Recent trends in software development market show that it is no longer most efficient way to work onshore. Competition is too high and in some particular cases, US or European IT people even go farming rather than admit situation and adapt themselves. This article is mainly for those who are going to stay straight in industry whatever surprises it keeps bringing.
International division of labour has done its work. So nowadays, if you ask anybody about regions he associates with IT-industry, you’ll get quite a short list: India, China, Russia, Eastern Europe. No wonder, historically these regions had most efficient technically oriented education. In addition to lower cost of labour in East, that is their main selling point, which determines their competitive strength.
As a logical sequence, almost each leading company engaged in IT sphere, whether publicly or secretly, outsources a part of its current work to third parties, often offshore. No wonder that Indian and other offshore software development companies prosper.
So what are key factors that make companies outsource?
1. Cost of labour is often several times less than onshore. 2. There is no need to maintain whole technical infrastructure 3. Company can concentrate mainly on marketing tasks
Although that sounds good and promises several times bigger profits, incautious outsourcing can be a trap for any company. Don’t forget that you entrust your reputation to a company that is thousands miles away. Hence, if you have made a decision to outsource a part or whole project to some company, you should take into consideration five simple tips.
Make proper research
The simplest way to find offshore software development companies is to try search engine or relative online directories. However, there is no guarantee that under inspirational promises any website has, you won’t find cheaters. Spend several hours and try to find most info about companies you have selected. Search engines should be your best friend in these efforts.
Consult alliances and associations
Almost each country where IT industry is well developed has national alliances of software development companies. These pools of developers can become your first step in search for an outsourcing company.