Top 5 Challenges of Outsourcing Software Development Services and How to Overcome Them 

What are the main barriers to software outsourcing? Software development

outsourcing has become more popular, accessible, profitable, and well-consuming

because of the global growth of the IT talent market. However, certain difficulties with

outsourcing software development services come with using internal solutions. 

Quality control management is essential to prevent differences in standards and procedures between teams from affecting the final output. Geographically dispersed teams may find it more difficult to build trust and collaborate, which could slow the development of a strong working connection.

It's crucial to address issues like data security and intellectual property protection when choosing to outsource software development services because they can complicate things and require strong safety precautions. In addition, overseeing several teams can get complicated, requiring constant monitoring and flexibility in response to changes. It will need careful planning and honest communication to get past these challenges. 

Software Outsourcing Challenges

Challenge 1: Data security and intellectual property

In outsourcing software development services data security and intellectual property (IP) protection are essential factors.

Working with other teams increases the possibility of confidential data being misused or leaked.

Strong safety measures and clear legal agreements are necessary to guarantee the confidentiality

of proprietary code, algorithms, and client data. 

Challenge 2: Cultural differences and geographical barriers

Geographical distance and differences in culture may present serious problems for software outsourcing.

Inter-team miscommunication can result from different work ethics, communication styles, and business

processes. It can be confusing and may lead to misunderstandings

Time zone differences increase the difficulty of schedule coordination, which can cause delays and hinder right-away communication. These elements could prevent collaboration and delay development. 

Building an inclusive culture, encouraging respect for people from diverse backgrounds,

and establishing standards of communication that consider these differences are all essential

steps in addressing these problems.

Challenge 3: Project control and decision-making

It can be difficult to keep project control and make decisions on time when outsourcing software.

It might be challenging to make sure that teams spread across various locations agree on project

objectives and deadlines. Lack of communication can cause decision-making delays, which may

block development and reduce the quality of the job as a whole.

Establishing specific project management procedures, defining achievements, and conducting regular meetings are essential to resolving these problems and ensuring that all parties can communicate effectively and make choices. 

Challenge 4: Knowledge transfer  

In outsourcing software development services, knowledge transfer is a major difficulty, particularly when teams operate across different geographic locations. Understanding gaps may arise from ineffective communication of essential data about systems, procedures, and context when new team members join or when projects change. 

The process may also become more complicated if the outsourcing software development company partner is unfamiliar with the business and technological environment of the customer. Promoting cooperation and open communication may help in making sure that all team members have access to and understanding of important data.

Challenge 5: Hidden costs

When outsourcing software development services, hidden expenses might present serious difficulties. Even if the first contract can seem affordable, unanticipated expenses may build up quickly and affect the total spending plan. 

These hidden expenses could be extra for project management, quality control, or any additional work that's required because of misunderstandings or cultural differences. Expenses for tools, training, and connecting software offshoring solutions with current systems might be applicable. 

How to Overcome Outsourcing Challenges

Enhance Data Security and Protect IP 

• Put strong security measures in place, like encrypting and encrypted communication channels.

• Write detailed contracts that specify confidentiality clauses and intellectual property rights.

• Do regular audits to ensure that data protection regulations are being followed.

Bridge Cultural Differences and Geographical Barriers

• Encourage cultural awareness through team-building exercises and training sessions.

• Use time-zone adaptive technologies for collaboration and establish clear communication processes.

• To clear up misunderstandings and promote a cohesive work atmosphere, encourage open communication.

 Strengthen Project Control and Decision-Making 

• Use project management software to allocate responsibilities, monitor progress, and establish deadlines.

• Prepare frequent updates and check to keep everyone informed and in sync.

• To speed up the process, give local teams the authority to decide within established limits.

Identify and Manage Hidden Costs 

• In the contract, be sure to indicate the extent of the task as well as any possible extra costs.

• Throughout the project, keep a careful eye on spending and keep to a defined budget.

• Take the initiative to resolve problems that can cause delays or additional effort to reduce unexpected costs.

Facilitate Effective Knowledge Transfer

• Create complete documentation and keep an organized knowledge base.

• Plan introduction events and training sessions for new hires.

• Arrange frequent meetings for the exchange of knowledge to keep every participant informed about project developments and processes.

Through the use of these methods, companies can effectively manage the challenges related

to offshore software development services and optimize the advantages of their collaborations.

Staff Augmentation vs Project Based Consulting

 

Since the advent of intense globalization, outsourcing offshore or nearshore talent has

become a feasible solution for businesses. From assisting in streamlining their

operational workflow to gaining a competitive advantage, the business strategy is

emerging as a discrete service for worldwide businesses. 

The combined impact of team augmentation on saving costs, such as training costs

compensation costs, operational costs, marketing and advertising costs, and overhead

costs further reduce the project and resource budget for a business.  

However, businesses often lack expert guidance on what outsourcing model to opt for

and when. In this article, we will discuss the two most popular IT staff augmentation

services and models commonly preferred by global businesses contemporarily— staff

augmentation and project-based consulting. 

What Is the Difference Between Project and Staff Augmentation?

Albeit, both are models of outsourcing talent outside the in-house team, several nuances

differ them discretely. Additionally, factors like the organization's size, core competencies,

project timeline, infrastructure costs, long-term strategic goals, data security, legal

frameworks, Service Level Agreements (SLAs), international expansion, and scalability

collectively impact the requirements to selectively choose the right outsourcing model. 

In case, you want to know what differentiates these models, this insightful article will help

businesses evaluate on essential differences, terms, and benefits of the two most commonly

interchanged terms, staff augmentation, and project-based outsourcing. 

Here we go!

What Is Staff Augmentation?

Staff augmentation is a business strategy that helps businesses gain specialized expertise

from different geographical locations. The process simplifies talent acquisition by

introducing third vendor expertise. Third-side vendors, in this case, staff augmentation

companies with qualified and expert software developers lend outsourcing services to global

companies easing the hiring process. 

Staff augmentation services for IT projects bring two benefits. First, global enterprises do not

have any long-term commitments. Secondly, the short-term skill enhancement is rapidly met. 

Now, what is an example of staff augmentation? 

A classic example of resource staff augmentation is outsourcing software development

services. Businesses with no or insufficient in-house software engineers may prefer

nearshore, offshore, or onshore outsourcing services to fill technical gaps and gain access

to the emerging digital realm. 

Also, staff augmentation can opt for non-urgent business priorities. For example, simple

software IT and support, a non-core software need must be addressed to ensure and maintain

maximum downtime. But it is not urgent. Thus, a company can seek staff augmentation

services to build a robust and consistent presence amongst users. 

What Is Project-Based Consulting?

Project-based consulting, conversely, is comparatively expensive and includes more long-

term project based commitments. Where staff augmentation ensures short-term development

and IT needs, project consulting helps businesses tap into highly specialized experts who have

defined skill sets to complete projects with desired outcomes within timelines.

Additionally, with project-based consulting, minimal or less training is required.

Technology staff augmentation on a project basis can be high on expertise in operating the

latest tech stack and surfacing technologies for instance artificial intelligence and edge

computing.

That’s why large-scale enterprises employ project-based expertise to gain strategic guidance

in a field where companies have minimal knowledge. For instance, blockchain is an

emerging field that allows companies to secure their transactions and transform their

network into a decentralized ecosystem. Hundreds of companies are still losing lucrative

opportunities to create a robust and secure framework for their business because they lack

industry compliance and inadequate resource allocation for the blockchain. 

After frisking quickly on the benefits of both styles of outsourcing, here’s the time to

understand their benefits one-on-one. Also, let’s understand what are the terms that

require a specific solution. 

When to Employ Software Staff Augmentation?

Let’s find out what are situations where staff augmentation is usually preferred.

Specialized Skills

Whenever a business needs specialized skills, not necessarily on the latest tech trend. For

instance, a software engineer with JavaScript proficiency.

Temporary Workload

When workload is high and effective resources are not available. For instance, during the

recent COVID-19 pandemic, health insurance industries were severely flocked with hundreds

of registrations and applications. 

Seasonal Hike

When businesses have seasonal demands going on and market needs rise. For instance, due to a rising trend for online businesses, software, and application

development, companies need a high number of developers. 

Interim Management Needs

Due to internal turbulence like insufficient coordination or the lack of management

executives, a company may need to hire an expert to manage and coordinate. 

Flexibility

To adjust the workforce’s size and effectively allocate resources. 

Cost Management

When businesses wish to hire but want to save on operational and overhead costs.

When to Employ Project-Based Consulting?

Here are some exemplary benefits of project-based consulting. 

Compliance and Regulatory Challenges 

When businesses might not want to take risks due to a lack of industrial compliance and

standards. 

Digital Transformative Initiatives

When transformative technology, such as AI, ML, and IoT is highly needed by a business,

the situation straightforwardly demands project-based experts.

Specialized Expertise

When businesses want to mitigate risks while making significant business decisions. 

Time-bound Projects

Time-bound projects need high precision and skilled accuracy to finish them on due

timelines. 

Strategic Planning and Advises

When highly qualified vision and guidance are needed, project-based consulting is the

way-to-go option for businesses. 

When to Prefer Which Model?
Staff Augmentation	Project-Based Consulting
Requirement of Specialized Skills	Highly Specialized Skills
Temporary Workload	Duration-bound Projects
Flexibility and Scalability	Turn-around Projects
Cost Management	Cost-intensive but Specific Services
Interim Needs	Market Research and Analysis
Skill Diversity	Transformative Projects

Conclusion

In the fast-growing world equipped with the latest technologies, businesses have no option

but to outsource software services to immediately tap into the diverse talent pool. In

summary, the final goal of outsourcing is to provide immediate talent and skills to

accomplish the project, be it temporary staff augmentation or project-based outsourcing.

However, understanding the minuscule differences is imperative to determine which model

will be effective for a specific business case. 

Big Data Visualization: Tools and Challenges

 Media theorist John Berger believes that people think in pictures. For him, seeing comes before words. He states:

“Unless our words, concepts, ideas are hooked onto an image, they will go in one ear, sail through the brain, and go out the other ear. Words are processed by our short-term memory where we can only retain about 7 bits of information (plus or minus 2). This is why, by the way, we have 7-digit phone numbers. Images, on the other hand, go directly into long-term memory where they are indelibly etched.”

Big data visualization is a technique based on visual elements like charts, graphs, and maps that represent complex concepts and data in a way they become easier to analyze and decipher. The method adds value to your data by removing the noise from data and highlighting the useful information (like trends, outliers, and patterns).

If you’ve ever stared at a massive spreadsheet of data and couldn’t find a meaningful pattern, you know how much more effective a visualization can be.

In the world of big data, it is important to analyze massive amounts of information and make data-driven decisions.

This is where data visualization tools and technologies come into play.

Big data visualization is the key tool to make sense of the trillions of rows of data that you generate every day.

However, not all data visualization techniques prove to be effective.

Not all of them can help tell stories. Traditional elements like plain graphs could be too monotonous to make a powerful point.

So, what is effective data visualization then?

It is a delicate balancing act between form and function.

Combining data and visuals is no less than an art. If you want great analysis combined with great storytelling, your data and visuals need to work together.

How big data visualization works

There are studies by psychologist Albert Mehrabian that indicate that language is decoded on a linear level, while visuals are deciphered on a simultaneous level.

This means that an image can be analyzed instantly, while language requires time to analyze. Data visualization is the technique that cuts-to-the-chase, allowing faster analysis of critical information.

Data visualization solutions help companies spot trends and patterns, and track business performance and goal achievements.

Plain graphs are only the tip of the iceberg.

There’s a whole selection of big data visualization methods that help present data in interesting ways. It is important that you combine the right visualization method with the right set of information.

Big data visualization works by enabling and empowering decision makers at every level of your organization to see and analyze unstructured or unorganized data presented visually with the help of several figurative approaches and methods.

Data visualization allows handling tons of data by converting it into meaningful visuals using widgets and elements. For this, the best software tools are used to operate various types of data sources.

From politicians to sports’ enthusiasts, journalists, engineers and accountants, the application of data visualization is evident in our modern world.

Some of the data visualization techniques used to put together information in a visual way include infographics, heat maps, scatter plots, fever charts, connectivity charts, timelines, treemaps, histograms, and area charts, among others. The choice of technique should depend on the type of data being modeled and the intended purpose.

Big data visualization tools

Big Data is not a new concept. It has existed for decades. It’s just the size of the data that’s new today.

Can you guess the amount of data we’ve generated in just the last 2 years from different sources like mobile devices, computers, and other web connected devices?

It’s a zetabyte of data!

It technically means that every 2 years, we create as much data as we did from the beginning of time or at least 90% of all the data in existence till today.

That’s a lot of data!

Let’s say you are a proud owner of a diamond mine, but you can’t harness the diamonds from that mine.

Is there a point in being the owner? No, right?

It’s the same with big data.

There is no point in collecting large chunks of data if you fail to grasp the information and insights lying beneath it. Data visualization tools help resolve this issue by showing us valuable hidden insights of the collected data.

Some popular big data visualization tools that will help you make the best visuals of your data in the most time-efficient manner:

Tableau

An end-to-end big data visualization tool that enables you to prepare, analyze, collaborate, and share your big data insights. The platform excels in self-service visual analysis. It helps data-driven companies to see and understand their data, create workbooks, visualizations, dashboards and stories.

QlikView

This self-service BI (Business Intelligence) or data visualization tool enables you to work adeptly on the tool without relying on your IT department, with little to no professional expertise. The data security provision of the tool is stringent in the sense that it guarantees the safety of critical corporate data.

PowerBI

This cloud-based big data visualization tool requires no capital expenditure or infrastructure support regardless of how big your business is. It integrates easily with your existing business environment, giving you exceptional analytics and reporting capabilities. Moreover, Power BI ensures that your data is quickly retrievable by removing memory and speed constraints.

Spotfire

This is probably the most complete big data visualization solution on the market that enables you to uncover and visualize new discoveries in your data through immersive dashboards and advanced analytics. Its analytics capabilities include predictive analytics, geolocation analytics, and streaming analytics. The tool’s rich API capabilities let you analyze all the data needed for the most powerful insights.

D3js

D3js is the big data visualization tool that brings your data to life using HTML, SVG and CSS. It combines powerful visualization components and a data-driven approach to DOM manipulation. The JS framework and functional style that it has allows you to make it as powerful as you want to make it.

HighCharts

This insights platform lets you create customized dashboards with different widgets. With this big data visualization tool, you can easily create an interactive chart that uses the data from the HTML tables and presents it more appealingly. HighCharts solely run on native browser technologies and there are no plugins required. It won’t be an exaggeration to say that they are the future of data representation in an approachable way.

Conclusion

By now, you’d know that we are hard-wired to find emotional cues within visuals rather than text.

Data visualized properly leads to information and knowledge. Visualized data has more value because it has been transformed into information. On consuming this information, it becomes knowledge.

“Identifying patterns, anticipating outcomes and proactively optimizing a response will be the basis for competition in the future. In the next 10 years, the companies that don’t have analytics deeply embedded in their business model will most likely cease to exist.” — Gartner

Your business data can communicate critical insights if it’s visualized the right way.

Jellyfish Technologies will help you reimagine your unstructured or unorganized business data on interactive dashboards easily with interactive data visualization services.