Why do companies choose to outsource software development projects?

We believe it is a combination of two things:

  • Many companies have realized that the burden of direct physical control of software personnel is overwhelming and wholly time-consuming
  • Many companies have experienced great success when working with external software development firms

There are some excellent custom software development firms who have mastered the ability to understand business requirements and deliver fabulous custom software packages to their clients.

How do you, the CTO/CIO or CMO or division manager, decide whether to send your project into the rank and file of your IT department or if you should outsource to a development firm?

First, let us start with your internal IT department. Ask yourself these questions:

  • Does your internal IT group deliver projects on time and within budget – every time?
  • How confident are you, based on past experience, that your internal IT group will deliver your project on time and within budget?

If you can quickly and without reservation state positively that you have absolute confidence in your internal IT group delivering exactly what you want on time and within budget, then stop there. You have your answer.

If you are like most of our clients, though, you can honestly say your internal IT department is already overburdened with responsibilities and cannot keep up with the demands of their day-to-day tasks.

Next how do you decide WHICH firm to outsource to? That’s the more complicated question and one I will answer in my next post is how to choose a firm you can truly trust. Needless to say, I am a little biased and believe you have to select one with stellar references who can deliver on time and within budget every single time.


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