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In today's world of technology, businessmen are well aware of the importance of an online presence to improve their returns on investment. However, doubts begin to wriggle their minds when confronted with the task of hiring PHP programmers or outsourcing web development. Outsourcing, despite being labeled as a low profile industry over the years, has grown in its significance. It has in the meantime added more than 35 million jobs in US alone. More and more business giants have therefore been inclined to outsource little chunks of their operations to outsourcing firms.
However, there are a few myths associated with outsourcing web development. This post is geared to bust those myths and present the facts about the matter. That's because the question these days is not if you will outsource, but when and how!
1 - While offshore outsourcing may be low cost, it is definitely low quality!
Most of your decisions, irrespective of your business industry are driven by the price tag of certain goods and services. Normally, the concept among people is that low cost will yield low quality results. Having said that, it becomes crucial for businessmen to choose outsourcing firms with care. A relationship of mutual respect and trust helps achieve a realistic estimate of the probable costs related to the operations.
2 - Data security is at risk
Signing legal documents is essential whenever two companies agree to work together. Likewise, when outsourcing web development, you have to make sure that you sign certain legal documents. These should guarantee the security of your company’s data and stipulate legal penalties in case a breach is committed. If you suspect any murky activities by the outsourcing firm, you are then well within your rights to take legal action. Web development being a complex process is certainly vulnerable to misuse of data. It is therefore advisable to include data security in your legal agreements.
3 - The communication gap hurts!
The theory regarding the communication gap between two partners is that it leads to disastrous consequences and yields unwanted results. However, it may be noted that the communication gap is entirely based on the terms of reference of the partnering firms. In order to remove all such barriers, certain firms designate due time of the day for correspondence with their clients. Similarly, project status updating softwares are being used widely by the web development companies. These softwares share the progress reports of their projects with the client promptly.
4 - Cultural barriers are disruptive
Outsourcing companies employ personnel with flawless English speaking skills and impeccable technical prowess. Moreover, it is always important that the outsourcing company you hire is blessed with an impeccable project manager. Such an individual can establish pristine communication while defining and tracking goals without any hassle.
5 - Cost benefits are overstated
Savings can definitely be achieved when one considers the fact that outsourcing agencies tend to get about 10% of the wages compared to the workers in the US. Another crucial advantage of hiring PHP developers is migration from a fixed-cost environment to a variable pricing model. This gives companies much more pronounced authority and control over the operating costs. In addition, you tend to save a lot on the maintenance costs, upgrading hardware and software etc.
6 - Finding good resources are a hard nut to crack
When you decide to outsource web development and hire PHP developers, you are left with a wide range of choices. You get to choose from a huge pool of talented individuals all over the world. You can hire developers according to your budget, required skills and other factors. Local resources tend to bind you by numerous limitations of knowledge, skills, pricing and other factors. You can also save up on a lot of time spent on training and capacity building of the local workforce.
7 - Upfront expenses of outsourcing are too high
Your company can reduce the high expenses associated with initial migration by forging a transparent relationship which is based on mutual trust and respect. There can be a number of ways to do this. You can for instance ask your outsourcing partner, in return for a multiyear commitment, to invest in terms of upfront expenses on behalf of the client.
8 - Return on Investment (ROI) is uncertain
In addition to reduction in headcount and employee overhead charges, outsourcing comes with other benefits such as faster time to reach the market and a high quality finished product yielding ROI as high as 400%.
9 - Diminished control on operations
In order to minimize the spin-offs of loss of control, your company needs to tighten its policies, rules and procedures. As a matter of fact your company tends to gain much better control of the proceedings when proper duties are designated by hiring PHP developers.
10 - Outsourcing deprives locals of jobs
As mentioned earlier, outsourcing industry has contributed to creating about 35 million jobs in the US during the previous decade. A recent study has found that for every dollar invested into a business process that is outsourced, $1.12 gets credited into the US economy. The original employee meanwhile gets about 58 cents out of it. Moreover, quite a few companies in America have started delivering offshore outsourcing services and hence are injecting valuable revenue back into the local economy.