Outsourcing

According to a statistics from Japan's Ministry of Economy, Trade and Industry (METI), Japan has an average of over 100,000 engineers working in the fields of information security, cloud computing and mobile technology. For new technologies such as AI, Big Data, IoT and Robotic, etc., Japan will likely lack about 600,000 IT engineers by 2030.

A number of common — and costly — pitfalls persist, when it comes to engaging an IT service provider. Here’s how to ensure your IT outsourcing engagements achieve their intended results.

Calculating the total cost of IT services has always been a challenge, but the changing nature of IT coupled with unexpected expenses revealed during the COVID-19 crisis could leave your organization exposed to even more surprises charges.

The hidden costs of outsourcing are Unanticipated disruption, Organizational change management, Unnecessary change orders, Lax demand management, Consulting creep, Insufficient governance, Failure to innovate, Third-party risk, Aspirational services...

Today, large enterprises, small and mid-sized businesses, and even startups all over the globe use outsourced engineering services to bring their software development projects to life. An outside team is often a good solution for optimizing project costs, supplementing available resources, acquiring rare expertise, and shortening product delivery terms. However, there are numbers of less obvious yet important advantages of outsourcing engineering services.

There are piles of things you should remember, creating a product from scratch: deadlines, staff management, tech peculiarities of the project, etc. Everything will be easier if you use offshore outsourcing software development. There’s no need for a significant emphasis on running the project and doing other things when you outsource a portion of duties to specialists.

Offshore outsourcing is a useful choice of a manager who cares about cost optimization and the well-being of his organization. The world practice knows many examples when even the largest companies used the opportunities of offshore outsourcing. Sooner or later, all company executives come to it seeking to optimize costs.

There are piles of things you should remember, creating a product from scratch: deadlines, staff management, tech peculiarities of the project, etc. Everything will be easier if you use offshore outsourcing software development. There’s no need for a significant emphasis on running the project and doing other things when you outsource a portion of duties to specialists.

An offshore is a country or a certain region with favorable conditions for doing business, including low or no taxes, a simplified reporting form, hiding real business owners, preferential currency and customs treatment.

When you’re dealing with the off-the-shelf solution, you can’t expect that all your issues will be resolved as fast as you wish. After all, you’re just one of other users, and all product updates will be conducted according to the roadmap. Therefore, all you can do is wait. You should also keep in mind that the conditions of doing business can change as well. There are some variable factors such as legal aspects and market specifics that can affect the way of how things are done.