Software Outsourcing-Benefits and Pitfalls

Software outsourcing Pros and ConsOver the last few years, the growth of IT outsourcing is far fetched and enterprises have been largely benefiting from this. Many companies are striving to accelerate their business and choose to outsource the project offshore to safe cost and time. Whenever, there is an outsourcing decision, there is an inherent risk associated with it. There are chances that organizations have been hurt due to many of the hidden pitfalls in the outsourcing process. Let’s look closely the major business benefits and pitfalls associated in a software outsourcing.

Software Outsourcing Benefits

Offshore outsourcing clearly outweigh any existing pitfalls. Below are the major benefits that make the organizations think about outsourcing their software requirements

  • An outsourcing partner who is having a self-managed team with dedicated resources and the latest technology tools in hand will help you in achieving the right business goals.
  • Time-efficient project accomplishment
  • An outsourcing system will be more flexible to respond quickly to changing demands and business environments
  • It also proves to be a cost efficient solution, as you will not be investing in hiring new staff meeting your new business requirements. The outsourcing partner will be much more efficient at catering to your staff as well as your software business needs.
  • An outsourcing partners work will be mainly dependent on the suggestions and feedbacks from the client. SO you can expect a predictable outcome, higher degree of success, and higher quality and reliability

Software Outsourcing Pitfalls

  • Vendor Selection: Selecting the right vendor is very challenging. The failure in choosing a service provider who is in-experienced in handling similar business situation will end up in in-efficient project accomplishment
  • Lack of strategic planning: Enterprise should decide what sort of outsourcing relationship will best meet its needs before beginning the outsourcing. Otherwise the organization may tend to spend more cost to its outsourcing provider.
  • Cultural differences: Cultural difference may cause trouble in mutual understanding and business ethics differences.
  • Lower quality of resource: Sometimes the outsourcing workforce may lack skills and expertise. IT outsourcing providers cannot resolve your problems without your involvement and willingness to change the way you do business
  • Operating model of the provider: Inadequate analysis of the providers operating model will end up in an inevitable disappointment. Before signing agreement thoroughly evaluate providers IT maturity, IT architecture design, contract management and delivery of services
  • Threat to security and confidentiality: Evaluate the outsourcing company carefully to make sure your data is protected and the contract has a penalty clause if an incident occurs.
  • Inflexibility in the IT landscape: IT technologies and services change rapidly over short period of time, so it’s important to set contractual guidelines for managing unexpected contingencies
  • Inefficient Communication: Inconsistent or insufficient communication with the providers as well as among the staffs is very important. Organisations should hold informal communication sessions frequently to update the management and the employees about the outsourced project. A healthy communication set up should be there with the vendors even after the transition period is completed.

These are the few outsourcing pitfalls were outsourcing customers get burned.

The latest trends reveals the undeniable long-term benefits and low risk make offshore development a proven model for success. Anyway the decision is up to you, if you decided to outsource your project plan well before initiating.

Stylusinc is a technology company offers end-to-end business-technology services for anybody who wants to leverage technology to solve business problems beyond “perception”. We gain and give further clarity on your business needs. If you are looking for a wise business/technology partner to whom you can outsource your work without having to worry about, Talk to us, and you’ll understand how and why we’re different – we make business sense, because we help you get a sense of your business.

Top 10 Outsourcing Trends to watch in 2015

Outsourcing market is rapidly changing, as major enterprises consider it as not about cutting cost, rather heavily based on agility and the quality of service delivered. Today, with outsourcing being the top business trend, the biggest question on everyone’s mind is: what will be the future of the outsourcing industry or what are the major trends that will affect the global outsourcing market in 2015.

OUtsourcing trends 2015

Here are the few trends which give us a glimpse of the future.

  1. Year 2015 will see a dramatic multiplication of outsourcers per customer. Driven by growing popularity of cloud in general and Software-as-a-Service [SaaS], the number of service providers each company uses will grow dramatically.
  2. Renegotiation will become more prominent. The outsourcing contract negotiation is expected to be double in 2015. As more companies want IT processes to be standardized, they will look for several options involving cloud brokerage software that can enable them to understand analytics and automation better.
  3. Analytics continue to be an inseparable trend in outsourcing operations and strategies in 2015 also.
  4. Along with quality, outsourcing customers want to get more from the money they spent. Fixed price contract will remain popular in 2015. Customers continue to shift from the time and material based pricing model to outcome based pricing
  5. Supplier risk is one among the top ten priorities of the coming year. Companies will get more serious about managing IT supplier risk. Companies will spent more time on discussing risk events and solutions
  6. Since everyone is getting more acquainted with cloud technology, people are starting to realize its benefits such as virtualization, increased efficiency, reduced support costs. With the convergence of utility computing and virtualization, a new IT outsourcing operating model will soon level out the playing field once again
  7. RFPs (Request for Proposal) factor is almost getting out from the outsourcing industry. In this fast-paced technology world, traditional RFPs is not worth considering as it simply waste too much time and cost
  8. Consumption-based technologies that are delivered through the cloud will grow, as they are cost effective.
  9. Customers will look for flexible outsourcing deals. Clients will opt for balanced -shore outsourcing (a combination of at-home, on-site, near shore, onshore or offshore outsourcing solutions) to meet their needs and achieve their goals
  10. It’s all about customer satisfaction. An end-user has got the centric position in the outsourcing industry. A customer oriented approach, whether it is decision, strategies or pricing, all will be based on the customer choice

These are few trends that we, Stylus predict will gain widespread popularity in 2015.

Stylusinc is a technology company offers end-to-end business-technology services for anybody who wants to leverage technology to solve business problems beyond “perception”. We gain and give further clarity on your business needs. If you are looking for a wise business/technology partner to whom you can outsource your work without having to worry about, Talk to us, and you’ll understand how and why we’re different – we make business sense, because we help you get a sense of your business.

Software Outsourcing-Things to consider (Infographic)

You have decided to outsource your project to a third party service provide. So now what strategy can help you in your outsourcing success. Here is an infographic on the major things/tips to consider before outsourcing your project. These top 5 outsourcing best practices can fetch you good value and quality results in your project.Software Outsourcing-Things to consider