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In the USA even though 56% startups outsource their software development and 31% of IT is outsourced there are plenty of myths and misconceptions about outsourcing.
One could argue that it was for a reason.
Poorly written code, failed projects and unhappy clients had scared away potential outsourcers.
The software outsourcing industry now, however, has turned a new leaf.
Emphasis on better technology, transparency and clearer processes have made the above-mentioned statistics happen.
The afterglow, has left behind with it some misconceptions that we are covering to set the record straight.
Misconceptions when Offshoring Software Development
1. Outsourcing means getting scammed.
For years, cheap software development was the primary reason to outsource. Low-priced software = Horrible products. If there was one lesson that was learnt, it was this.
Cheap software cannot be your competitive or strategic advantage.
The course correction was too late though. A lot of developers appeared in silos, took money, never to be seen again.
This created an environment of fear and scepticism among corporations.
If you see the facts, that holds true for only 5-10% of the projects.
If you select the right organization, with a good track record that will not be the case.
Therefore, it is only a myth that outsourcing means getting scammed.
It adds a lot of value to the outsourcing organization, helps them to access quality talent and at the same time saves a lot of dollars.
2. Cultural Differences are a deal breaker.
There are cultural differences between 2 regions. It is very natural to have differences between two countries.People might like different food, wear different clothes, might carry a different accent but that doesn’t mean that the differences are insurmountable.
Technology has broken barriers in communication and collaboration.
It is a myth that people believe that developers in India can’t speak English or people in Russia don’t have a good work ethic.
Some of these developers also go the extra mile for their client.
But not if you hire them through a freelancing website.
Again, it is important to look for a company having a good track record and significant experience.
It will dissolve all cultural differences.
3. Certificates mean they are high quality.
I wish it were true. However, it is not.Sometime just like an individual who has accumulated many certifications, but cannot prove his worth, practically.
Vendors who display umpteen number of certificate doesn’t mean they are of high quality.
Real use cases are a better testimonial to their work rather than some reseller certificate (which are mostly paid)
To justify this, next time you see a certificate, just google how hard (or easy) it is to get that certificate.
Don’t let this misconception cloud your judgement when you outsource software development.
4. Adding new features at any point is doable.
Hey, I am not using waterfall and I am paying for Agile so let’s change everything and redo this feature.It is a common misconception that using a particular method allows you to tamper with the code.
Though modern development processes account for flexibility, but they are for minor changes and adding an entirely new feature will still be a tedious job.
Before adding the new feature ask yourself -
Is it truly going to enhance CX?
How much change will it require at an architectural level?
Will there be sufficient ROI because of this feature?
5. Product Release means end of project
A lot of clients think of software outsourcing as a job. Where you pay and get a product.
However successful product engineers will tell you that any good software regularly requires updates.
It is always a live project.
You see the user behavior and release features accordingly to enhance their experience.
Even when you are not adding features you are always maintaining it and testing it to keep it bug and error free.
6. Quality of developers is poor
It is. If you are looking at the wrong place.
It is a common misconception that countries where software is outsourced have poor quality developers.
There is a lot of talent globally - in India, in Poland, in Vietnam.
It all depends where you are looking.
Quality comes at a price and if you are considering outsourcing for $10 per hour, then the quality will be poor, and the project will never be completed.
These countries over the past few years have spent significantly to skill their workforce and match the required level of quality that is required to create a superior product.
Hence look out for vendors and companies who invest in training talent nurturing them.
Bottom Line
Outsourcing has been popular for the past 2 decades.
It has only matured as an industry. It is becoming more transparent, advanced and process oriented.
The developers now not only practice modern development but are also becoming adept at soft skills to give clients a better experience while collaborating.
The misconceptions and myths are showing a downward trend. However, skeptics are and will be there.
It all boils down to the strategy a business wants to adopt and the vendor they are selecting.
You can get an exclusive copy of "Executive's Guide to Software Outsourcing" to understand this topic in detail - 
We would love to hear from you about offshoring and if you have any concerns (myths,misconceptions,truth) about offshoring, sound off in the comments!