Tuesday, 16 February 2016

Factors that Affect Outsourced Software Product Development Decision

There are many different things that you should factor in when making a decision to outsource software product development or keep software building in-house. Both approaches have their own pros and cons, but if you are already set on outsourcing at least some of the product development tasks to a near shore service or some off shore organization, the following are major factors that should affect your decision:

•    Your core competency. Take control of what your in-house staff can do best. As a rule of thumb, you shouldn't outsource your core competency, especially when your software product is going to compromise a key trade secret. Don't outsource these kinds of projects unless needed or unless the company you are outsourcing to can be entrusted with such information.

•    Protection for your intellectual property. Many countries and cultures have little respect and appreciation for software developments as intellectual property. Take for instance China and Vietnam, where almost 90 percent of software used is pirated. Nevertheless, you can protect your intellectual property when outsourcing by sound contracts and clear cut non disclosure agreements.

•    Their technological expertise. One of the best things about outsourcing software development is gaining access to the best and the latest in software technologies—something that you may find hard to get hold of in-house. If you plan on creating a software product that you wish to scale up, outsourcing to a company that is well versed in the latest technological advances is ideal.

•    Cost factors. Cost should also be an important driver of your offshore investment decision. Many times, it is a lot cheaper to outsource all or part of your software development processes to an off-shore firm that has lower labor costs than insisting on keeping development in-house. With good communication and a competent development partner, outsourcing can prove to be a more practical option.

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