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Monday, August 6, 2012

Breaking The Myths About Software Development Outsourcing

More than often, the whole concept of hiring third party vendors for various business requirements is viewed negatively by some organizations. It s not wrong to be skeptical but it may harm you and your business if you refrain from adopting yourself according to the current business requirements. Software development outsourcing is one of the most effective strategies that businesses follow today to acquire essential solutions for their various requirements. 

Some of the myths along with their reality checks in this regard are mentioned below:

 

Myth: Some people think that outsourcing IT staffing services and other web development services will reduce the overall productivity of their business. They cite various barriers such as distance, cultural differences, language issues etc to strengthen their point.

Reality Check: Most of the employees working in offshore IT companies are fluent in English and have strong technical skills. Further, their experience makes them perfect for these jobs. By hiring these service providers, organizations can get extra time and resources to focus on their core business activities. While they do so, their non-core requirements are being fulfilled by the people who have expertise in it. Thus, the overall productivity of a business is enhanced.

Myth: Usually, outsourcing is associated with ‘Cheap Labor’. 

Reality Check: Contrary to the general belief that hiring offshore vendors is just a way of getting access to cheap labor, it is actually about finding a well experienced vendor who can offer high quality solutions. Further, clients usually stay away from those who offer their services at very cheap prices as such vendors generally lack in skills and quality.

Myth: IT and software development outsourcing is seen as the main reason behind job cuts in many developed countries 

Reality Check: Many researches and studies have been conducted in this matter and they all prove that this is not the main reason behind job cuts in developed countries. This methodology is actually responsible for the economic growth of a country. When organizations in a country are outsourcing more, then it means that the country is on a steady path of economic growth.  This generates better employment opportunities for that country.

Myth: Many believe that anything can be outsourced to offshore locations.

Reality Check: Although you can easily find a capable service provider for almost any business requirement but it does not means that you should outsource anything without giving proper though to it. Organizations should outsource only those tasks that do not fall under their core business activities. Further, they should also make sure that the task would not require then to give too much sensitive business information to the service provider. For example, a furniture manufacturing company should not outsource the manufacturing task as it is their core business activity. However, they should outsource software application development, call center services, software quality assurance services and other such non core processes.    

The myths associated with software application development outsourcing are required to be cleared in order to make organizations more open to this strategy. This will be beneficial for all the involved parties.

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