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Reasons Behind Outsourcing 
Software Development 
With the fast developments in technology and business, 
companies look for alternatives to reduce costs and boost 
productivity. This is where the need of outsourcing software 
development arises. Seeing the various trends in 
outsourcing, there are several factors on which software 
companies base their decisions to outsource their projects. 
The reasons are as cited below.
Increased productivity 
With the help of outsourcing, it has possible to do away with 
the limit of definite hours of operating. Your organization gets 
a chance to have ongoing operations for 24 hours. Increasing 
productivity by hardly increasing the costs of operating is a 
striking factor for many organizations.
Reduction in costs 
Cost reduction is one of the main factors behind companies 
preferring to outsource their projects. These costs can be in 
terms of training, labor, certifications, utilities, fees of office 
space rent, and other expenditures of the company. IT 
professionals have lower salaries in comparison to their 
Western counterparts in many destinations of outsourcing.
Abundant and varied resource pool 
Outsourcing allows you to get in touch with the talent pool 
from across the globe. Thus, you can source for talent from 
far and wide instead of limiting your organization to a 
restricted talent pool from within your geographical 
area. Your business or organization gets a good chance to 
search for an offshore vendor that provides work for a team 
of talented IT professionals. This eliminates your requirement 
to search for these individuals one by one on your own. With 
such a set up, you can also be ensured that you get the right 
people to work on your project of software development.
Resource quality 
John Pereless :A leader in the field of software development 
suggests you to outsource projects. This is due to the fact 
that by outsourcing projects your organization not only gets 
access to abundant and diverse resource pool, but also gets 
a chance to connect with highly skilled and quality 
individuals. Majority of the top destinations of outsourcing 
have a good rate of students graduating with a degree in 
computer science and software engineering. This is because 
countries like China, India and Eastern European countries 
value education at a greater degree as compared to their 
western counterparts. As a result, these countries have a 
large number of resource people with good quality skill set in 
information technology.
Built in methods 
Building the right processes while developing software can 
be time consuming and costly, especially when these 
requirements are not yet available in your company. Thus, it 
becomes easier to build these methods or processes with a 
team for outsourcing software development who is already 
equipped with these processes.

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Reasons behind outsourcing software

  • 1. Reasons Behind Outsourcing Software Development With the fast developments in technology and business, companies look for alternatives to reduce costs and boost productivity. This is where the need of outsourcing software development arises. Seeing the various trends in outsourcing, there are several factors on which software companies base their decisions to outsource their projects. The reasons are as cited below.
  • 2. Increased productivity With the help of outsourcing, it has possible to do away with the limit of definite hours of operating. Your organization gets a chance to have ongoing operations for 24 hours. Increasing productivity by hardly increasing the costs of operating is a striking factor for many organizations.
  • 3. Reduction in costs Cost reduction is one of the main factors behind companies preferring to outsource their projects. These costs can be in terms of training, labor, certifications, utilities, fees of office space rent, and other expenditures of the company. IT professionals have lower salaries in comparison to their Western counterparts in many destinations of outsourcing.
  • 4. Abundant and varied resource pool Outsourcing allows you to get in touch with the talent pool from across the globe. Thus, you can source for talent from far and wide instead of limiting your organization to a restricted talent pool from within your geographical area. Your business or organization gets a good chance to search for an offshore vendor that provides work for a team of talented IT professionals. This eliminates your requirement to search for these individuals one by one on your own. With such a set up, you can also be ensured that you get the right people to work on your project of software development.
  • 5. Resource quality John Pereless :A leader in the field of software development suggests you to outsource projects. This is due to the fact that by outsourcing projects your organization not only gets access to abundant and diverse resource pool, but also gets a chance to connect with highly skilled and quality individuals. Majority of the top destinations of outsourcing have a good rate of students graduating with a degree in computer science and software engineering. This is because countries like China, India and Eastern European countries value education at a greater degree as compared to their western counterparts. As a result, these countries have a large number of resource people with good quality skill set in information technology.
  • 6. Built in methods Building the right processes while developing software can be time consuming and costly, especially when these requirements are not yet available in your company. Thus, it becomes easier to build these methods or processes with a team for outsourcing software development who is already equipped with these processes.