Index of articles, 2015

Outsourcing Software Development Offshore Pros & Cons

By Mark Davies


Cost is the main reason that most companies take into consideration when outsourcing a project. Software engineers outside of the developed countries are compensated much less than their counterparts in developed countries. The average salary for a software engineer in India is $10,000 per year. The saving in salary can be passed on to the client. There are some reports that salaries in India are rapidly rising. Maybe in a few years the cost benefit of outsourcing will not be so obvious. However, there are many other important advantages to outsourcing that one should consider.


There may be few people in the company with the right skills to complete a particular project. In this case the project is in risk of not meeting its deadlines. The company could company hire more skilled people (either full time staff or contractors) and management. However, this would be expensive and after the project is finished you may not need the extra manpower. Outsourcing could be a solution. There are many outsourcing companies with many different specializations. The right company could provide the skills and manpower necessary to meet any strict deadlines.


An outsourcing company could provide the client with skills that the client does not have. For example, maybe the client wants some software coded in a particular technology but the client does not understand the technology. The outsourcing company could provide these skills to the client. However, bear in mind that if you are outsourcing a project outside of your companies skillset, this could pose problems with standards and maintenance later on.

Empowers Individuals in the company

Because the offshore company will now be doing the 'grunt work', this leaves more time for individuals within the company to concentrate on 'higher' tasks, such as gathering requirements, design and management. The smart individual will find herself leading others, rather than general maintenance and development work.

Pitfalls of Outsourcing

Needs constant management

This is the number 1 reason why outsourced projects fail. You need a good manager, a leader who is in constant communication with the offshore vendor. The leader needs to understand the requirements, and each and every day make sure that the offshore vendor also understands the requirements. The client should make sure that standards are being met by viewing code, looking at latest builds, viewing the bug tracker, viewing language resource files, etc. A lack of constant management generally means the project will get out of control.

Increase in frustration

An increase in frustration in the company could arise for a number of reasons:

Be warned that the offshore vendor is easily made a scapegoat. Disgruntled employees will jump at the chance to blame the offshore company for any mistake made. The employee should be reminded that nobody is perfect. If a mistake is made by the offshore company you could empower the employee to find out the reason for the mistake, and ask him/her to strive to solve the problem by working with the leader and the offshore company.

Testing more difficult

Generally, the testing phase in an outsourced project is more difficult than an in-house. If you test a piece of software that was developed offshore in-house (and you certainly should) and find a problem, this needs to be communicated to the offshore vendor. This could cause problems as the offshore vendor might not be able to reproduce the problem. It could be easily fixed if only they could see the machine that it happened on. Or maybe the problem isn't properly communicated. The 'Entering the testing phase' page will help you have a smoother testing phase.

Company Morale

Choosing to outsource a project instead of developing in house could affect company morale. Employees could feel that their jobs are threatened. If jobs are at risk, then the employees should know as soon as possible to reduce the spread of bad morale. Likewise, if jobs are not threatened, then the employees should be told of the change, and that not only are their jobs safe, but the employees will be given the chance to do a higher level of work. See 'Introducing Outsourcing to your company' for tips.

 Previous article
Back to the index of articles Next article 

Read comments on this article posted by Intelligence-Soft web site visitors:

No visitor's comments on this article are posted so far.
Use the form below to become the first who posted his/her opinion here.

Post your own comments on this article:

Share your thoughts about the article above with other visitors of Intelligence-Soft web site but please respect them and follow our Rules of posting visitor's comments.

Nickname:      Real name:*
Country/City:      E-mail:*
*Your real name and e-mail address will not be shown to other visitors. We ask you to provide your name and e-mail in order to identify the author of the posting for your possible future requests, for example, if you decide to change or remove your comment one day. Read our Privacy statement to learn how we handle your personal data.

 Previous article
Back to the index of articles Next article 

All third party contents appearing here are supported with references to appropriate web sites so we don't think that we are violating anybody's copyright or even demonstrating impoliteness. In fact this is rather a promotion. In any case, if you are the owner of any content that appears on our site and find this fact undesirable, please notify.

Project Management  ||  Software Department  ||  Mobile application development  ||  Business Model
News  ||  Offshore Development  ||  Articles  ||  Testimonials  ||  Contacts  ||  Post Your Project
Site map  ||  Privacy statement

Valid HTML 4.01!     Valid CSS!