How to Avoid Offshore Software Development Risks
Offshoring or offshore outsourcing means handing over the responsibility of a few operations/services of your business. It will help you connect with third-party companies located in a different time zone. In today’s world of globalization, the IT industry is witnessing swift advancements. It has become inevitable for enterprises to seek help from offshore companies and use their skill set, which they lack in their in-house team. If you’re looking for the best offshore software development company in the USA, we can assist you with your offshore requirements. So, here we will discuss how we manage offshore software development risks and How to Avoid Them.
Common
Offshore Development Risks
1. Hidden Cost Risks
Cost-effective benefits serve as the driving force for enterprises
and make them opt for outsourcing their software development services. However, not the entire
cost of the project is evident at the time of the agreement and sometimes later
during the development stage of the project, hidden costs surface.
2. Communication Risks
Poor communication happens to be one of the key reasons behind
failed outsourced projects. Seamless communication between client and developer
is essential to meet the expectations attached to the outsourced project. But
usually, the client ignores the fact that the vendor is sitting in another
country, probably on another continent, where he may not understand the
universal language.
3. Security and Data Privacy Risks
Security and data privacy risks always remain one of the top
concerns of enterprises working with offshore software development companies. This becomes even more
critical when the client deals with the personal data of consumers like their
identity, contact information, email addresses, and credit card numbers because
there are chances that the offshore company’s data or IP address may not be
secured. In the case of a fallible security system, there are great chances of
data loss, thefts, and leaks which may bring the downfall of the client.
4. Poor Management
Clients who work with offshore companies often face the issue of
poor management. The competency of the employees working in any company largely
depends on the company’s recruitment process and management style. However,
with an offshore company, the vendor is located in another country, making it
practically impossible to monitor and manage the employees. As an outcome, it
reduces offshore software development risks. The compromised output
reflects this lack of supervision, professional personnel, and poor management.
5. Performance Risks
Offshore software
development solutions seem pretty lucrative to
enterprises because of the low cost but this low cost brings the risks of poor
work quality along. Despite all the claims and best intentions, there’s no
guarantee that the vendor will deliver according to the client’s expectations.
Most of the time inexperienced employees, poor communication, misunderstanding
about the project and poor team management result in low-quality output.
Benefits of
Offshoring Software Development
1. Cost Savings: Offshoring can significantly reduce labour and operational
costs. As a result, it automatically lowers the wages in other countries.
2. Access to Global Talent: It provides access to a diverse pool of
skilled professionals. It opens up the reach to global experts who may not be
available locally.
3. Focus on Core Business Functions: By outsourcing non-core
activities, companies can focus more on their primary business goals and
operations.
Mitigating
Risks with Offshore Outsourcing
Though the risks attached to offshoring might deter you from
contacting a third-party service provider if done right, outsourcing Software Development
Companies will prove to be highly beneficial for your business; you
will be able to reduce operational costs, utilize the external skills and scale
your business up.
1. Decide
Whether You Need To Outsource or Not
Even though outsourcing development projects are very much in
demand due to its significant advantages this doesn’t necessarily mean that you
should follow the trend.
First, determine what your business’s current requirements are;
whether it’s optimization of core business processes, software product development, service quality
improvement or cost reduction. Then evaluate your resources like, the skills
and expertise of the employees, budget, man-hours, in-house developers,
hardware and software tools, etc. and determine what you lack that is
restricting you from implementing your ideas and fulfilling your business’s
requirements.
2. Smartly
Pick the IT Outsourcing Vendor
Choosing the right offshore vendor is not as simple as it looks.
You can’t randomly pick any service provider because your entire project will
be at stake. Carefully pick a vendor that can deliver high-quality service with
minimum management and supervision without affecting your software development cost. An ideal service
provider is one who has ample knowledge about your industry and whose skills
meet the technical requirements of your business.
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