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S
oftware Outsourcing: How Beneficial for
S
tartups and Small Companies ??

 

 

Outsourcing means transferring ownership of a business process by giving development and management task to the vendor. IT Outsourcing can provide high cost saving to companies. Many companies are now going for outsourcing as it provides high-quality solutions at an economical rate.

One of the ways of reducing cost of production is to open their development centers in countries like India where highly skilled but inexpensive (in comparison to international standards) resources are readily available. However, this approach makes sense only in case of big companies, which are going to build large engineering team. Lest there are many problems related to this approach. It is not easy hiring and then retaining staff. Also, the productivity may not meet the standard of expectations and hence this approach may not be as cost-effective as expected. In addition, small companies find it difficult to open and run an office in a country located far away from their own country.

Since startups and small companies have limited development funds and they need to focus on marketing and brand building, they opt for another economical option. "To go for IT outsourcing and save money otherwise spent on R&D". Offshore Outsourcing is not only beneficial for cost-reduction, but it also makes high quality resources available at low cost. Expansion in today's highly competitive world demands access to high quality resources. With limited funds, offshore outsourcing make expansion possible even for small companies.

IT Outsourcing has benefits even for companies that have only specific IT needs. In today's world, integration of IT with other businesses has become inevitable. Software development involves different stages with different people having different skills. Firms not specializing in software development but who have opened software development section to meet their IT needs have to bear the cost of the non-productive people. Offshore Software Outsourcing not only helps in cost-reduction, but also gives competitive advantage by providing high quality solution and ability to focus on core business.

Big companies like Lehman Brothers, Sony Corp., American Express were the first one to use benefits of offshore software outsourcing in India . These companies gave high growth opportunities to some big Indian companies like Infosys, Wipro. After seeing the success of these big companies, many small offshore IT services providers emerged in India , thus enabling startups and small companies to enjoy the benefits of offshore software outsourcing .

Today's highly competitive world has little tolerance for poor product. Hiring a qualified, highly motivated and focused team is one of the biggest challenges that startups face. Therefore, it is always advisable for a startup to outsource its production to companies who are competent enough to provide high quality solutions at an economical rate. Few words of caution. To make your offshore outsourcing engagements a success, the first step is to find a reliable partner. Lest, outsourcing may leave you with a bad taste in your mouth, as expectations will not be met, performance level is not achieved and prices are not cut....

Checklist

This checklist will be a guiding light to help you choose a right offshore partner.

How to find a vendor?

There are various ways in which you can find a vendor. Few of them are

  • Go for brand name (costly affair, not suitable for small companies and start-ups)

  • Internet (Search engine will give you names of all vendors who have an internet presence)

  • Trade show and conferences

How to evaluate a vendor?

In case you want to work with a vendor which does not has brand name, you will have to evaluate the vendor. To make your offshore outsourcing engagements a success, find an agile software development partner that has infrastructure and processes of a large company but preserves strengths of a small company and provides economic solution.A company that

  • is capable of converting the client's vision into product

  • understands your business process.

  • can provide consultants with domain expertise.

  • can ensure seamless communication between the client and the development team.

  • can provide high quality solution at an economical rate.

  • has responsible and dedicated staff, is customer centric and can provide 24*7 support for your software.

  • can manage overheads like project management, communication cost, travel expenses properly.

  • can provide accountability by having an office in US

  • respects Intellectual Property Rights

  • understands the importance of confidentiality and data protection.

How to maintain relationship with a vendor?

To gain maximum benefits out of offshore software outsourcing , the client should do the following:

  • Clearly define roles, responsibilities, working relationships, and expectations to the vendor.

  • Communicate explicitly and thoroughly.

  • Trust the offshore vendor.

  • Give space to the vendor to manage the team on its own seeing that they comply with the rules which are of critical nature.

  • Conduct meetings with the senior executive team to review progress and future plans. Address concerns and issues in these meetings and get them resolved.

A company that does not under deliver, over promise but a company that actually fulfills all your expectations.

HyTech Professionals LLC is a software outsourcing company which has the ability to convert the client's vision into product. We bring in consultants with domain expertise to understand your business process and also ensure seamless communication with our development center in India. Effective management of overheads like project management, communication costs, travel expenses helps us in providing you a high quality solution at an economical rate. Our US based project manager ensures that risks associated with offshore engagements are minimized, and also provide accountability.   A customer centric company which provides 24*7 support, which has high respect for Intellectual Property Rights. A company that understands and takes all measures to ensure importance of confidentiality and data protection. A company that fulfills all your expectations.   


   
We differentiate ourselves by being your long-term partner.
  Email: info@hytechpro.com  software offshore development 
 Americas: Ph: +1-302-355-0486 Fax: +1-801-9913740
Germany: Ph: +49-30-56301032 Fax: +49-30-56301031
Sweden: Ph: +46-76-2233878 Fax: +46-8-971998
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