An outsourced team offers many advantages for its start. Many large global companies started in a garage subcontracting their advanced ideas to develop them. Although the risks of subcontracting carry some risks, they are usually overcome by professionals.
Advantages of subcontracting
1. Reduced costs. When using an outsourced equipment, you will only pay for the services you want and are defined from the beginning in your contract.
2. Defined contracting periods. By clearly defining how much time you need services, you can estimate the costs.
3. Scalability. An external team can take on many different tasks and services for you. This allows you to expand your business much faster by exploiting new technologies or opportunities as they develop.
4. Access to Experience. By definition, an external team will only employ professionals in their field. You can access this capacity through your contract and get advice to improve efficiency and reduce costs.
5. Adaptability and resilience. In the same sense as scalability, your outsourced team can adapt to your changing requirements by bringing staff from other departments of your organization to work on your project. Giving you a flexibility that is not offered at home.
1. Conflicting priorities. It is almost certain that you will not be the only client that has the subcontractor, so there may be consistent priorities depending on who shouts louder or who pays more. This can affect your business because you may not get the instant response you need.
2. Intellectual property risks. Giving your data, confidential information and trust to an external provider can be dangerous. Only one infraction is needed for your company to take the risk of opponents or hackers.
3. Logistical and geographical issues. Your development team can be located on the other side of the world, which clearly can not be accompanied when conferences, meetings or visits are organized.
4. Quality Control and Process. You will not have control over the quality and processes used in the development of your software until the product is delivered to you. Then you can find some work to align with your goals and standards.
5. Cultural and organizational differences. With the ability to work around the world, it is possible to use an external provider from almost anywhere. While it is a brilliant opportunity, it can bring problems if you do not investigate cultural and organizational differences. This may be something simple, such as shorter work weeks of prolonged religious holidays, but in extreme cases it may be an illegal activity or discrimination.
Many custom software development companies consider these advantages and disadvantages when developing any software.