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Who stands to gain from software development outsourcing: customers or contractors?

Modern society hardens to the view that software development outsourcing is an excellent way to save money. IT-analysts are united in this certainty and outsourcing market kites. Two camps – customers and contractors – facilitate market development.

Pros and cons for the first camp

The first camp aimed on saving money as much as possible by the rulebook. An open secret is the fact that qualified developers salary discernibly differs from payment for labor of «men of mould», the rest specialists of company in other words. Therefore, managers look for a possibility to whittle down expenses basing on time consuming task outsourcing.

As reported by Computer Economics, the most of offshore developments fall at applications (java application development, web application development, etc.). One interesting particularity is noteworthy: outsourcing is profitable when we’re speaking of terms and working scale but not economically.

Such statement is proved by numbers. Organizations resorting to outsourcing have admitted that the price of such development is higher (46% of respondents), and service quality is similar to quality of developers on-staff services (58% of respondents). What is behind all this? Economic efficiency of outsourcing is just a myth?

What motives do developers have?

Well, let us get straighten what are the profits for developers in outsourcing. Usually, they chose one of two directions. The first is – development of products under their own brand. The second scheme intends to foreign companies’ orders processing.

If the choice is made for outsourcing, developers can count on money earning. As well as for funds saving: investments for products promoting are decreased. In such cases personnel have to improve their skills to comply with high standards of buyers.

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Magento to help you build a strong ecommerce store

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