Be in Green with a Software Development Contractor
Alex Polonski
What has been already discussed many times is if it’s worth to outsource contractors or to employ your own full-time developers. So if you stick to outsourcing, this article will make you think about several issues that always follow the process.
Let’s think wide, the fact that you use staff from outside your company allows you to reduce your costs for monthly salaries, social benefits, and taxes, insurance, rent payments etc. Those are the payments you should process permanently despite the possible fact that the company is out of stable contracts and it doesn’t generate revenue during several months. You should be really confident that you can provide the company with permanent work to be in green.
On the other side, hiring contractors for each particular project can make you think that that costs too much for you. Really, you can think, ‘I pay my developers a sum that’s similar or less than the one I pay to contractors’. However, don’t miss the fact mentioned above. You don’t pay taxes, rent and other additional costs. Those are paid by a contractor company. That is why, it is always strange to hear statements like, ‘I do not want to pay your office, and your electricity expenses etc. I hire programmers. So they are what I’m going to pay for.’
Right. Those are the terms that small groups of developers can afford. So being stuck to this issue you always risk to get into a trap of unreliable services. I think you agree that a freelancer takes care about his reputation much less than a company. At least the company has invested a lot of money (in addition to other efforts) to build it. And reputation means reliability here.
So what’s about cost effectiveness is:
Outsourcing reduces your costs; that’s the fact.
But don’t expect to get extremely cheap services, anyway.
At least, the more expensive (in a certain range) they are, the more reliable the company is.
It’s always up to you if you are going to risk deadlines and quality for a lower price, or not.
What can really make you be in red is a wrong choice. You must always keep in mind that since you have hired a contractor, you can influence only a part of the project, i.e. you become dependent on another company. Should anything go wrong with them, it will consequently go wrong with you. That’s the key point for you to think about when remaining your company in green by means of software development contractors.
Alex Polonski is a Senior Sales Manager in XITEX Software Company, Ukraine. The company works in offshore software development market since 1999 having fair expertise in J2EE and .NET technologies. Among company’s own-developed and marketed solutions, one can see a J2EE content management system, Xitex WebContent M1.
Full List of Articles
|
Latest
Manufacturing Software News:
Sony cut PS3 manufacturing costs by 35% (Geek.com)
According to market intelligence company iSuppli Sony are getting much closer to break even on the cost of manufacturing the PlayStation 3. On initial release the PS3 was thought to be costing Sony US$690.23 per console to manufacture. The latest figure shows a 35% reduction in cost to US$448.73 per machine, which means the Japanese [...]
ActiveStrategy Announces New Release of ActiveStrategy Enterprise v7.2 Balanced Scorecard Software (Centre Daily Times)
ActiveStrategy, Inc. ( www.activestrategy.com ) today announced the release of version 7.2 of its acclaimed and widely deployed ActiveStrategy Enterprise (ASE) software application. ActiveStrategy Enterprise is the leading Software-as-a-Service (SaaS) application suite for automating strategic performance management by leveraging a Balanced Scorecard or strategic Dashboard management ...
Microsoft applauds Chinese counterfeit software prison sentences (Computer Weekly)
Microsoft welcomes news that Shenzhen court has locked up ringleaders of the world's largest software counterfeiting syndicate.
Search Tool facilitates access to manufacturing information. (ThomasNet)
Accessed from user desktop shortcut or Smart Page application interface, Smart Search offers full-text, index-based searching that lets users access data within EnterpriseIQ system. Results are displayed, based on user-specified security rights, in search engine format and linked to corresponding record. Along with flexibility for fuzzy searching, software delivers functionality to scan results ...
ActiveStrategy Announces New Release of ActiveStrategy Enterprise v7.2 Balanced Scorecard Software (Business Wire via Yahoo! Finance)
EAST NORRITON, Pa.----ActiveStrategy, Inc. today announced the release of version 7.2 of its acclaimed and widely deployed ActiveStrategy Enterprise software application. ActiveStrategy Enterprise is the leading Software-as-a-Service application suite for automating strategic performance management by leveraging a Balanced Scorecard or strategic Dashboard management framework.
11 in China sentenced for software piracy (ARNnet)
Eleven members of a Chinese software piracy syndicate are sentenced to prison.
GKN to unveil plans for Airbus (BBC News)
Aeropsace company GKN is expected to reveal later its plans for the Airbus manufacturing site near Bristol.
The Brave New World: More Digital, Less Physical (ReadWriteWeb)
Yesterday, I was with my wife in the L'Occitane store. The shelves were filled with fragrances, soaps, lotions: all sorts of handcrafted beauty products. It occured to me while looking at the labels that I have no idea how these products were made. I am reasonably versed in chemistry, but the process of manufacturing perfume is not something I know anything about. In general, I am just not ...
Sony boss ready to combat old guard (Australian IT)
Sony is on the brink of a major upheaval that could include job cuts and sweeping changes to management and manufacturing processes.
|
|