Choose the Best Form of Outsourcing IT Projects
Most likely there are very few people, who have never heard of outsourcing, as this has been a well established practice since the 1990’s. Still, here is a simple and clear definition by Entrepreneur: outsourcing is “the practice of having certain job functions done outside a company instead of having an in-house department or employee handle them”. Eastern Europe, Asia and South America seem to be the most popular regions for outsourcing of all sorts of tasks and services. This is mainly due to the fact, that job compensation across the mentioned regions is far lower than say in the developed countries of North America and Western Europe. Consequently, many businesses see a golden opportunity in outsourcing, that allows to pass on some processes to third-party IT outsource companies and save a fair bit of budget.
However, before diving into all of this completely, you need to find out about how to develop IT outsourcing strategy. It is very important to have one, even though many beginners and even experienced entrepreneurs tend to neglect it. This is a crucial mistake they are making as having a strategy for your outsourcing is important. First of all, it allows you to consider all the necessary risks and avoid any sort of complications in the future. Secondly, you will be able to count down your expenses and make sure that you not only can afford a certain specialist but also save some money by hiring him.
When you think of strategies for IT outsourcing it usually implies lots of planning. First of all, you need to do broad research on the type of specialist you need. Learn about all the skills he must obtain as it greatly influences the rate of your future employee. You should also take into consideration his educational background and the country of origin. The thing is that plenty of Easter European specialists have lower rates due to the difference in the currency exchange numbers. That is one of the best reasons to start doing outsourcing in the first place. Let’s take a look at major reasons of outsourcing software development services Eastern Europe, main outsourcing advantages and disadvantages, which is so commonplace these days.
2017 trends in IT outsourcing
Reasons for Software Development Outsourcing
You may wonder why do companies outsource? Here we are to provide advantages and disadvantages of outsourcing. Software development outsourcing can cut the delivery cost of products supporting the business in many ways. It first and foremost eliminates the need of gathering an in-house team of developers. This means, that no time or money should be spent to look for and recruit programmers suitable for the software projects outsourcing, as the IT outsourcing provider one signs up a contract with, has its own firm and finely tuned team, that is ready to get down to work right away. In case the outsourcing company lacks a team member with certain expertise your project requires, this is 100% their concern, and their head hunters will for sure find a new person with the necessary set of skills to make up a team in no time. Except for human resources, development of digital products requires particular infrastructure, which is rather costly, and which an outsourcing company already possesses.
Another benefit of software development outsource to IT agencies is the chance not to get distracted and focus on the core needs of the business one is running. If the company has no connection with digital and IT technologies and is not going to launch any long-term software development outsource projects, there’s no use to try to dig into this sphere and create an amateur web or mobile application on its own. Think of it, what are the chances of happy ending?
Outsourcing IT projects to the experts and letting everyone do, what they can do, is way safer. Safe software development process doesn’t come down to a few skillful programmers, who code day and night – there are lots of hidden agendas known only to those, who work in IT sphere for years! A non-techy entrepreneur might be bewildered by the terms like TRD, BRD or SDLC. While an IT outsourcing provider is definitely aware of the right way to compile a technical requirements document, and knows exactly what approach to take to enhance and accelerate outsourcing system development life cycle of a particular software projects outsourcing. IT agency knows the secrets of how to increase your venues, conversion and profit via proper UI, system architecture, integrations, extensions etc.
Besides, project management is one more crucial aspect, that determines the outcome of any development process. Monitoring, management and control are as difficult as coding, and development IT outsource companies apparently have such tried-and-tested methods to employ and bring your venture to success. Another advantage of IT outsourcing providers, is the very fact, that they are “outsourcing”. The chance to deal with various projects and business niches, makes them open-minded and flexible, gives them versatile experience, molds their innovative and original vision and approaches, that they further offer to their customers.
Forms of Outsourcing
A few forms of outsourcing can be distinguished. Though, most of them first and foremost differ in the location of the IT outsourcing provider, the types of IT outsourcing define the style of cooperation between the business and the vendor, as well as approach to the entire process of project delivery.
Nearshoring or nearshore is one of IT outsourcing models which is putting out a business process to vendor in the nearby country. Among the outsourcing benefits of such outsourcing is small time difference and common mindset of people involved, which smooths development process and prevents misunderstandings. This is especially relevant for various law firms where having close contact with the vendor is crucial. That is why IT outsourcing for law firms is now at the peak of its popularity. Nearshoring is especially relevant in this case as while outsourcing specialists from a far located country, you, as a business owner, might face significant differences in law which will be hard to ignore. More than just that, by ignoring such differences you might do great harm to your business not only in the present time but also in the future.
Offshore IT outsourcing is the process of cooperation with software development company, that is situated in a distant country. The inconveniences in communication, which might occur in course of such type of outsourcing, are, as a rule, compensated by a relatively low cost of outsourced software product development delivery. So, it is hard to define the difference between outsourcing and offshoring, as offshoring is one of outsourcing IT types.
Onshoring, onshore outsourcing or homesourcing is the practice of passing mostly software product development company into the hands of an agency located in the same country as a customer company. This rarely reduces the cost of development, still helps make up for shortage of necessary professionals in the area. Project internal processes and communication between two parties in such case are mostly seamless.
Multisourcing is putting out product delivery to several vendors. To give an example, design of a mobile application can be created by a freelancer, while frontend and backend development is to be done by a separate IT company.
Forms of outsourcing
Common IT Outsourcing Models Risks
Entrust your business to people and companies, that you barely know is always somewhat scary and risky. It is only natural, that business owners sometimes beware of cooperating with outsourcing agencies, as these are the companies, whose dependability they can judge merely from testimonials and portfolios. Besides, such fears are not groundless, as certain issues do occur while outsourcing IT projects and business processes in general.
Security threat is one of the most widespread issues faced by businesses, that outsource software development. In course of the project completion company reveals to the vendor certain confidential information, core ideas and concepts of the very project, business model etc. – data, which is not to be widespread freely, but is still at such a risk. Copyright and intellectual property should be thoroughly defended, and all the conditions should be specified in details while signing the contract with an IT outsourcing provider.
Outsourcing software development services can also be accompanied with communication issues. It might be complicated by a few aspects, such as time difference between the main office and the IT outsourcing provider (e.g. time difference between the USA and India is over 10 hours), distance between the two parties, which makes in-person meetings inconvenient, and lack of common language, which mostly happens if one of the party doesn’t have representatives with command of English.
At Mobilunity we always do our best to prevent our customers from facing above-mentioned issues and challenges. Everyone interested can take a look at the best practices and results of our work in Mobilunity portfolio and case studies. While the feedback of our clients is usually posted on B2B research and review platform GoodFirms. Besides, as soon as a new project is delivered, a press release is posted on our blog. As for intellectual property, we as a rule offer to sign NDA (non-disclosure agreement) to our clients, so that they do not worry about the probability of their developments to be stolen. Be sure, that outsourcing to Ukraine is really safe and profitable!
Why to Outsource to Ukraine?
As you can see there are much more advantages than outsourcing disadvantages. As we work with businesses, that tried to outsource their development to IT agencies in a lot of countries worldwide, we see noticeable benefits outsourcing to Ukraine provides and try to increase the number of these pros of outsourcing with our daily hard work. Number 1 advantage of outsourcing software development services to Ukraine is convenient location of the country. For European countries outsourcing to Ukraine is nearshore outsourcing, which means better communication and ability to arrange frequent personal meetings, due to small time difference and close geographical position. In addition to this, price quality ratio of IT services most agencies in Ukraine provide is the best in Europe! Nearly ⅓ of Ukrainian school graduates give preference to IT-related tertiary education, which helped to rank Ukraine the 4th country in the world with the largest amount of certified IT specialists in 2014. This is where the biggest IT talent pool is to be looked for! So, if you are looking for quality nearshore safe software development Ukraine is the best place to choose.
Though outsourcing business services to third-party vendors is at times rather risky, this risk cannot beat substantial benefits software outsourcing company gets from such cooperation. Take a look at web and mobile development services and solutions Mobilunity offers, and decide whether we are a suitable IT outsourcing partner for you.