Risk Mitigation- Buy vs Offshore Custom Software Development

6 months ago

5 min read

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One of the most significant questions that every enterprise faces is whether to build or buy. While the answer is not easy, we are here to give you clarity in your decision-making. There are certain hidden factors and risks associated with offshore custom software development or off-the-shelf software. For organizations, it is essential to understand how they can mitigate these risks. When risk evaluation is done, an enterprise completely understands the implications of various processes and the need to evaluate each of them.  

It is only when a company has developed a unique workflow for their business that they need to get into the debate of custom vs. off-the-shelf software. When off-the-shelf solutions cannot meet the needs of the enterprise, that is when they move on to a custom software development route. When a business is small in scale, it generally uses spreadsheets, low-end solutions, or even annual tools like whiteboards. However, when business scales, these methods do not work as efficiently as expected!  

Off-the-shelf software

If you believe that hiring a custom software development company is not in your budget, and there’s an available effective software solution for purchase, this is the best way to go! Off-the-shelf software is a great choice when:

- You are working with a tight budget

- The off-the-shelf solutions on offer are not adding value because the difference between the existing system and the software is minor.

- Your internal team is too caught up, and adding a development team is an overwhelming aspect.

Well, the confusion is just getting heated up! If you fit into one of these categories, then such an off-the-shelf solution is the perfect choice. However, these off-the-shelf solutions can only function for the interim and not when the business scales bigger. Things get complex when:

-  The off-the-shelf solution serves some of your requirements but not all.

- The subscription or payment plans, when calculated over a period of time, are expensive.

- If the off-the-shelf solution requires you to change your existing successful workflow.

- The solution is too complex and packed with a lot of unnecessary features.

The confusion further amplifies when there are multiple off-the-shelf options, each catering to your certain needs but not all. This is when enterprises are forced to make a decision and compromise with an off-the-shelf solution that is closest to the original requirement.

Offshore Custom Software Development

Often you will come across certain software vendors who offer customization of their core solution to match your specific requirements. This is a great way to get the solution you require in exchange for the customization charges/fee. On the other hand, this path, too, has its share of risks! Let’s find out:

- The chosen offshore custom software development company might end up overcommitting in terms of features and timeline. Long delays in delivery can totally distract your business plan and timelines.

- After delivery, the offshore custom software development team should advance further help on the provided customized functions. This can be very easy and costly as well!

- This is a major problem! With the customization done, you have deviated from the original product. This means that the software might not take updates when the core product receives it. So getting a new version of the solution at a later stage can be a significant problem.

Often with any security patch or bug fix, there remains a chance of breaking the entire customized system. This issue will not come to light until at a stage when you have incorporated the software in your workflow for sometime. The cost to shift to another solution can be very high and create problems for every stakeholder of the business.

Risk Mitigations Steps

By now, you are aware of the risks that both these practices can bring with them. This is why when you hire an offshore custom software development company, there are a few pointers to keep in mind. They are:

Build From the Scratch

Many businesses might classify this option as a costly alternative because of its high upfront cost. However, having a customized solution helps you steer clear of any obstacle in the entire development and integration process. Inform your partner offshore custom software development company about the specific requirements you have. The discovery process holds the key to a customized software solution. The better you brief, the better output you receive from the offshore custom software development company.   

Time Zone Management

The biggest concern while hiring an offshore custom software development company is the difference in time zone. If you are based in the US and you choose to hire a company in a different time zone, it is essential to check whether they have a support team or not. The support team should be available during your working hours to cater to your queries and requirements.

No Cheap Shortcuts

Always remember, when you hire an offshore custom software development company for the gig, there will be someone saying- “I know a guy who can do this at cheaper prices”. The word is clear, STAY AWAY from such ideas! Always remember, if the person offering the service cheaper falters on delivering as promised, your entire work process will go for a toss! What you will save at the initial stage by cutting the cost will go 2x into maintenance and bug fixes. So, will you pay upfront and let a trusted offshore custom software development company work on it or a cheaper freelancer? The choice remains totally yours!

Portfolio of the Offshore Custom Software Development Company

If you are an established business already working on a wide scale, you definitely need a partner who can deliver on such a scale. This is why it is important to check out the portfolio of the offshore custom software development company. It will help you understand whether they are capable of delivering as per your expectations or not.

Conclusion

As we've journeyed through the labyrinth of choosing between offshore custom software development and off-the-shelf software solutions, it's clear that this decision is anything but straightforward. Each path is fraught with its unique challenges and pitfalls, from budget constraints and scalability issues to the intricacies of customization and integration. Yet, armed with the right strategies and insights, navigating these turbulent waters can lead to a choice that not only aligns with your business's current needs but also its future growth.

Embracing the complexity of this decision requires a deep dive into your business operations, a clear understanding of your long-term objectives, and a commitment to thorough risk assessment and mitigation. Whether you decide to build a custom solution from scratch, adapting to every nuance of your business process, or opt for an off-the-shelf product that promises a quicker, more budget-friendly solution, remember the importance of due diligence and strategic planning.

As we wrap up this discussion, let's not view this choice as a dilemma but as an opportunity to empower your business with the right tools to thrive in the digital age. The journey might seem daunting, but with careful planning, collaboration, and foresight, you can chart a course to a solution that truly fits your enterprise's needs. Here's to making informed decisions that propel your business forward, one software solution at a time.

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