Some companies are willing to outsource their development efforts while other appear viscerally against the idea of delegating tech projects. If you are looking to outsource your development efforts, here are some pros and cons that will hopefully help you make the right decision!
Pros
Reduce Operational Cost
The operational cost necessary to support an in-house development team such as payroll taxes, training expenses, bonuses and purchases of required hardware and software tools may not be cost effective for some companies. When a company chooses to work with an outsourced development team, it is able to save on these expenses since they are only billed for the work produced.
Access to a team with relevant skills and experience
Companies can save the time required for posting jobs, shortlisting candidates and finally interviewing candidates. Outsourcing to a software agency enables a company to access a team of skilled and experienced developers. If selected correctly, the outsourced development team will also be able to make the right tech decisions and manage the entire development cycle better based on their experience as a team (contrary to a newly build tech team).
Flexibility
Outsourcing allows companies to have more flexibility when there is a need for a new feature, etc. If the product requires additional functionality, the outsourced team should have the required resources for a quick implementation. For example, staff flexibility is crucial, a new idea or project might need the skills of a new specialists; an outsourced team proposes that and can quickly respond to new requirements.
Cons
Communication
Working with a team in different time zones is one of the biggest drawbacks of an outsourced development team. Since team members may be from different countries, different time zones increases the possibilities of miscommunication and poor synchronization. The main risk is not being able to complete the project on time and/or the necessity for a new team to take over.
Data Theft
There is a potential risk of data theft when it comes to sharing your ideas and data to external agencies. Although a nondisclosure agreement (NDA) is signed, there are limitations on the amount of information you can protect. This is one of the main reasons companies are hesitant to outsource to a software agency even though it’s cheaper than building an in-house tech team.
Hidden Costs
In some cases, agencies provide a false estimation of man-day efforts, additional consultation fees, phone call charges, etc. It is important for companies to go through their billing every month and understand the overtime costs of their outsourced tech team.
Outsourcing potentially minimizes cost, however, it still requires an adequate effort in terms of management. It is recommended for companies to weigh the project and the task involved before outsourcing. Do a comparison of all factors such as reliability, past projects, clientele, etc., before outsourcing to a software agency.
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By using the Indorse platform, you won’t need to spend several man-hours to sieve through the barrage of resumes. Use our crowdsourced code reviews and in-depth reports to spot the right developer!
