Why does outsourcing software product development make sense

Outsourcing is a proven business mantra of today. The biggest advantage of outsourcing is the cost advantage and the biggest fears are the age-old concerns of security and quality. These concerns have been adequately addressed to such an extent that outsourcing has been a rage in recent times. In fact, today some outsourcers have performed better than the client on all fronts including quality and security. This unflinching focus on the client’s product/ service generates such a high ROI that it exceeds client expectations when it is done in the right manner.

ISVs and ASPs have been outsourcing their software development programs globally quite successfully for some time now. As competition is fierce and the days of huge margins/ monopoly have gone forever, outsourcing their software development helps provide them with that little bit extra edge while operating on the razor edge margins in today’s global business space. As the world becomes a global village due to the Internet and possibilities in worldwide connectivity, offshore software development models are gaining relevance with their many advantages.

As technological and business challenges develop faster and require quicker response times, a dedicated team is a luxury one can ill afford. Shorter product lifecycles need to be tackled without overshooting development & maintenance cost deadlines. The new product is sometimes required as of yesterday and outsourcing is the quickest way to mobilize and tap proven talent & resources in the shortest time and the most cost-friendly way possible. Many thinking hats including the client and service provider help build maximum functionality, quality, and innovation into the product. You also avoid the unnecessary addition of resources and overheads, which may not be required later and may become cost burdens. The project can be led and monitored as per your liking with vital inputs from the service provider’s team. It is also easier to ramp up/down, incorporate flexibility & customize, add features/ releases to the product. In case it doesn’t work out, it’s no skin off your nose- you can end the relationship and find another service provider.Outsourcing is a proven business mantra of today. The biggest advantage of outsourcing is the cost advantage and the biggest fears are the age-old concerns of security and quality. These concerns have been adequately addressed to such an extent that outsourcing has been a rage in the recent times. In fact, today some outsourcers have performed better than the client on all fronts including quality and security. This unflinching focus on the client’s product/ service generates such a high ROI that it exceeds client expectations when it is done in the right manner.
ISVs and ASPs have been outsourcing their software development programs globally quite successfully for some time now. As competition is fierce and the days of huge margins/ monopoly have gone forever, outsourcing their software development helps provide them with that little bit extra edge while operating on the razor edge margins in today’s global business space. As the world becomes a global village due to the Internet and possibilities in worldwide connectivity, offshore software development models are gaining relevance with their many advantages.
As technological and business challenges develop faster and require quicker response times, a dedicated team is a luxury one can ill afford. Shorter product lifecycles need to be tackled without overshooting development & maintenance cost deadlines. The new product is sometimes required as of yesterday and outsourcing is the quickest way to mobilize and tap proven talent & resources in the shortest time and the most cost friendly way possible. Many thinking hats including the client and service provider help build maximum functionality, quality, and innovation into the product. You also avoid unnecessary addition of resources and overheads, which may not be required later and may become cost burdens. The project can be led and monitored as per your liking with vital inputs from the service provider’s team. It is also easier to ramp up/down, incorporate flexibility & customize, add features/ releases to the product. In case it doesn’t work out, it’s no skin off your nose- you can end the relationship and find another service provider.[:]