Challenges of Outsourcing
Although cost reduction plays a big part in its business justification, a number of other important factors lead to outsourcing of software development. A corporation may acquire an offshore company to add to its suite of products within a product line or for local market presence. Under such circumstances, the expertise for the product lies with the acquired company and is not easily transferable to the acquiring company. A corporation may also seek partnership with an offshore company if it lacks experience with the new technologies or expertise in a given domain. Sometimes, it is simply the shortage of staff and the time-to-market pressures forcing a company to do more development in parallel.
While outsourcing can ...
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