The Software Outsourcing Pros and Cons You Must Consider as Your Enterprise Grows

So you need new software capabilities to enable an expanding business model. If you’ve reached this point, you’re at a crossroads: where can you find…

December 5, 2019
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So you need new software capabilities to enable an expanding business model. If you’ve reached this point, you’re at a crossroads: where can you find a team to build your software to your exact specifications while staying on time and within your budget? As your business continues to expand, you’ll need to consider software outsourcing’s pros and cons in order to make an informed decision for your firm. 


What are Software Outsourcing’s Pros and Cons?

Companies who directly hire developers to enable new software solutions to face a problem: what’s left for developers to do after a software project is complete? Not to mention, attempting software development in-house drains your firm’s focus and resources away from primary business objectives. And like every other area of business, it’s most efficient to give people job duties that match their area of specialization—including your firm.

Outsourcing is a great option if your enterprise has a large project that will take many developers to build and stretch across a long period of time. It’s a way of accessing a team that has all the skills and expertise you may not have within your organization without having to hire developers permanently. 

In order to understand software outsourcing’s pros and cons, it can be helpful to divide outsourcing into two types: offshore and nearshore outsourcing. Offshore outsourcing occurs in a country overseas. If your company is based in North America, offshore outsourcing would take place in China or India. Meanwhile, nearshore outsourcing usually occurs substantially closer to your own country. If you live in the U.S., for example, a nearshore outsourcing company would be based in Latin America. This may not sound like an important distinction, but when you compare them both the differentiators become clear.


The Pros of Offshore Outsourcing

  • A quickly scalable workforce: Outsourcing gives you the ability to quickly add, change or remove developers to your team whenever your needs change. This form of staff augmentation gives you the flexibility to adjust the size of your team should different market or budget needs arise suddenly.
  • Access to a wider range of skills: It’s likely that your software development project will require skill sets that your current employees don’t have. Outsourcing is a quick and easy way to gain access to such skills, without the commitment of hiring permanent employees.
  • Reduced labor costs: This is outsourcing’s biggest benefit, and it may be said of nearshore outsourcing, too. Because the cost of living is lower in many overseas companies, offshore firms can hire quality talent at a lower cost. Those savings can be passed on to you.


The Cons of Offshore Outsourcing

  • Communication barriers: When working with a team that’s located on the other side of the world, communication can be a struggle. Team members may not be fluent in your language and there may be cultural barriers that disrupt workflows or cause outright miscommunication. 
  • Poor coordination: When time zones differ greatly, it can be hard to keep workflows organized, to set deadlines, and to schedule meetings or phone calls. This makes it hard to contact a team member at a moment’s notice, and no one wants to have to stay awake for a meeting held late at night.
  • Developer burnout: Developers working in an offshore firm may have to struggle to make their schedules conform to yours. This means teams often have to work overnight to get in sync with North American work hours, which leads to tired, burnt out developers not able to work at their best. 


The Pros of Nearshore Outsourcing

  • Convenient proximity: Nearshore software outsourcing teams operate in similar time zones, making it easier to schedule meetings or make spur of the moment phone calls. Should you need to meet in person, traveling to a nearshore firm is far cheaper and less time consuming than flying overseas. 
  • Fewer cultural barriers: You need a team that speaks and understands your language fluently. These small differences can add up, making collaboration easier and more relaxed.
  • Greater control over your project: Similar time zones make it easier to coordinate shared workflows. It makes it easier for virtual teams to make decisions and stay on schedule. And, having greater control over a project that’s working closer to home helps speed the project’s time-to-market.
  • Lower costs: As mentioned, nearshore outsourcing offers the same labor cost reductions as offshore outsourcing does, while still offering access to highly-skilled developers.


The Cons of Nearshore Outsourcing

  • Price: Nearshore outsourcing doesn’t have many drawbacks. But, you may have heard that nearshore development is more expensive than offshore. This can be the case if you choose a partner that doesn’t work within your budget. But the best nearshore firms don’t skimp on the quality of their talent, either. No matter what you’ve heard, you can find a cost-effective nearshore partner that will use first-rate expert developers to deliver quality software.


Nearshore Outsourcing Beats Offshore, Every Time

To enjoy the convenience and cost benefits of outsourcing without all the problems caused by working with an offshore team, choose nearshore development. It gives you more value for your investment and more control over your project. It makes communication easier and keeps workflows organized and on task. And, if you’re an enterprise that has a long-term project requiring many developers, it’s the most efficient way to go.


BairesDev can provide Latin America’s Top 1% IT Talent whenever you need it. We offer full-cycle custom software development without the drawbacks of working with a team located on the other side of the world. To learn how to get the extra talent needed to finish your projects fast, contact our team.


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