Risk and Benefits of Offshore Software Development

Offshore software development jobs includes Desktop Application Development, E-commerce Software Solutions, Systems Migration, Web Marketing, Software Maintenance, Software Support, Wireless Application, Technology Audits, Smartcard Solution, Third Party Integration, Enterprise Resource Planning, e-Learning Tools Software Development, and so on.
Let us discuss what are the benefits and risk of offshore software developmentin India. Also let us see the impact on this offshore software development business in Indian shore.

What are the Benefits (Advantages)?

Low Cost of Labor

When a developing country opts for outsourcing of software development jobs, what they mainly aim is nothing but cheap labor. As India has such a large population of skilled labor, these countries are at advantage and can easily be done their job at a very competitive price. Also the training cost of the labor will be very, very low when measure up to the cost that needs to spend on the trainees in a developed country.

Cut Down On Infrastructure Expenditure

When a developed country opts for outsourcing the software developing jobs to India, they do not have to spend a lot on infrastructure and their operating costs going considerably down. This is an enormous advantage in term of cutting on the expenditure of a company on the whole.

Faster Turnaround Time

As companies are in a race to secure more jobs and earning a good name among offshore software development jobs companies, they try their maximum to complete their work fast. This naturally leads to have a quicker turnaround time for each task. This indirectly helps the developing countries to go ahead with their projects on time

What are the Risks (Disadvantages)?

Low Project Management Quality

Often this is the complaint heard from offshore about the outsourcing jobs to India that the project management quality is low though the skill to complete the work is relatively high. They say as far as the size of the project is small, they can manage it well; however, if at all it goes to a larger scale, it proved to be a little risky to hand over the job to Indian shore for offshore software development.

Scarcity of Seasoned Professionals

Though the technical resources of India are quite vast, the experienced professionals are a smaller amount. India faces this huge problem of brain drain as the skilled and more experienced professionals migrate to other developing countries quite often. This leads to a big loss to the Indian skilled job market.
Instability of Staff

As the skilled professionals are on a high demand, they tend to jump from one job to another regularly. This leads to instability in the ongoing project and causes huge reduction in the quality of software development.

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