Monday, December 5, 2011

Why offshore development is preferred to in-house Software development

Custom software development as the term implies signifies the importance of developing a software project for a specific purpose and for specific users. With the passage of time the process of software has seen several changes on account of technological developments and these changes have provided enough experience and helped in redefining the whole process of software development.

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Software development services cater to a whole lot of spheres and it is bound to have comparative cost advantage only in some areas, while in others it has to explore better alternatives. Offshore software development has been one such alternative which has been accepted. It is a practice of hiring an external organization to develop software for some business functions at some other location other than the country where the products or services are actually to be developed or delivered. Broadly speaking outsourcing is seen in four different sectors including Information Technology Outsourcing, Business Process Outsourcing, offshore software development and Knowledge Process Outsourcing.


The significantly most important factors influencing the offshore software development include the mounting pressure on various accounts to reduce labor costs and cutting down operational costs, inculcate innovative ways of improving productivity, and create opportunities for enhancing business in the long run by ensuring presence in the global market. In General the criteria which influence the outsourcing of a work with special reference to software development include significant wage difference between the original and offshore countries, the availability of the opportunity to get the work done through telework, the requirement of high information content in the proposed project which can be transmitted over the internet. To add to this the easiness of setting up the project and the repeatable nature of the job also go a long way in persuading a company owner to go for offshore software development.

Some of the other reasons why organizations go for outsourcing is to take care of issues such as focusing the available resources on the core business only, ensure improvement of the quality especially in areas which require specialization, have access to wider experience and knowledge, ensure that timelines are met buy inserting the penalty clause in the agreements having a legal binding, have access to operational expertise which otherwise would be both time consuming and expensive to develop inhouse, enhance capacity for innovation and simultaneously ensure capacity management. Providing proper risk management through an agency which is much better equipped and has the desired experience to mitigate the risks involved software development. However, the driving factor for a software development company to opt for offshore software development has always been the need to cut down costs and the enabling factor has been the internet network which allows instant deliver and access to and from any where in the globe.


A reputed custom software development company will always embed the principle of the outsourcing methodology into its system to increase its return on investments on one hand and streamline the development process son the other hand. The issue of education can has also caught enough attention in outsourcing technical services even though education may not be possess a comparative advantage but the cost of attaining expertise in a specific field of technology may be lower in some countries as compared to others. The thumb rule for achieving objectives of offshore software development services is to implement the different phases of project development in place.

SCMS is a leading software development company in India, possessing the ISO 9001:2000 certification. We over the last eight years have attained expertise in mobile application development, offshore software development, multimedia applications, E-learning, custom software development company and maintenance.

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