For many companies software development and maintenance is just a function within a much larger enterprise. Only partnership with more tech-savvy software development companies can allow such companies to launch and deploy innovative products designed around emerging technologies like backend as a service or data mining. But the time moves forward, and most of corporate giants maintain their leading positions thanks to state-of-the-art technologies they buy and deploy. Ready-made software solutions are often not the best fit for a fast-developing business, as they lack certain features and don't follow the main business logic of an enterprise. Under such conditions, outsourcing custom software development is the right move to do.
The first reason to outsource IT tasks is efficiency. Today many large companies have their own IT departments that are capable of developing some products in-house. The question is, in what situations it is efficient enough. Most of technology departments successfully cope with software integration, development and maintenance of minor priority products and third party systems. The smooth operation of an enterprise would be impossible without their modest work, but this is also a reason not to distract internal teams by supercomplex tasks.
The next reason is the qualifications and expertise of highly specialized IT production. Rational work of an enterprise serves the larger purposes than building software infrastructure and developing custom software. If the general course of business is other than IT, then it should not rely too much on its own technology department. To take, for example, mobile software development which is becoming more and more demanded by companies in various industries. But it also needs skills and expertise in a relatively specific subject, especially when it comes to iPhone programming. For this reason, even established technology vendors outsource mobile programming when they need mobile applications for enterprise or e-commerce use.
One of the most important reasons for outsourcing from the business point of view is that time is crucial for commercial success, and extra teams can significantly accelerate the development. When the decision is made to implement an absolutely new solution to boost sales or enable programming services, this software solution must be deployed as quickly as possible to make excellent progress on the company's strategic plans. It is in the organization's best interests to outsource software development to larger, better prepared teams of software developers that are able to accomplish the task quickly and focus on the best practices of development.
Finally, risk management experts also agree on the efficiency of outsourcing. Success of a software project is not only following the timeframe and specifications. Best software projects demand creativity and innovation, which is not easy to find in software companies specializing in offshore development. But the risks of failing the project partly lay on the contractor, so they are actually less than in case of in-house development. Risk sharing is also a very important reason for passing the tasks offshore, and the risks of failure can actually be considerably decreased by cooperation with reliable software vendors from countries with a strong legal system and profound education system. In this case, offshore development can be an answer to many challenges that increasingly complex business world is posing on many companies.