How much cost does software development incur to a business?
By Shamit Khemka
Introduction Much has been speculated about the demand and necessity of the software development offshore service. All these data’s and pie charts have concluded a very basic thing simultaneously and that is there is nothing better than going offshore when it comes to software requirement.
• A survey over the German IT industry stated that almost 55.6% of companies believe that outsourcing has been widely beneficial for them. Also, in another survey over the same demographic industry it gets cleared that 51.9% of companies are looking for outsourcing options when there is software development need.
Being said all these the most preferred destination for outsourcing has been India with all the credibility to offer.
Facts supporting it • Asia Pacific region is the offshore zone of choice for most of the European and American provinces. The prime reason has been from the very beginning cost-cutting. The professionals based in these countries and primarily from India bring to the plate years of expertise without adding to the cost of hiring. • A typical survey done by salary.com shows that if someone hires a developers from Dallas, US of 2-4 years of experience the salary is approximately somewhat in the range of $69-$70k. This part is only the base salary and adding benefits such as bonus, traveling allowance, dearness allowance and taxes, etc this amount goes up to $100k.
Factors that regulate an Offshore development cost • Most of the entrepreneurs just know that it does save money, but where does the saving comes from must be known to you so that in the project budget setting time you are aware of for what you are paying. Discussing over all the major parts over which the costs are determined being with any offshore service providing company gives you a fair idea of the whole process.
Here are some of those areas to keep an eye over: • Client Management Expenditure: Any standard outsourcing team has various individuals meant for grasping the various parts of a project demand from the side of client. As most of these kinds of client conversations are done over the internet in many cases it is seen that wrong inputs are taken without understanding the customer need. To tackle all these dedicated client management system is user, which is lead by dedicated project managers whose responsibility is only to under the demand of client perfectly and make the team perform accordingly. • Training: If you are thinking about utilizing the coding skill of the offshore team compliant with your particular standard way an additional cost of training comes into the scene.
Conclusion The above two are the two most important points when the cost part is determined in any project development hired from outsourcing service provider. Keep tab on these and save money on total spending.
Thank You for watching it!