By Tom Rowinski, managing partner at JTR Solutions, custom software development
Outsourcing software development has been a trend for some time after the demand for these services led to an increase in providers around the world. Over the past 20 years, outsourcing has spanned from Latin America to India, Eastern Europe to China.
While analyzing your company’s development costs, you may find that offshoring to one of these countries appears less expensive. However, you’ll want to assess the long-term risks and hidden charges before you move forward. Consider these potential risks in offshore development.
1. Quick Doesn’t=Quality
What your company considers an acceptable quality of work may differ from what your offshore team delivers. Moreover, when you consider the difficulty even U.S.-based teams face when communicating, it’s not hard to imagine the problems that can arise with remote teams. If you’re used to particular work habits and styles of communication, you may struggle with offshore collaboration. Some development teams will say they understand something because they don’t want to risk sounding inexperienced.
2. “24-hour Experts”
You may discover too late that a vendor’s so-called experts are not properly vetted before assuming their roles. Plus, having limited access to the team of experts and relying on a project manager may prevent you from assessing the staff’s true capabilities.
3. Longer Work Day
Lower rates are compelling, but offshore teams may ultimately work more hours than expected. With the increase in hours, cost is no longer less expensive than comparative onshore partners. Consider also the additional hours your team may expend overseeing and working with offshore vendors.
While promises of lower costs and fast turnaround may lure you offshore, be sure to consider all of the factors involved when you’re assessing your software development needs. Having a responsive and expert development team that is also local may ultimately deliver significant efficiencies and cost savings.
Learn more about the Entrepreneurs’ Organization, the only global network exclusively for entrepreneurs. EO helps leading entrepreneurs learn and grow through peer-to-peer learning, once-in-a-lifetime experiences and connections to experts.
Categories: Hiring Productivity