Outsourcing Software Development – Does it make sense?

Most organizations face one of the two options – Whether to go ahead and build software in house or to outsource the software development. There are organizations whose IT departments have do it all attitude. While it is good to have an IT department which is confident and capable but at times it can be risky for the organizations that employ them.
If you are a technology company with the tech at the core of your business and not just a function within the larger set up, it does makes sense in developing software in-house. With the kind of talent and expertise you have in-house it will be wise to use it to for a solution from scratch. This makes it easier for you to co-ordinate with the team working on building the software and track the progress of deliverables.
But on the other hand for organization where IT just serves the larger purpose of business it is sensible to outsource software development. Though it is difficult to say no to the in-house team to work on a solution, it is in company’s best interest to take a right decision of Outsourcing software development. There are benefits which are worth considering.

1. Cost Optimization – One of the biggest and obvious benefits of outsourcing is the cost optimization. Outsourcing software development is cost effective as organizations can save money they would otherwise spend on IT infrastructure planning and implementation

2. Better Utilization of Internal Resources – Once the product development is planned and outsourced, the internal team can focus on other critical tasks. They will need to track the deliverables and co-ordinate with the external team as and when required. It is a win-win for both the organization and the service provider as they can focus on their key strengths

3. Access to world class technology and process – Selecting a service provider is a challenging task, it need due diligence. The service providers bring with them the knowledge of latest technologies and world class processes. With the change being the only constant in this age of technology this saves organizations the time and energy of keeping themselves updated.

There are some challenges and opportunities associated with outsourcing software development, but it is definitely not one size fits all. Organizations need to thoughtfully evaluate the pros and cons and decide what the right approach is for them.