If you are in an IT business and developing software applications is your day-to-day task then you need to read this. Updating legacy systems whether for clients or internal brands, requires a lot of resources.
However, for businesses that are already developed and earning well, it is not a problem to hire large in-house IT departments to develop and update whatever application or software they require. But, if you are a small business chances are that you may not be able to afford large in-house teams because that counts for additional office expenses.
Therefore, the best way to get the job done is to go for offshore software development. However, lack of resources is one of the main reasons why most businesses Hire Offshore IT Staff for their software development. This way, mid-size and small companies can save their time, effort, and resources by outsourcing software development to a third-party vendor. Thus avoiding setting up an in-house development team and hiring additional employees.
If you are considering outsourcing your software development, you have two main options: either outsourcing to an offshore development service or an onshore development service. But, both onshore and offshore software development has their pros and cons.
Therefore, understanding the pros and cons of offshoring is important to determine which solution will be the best fit for your firm’s software development needs.
Table of Contents
Pros and Cons of Offshoring and Outsourcing
Offshore Outsourcing Benefits
1. Enhanced Productivity
If you have experts working on their designated tasks, then the core team will automatically have enough spare time to focus on the significant tasks. An experienced offshore team can help you manage projects and strategies effectively. This way, you will not waste a lot of time buying expensive tech facilities like internet connection upgrades or software updates. In short, Offshoring will assist you to optimize and enhance your output.
2. Reduction in Cost
Managing the salaries of experienced IT laborers can be overwhelming especially in the developed world. Digital expertise costs way higher in developed countries, therefore. You can save up on money by hiring experts from different parts of the world.
3. Access to the Bigger Talent Pool
If you would ask somebody to define offshore outsourcing and explain its pros and cons, the very first benefit they will mention is offshoring enables you to get the most talented people on board. You can have a wonderful mix of talent by hiring people from anywhere in the world.
Offshore Outsourcing Disadvantages
1. Time Difference
The biggest concern about offshoring is the difference in time zones. The USA majorly faces this issue because they hire people from the opposite side of the globe. If the team does not manage to work night shifts to match their working hours it can harm productivity.
2. Quality Issues
As you completely rely on the offshore team it results in a lack of oversight. This technically means that if the offshore team does not bother to adhere fully to IP laws and copyright it can be very problematic after the complete version of the software is delivered to you.
3. Communication Gap
When talking about offshore outsourcing pros and cons the biggest downside that rapidly come across your mind is the communication gap. Virtual communication can sometimes be challenging to manage. It develops communication gaps among the team members, thus, halting overall work productivity.
4. Security Threats
When you work remotely, you should consider Software developer pros and cons. There is a risk of information leakage which can further lead to several security issues. Developers require exclusive customer data, workflow and codes therefore companies need to maintain confidentiality.
Keeping aside the pros and cons of offshoring if you see the bigger picture, helps you manage your time and energy much more efficiently. Therefore, it’s always a better option to consider if you are a small business.
Do not rely on offshoring advantages and disadvantages to make a decision rather try looking into a bigger perspective.