Outsourcing your software development projects is something that many businesses find they need to do. While the decision might be an easy one to make, the sheer number of outsourcing companies available makes the next step a challenging one. Here are some tips for choosing the best option for your business.
The Three Types of Outsourcing
Outsourcing companies are most easily classified by location, which created three different types to choose from. These include:
- Local: a company in your home country
- Offshore: A distant country
- And Nearshore: A country close to yours
Each type of outsourcing comes with a set of pros and cons, making it important to identify which would best suit your needs. Here’s the breakdown for each choice.
When you stay local, you reap the advantages of a nearby business. Since your teams are easily accessible, there’s no language barrier to worry about, and they work in the same time zone as you do. That gives you an ample amount of control over what they are doing and how they are doing it.
Should any problems arise, a solution can be reached quickly. If you were working with aerospace, electrical connectors and components, for instance, you could view the prototypes and make any necessary changes in no time. The same goes for software development.
On the downside, those premium features come at a premium price. Local outsourcing is usually the most expensive option, and a higher price tag does not always equate to high-quality work. The chances of complications arising are the same as anywhere else.
Choosing to outsource offshore immediately catches many individuals attention with its low prices. Countries like India offer lower hourly rates than you might believe. So, $10-20 an hour for software development is apparently a significant benefit that you might want to take advantage of.
As you might have guessed, that lower price comes with a few drawbacks. For starters, there’s a lack of communication that could lead to an incorrect product or other complications. You won’t be able to visit the team cost-effectively, and you may run into language barriers.
Standards of quality change drastically from one country to the next, too. That can make changing companies down the road and maintenance on your software difficult.
Staying Close to Home
Choosing a nearby country, depending on your location, can provide a median price range that still beats staying local. Eastern Europe is often the most attractive option for its decent price range and engineering skills. There’s usually less of a language barrier as well since many companies employ bilingual employees.
What you might also find is that companies offer a full range of services, allowing for a fully supported product. Nearshore outsourcing has become a more popular option in recent years, often being referred to as the “sweet spot” for software development. You’ll have to decide if it deserves that title, or if you would be better off with another option as you move forward.