Realistic expectations toward charges from offshore IT service providers

“Outsourcing, information technology revolution, the access to India’s human resources, India’s pool of scientists. It will help American companies to become leaner, meaner, more efficient, and they become more competitive, both in the United States and in dealing with the rest of the world.”- Manmohan Singh Ji, Former Prime Minister of India.

Your business is everything for you, right? You do the best it takes and push it on the trajectory of growth and if budget is a constraint and time is important, the easiest way to get far is to outsource offshore, especially to a country like India where charges are usually low for most of the services. One of the most important works that can save a lot of money on outsourcing is Software Development.

Software Development Services in India: A bigger picture

Now, Outsourcing software development work to India saves your business a lot of working capital which you can invest in other sections of the business and that is why a lot of foreign companies use these services.

But how low can these prices be realistically for a genuine service provider? Yes, there is a threshold of low prices even in India that We will advise you not to cross. Why?

  1. Work/ Life Balance of the developer:- Suppose you find a good and experienced software developer at a very low cost and there must be some desperation behind it because of him not finding the work for a long time. He will need to get more work done each week for earning optimally so that he can survive. He will not have a proper work-life balance which is important for the productivity and quality of the work.
  2. Lack of experience:- Another reason you will find very low prices from the software developers is that they are not very well experienced or have not gone through proper mentorship or training. Thus their work requires improvement though they are putting their best efforts.
  3. Lack of motivation:- Sometimes developers do take the work for low prices but later on find themselves lacking the motivation to keep working on the same knowledge that they are not paid properly. It either leads to compromised work or delayed deliveries or running away from the mid of the project.

Now Quality compromise or delayed deliveries are not justifiable but being realistic with expectations is also required.

How does it impact the market?

Since we already showed how these unrealistically low prices can result in a compromise in quality or delivery time of the software product and such a mismatch between unrealistic expectations of an offshore client and reality leads to the creation of a wrong stereotype in the mind of clients.

This tarnishes the image of a particular region in mind of clients offshore due to certain experiences where they are a bit at fault.

What can be done?

The biggest problem in this scenario is having the wrong expectation toward the working charges. If you are outsourcing your work to an offshore company especially in India, You will find that working rates are already less than half of the working charges you might find in your local area. So instead of trying to negotiate the prices, Try finding more about the company and their expertise in the given technology and compare their prices to other companies with the same level of expertise.

On the other hand, Development services need to provide realistic service charges to the client so that they can focus on quality and timed deliveries instead of finding more work and messing up with the work-life balance of their developers.

And if you wish to know more about the pricing, Contact Fooblock and we will guide you :)