SynapseIndia founder Shamit Khemka discusses factors which affect software development cost. When the cost part is determined in any project development hired from outsourcing service provider. Keep tab and save money on total spending.

1. Cost Factors behind Software
Development to a Business
By Shamit Khemka

2. Introduction
A survey over theGerman IT industry stated that almost 55.6% of
companiesbelievethat outsourcing hasbeen widely beneficial
for them. Also, in another survey over thesamedemographic
industry it getscleared that 51.9% of companiesarelooking for
outsourcing optionswhen thereissoftwaredevelopment need.
Being said all thesethemost preferred destination for outsourcing
hasbeen Indiawith all thecredibility to offer.

3. Some Facts Supporting It...
AsiaPacific region istheoffshorezoneof choicefor most of theEuropean and
American provinces. Theprimereason hasbeen from thevery beginning
cost-cutting. Theprofessionalsbased in thesecountriesand primarily from
Indiabring to theplateyearsof expertisewithout adding to thecost of hiring.
A typical survey doneby salary.com showsthat if someonehiresadevelopers
from Dallas, USof 2-4 yearsof experiencethesalary isapproximately
somewhat in therangeof $69-$70k. Thispart isonly thebasesalary and
adding benefitssuch asbonus, traveling allowance, dearnessallowanceand
taxes, etc thisamount goesup to $100k.
An in thissamescenario Indian offshoresoftwaredevelopment companiesoffer
hourly ratesof $8 to $25 and thissimply makesonesavequitealot of
fortunein theprocess. Not only thesetheflat ratesarealso much lower
compared with theEuropean and American market asthesalary isquiteon
thelower sidehere.

4. Factors that Regulate an Offshore
Development Cost
Most of theentrepreneursjust know that it doessavemoney, but wheredoesthe
saving comesfrom must beknown to you so that in theproject budget setting
timeyou areawareof for what you arepaying. Discussing over all themajor
partsover which thecostsaredetermined being with any offshoreservice
providing company givesyou afair ideaof thewholeprocess.

5. Client Management Expenditure
Any standard outsourcing team hasvariousindividualsmeant for grasping the
variouspartsof aproject demand from thesideof client. Asmost of these
kindsof client conversationsaredoneover theinternet in many casesit is
seen that wrong inputsaretaken without understanding thecustomer need.
To tackleall thesededicated client management system isuser, which islead
by dedicated project managerswhoseresponsibility isonly to under the
demand of client perfectly and maketheteam perform accordingly.

6. Training
If you arethinking about utilizing thecoding
skill of theoffshoreteam compliant with your
particular standard way an additional cost of
training comesinto thescene.

7. Conclusion
Theabovetwo arethetwo most important pointswhen thecost part is
determined in any project development hired from outsourcing service
provider. Keep tab on theseand savemoney on total spending.

8. Thank you forWatching it!