Monday, 17 October 2011

Major Benefits of Outsourcing to Customized Software Development Company

Most enterprises rely on commercial-off-the-shelf (COTS) software for performing day-to-day activities like processing and management of office documentation or electronic communications like email, while preferring to take advantage of tailored solutions commissioned to a customized software development company to meet the specific requirements of in-house business processes. Large multinational corporations often look abroad to outsource expensive processes like software development with a growing number of foreign enterprises outsourcing IT application development to India, due to lower labour costs and advantageous value-to-quality ratio offered by local software developers.

IT outsourcing is among the fastest growing segments within the IT industry with India and the Philippines accounting for about 50 percent of the world’s offshore software development, including time-consuming client server application development. Enterprises headquartered in North America and Europe face growing costs related to software development due to the growing compensations of developers and other IT experts, whereas outsourcing provides a method to reduce expenditures related to software development with the benefit of remote support and maintenance services that can additionally reduce costs.

Large corporations and medium-sized businesses need custom software solutions to perform tailored tasks concerning their daily activities in the sphere of content management, customer and customer relationship management, inventory management, human resource management, and enterprise resource planning. Thus, corporate executives look eastward to find affordable solutions that specialised software developers in countries like India, Philippines, and to some extent China can offer.

A decent licensed office package is usually able to meet corporate needs to create and maintain office documents, spreadsheets, and business presentations; but complex processes like content management and customer relationship management require implementation of sophisticated software that can be very expensive if developed in-house. Customised solutions cover the full range of businesses, not only niche markets, for large corporations often run their business according to a set of specific requirements that are not covered by standard mass software solutions.

Therefore, IT outsourcing proved to be a cheaper alternative to in-house development of tailored software when the matter in hand is to design an application that is custom-made to meet very specific requirements and offer high configurability, in addition to customisation. Major advantages of software development outsourcing are not limited to lower costs and customisation, though.

Enterprises using the services of specialised developers of custom software are able to focus on their core business and more efficiently allocate resources to deal with day-to-day business activities. Corporate executives can more easily predict variable costs related to software development and IT services by outsourcing such activities to a third party company, improving operating leverage that compares fixed costs to variable costs.

Custom software solutions can boost quality of services offered by an enterprise by obtaining access to operational best practices that should otherwise require significant investment to develop internally. In addition, an external software developer can bring product innovation ideas that rarely can be produced by in-house staff that get used to perform routine tasks within their respective departments. A customized software development company can take a different approach to standard business processes and tasks in an enterprise and enhance best practices according to accepted industry standards, thus placing the keystone of a modernisation process of core IT and business procedures.

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