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Some companies have outsourced software development to outside entities, rather

ID: 667306 • Letter: S

Question

Some companies have outsourced software development to outside entities, rather than undertake software development in-house. Sometimes, this work is sent overseas, also known as "off-shoring."Sometimes the work is completed domestically, known as "on-shoring." A variant of this is known as "near-shoring" in which the work is sent abroad, but within the same geographic area.

Please respond to all of the following prompts:

From your research, summarizing companies' use of outsourced software development, including off-shoring, on-shoring, and near-shoring:

Discuss where it might make more sense for each: off-shoring, on-shoring, and near-shoring

Discuss the benefits and drawbacks to this approach, from both the company and the developer perspective

Under what circumstances might it make better sense to develop applications in-house rather than outsourcing?

Are there circumstances where in-house application development would be inappropriate or impractical and where outsourced development is preferable?

Explanation / Answer

Discuss where it might make more sense for each: off-shoring, on-shoring, and near-shoring
=> off-shoring is very useful if we can get cheaper labour and materials by sending the work overseas.
Example :- Establishment of Gaint US IT Companies in INDIA .
=> on-shoring is very useful when we have cheap labour and material domestically, also if the local government also provinding aid to the project.

=> Nearshoring with the neighboring countries always help to avoid language barriers and cultural learning curves.

Discuss the benefits and drawbacks to this approach, from both the company and the developer perspective
=> Benefits are :-
1. Cheap labour and materials
2. Greater efficiency and productivity by harnessing economics.
=> drawbacks :-
1. Company Image may damage due to poor work offshore
2. Social-Culture Problem
3. Language Barriers

Under what circumstances might it make better sense to develop applications in-house rather than outsourcing?
=> 1. Government is providing aid like land, transportation, electricity
2. Cheap and qualified labour
3. Raw Material

house application development would be inappropriate or impractical and where outsourced development is preferable?
=> 1. In uneducated countries where skilled labour is not available
2. Poor Economic status and lack of raw materials


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