While outsourcing is becoming a popular route for developing apps, it is a double-edged sword with ups and downs. Many enterprises step into the world of outsourcing without proper understanding of the benefits and risks. Such companies often act in haste and remorse.
Here is a run-down of the major benefits and risks or challenges associated with outsourcing of application development work, as the first step towards making decisions about outsourcing.
Pro: outsourcing cost advantage
The major ration datare for outsourcing is cost savings. Outsourcing app development work to a third party provider often costs less than starting an in-house development work. Despite the need for frequent updates to keep the app up-to-date, beyond the scope of the daily routine of the in-house IT team, app development is a dedicated project.
Dedicated resources and new talent will need to be gathered to engage in the in-house app development process, including all large capital investments. A third-party outsourcing partner comes with an up-and-running infrastructure, and app development is their main focus rather than diverting attention from their core activity. They certainly pass on the resulting cost-savings of the enterprise.
The benefits of outsourcing become even more profound when outsourcing is combined with offshoring.
By discontinuing development work in India, Eastern Europe or any other third world country, the delivery of high quality apps ensures that this is much higher than the cost incurred to develop the app indoors. A local outsourcing party. The low salary paid to developers employed by an outsourcing partner is not necessarily exploitative, as it matches above-average wages with the cost of living in a third-world country.
with about half of this cost going to deploy the necessary infrastructure and facilities. Outsourcing the application development process reduces the total cost of app development from about $ 10,000 to $ 80,000.
Outsourcing brings a boom time in the market
The benefit of outsourcing is much greater than the cost savings. Often, cost savings occur with accelerated time to market. A competent outsourcing partner will have a talent pool of highly experienced and experienced developers at their ready disposal, who will be able to complete the most challenging of tasks in dual quick time, without slowing down for guidance, trained on a new technology Ho, or also indulge in trial and error. In addition, the outsourcing partner agrees to complete the project in a timely manner, without any sickness leaves, due to major talent pouring into his papers or any other disruption.
Rapid change perfectly suits today’s fast-paced business environment,
where the ideal time to roll out an app is always tomorrow. A recent survey cited more than 40% of respondents taking the time between six months to a year to develop an app in-house, which is completely unacceptable in today’s fast-paced world.
Outsourcing enhances the quality of work
Outsourcing typically enhances the quality of apps, with the client’s talent pool of outsourcing partners, rich experience, knowledge, and the latest infrastructure easily obtained in a highly scalable way. Outsourcing partners have an added motivation in delivering high-quality work, advertising their skills best, and being a major source of repeat orders and referrals.
A related benefit is the transfer of risk. An outsourcing partner considers all risks associated with the project. The partner guarantees delivery on time and on budget with penalties for delays. The client also has the option to terminate the contract if things go wrong, instead of getting stuck with a dud project.
Risk of cons-sensitive information leakage
For all the benefits of outsourcing, it also comes with significant downside. Incorporating third-party and external outsourcing partners into the mix comes with the risk of leakage of confidential information. A successful app requires close integration with the business process, requiring the outsourcing partner to have first-hand information on the business’s nitty-gritty. The outsourcing partner also puts its hands on sensitive information regarding the customers of the business.
The antidote to such risks is a strong non-disclosure agreement and IP protection agreement, supported by appropriate legal and organizational measures.
Challenges of expectations mismatch
While an outsourcing provider may be technically capable and roll out apps in a time-frame, an expectation is an inherent risk of mismatch. There is always the risk of a development team doing something different from customer expectations. Worse, the development team may not assemble requirements explicitly and affect the flaw inherent in app design, which may be difficult to improve at a later stage.