Software development outsourcing during a recession

What I will go to discuss below is not a sales pitch for my company – it is pertinent and factual for any outsourcing company. Furthermore, it is applicable to the outsourcing of roughly anything, not just software.

An economic recession, the one that the majority of the world is at present passing through, is a time of great anxiety and cataclysm for the many companies. Products are consolidated, employees are laid off, and budgets are cut down. In spite of all this, companies have to move on in order to survive. The smarter companies work to not only survive, but to in fact prosper whilst their competitors are suffering.

The following is a list of what I believe is the top five reasons you are supposed to consider outsourcing some of your software development even during a recession:

1: Budget vs. Man Power

An attention grabbing happening is that there is often a sizable budget on hand for outsourcing even if there is an employee hiring freeze in place. On many occasion it is due to company politics and games, but there is also a very rightful reason for this to happen – Having employees in-house is a long term commitment with recurring costs, while outsourcing or using contractors is a pay as you go method that can be fine-tuned as situations develop.

2: Fixed Price Projects

It is very vital to control whatever budgets are available during difficult economic period. A benefit that an outsourcing is able to offer is that of carrying out a specific project for a guaranteed fixed cost.

3: Jump at the forefront of the Competition

A recession gives a forward thinking company a chance to jump ahead while its competitors are licking its wounds, or at least made a pause. Outsourcing new projects enables you to make this jump ahead, without distracting current staff and/or assuming extra long term commitments as depicted earlier.

4: Build up Relationships, Processes, and Partnerships

Building up relationships, processes, and partnerships is hard work. Trying to this whilst under tremendous target pressure is extremely hard work, and increasingly inclined to failure. Take benefit of the slower economic period to explore and develop new relationship with vendors and partners on smaller projects so that all of the folds are established before you take on larger and more complicated projects.

5: Make changes in Technology

Try to utilize the slower economic times to devote in new technologies so that you are in an enhanced and more advanced position when the economy starts picking up and clients start checking out your offerings.

Do any of these predominantly true to you?

Do any of these make sense to you?