Successfully Outsourcing Software Development

Featured article by Edward Roesch, Independent Technology Author

Outsourcing is becoming the international trend in today’s “in leaps & bounds” world. Technology changes so quickly that it’s not only desirable, but necessary, for any forward-thinking company to consider it. While outsourcing can mean many things, outsourcing to a foreign country has emerged as the most profitable, for a multiple of reasons:

– Cost-cutting
– Expanded talent pool
– Global presence 
– Time differences (around-the-clock)
– Broader resources

Just to name a few. And as the demand for IT talent continues to increase, the talent pool is drying up in many locations (especially in the US and Europe). Therefore, it’s vital for companies with big expansion plans to consider countries in Asia, or even better, that “other” Europe (meaning Eastern Europe). Eastern Europe not only provides a lot of IT talent, but this talent is more adapted to working with western companies, due to:

– Cultural adaptation
– Western work ethic
– Communication style
– Competitive salaries
– Adequate English levels

Image source

The list goes on and on. With Eastern European developers, companies get the best “bang for the buck” when it comes to adapting rapidly to their growing needs. Of course there are always pros & cons when considering outsourcing software development, but in general, most would agree that the pros outweigh the cons – such as customized expertise, competitive edge, short- and long-term support of software needs, cost-cutting (i.e. increased return on investment), expanding internationally, and the ability to focus on the product while others do the dirty work.

Speaking of this “dirty work,” companies often find that setting up an ODC (Offshore Development Center) is the best way to get those lucrative returns on investment. An offshore center gives added benefit in that the company can promote their product overseas, choose from an expanding talent pool, and retain full control over the operations. For instance, a country like Ukraine has more than 200,000 IT professionals and growing, creative western-oriented developers with solid English, and with a model like Alcor solutions a company can get all-in-one-place support, like recruitment of developers, office search and refurbishments, legal compliance and contract support, as well as financial and accounting back-office support.

Without a reliable partner company in that foreign country, maintaining that culture/language barrier balance can be a real headache. Many times, productivity is seriously hampered by lack of good communication with managers and team. It’s common for foreign workers to misunderstand instructions, and even worse to carry out the wrong commands. As well, there’s always the IP issues to consider. You wouldn’t want a foreign entity using your intellectual property for their gain. Yet despite these obstacles, with a solid foreign partner many of these areas are easily controlled. As well, Agile methodologies can assist companies in keeping track of ongoing processes and maintaining the “status quo” at the other end of the world.

Image source

There are also innumerable applications and technologies available to assist developers in keeping up their end of the bargain, meaning deadlines. Yet good technology is no replacement for good management. Hiring the right people to run that ODC is paramount for succeeding in this venture. Just having some good tech people is not the way to look at this equation, but instead a real company team who are committed to your goals and aspirations. That’s where an offshore center is a real advantage in this world.

Outsourcing allows companies to access technology they lack in-house, have workers developing around-the-clock, and hire others to manage key tasks. But as mentioned, as well as allowing firms to save money on the price of developing software and get access to technological capabilities they didn’t have in-house, there are also those other challenges: security risks, communication barriers, and not the least: trust. This is another reason why that reliable partner is a must when doing business in any foreign country.