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Offshoring Software Development — Associated Risks and How to Avoid Them?

Offshoring or offshore outsourcing means handing over the responsibility of a few operations/services of your business to a third-party company located in a different time zone. In today’s world of globalisation with IT industry witnessing swift advancements, it has become inevitable for enterprises to take help from offshore companies and make use of their skill set which they lack in their in-house team.

Offshoring is an efficient and cost-effective way to hire top-notch experts living in the other part of the world and utilize their expertise to build software solutions for your business. Some of the biggest enterprises like Apple, Ford, Cisco, etc are taking the offshoring route for their development projects because of the potential advantages of offshore software development.

However, associating with a third-party company, located in another country and relying on it with all your business data, processes and operations can’t be risk-free. Consider the following critical risk factors before making an outsourcing decision for your business.

Common Offshore Development Risks

  • Hidden Cost Risks
  • Security & Data Privacy Risks
  • Communication Risks
  • Performance Risks
  • Misunderstanding
  • Poor Management
  • Government Regulation Risks
  • Organization Structure Risks

Mitigating Risks With Offshore Outsourcing

  • Decide whether you want to Outsource or not.
  • Establish your outsourcing scope and goals.
  • Smartly pick the IT Outsourcing vendor.
  • Focus on Value over Cost.
  • Frame a comprehensive written contract.
  • Keep your In-House team on-board.
  • Establish strong Communication with your Remote Development Team.
  • Focus on the Management Processes.
  • Pay attention to the security.
  • Build relationships, not just the Software.

Wrapping up

Obstacles and difficulties always come in the way of all sort of business processes, so as they exist on the way to productive outsourcing. Potential risks associated with offshoring software development may be distressing, but if smartly managed, the benefits of outsourcing will surely exceed the risks. Understand the risks associated with offshoring and mitigate them with the help of the above-mentioned tips. Develop a productive client-vendor relationship with help of regular communication and a solid management strategy and reap the benefits of offshoring.

Originally published at www.weblineindia.com on June 10, 2019.



WeblineIndia is a veteran Web and Mobile app development services provider creating delighted clients across 25+ countries since 1999. We have earned a niche position as one of the most reliable offshore software development partner. Visit us @ https://www.weblineindia.com/

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