Outsourcing in case software Development is quite challenging. You have to continuously monitor the development process otherwise it can lead to the loss of the company. At the same time, the development Companies face the hard situation if the communication is less or poor.

Matrix Marketers is an offshore development company known for delivering high-quality software products by getting its software developed at a far-off place. Without seeing the actual conditions on both sides (offshoring and development), it will quite difficult to come to a conclusion. Let’s look at both sides of the equation.

After the policy changes, the enterprises are now thinking of changing the strategy to implementing outsourcing model. Maximum development is to be done in-house.

New in-sourcing activity by no means portends a significant decrease in outsourcing. But the IT outsourcing is becoming the compulsion for the companies not because of the low cost but because of the diversified skills required to develop the products.

The team of Quality

Many enterprises opt to outsource IT functions when there is a shortfall of U.S. skilled labor or in the skill sets of their existing IT employees. The main reason for the skill shortfalls is due to the low prices which companies have kept for the in-house developers. This has worked well for many companies, and it’s one reason why outsourcing has thrived. On the other hand, you sometimes get what you pay for. The customer support is a good example of outsourcing.

Follow-the-sun IT

Outsourcing gives enterprises enormous opportunities to truly have a follow-the-sun workforce that never shuts down. “This worked great for me,” said one former manager of a U.S. telco. “Matrix Marketers developed the list of tasks which had to be developed by outsourcing company and outsourced all the programming work to a contract programming firm in India. By the time we got to work the next morning, all of the previous day’s programming tasks were complete and waiting for us. The work was excellent. It exceeded our expectations.

Communications

Due to mismatch of culture, there are lot communication issues which need to be solved patiently. A good project manager clarifies them time to time among both the teams. It is also a good practice to put all work instructions in writing, to avoid language difficulties that can arise when instructions are given verbally. Finally, a detailed documentation always helps in maintaining the long-term relationship with the outsourced company. The outsourcer should take responsibility for specifying how the documentation should be done — and the outsourcer should plan to QA the documentation as well as the code.

Staff morale

Onshore staff morale is always high in comparison to another team. This is why it is extremely important for IT managers to explain to staff why a particular project is being outsourced — and how this fits with its other strategic goals. They might not always like the answers they come up with, but at least they’re not in the dark.

Company Perception

The unemployment in the US is growing but that is not because of outsourcing. The reason is the lack of skills. But if companies are changing the choice then you can’t do anything. It can be due to changing policies. A lot of companies are affected and bearing the consequences of poor policies. The worst part is that IT firms are getting affected and compromising on quality.

Ability to hire and retain employees

The expertise of newly developed technologies like business analytics, big data, and AI are is less. If the US-based companies have to work on these technologies then they have to take help of the outsourcing model. Many big IT companies are known for outsourcing and US developers are not having much interest in working with such employees. The cost involved in retaining the employees sometimes goes beyond the scope of the parent company. The employees start demanding high, once they are experienced.

Intellectual capital

Anytime you outsource work, you risk losing the intellectual capital invested in the project. Two major risks are involved in it: 1) The developers will not be able to know the internal way and technicalities involved in the development process as the main company never discloses its direct discussion with the client. or 2) many times, there is a fear or chances that the outsourcer shares your project concept with some other company and they become the competitors.

Agility

The ability of the company to respond to new business almost becomes impossible because of the load of the previous work. A CIO considering outsourcing must weigh these pros and cons against each other.

Global Events

The offshore development companies should not rely on a single company for all the projects. They may divide the tasks and projects and then on the regular basis give the work to more than one offshoring partner. This might help companies to have exposure to many companies and will come to know their working styles.

Resource management

Different time zones are one barrier to project collaboration. The project managers of both companies must have a well-discussed plan considering the practical implications in mind. A healthy working culture should be formed so that none of the teams feel tensed and 100% efficiency of both the teams can be achieved.

Conclusion:

Offshore development and outsourcing are not easy things. These models do not opt for relaxation rather the responsibility on the core team increases and the globe firm is established, as a result. Matrix Marketers is enjoying its global presence with the head office in New York and the service center in India. For developing high-quality software products for web or mobile, you may contact us.