All emerging organizations eventually come to or will face, the big dilemma of making the important decision to externalize the responsibility of developing their business applications to a third party or to maintain and/or strengthen it as an organizational unit at home.
Let’s get to the point! In the first instance, the organization must ask itself these two questions before making the decision:
1. Does the company have a weak software development team and/or do not have it?
If so, it will be necessary to consider the option of forming a new team of in-house specialists or improving the operational capacity of existing equipment; the last option would simply be to give these responsibilities to a third party.
2. from the point of view of corporate strategy: Is it necessary for the organization to have a specialized area in software development?
This will depend on the turnover of the business; From the point of view of the corporate strategy can be designated little by little the tasks of software development to a third party in order that the company is focused mainly on the core business.
For either case, the factor to be considered by the organization to decide on outsourcing is substantially the same.
If software development is not a major activity within your business strategy then you must outsource.
If software development is not part of the core activity of the organization then I suggest you choose a third party to handle this; so you can concentrate all the resources on your core business activity. If you have made the decision to provide a third party with responsibility for maintaining and/or creating your new corporate applications, then you will now have to pay close attention to contract management and service agreement (SLA) levels.
If outsource software development company is a strategic part of your core business, then you should already have your own team of specialists and are looking for greater expertise to leverage your technology solutions according to your corporate strategy; Under this scenario, a strategic synergy should be oriented that allows agility, efficiency and effectiveness with the supplier, in addition to developing a careful implementation plan and a pragmatic contract, very detailed and extremely specific.
Again, in either of the two points above if your organization expects its main software products to be maintained long-term by a third party, it will be imperative to build your own team of specialists who have a high knowledge of business and in-house technologies; this will serve to ensure the quality of the products delivered by the third party.
Outsourcing software development should not be aimed at saving money; it should be a business strategy.
Delegating software development to an external supplier is not necessarily saving money, neither in the short term nor in the long term, it is a contract that will be in effect while the cows are fat and also when they are thin; We should remember that software development is a complex activity resulting from a chain of processes that require technology (hardware and software), human resources, management, etc., and estimating costs by the supplier can be translated into the same or more What it would spend if assumed by the organization.
Reasons to Outsource Software Development.-
One important reason for outsourcing may be the urgency of software solutions that the organization requires, so it may be better to spend more money and hire a direct service rather than orchestrate a whole IT department that can be time to consume.
The operation and maintenance costs of the product; Maintaining the demand for customized software products is very complicated due to the technology and the human talent that is required, companies specialized in this field clearly have their methodologies and processes defined for these purposes.
Never outsource to save money, the main reason for outsourcing should be to buy experience; Many organizations with giant IT departments do not know how to write a software requirements document, or how to design a user interface.
Another advantage of hiring an outsourcer is that they are not normally affected by the organization’s internal policies; this is very good because the supplier is more likely to give constructive criticism and more honest feedback.