Software Development

Developing software in-house may be an additional unnecessary load on a company whose core competence is not software development. A company with a one-off software development project which decides to produce its software in-house may not have enough skills strength within its present workforce and may find that it would have to recruit more staff if it is to meet the time constraints and deadlines for producing the software. However this could become a problem after the project is completed as it would be saddled with staff salaries and wages which it does not require. Seeing as the wages and operational cost may be unsustainable, such companies may not have the needed resources to efficiently produce software and at the same time remain competitive in their market.

Outsourcing software development involves handing over software development activities to another company whose core business it is to develop software. One advantage of doing this is that the software company produces better software than would have been developed in-house. If the software development process is done offshore in another country with a cheaper cost of labour, then the company would be able to make even more savings on the cost of developing the software. They would also be able to free up staff to handle work more at the heart of the business and operations.

As well as the competence of the software company handling the software development project, the success or failure of any outsourcing software development project could also depend on whether this software developer understands the its given mandate and can then convert it to the needed software solutions. The company giving out the software development project would then need some form of quality assurance procedure for getting out the best from these outsourced software companies. One way to achieve this would be through constant monitoring and interaction with the developing company.