Outsourcing software development services is currently the most efficient and effective option for most companies, especially technology organizations. According to Statista, the global outsourcing market was worth $92.5 million in 2019. Outsourcing software development is when a company decides to outsource the services for their software development needs instead of hiring or creating an in-house team for all their software development needs to not just to save cost and time but to also get high quality products.

However, outsourcing software development comes with its own set of challenges. But, before we look at the challenges, let’s first understand the types of outsourcing models for software development. Outsourcing, specifically outsourcing software development services, falls under three categories mostly- Offshore, Onshore and Nearshore.

Offshore Model:

Putting together a software development team in a different part of the world can be challenging. However, it is the most cost-effective model. As long as only high-performing developers matter and other aspects like the difference in time zones, language, and culture don’t matter, the offshore model can work without any major setback. Companies that require little to no client interaction and can rely on virtual meetings can outsource their development needs for a project to an Offshore team.

Nearshore Model:

In Nearshoring, the team is available within similar working hours and is easily reachable for consultations and meetings if needed. It enables enterprises to save costs and deliver high quality software without hassles with the help of Agile software development framework.

Onshore Model:

Onshoring means having a full-fledged in-house IT team for software services. It is a rather costly option. Software engineering services are available to develop, test, deploy, and help enterprises implement a high-quality product and stay within their budget.

While there are several advantages and benefits in choosing each model, there are also challenges. They must be aware of the following challenges before making a decision regarding outsourcing the software development services:

Trust issues: While it is true that outsourcing software development services costs less, it is somewhat difficult to find the right fit for your project. With umpteen number of service providers available, it can go the wrong way if the company joins hands with the faulty partners. While outsourcing, sensitive information is shared, hence any business would be wary regarding the security, data breach, or any personal or vital data of the company.

Communication gap: While outsourcing services, it is vital for a company to clearly state what it wants and it is absolutely necessary that the other party/service provider has understood the needs of the company. In the Nearshore, this challenge can be diluted. However, this challenge is cited most in the Offshore model. With separate time zones, completely different cultures, and lack of constant meetings, there can be a communication gap and that can lead to misunderstanding regarding what is needed and what is provided.

Understanding the scope: It is very important for any business to communicate their project scope clearly to the developers or software development service providers. Lack of proper clarity could lead to developers going over the budget or delivering low quality products. Not understanding the business’ needs can lead to loss of time, effort and money.

Project management process: From the time a project idea is born till the time it is executed and tangible results are visible, project management is an inevitable process. There should be a clear plan for the developers to follow and project requirements and expectations should be communicated so well that there is no going back and forth. Especially, in an Offshore model, if the management is not proper, it can lead to destructive results.

Ownership challenges: As much as possible, ambiguity in ownership should be eliminated. If there is no clarity about what part of the project is to be outsourced and who should decide it, there will be delays and inconsistency. Say there is no direct leader involved in the outsourcing process, there will be no accountability on either side leading to waste of time and money.

Project delay: Outsourced projects can very easily miss the deadline owing to reasons like unrealistic timeline and continuous changes in the project requirements along the way due to the dynamic market. It has almost become normal and acceptable to expect delays. However, the Nearshore model can be the solution for this challenge since it is easier to communicate changes in the requirements due to similar time zone, cultural affinity, lower costs and flexible and available teams.

An organization must choose the right outsourcing model considering all the important factors like cost and budget, collaboration and compatibility, Agility, project requirements, and expertise needed. This can ensure low costs and far-reaching results in terms of the quality of the product.

Not only does Aspire Systems provide Nearshore and Offshore software development services, its Software Infinity methodology, driven by Agile software development framework and efficient accelerators, can be the one-stop solution for all the software development needs of a company.