Sthicks14′s Blog

We all know that outsourcing has developed a certain connotation, particularly when outsourcing overseas. Companies these days outsource everything from customer service, to help desk support, to application development. Sure, there are plenty of companies that may no live up to their marketing reputations, however, there are many of which that perform like superstars. It may not even make sense for some companies to outsource. Perhaps they don’t understand the concept or lack the confidence to choose the right outsourcing partner. For many, outsourcing is the best thing since sliced bread.

To some small to midsized companies, outsourcing could be a blessing. The ability to determine which skill sets make sense to outsource, companies should stick to their core abilities, and outsource those critical skills that they need, but don’t have. In most cases, it’s a better return on investment, especially on a project basis, than hiring full time employees.

Jagdish Sheth, a marketing professor at the Goizueta Business School at Emory University, notes that often the outside vendor offers a better product or service because it is that company’s core competency. The outsourcing firm sticks to what it does best, while you stick to your best competencies.

This is particularly true with software development. Many companies buy an off-the-shelf software package, and find out later that package needs customization to connect with existing systems and applications. Some may hire a developer to create an application, not realizing proper due diligence may not have been done to create proper specifications hence, the need for another specialist to come in and start over, this delaying development, increasing cost, and delaying time to market.