Pros & Cons of Investing in Software Outsourcing Solutions

Posted on January 10, 2018
Kevin Bell

Outsourcing has come up as one of the best alternative solutions for the companies that look forward to hire new resources for a short-duration project. It is defined as an allocation of a project or a business process to an external service provider. A majority of times, the organizations cannot handle all the aspects of a project internally. In addition to this, some processes are temporary and do not have the intention of hiring in-house professionals for performing a particular task.

However, before you select a third-party vendor for Software outsourcing services for your organization, make sure to weigh both the positive as well as the negative aspects associated with it while outsourcing brings with itself a lot of advantages for a company, the pros associated with it cannot be ignored.

Advantages of Software Outsourcing Solutions

Let’s have a look at some of the pros of investing in software outsourcing-

  1. Opportunity to Strengthen the Core Business Process

Outsourcing allows the businesses to concentrate on their core processes rather than the ones which are of short duration. Since the dedicated resources will be aligned on major projects rather than the supporting ones, your company will have a chance to strengthen them and bring more profit for your company.

  1. Better Output & Quality

The projects are outsourced to the vendors who specialize in their own fields. Since the vendors have the specific equipment as well as technical expertise, they are better than the resources in the organization which is outsourcing the custom software development services. This way, the tasks can be completed in an efficient manner as well as drive better output.

  1. Reduced Operational Cost

Outsourcing eliminates the need of hiring in-house individuals and therefore the overhead costing, which includes recruitment and operational costs, can be reduced to a great extent.

  1. Risk Sharing Between the Vendor & the Company

Risk-analysis is one of the most crucial factors that determines the outcome of a process or a project. Outsourcing some components for your business process assists the company in shifting certain responsibilities from their dedicated workforce to the vendors. Since the vendor you are hiring is specialized in the services you have outsourced, the risk-mitigating factors will also be managed by them.

Cons of Outsourcing Offshore Services

Some of the negative aspects associated with outsourcing services from a third-party vendor are-

  1. Stretched Delivery Time Frames

One of the biggest disadvantages of outsourcing comes into play in case you do not choose a right vendor for your project. Some of the most common problems which occur are unsynchronized deliverables, inappropriate division of responsibilities and sub-standard quality of the output.

  1. Risk of Losing Confidential Data

This is yet another loophole which might turn the tables around and that too not in the favor of the company outsourcing the services from a vendor. When an organization outsources payroll, HR or any other personnel, the risk of exposure of confidential and crucial data of the organization becomes really high.

  1. Lack of Focus on a Particular Project

Since outsourced vendors cater to the needs of multiple organizations at a time, it might get difficult for them to focus on the project of a particular company or a client. This might not prove beneficial for the company as they expect efficiency from the experts at all points of time.

  1. Hidden Cost of the Services

While outsourcing services is a cost-effective solution for the companies and enterprises, the hidden costs that are included during signing a contract might end up in posing a serious threat if you are hiring an offshore software outsourcing company.

The Bottom Line

Keeping in mind all the advantages and disadvantages associated with outsourcing services from a vendor, it is advised to determine all the tasks for which you need an outsourcing company. This will help you in creating a clear-cut strategy of all your requirements from the vendor and will thus ensure that the vendor gets clarity. If you also want to Software Outsourcing Services from a vendor, then you can get more information about the software outsourcing in California, from Octos Global. To know more about the services offered by the company, Contact us

Tactical Software Outsourcing vs Strategic Outsourcing

Posted on August 24, 2017
Kevin Bell

Strategic Outsourcing
What is the difference strategic vs. tactical outsourcing?
The difference lies in the relationship that you create with your vendor. Clients choose to outsource as it benefits them in both ways – strategic and tactical conditions. As long as the client is aware of the advantages and disadvantages of the process, and well one particular subject than outsourcing can be very successful.
Tactical Software Outsourcing
In some situations, you may need help for few months or quarters. These types of situations include meeting deadline, limited availability of specific resources or to bring the project back on track. These are the tactical reasons to outsource; these are the opportunities considered good, to begin with, the long-term relationship called strategic relationship.
Strategic Software Outsourcing
In the Strategic Software Outsourcing pairing of the vendor and client is the most important aspect. How close are you with your vendor? Are you an important client for your vendor? Do you have access to the management team? A vendor for a $1000K per annum relationship is different than the $5M Per annum relationship with the vendor, they both may look similar.
Closeness with the client is another important factor. When things go wrong, you can meet the client/vendor face-to-face and bring things back on track. For that matter, local presence is another important factor. Also, if the vendor has their own facility in their nearby local areas or they have low-cost destinations like India, Philippines, Ukraine, it is an added advantage.
Lastly, demonstrated capability plays a vital role. Has the vendor successfully delivered to the companies like yours?

What is Software Development Life Cycle and How Does it Affect Outsourcing?

Posted on June 24, 2017
Kevin Bell

Software Development Life Cycle is the process of developing software that serves as a standard in the IT industry for designing, development and testing of high-end software according to customized demands and expectations of a client. SDLC aims to achieve the final result while keeping a control on deadlines as well as the costs associated with development. SDLC is a step by step mechanism that serves as the broad plan for software development and is used by high-end software development firms for developing particular software or enhancing the value proposition of the same. Software development life cycle follows the following crucial stages for developing software:

  • Stage-I: Requirement Analysis & Planning
    First and the most important stage of SDLC requires careful planning by senior members of software development team who after taking inputs from the client, sales division, market surveys and niche experts come out with a detailed plan for conducting different feasibility checks for analyzing the product viability. Planning requires careful analysis of various technical, operational and economical factors that can impact the success of a development project.
  • Stage-II: Defining Specific Product Requirements
    Once basic framework is laid down, the next step involves clearly laying out and documenting the product requirements. After clear documentation, client approval is sought or a product is approved by market analysts using a SRS document consisting of various product requirements for design and development.
  • Stage-III: Product Architecture Designing
    After SRS is documented, it serves as a basic reference document for product architects using which product architecture is developed. The product architects propose multiple design approaches and document the same in Design Document Specification (DDS). The DDS then is reviewed and assessed by various stakeholders on different parameters and one design approach is selected in the end. The design approach defines various architectural modules along with various representations along with third-party modules.
  • Stage-IV: Product Development
    After all the documentation, actual product development starts during this stage. A programmer uses DDS to generate a programming code that fulfills the different requirements from a product. Program developers follow stringent coding guidelines to write down code that are defined by an organization. Also, programmers use different programming tools for generating codes using one of the various high level programming language according to product requirements.
  • Stage-V: Product Testing
    The testing stage involves testing the products for perfection according to pre-defined quality standards. Various product defects are tracked, reported and are fixed during this stage and the final product is retested for perfection according to standards defined in the SRS.
  • Stage-VI: Product Deployment & Maintenance
    After product development and testing, the final product is deployed for usage in the markets. A product is deployed according to the business strategy of an organization- either in limited segment or in real business environment.

There are a number of SDLC models that follow unique steps for successful software development. Based on the SDLC model finalized, software development life cycle impacts development outsourcing in multiple ways. The project timelines, risk factors involved, resources used, final ROI for client and security of the data pertaining to a project are the basic factors that impact outsourcing based on the SDLC model finalized.
We at Octos Global ensure that we provide the right advice in the form of relevant consultation regarding an accurate SDLC for the development of software according to customized demands. Our careful planning, agile development methodology and highly-experienced team help you with the decision regarding the correct SDLC model saving your time and cost related to software development.