Outsourcing Software Development: Why Some Companies Still Have Bad Reputation
Gradually and steadily outsourcing is being implemented in all possible spheres of business from accounting to IT services and multi-size enterprises are already experiencing its profitable advantages. In fact, outsourced software development is blooming due to a number of reasons that we’ve covered in our previous article.
In addition, the overall influence of the COVID-19 epidemic became a serious game changer in how companies had to accommodate to new circumstances and reorientate their workflow processes to work-from-home strategy. Financial Times called it ‘the WFH revolution of 2020’ and claimed that the distant model of cooperation is on the rise. From an outsourcing perspective, delegating software development to a remote company means a great way out in case of unpredictable force majeure. Moreover, the actual borders are blurred as it enables to involve initiatives with geographically dispersed teams.
The facts about outsourcing you should consider
It’s no secret that everything in this universe has its own flipside. The same goes for outsourced software development. So, what makes businesses be uncertain when it comes to outsourcing development projects to third-party companies? Let’s dive deeper into the matter.
As one bad apple spoils the others, some underperforming IT companies and agencies can drive bad reputation to the entire industry. However, just because bad things happen doesn’t necessarily mean you should drop the idea of partnering with a robust outsourcing dev company. Here’re some key factors you should keep in mind while selecting a decent outside resourcing IT services provider.
Choosing the right outsourcing vendor is never easy as we speak about the consistently growing number of software developers from almost 24 million in 2019 to 29 million in 2024. There are examples of both successful and failed cooperation with software development teams that is why business owners might have some concerns. Here is the list of some typical discomforting employer’s pains:
-I have never worked with an outsourcing vendor.
-I have worked with an outsourcing vendor and had a negative experience.
-I don’t know how and where to find a suitable outsourcing company.
-It’s difficult for me to deal with legal regulations.
-I lack information about the outsourced company’s reputation.
-I want to fit my budget.
-I worry about cultural differences and efficient communication.
Market Allocation and Reputation
One should keep in mind that occasional negative situations with an individual outsourced agency or software development freelancer may cloud the reputation of the IT sphere in general.
It’s very important to understand that the whole country is not to blame for company-dependant mistakes. However, there still exist some typical features that lead to frequent failures in specific regions.If you look at the world map of average offshore developers’ hourly rates, you will notice that the lowest pricing is represented in South Asia with India being the leader among software service providers. Asian countries are glorious when considering their level of mathematical and logical skills but in terms of payment, Indian developers charge the lowest price possible. Why is it so? And how are Indian experience and outsourcing reputation connected? It’s a tricky question. Let us analyze fair-mindedly and avoid advertising and stereotyping where possible Source
When speaking about hard skills people usually mean a number of teachable, measurable, professional abilities, or specific technical knowledge, like reading, speaking foreign languages, computer programming, etc., necessary for fulfilling a particular task.
-The top-notch technical background takes a great share of successful software development thus lack of such hardware architecture in Asian countries worsens the situation. 54 % of Indian companies cannot provide sufficient computer resources in case their employees work from home casting a shadow on in-country software development companies’ supplement.
-Poor code quality and refusal to provide technical support is a frequent phenomenon and may become another significant drawback of hiring low-cost Indian developers. Many companies are not suitable for long-term cooperation, refuse to be responsible for writing heavy buggy codes and do not provide sustainable maintenance.
-Business owners commonly have concerns about their intellectual property, more to say, about its technical security from leakage. Imperfect jurisdiction of Asian countries diminishes chances to protect your rights on a robust foundation though the cases of stealing precious data are close to common there.
-India experienced a sufficient British influence however, the general level of English among the Indian population remains not very high. Together with a strong accent, bad language knowledge may lead to misunderstanding and consequently deadline problems or inaccurate project fulfillment.
-One more factor worth mentioning here is the political and economical stability within the country. Any changes in national development, present-day situation, negative social backgrounds create unfavorable conditions thus greatly reflect on the general trust level, salary rates, outsourced workers’ well-being, their productiveness and so on.
Soft Skills By soft skills, people understand general abilities to communicate with others, cooperate, teambuilding, adequate behavior, leadership, creativity, time management and other advanced personality traits that make you a good employee.
-When communicating with Asian partners you will notice a specific approach to negotiations. Their main goal is to please the customer that’s why you are unlikely to hear ‘no’ but instead you will be agreed with. This phenomenon may mislead you as it often conceals the unwillingness to provide their own insights into the task or look for a different and better solution.
-In terms of flexibility, India exposes fruitful soil as they have the biggest talent pool worldwide. However, you should remember that outsourcing one professional freelance developer and the whole remote team differ. You may encounter inconsistent management processes in big software families. Frequent staff turnover usually results in a lack of administrative experience among the seniors.
-Also, one of the reasons why outsourcing software development in South Asia fails is missed timelines. Maybe, the language problem adds to the pile but this happens to many software vendors from time to time. If the deadlines are not well-defined in the contract, be ready to have your project not done in time.
-An outsourced development team may play truant while being paid hourly. You cannot always check whether your remote team is working on your project all the time or whether it is engaged in other orders simultaneously. The sufficient time difference with South-East may result in increasing the bill.
-Some outsourcing vendors lack commitment if not obliged by any official agreements. The whole team may leave you at the most important moment disrupting the service delivery. It happens when the company has multiple orders from different customers due to the lowest prices in the outsourcing market.
No matter the location of the software outsourcing company everyone makes mistakes. Sometimes HOW you admit and handle the consequences of the pitfalls is more important. It empowers a sense of mutual trust and inspires further cooperation.
You should always keep an eye on successfully implemented projects, an outsourcing company has done before. Here at HebronSoft, we have a proven track record of software development cases in various industry areas.
If you want to establish a long-term fruitful partnership with an outsourced software company, do pay attention to what you have in common: culture, language, business values, corporate ethics, deadline understanding, reputation priorities, the value of money and even a sense of humor.