When Should CTOs Out­source Soft­ware De­vel­op­ment to An­other Com­pany?

OpenSource For You - - Contents -

The role of CTOs in an or­gan­i­sa­tion is cru­cial as they have to take crit­i­cal de­ci­sions. One of the key de­ci­sions they have to take re­lates to whether soft­ware de­vel­op­ment ought to be done within the or­gan­i­sa­tion or should this task be out­sourced to an ex­ter­nal soft­ware de­vel­op­ment com­pany.

Dur­ing the course of my two decades of ex­pe­ri­ence in the tech­nol­ogy field, I have sat on both sides of the ta­ble. This is why I can bet­ter un­der­stand the needs of the CTO, an un­der­stand­ing that has helped us ser­vice over 500 clients so far. Based on my ex­pe­ri­ence, let me share with all of you the best prac­tices on when to out­source the soft­ware de­vel­op­ment task, and I hope my ad­vice will help you in your de­ci­sion-mak­ing process.

Over­com­ing tech­ni­cal chal­lenges

Soft­ware de­vel­op­ment is a fast-chang­ing medium. There are niche de­vel­op­ment tech­niques that con­stantly keep crop­ping up. You need ex­perts in these niche ar­eas who keep skilling them­selves in or­der to ex­e­cute the projects. In such cases, you are bet­ter off rop­ing in an ex­ter­nal team with proven ex­per­tise in that field rather than try­ing to do this in-house. A good ex­am­ple is one of India’s largest e-com­merce jew­ellery brands, which prides it­self on hav­ing a very strong tech­ni­cal team. The com­pany worked with us on a com­plex so­lu­tion and we ex­e­cuted it suc­cess­fully. This saved the firm a lot of time, while it was also able to get its so­lu­tion work­ing ef­fi­ciently.

Re­duc­ing ex­pen­di­ture

CTOs con­stantly want to in­no­vate while re­duc­ing soft­ware de­vel­op­ment costs. Con­trary to com­mon be­lief, it ac­tu­ally is more cost-ef­fi­cient to out­source de­vel­op­ment than to get it done in­ter­nally. Glob­ally, this is one of the big­gest rea­sons why companies seek ex­ter­nal de­vel­op­ment part­ners. Out­sourc­ing helps you avoid costly up­front in­vest­ments in in­fra­struc­ture, de­vel­op­ment tools and li­cences. This means you can chan­nel all your re­sources to ar­eas that are more core to your suc­cess.

Quick scal­ing

When tasked with a stiff goal and a loom­ing dead­line, CTOs of­ten make the mis­take of play­ing the HR man­ager’s role. This is be­cause they know that hir­ing the right peo­ple is cru­cial to the project’s suc­cess. Sadly, this can be an enor­mously time-con­sum­ing ac­tiv­ity. Even when you do get new peo­ple, they will need some warmup time to get trained and to ac­cli­ma­tise them­selves to the or­gan­i­sa­tion’s cul­ture. By out­sourc­ing, you take ad­van­tage of a ded­i­cated team of de­vel­op­ers who have al­ready been work­ing to­gether for a long time. You save time and band­width by get­ting a team that has proven ex­per­tise, which en­ables you to achieve the quick growth you seek. It also helps you to fo­cus on your core ar­eas that gen­er­ate the high­est value. Once the project is suc­cess­fully com­pleted, the com­pany need not worry about re­duc­ing its head­count, which can be an emo­tional bur­den. With an ex­ter­nal part­ner, it’s quite easy to scale down.

Faster to mar­ket

With­out deep plan­ning, soft­ware de­vel­op­ment can turn into an ex­pen­sive white ele­phant, tak­ing for­ever to com­plete. Time man­age­ment is cru­cial since re­leas­ing the soft­ware at the right time is im­por­tant to take ad­van­tage of the mar­ket’s de­mands. There is a vi­cious tus­sle be­tween the sales and mar­ket­ing teams (that need the prod­uct at the ear­li­est) and the de­vel­op­ment team (that needs the time to pro­duce high qual­ity prod­ucts). This vi­cious cy­cle doesn’t stop un­less an ex­ter­nal force is ap­plied. That’s where ex­ter­nal de­vel­op­ment part­ners, who are con­scious of the rapidly-chang­ing de­mands of the mar­ket, can prove use­ful.

Find­ing the right de­vel­op­ment part­ner is tricky and hence it is truly worth your time to eval­u­ate ex­ten­sively be­fore part­ner­ing. Out­sourc­ing soft­ware de­vel­op­ment is a good way to over­come in­suf­fi­cient do­main ex­per­tise, lim­ited man­power band­width, the need to beat a stiff dead­line, press­ing mar­ket de­mands or sim­ply to be cost­ef­fi­cient. The trends are clear as we see more and more companies opt­ing to out­source their de­vel­op­ment for higher ef­fi­ciency and quicker re­sults. It’s no won­der that tech­nol­ogy out­sourc­ing is ex­pected to reach a mas­sive turnover of US$ 481.37 bil­lion by 2022, grow­ing at a com­pound an­nual growth rate of over 6 per cent.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.