Mark Griffiths, Managing Director of Codify (pictured) recommends that companies considering outsourcing should look for value for money rather than the lowest possible price.
The internet, wireless working, mobile phones that can do video calls and show TV programmes - technology is developing and becoming available at a seemingly increasing rate. The result is that technology seems to have removed market boundaries and turned the world into a global marketplace; but is this necessarily a good thing? Could it be that there are distinct advantages to working with local companies?
In some industries technological developments have resulted in the emergence of a trend for firms to outsource some services to companies outside of the UK - this is known as offshore outsourcing. The benefit of taking advantage of this trend is that costs are often lower. However as Mark Griffiths, Managing Director of Codify warns, those considering the offshore outsourcing option should remember that cost is only one of the elements that should be considered when choosing a service provider.
"In a global industry, like software development, the option for potential customers to use the offshore outsourced option can be very attractive. Software development can be carried out remotely and the final product can be transported almost instantaneously, via the internet, to any location in the world. Firms have been set up in locations as far flung as India and China to provide such services. As these firms are able to take advantage of cheaper labour rates they are able to provide their services at a lower rate than similar firms in the UK. But when choosing a service provider it is important to remember that cost should not be the only factor."
Mark explains that Codify is currently working with companies who have used the offshore outsourced option. "Each project is different and it is the specifics of each project that should determine which option is right for the client."
Codify worked with AGR Peak Group to finalise the development of their P1 software tool. Mark continues, "Development of Peak Group's P1 software tool was initially started by an offshore firm. However, earlier this year Codify was awarded a contract to complete the development."
"The specific circumstances of this project made working with the offshore developers difficult," continues Kevin Murray of AGR Peak Performance. "P1 is a sophisticated engineering tool and it was important that the developers had a firm grasp of the underlying concepts. By working with a local company it was possible for our engineers to hold regular face to face meetings to explain the underlying details."
"There is no doubt that some projects can be successfully completed through offshore outsourcing but it is important to ensure that this choice is right for the particular project," comments Mark. "Complex projects require good communication and regular meetings throughout if they are to reach a successful and timely conclusion."
"Rather than looking for the lowest possible quote when outsourcing a service it is best to look for value for money," advises Mark. "An offshore project may appear to be the cheaper option, but if communication problems result in a longer development time or the resulting system falls short of expectations then the cost benefits will be greatly diminished."
Codify is a software solution company providing companies with custom software solutions. Codify also support and maintain software solutions on behalf of a wide range of clients.