Whether the advantages of Outsourcing outweigh the disadvantages depends on how it is implemented. Before you hastily outsource an important project, or even a division, you should be well aware of the advantages and disadvantages.
Outsourcing advantages and disadvantages at a glance
Outsourcing software development and other IT projects offers a number of advantages that make this area particularly interesting.
Cost savings are the main reason for companies to fully or partially outsource projects. Software developers are more affordable outside of the main industrial countries, even with equal qualifications. PayScale, a global statistics service for salaries, states that the average annual salary for an Indian software developer comes to just over $5000, and only about 10% of developers earn more than $10,000. In countries in Europe you will pay about five times that.
Deadlines and time pressure often result in incomplete or faulty products. If a software project unexpectedly needs more time, you often need to use additional staff who will not be needed afterwards.
Special knowledge for specific technologies is often only needed every now and again. Companies therefore prefer to employ all-rounders who can be used flexibly.
The work morale of the core workforce can also benefit from Outsourcing, by reducing stress and tasks that are not part of their job description. External specialists are often much more efficient.
Outsourcing disadvantages, better referred to as risks, do exist. Here are the most important.
In countries such as India there are significant differences in mentality. The resulting communication problems can offset all the advantages.
The different time zones across continents can also be a disadvantages, which can complicate communication and the work.
There can also be major differences in quality which are not recognizable due to the lack of comparable educational structures and virtually unknown job markets abroad.
Benefit from the advantages of Outsourcing and minimize the disadvantages
It is therefore important for a successful Outsourcing to reduce or eliminate the disadvantages. Outsourcing4work, as an Outsourcing provider, has specialized in this exact area.
You can realise your project completely in India with us and avoid the biggest risks at the same time. We provide you with highly professional software companies in India and assume the responsibility for a successful project as a European contract partner. You will conclude all contracts with us as a European company, which will give you legal certainty.
With the help of our European project managers with many years of experience in dealing with India, we can avoid the potential issues caused by differences in mentality. They know the Indian mentality and work methods, and will ensure problem-free collaboration.