Pros and Cons of Software Outsourcing
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Pros and Cons of Software Outsourcing

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Laying the foundation for software development is much as important as building an organization. However, the number of people who have in-depth knowledge of software makes up a small number, or just have an overview or can only build on the idea side. Since then, the software outsourcing teams have appeared as a bright spot throughout the journey to support customers in the best way, in order to optimize the profits and operations of the business. Among many software outsourcing vendor choices in the current technology market, from large companies to smaller groups, it is not difficult to find a suitable team to support the project. However, the "tip of the iceberg" is actually just the beginning, the disadvantages of software outsourcing is unavoidable and will gradually show up in the working process.

As a leading Vietnam-based Agile software development company in Ho Chi Minh City, Vietnam, with a certification among 15 best Agile software outsourcing companies in Vietnam by The Vietnam Software Association in 2019, Saigon Technology Solutions team has experienced many ups and downs with improvement and reputation, we would list down Pros and Cons of software outsourcing and how to overcome them to get the job done in the best way for both parties. 

Table of Contents

1. Advantages of Software Outsourcing

  1. Cost Saving
  2. Time Saving
  3. “Gray matter” Saving
  4. Flexible - diverse ideas
  5. Experienced talents are always ready to participate

2. Disadvantages of Software Outsourcing – How to solve them?

  1. Difficult to control the working process
  2. Time zone differences
  3. Difficult to grasp each other's styles & ideas
  4. Security risks
  5. Language barriers

3. Conclusion

Advantages of Software Outsourcing

Advantages of Software Outsourcing

1. Cost Saving

Before we get started on building or investing in any project, the first thing we need to consider is "cost." Running a company is inherently complex with many different factors. Therefore, don't let the goal "build the technology platform" become another worry that will weigh on your business. If you need software development to serve your businesses as well as customers, we are ready to meet. With dynamic and highly specialized human resources, our team will definitely save a lot of types of costs such as recruiting & training software professionals. You do not have to worry too much, nor have to invest a large budget in advance. We will support you, and of course, at a much more reasonable cost and clarity.

2. Time Saving

Among the top concerns when starting to build a technology platform for your business, is the “time” factor. If the project is on schedule, it means that you have won a part. However, what if the project encounters a problem and becomes late? The damage is natural. For the type of external technology service provider, when the two parties sign a contract, then "ensuring the project is on schedule" is also one of the most important terms. With the abundant human resources of software outsourcing teams, do not worry about the time anymore.

3. “Gray matter” Saving

Obviously that the business owners are the ones who understand the project requirements better than anyone. But in terms of ideas and professional skills, this is another different matter. One of the advantages of software outsourcing is "gray matter saving”. Because a team with lots of talents is still better than a small department, less flexible in terms of workmanship and less color. As a business owner, you have to face many worries and concerns every day. So why do you have to worry so much about technology?

4. Flexible - diverse ideas

With the support of a software outsourcing team, you will not have to spend much time and money on hiring, training personnel and worrying about other arising issues. Moreover, the larger the project scale, the greater the number of employees with high professional qualifications, the greater the accuracy and efficiency required that internal staffs are difficult to meet or adapt. In other words, the emergence of outsourcing software teams is the "relief" for business owners who are still struggling to find appropriate technology solutions to bring better customer service efficiency.

5. Experienced talents are always ready to participate

In order to “survive” in the ever-growing technology market, software outsourcing companies are bound to keep up to date with the latest and most current trends for their team members. Consequently, your project can be finished quicker, saving costs and avoiding many risks. Therefore, when you're ready to start a trip with a software outsourcing provider, feel free to think about the requirements to optimize service for your customers, for the rest, let our experts take care!

Disadvantages of Software Outsourcing – How to solve them?

Disadvantages of Software Outsourcing

1. Difficult to control the working process

When business owners and software outsourcing teams are in two different places, there will certainly arise problems about the process of finishing the work and the results achieved in each set out stage. On the other hand, you probably won't have complete control over how those tasks are performed, but just be monitored.

  -> If you have chosen a reliable service provider, take it easy checking and tracking each work item, do not put too much emphasis on controlling every detail, steps to steps. The experts themselves would always know how to handle the job.

2. Time zone differences

Geographic differences will lead to differences in time zones. For instance, if an enterprise is based in the Americas but works with a software outsourcing team in Asia, the evening is the time for the enterprise to go to bed, and it will must likely fall into the team working time or vice versa.

  -> Whatever the contradictory working hours, we will certainly find the appropriate time to discuss. Or simply, online communication by using the messaging application is also a good idea. On the other hand, you can also use large time zone differences to your advantage. For example, you might send a software outsourcing team a task at the end of your workday. While you are sleeping, the team is still working hard, and you will definitely get results by the beginning of the next working day.

3. Difficult to grasp each other's styles & ideas

"Conveying ideas," sounds easy, but if the two sides do not fully understand each other, then the damage is caused. Every business owner, every organization, every individual has a unique color; from work style to arrangement idea. Sometimes, with the same project and destination, the software outsourcing team will certainly have a completely different perspective from the business owner. Because they see things from the lens of technological expertise, while business owners have their holistic point of view, taking into account the loss - profit and many other factors.

  -> Surely 2 parties will have to prepare a unified meeting, and discuss each item, details in the plan table. Software outsourcing teams and businesses will have the opportunity to listen to understand each other better, grasp ideas and needs easily.

4. Security risks

When you decide to transfer your internal business information to a partner, make sure that the partner will keep the information completely confidential. In this era of Big Data, you must be very careful when using customer data.

  -> In order to avoid such risks and ensure security standards, the 2 parties should sign NDAs (Non-disclosure agreement) and security protocols before starting the project. Furthermore, the business owner should also consider a well written-contract covering all the aspects of intellectual property hand-over before software outsourcing takes place.

5. Language barriers

Nowadays, English has become popular in most countries. Thus, if the communication is simple or not too deep into the professional aspect, then the citizens from different countries can easily express ideas with each other. However, if you are delegating teleworking via email or phone, important instructions are often missing, lost, or difficult to keep in full meaning when using online translation tools. That can cost you time, money and serious trouble. You can convey your edits or ideas through particular photos or presentation slides for illustration.

  -> Encourage the software outsourcing team to ask more questions. In the process of working, there will certainly be many problems, and of course, no one can understand the brand as much as the representative from that business. Once you have a more detailed view of your needs, the software outsourcing team will definitely complete the project well and deliver a great result.

Conclusion

The above are typical pros and cons of software outsourcing. Of course, each project has a different color and style; therefore, the difficulties and results are not the same. Based on each project, we will draw our own case studies with pros and cons for each project, customer, product... of software outsourcing. And if you are still confusing, contact Saigon Technology right away for more specialized solution advice!

As a Leading Vietnam Software Development Outsourcing Company, we dedicate to your success by following our philosophy:

YOUR SUCCESS IS OUR MISSION.

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