Are you looking to outsource your software development needs? You’re not alone – the global software outsourcing market is valued at over [$92.5 billion] But with such a massive industry comes a host of hidden costs and unexpected challenges. Sure, cost reduction is a big motivator for outsourcing, but what about the hurdles you might encounter?

Let’s take a deep dive into the common pitfalls of outsourcing and offer dynamic solutions to help you overcome them. We’ll also show you why offshore development may be the answer you’ve been looking for.

Outsourcing vs offshoring

Outsourcing – yes, the operational costs are relatively low, but hiring contractors for one-off projects through third parties can be a headache.

Offshoring is the key to achieving long-term goals with committed staff and highly skilled software engineers. But let’s face it; the cost can be a concern.

The common problems with outsourcing

Quantity over quality

Looking to outsource to save on costs? The trade-off may not always be worth it. With outsourced engineers juggling multiple clients, quality can suffer, and their priorities may not align with yours. The result? A project that only partially reflects your company’s vision or needs.

A lack of control over ‘your’ team

Third-party vendors often hire independent contractors outside your team, making it challenging to oversee their work and communicate with your internal team. Keep your projects on track and maintain communication by choosing a more reliable solution.

Undisclosed and hidden costs

Don’t let hidden expenses sabotage your software outsourcing plans. While outsourcing can save on employment costs, be wary of hidden fees that can impact the quality of your software. Cutting corners with your budget can ultimately result in lower-quality software and missed deadlines.

Data loss and theft

Outsourcing software development can be a double-edged sword. While it can help reduce costs and expand your team’s capabilities, it also poses risks such as data loss, cybersecurity threats, and intellectual property theft. Protecting sensitive data and ensuring that your team has proper security measures is crucial to prevent any breaches.

Cultural differences

When working with an outsourced team, it’s important to remember that they’re temporary workers who may not fully understand your company’s values or way of doing things. Bridging the culture gap between your internal and external teams can be tricky, but it’s important for successful collaboration.

Legal disputes

It’s not always a lack of technical skills that causes disagreements – often, communication issues get in the way. To ensure your software meets contract requirements, your developers need strong English skills to clearly articulate their work’s scope. Don’t overlook the importance of effective communication in software development – it’s crucial for project success.

Why is offshore development different?

Offshoring prioritises team culture over cost, letting your company’s individuality flourish. This model can provide numerous benefits, including access to a larger pool of skilled professionals, lower labour costs, increased flexibility in staffing resources, and the ability to scale up or down as needed. Additionally, offshoring allows your company to focus on the core competencies while leaving other tasks to specialised professionals.

Trustworthy offshore partners like The Scalers are transparent about costs, handle legal and administrative duties, and ensure their culture aligns with yours.With access to top-tier tech specialists, they can manage screening on your behalf and prioritise security with state-of-the-art firewalls, anti-virus and anti-spyware defences, and regular software updates. Don’t settle for less – partner with the right offshore team to take your business to new heights!

Key takeaways to keep in mind:

1. Offshoring can solve many issues outsourcing can’t
2. In-house developers are involved in offshoring and work solely for your business
3. Offshore developers are committed to your company’s success and fully align with your mission and projects
4. A reliable offshore partner will oversee recruitment with an established method, manage your operations and HR functions, and assist you in expanding

Explore more about software outsourcing challenges