing software development. It also commands growing infrastructure and very competitive rates of software development. Vendor characteristics: Picking the right vendor is crucial. Ability of the vendor to deliver, history and integrity of the vendor, financial background and quality of service are all determined by choosing the right vendor in order to arrive at the benefits. An incapable vendor is often unable to deliver and may cause more problems than solutions. Managing the project: Often the hidden costs of managing the project are overlooked. This is a necessity to monitor the vendor and make sure milestones are met. In addition cost of communication and connectivity as well as training need to be factored and this will all add up bit by bit. Communication gaps: Cultural differences, time zone differences and work ethics often lead to communication gaps and misunderstanding project deliverables. These cause costly errors and failure to meet expectations that defeats the purpose of outsourcing. Transparency : Vendors often have the opportunity to manipulate the Time and Materials contracts, state the usage of more resources than actually used, add more hours logged than actual etc. trying to bump up revenues thereby taking away the cost advantage of the companies that outsource. Lower quality of end product: This may be the direct result of a high attrition rate in the vendor company, high employee rotation in the project and lack of continuity among the vendor resources. All these will result in loss of technical expertise resulting in poor output quality. Data security: Cultural differences and lack of strict standards governing Intellectual property rights often result in data piracy and safety breaches. If the vendor breaches statutory laws, without the company knowing they are still is held responsible for the violations. Much of these risks can be mitigated by executing due diligence to the research before the work is outsourced. Choosing the right experienced vendor ensures half of the success of the project. Asking earlier clients about satisfaction of qualitative timely deliverables. Choose a certified vendor with ISO 2000 or CMM level certification that assures a minimum quality level in