The benefits of outsourcing software development overseas are widely recognized. Gaining access to software developers trained in the latest technologies can be very difficult, and international outsourcing gives companies a much bigger talent pool from which to choose.
Not only does international outsourcing offer companies greater access to highly skilled individuals with in-demand technical talent, but it also provides the opportunity for companies to save money. Eliminating the costs and risks associated with increasing the number of full time employees (FTEs) may be a matter of survival for new business ventures operating with lean budgets and/or high start-up costs.
8 Things to Avoid When Outsourcing Software Development Abroad
Recognizing the many benefits of outsourcing software development overseas, it is important to keep in mind that it is not always a smooth and easy process. There are some potential pitfalls to be aware of before deciding to outsource. Follow along for more information about things to avoid if you are considering international outsourcing.
- Language Barriers – Depending on the location fintech software development company that you choose for international outsourcing, sometimes language barriers can be a real issue. Determining and communicating technical specifications can often be difficult even when speaking the same language. Before choosing an international outsourcing company, make sure that there are not any language barriers that could pose difficulty.
- Cultural Differences – As a U.S.-based company, you are familiar with major U.S. holidays and the way these events may impact a typical work calendar. Depending on the location of your international outsourcing, there will likely be entirely new holidays and other cultural differences around what defines “a standard work week” that may impact project deadlines and overall productivity.
- Major Time Zone Differences – Major time zone differences can be a major challenge if you are outsourcing software development work that requires collaboration with U.S. team members. Many companies engaged in agile development with scrum, for example, may benefit best with employees located in the same or a similar time zone. While countries like India and China are situated in far-away time zones that make every day work collaboration very difficult, nearshore locations in places like Costa Rica may provide a better outsourcing solution.
- Danger of Distance – You know the old saying “out of sight, out of mind.” When it comes to outsourcing software development, this phrase sometimes rings true. There is a risk to having a team of software developers situated in a faraway location. Not only is it possible for you to forget that the offshore help is there, and to underutilize this resource, but distance can make regular communication, including project status updates more challenging.
- Technical Infrastructure – Though your internet access may be mostly seamless at your U.S. office location, many regions of the world have a much more unstable technical infrastructure. This may include frequent power outages and difficulty obtaining consistent internet access. Before outsourcing software development overseas, make sure the location you are choosing provides a sound technical infrastructure.
- Employee Turnover – Whether you are outsourcing software development to a U.S. company or to an overseas firm, it is important to ask about employee turnover. Software Development outsourcing is best done by firms that have strong employee engagement and low turnover. Not only will your work be more likely completed in a timely manner, but the quality of your code will also be better.