The Pros and Cons of Outsourcing

Author: Monica Alexander

Outsourcing is a trending topic amongst news articles, blogs, and social media networking sites, in recent times. Will Leger, Vice President of Digital Sabre, recently took part in a LinkedIn discussion about outsourcing. The discussion focused on whether or not outsourcing was good for the US. The opinions ranged from totally disagreeing with outsourcing to recognizing outsourcing as the future solution for most companies. There are many pros and cons to outsourcing, especially when it comes to software application development.

The number one reason for outsourcing today is to INCREASE PROFIT. Outsourcing to third world countries, such as India, allows companies to pay cheaper labor wages because of the lower cost of living in those areas. With lower spending on software development, companies can focus on their core business, cut operating costs and increase their productivity.

A number of individuals and companies outsourcing for the first time, who are focused on sharply reduced cost of delivery, simply do not have appropriate processes in place to validate whether the company outsourced to can actually deliver throughput with the levels of quality required within the time line required. Hence, unpleasant shocks in quality and perhaps time overruns and cost overruns, thus negating the value of outsourcing. Individuals and companies who have reasonable “ skill / throughput” validation processes in place succeed in reducing costs while keeping quality in place.

Many Americans fear outsourcing, and this fear has created a lot of negative associations or myths about outsourcing. There are many stories that cite poor quality, bad service and security issues when companies choose to outsource. To combat the myths of poor quality, bad service and security issues, it depends on which company you are working with. The right software development firm should be using the Capability Maturity Model methods for development projects. CMM requires certain processes and documentation to be done, and adherence to the CMM standards ensures a high degree of quality, where schedules and budgets are met. Digital Sabre is CMM level 3 certified.

Maybe one of the biggest issues Americans have with outsourcing is the loss of jobs in the United States. An interesting fact is that “For every $100 worth of work shipped offshore, $130 to $145 will be reinvested in the United States economy” (Evalueserve). Market opportunities will increase for US companies, while other countries become more developed. Also, as technology continues to advance more jobs will be created here in the US. Thousands of jobs were and will be created because of the internet, environmental and energy technology and telecommunication. So, when you look at the big picture and long-term effects, outsourcing actually leads to the creation of more jobs in the United States.

Outsourcing is all about working with the right company. Here are some questions you should consider when choosing a company:

. Does the company have a local office?

. Is the company CMM certified and if so, at what level?

. What do past clients have to say about their services?

. Does the company have an experienced, well organized team working offshore?

. Is the latest technology being used to ensure efficiency?

. Does the price correlate with professionalism, quality of work and customer support?

About the Author:

Digital Sabre Solutions, LLC (DSS) provides reliable, quality customized software application development. Small to medium and a growing number of larger companies use our services. We meet your specific business needs/requirements with affordable custom software solutions. Our CMMi level 3 certified development process guarantees software quality assurance. The uniqueness of our software development services is the integration of local project management with our international development team.
www.digitalsabre.net

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