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5 reasons why companies do not outsource Software Development

5 reasons why companies do not outsource Software Development

Why companies do not like to outsource software development?

Since more than 12 years we from HGH Innovation GmbH are helping German and European companies with outsourcing and nearshoring their software development in order to be better, faster and cheaper than their competitors.

  1. Many of our customers are afraid of a conflict with their staff. With the right strategy nearshoring can free their employees for more important and more strategical tasks and nearshoring partners can help to remain competitive and save existing jobs.
  2. Even today especially German companies are quite old-fashioned and still want their own staff sit in the office. They want everybody’s physical presence in order to make sure that everybody is actually working during working hours.
  3. The biggest problem in german companies is missing english language skills. We could not believe this but in fact many software engineers just do not know enough english in order to be able to work in an international team. When we had a closer look we found that although some software developers do have good language skills the inhouse team as a whole is not able to follow discussions in english, which is of course creating a big problem for the daily communication with a remote team.
  4. Many company directors do not outsource software development because they are afraid of a breach of the confidentiality by the remote team. In our experience confidentiality can be covered very well by legally certain and efficient NDA clauses. Also it is better to chose a nearshoring partner who does not have an obvious conflict of interest by developing and selling own software solutions but who is only concentrating software development as a service.
  5. Last not least we often find companies whose CEOs are convinced that only local staff can do the job and that they are more expensive but far better than software engineers from other countries. Well, this is just complete nonsense and you cannot really believe that your own team has more skills than the combined knowledge of the wold’s best software developers.

As a conclusion we can say that especially in the software industry it is mandatory to include nearshoring competence in order to remain competitive and on top of the technical development. An agile approach enables the inhouse staff to work seamlessly with their new remote development partners.

Get more information about our nearshoring software development partners at https://www.hgh-innovation.com

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