Cost is the main reason that most companies take into consideration when our sourcing a project. Software engineers outside of the developed countries are compensated much less than their counterparts in developed countries. The saving in salary can be passed on to the client. Maybe in a few years the cost benefit of outsourcing will not be so obvious. However, there are many other important advantages to outsourcing that one should consider. Time
There may be few people in the company with the right skills to complete a particular project. In this case the project is in risk of not meeting its deadlines. The company could company hire more skilled people (either full time staff or contractors) and management. However, this would be expensive and after the project is finished you may not need the extra manpower. Outsourcing could be a solution. There are many outsourcing companies with many different specializations. The right company could provide the skills and manpower necessary to meet any strict deadlines.
An outsourcing company could provide the client with skills that the client does not have. For example, maybe the client wants some software coded in a particular technology but the client does not understand the technology. The outsourcing company could provide these skills to the client. However, bear in mind that if you are outsourcing a project outside of your companies skillset, this could pose problems with standards and maintenance later on.
Empowers Individuals in the company
Because the offshore company will now be doing the ‘grunt work’, this leaves more time for individuals within the company to concentrate on ‘higher’ tasks, such as gathering requirements, design and management. The smart individual will find herself leading others, rather than general maintenance and development work.
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