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14. Custom Software Development Outsourcing: What Does Value for Money Mean?
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We know outsourcing software development can greatly decrease costs. But we also know that lower rates don’t always translate to an overall better deal, and that’s the very challenge of outsourcing. So where does the notion of Value for Money fit in all this?
[0:00] Intro to “Custom Software Development Outsourcing: What Does Value for Money Mean?”
[1:43] Common reasons for outsourcing
[1:48] Outsourcing cuts development costs and increases flexibility
[3:07] To access real talent or skills that you can't always find locally
[3:46] To Avoid turnovers
[4:33] To avoid hiring hassles and fees
[5:50] Patterns used in software development outsourcing
[5:54] Fixed price contract
[7:13] Time and materials or dedicated team contract
[8:17] What is the value for money in software development outsourcing?
[8:42] Economic. Find more competitive rates
[10.20] Effective. Get things done
[13:03] Efficient. Maximize your return on investment
[15:37] The cost of bad code quality
[16:06] The cost of missed deadlines
[16:34] The cost of a high attrition rate
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