Offshore Software Development Project Outsourcing China
Outsourcing is practiced by almost all industries today from banking to manufacturing to retail and media. Likewise, these industries also rely on the use of information technology to operate and grow their companies. For many businesses, outsourcing information technology functions such as software development is not the question but rather, where to outsource?
As operating costs rise in first world regions such as the United States and Europe, companies are finding a growing need to outsource offshore to low cost developing countries like China where cost-effective software development is possible without compromising quality.
Offshore software development project outsourcing in China aims to accomplish the following for the client:
- Lower operating costs
- Maintain a minimum in-house staff level
- Complete software development projects more efficiently and cost effectively than if they were done in-house
- Free up internal resources to focus on areas of competency while an expert on software development handles that particular task
- Protect the confidentiality and security of projects
Offshore Software Development Project Management
Most offshore software development project outsourcing in China follows a similar process that includes the following stages:
- Requirements Stage – Gathering, defining and analyzing project requirements
- Design Stage – design and planning of architecture and all elements of the software system based on stage 1
- Development Stage – involves coding and unit testing
- System Testing Stage– testing of the entire system followed by integration
- Deployment Stage – this is the release of the software product to production.
In every offshore software development project outsourcing in China, service providers have one or more project managers overseeing successful completion of each development stage. These project managers utilize the industry’s best practices in project management and proven methodologies and approaches in software development.
Business Models
Offshore software development project outsourcing in China offers great flexibility to companies to allow them to respond accordingly to unpredictable changes in the market and economy, which require adaptable and innovative strategies. Offshore software development project outsourcing in China features different business models to suit the exact needs of different companies and help them remain competitive. Below are common business models offered by offshore software development project outsourcing in China:
- Output-Oriented or Hourly Pricing
In this model, the client is charged a development fee per hour. The fee amount is agreed on by both parties prior to signing the service contract. The total cost of the project, then, is based on the amount of time spent and other resources used. The client has the option to resize the software development team as necessary as well as the project duration. This option provides the greatest flexibility because clients can make changes to specifications based on its own market trend analysis. This model is ideal for software development projects that are in the initial development phase where specifications are yet to be defined.
- Fixed Pricing
Under this option, the service provider and the client will work together to define service expectations and exact deliverables, which will basis to determine a fixed price acceptable to both parties for the entire software development project. This model is ideal for clearly defined projects with precise requirements and timeframes. Additionally, fixed pricing works best with a service provider that has domain expertise on the specific task to be outsourced so that they can make an accurate assessment and allocation of processes and resources.
- Offshore Development Center
Offshore software development project outsourcing in China may also offer the option of setting up or using an offshore development center in China, which will provide the client dedicated technological resources and a team of highly experienced software and IT professionals with diverse skill sets.
This option also offers excellent flexibility and faster time-to-market. Offshore software development project outsourcing in China through an offshore development center is an effective way to extend a software development business.
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