The Risks of Outsourcing Custom Business Software Development: A Cautionary Tale

When it comes to custom software development, many businesses consider outsourcing to countries where labor costs are lower than their local situation in order to save money, understandably.

However, this approach comes with a number of risks and potential pitfalls that businesses need to be aware of.

One risk is that an out-of-country outsourced company may not be covered by Australian Consumer Law, which can make it difficult to seek recourse if things go wrong.

Another risk is that some overseas companies may put up an Australian front, making it appear as though they are based in Australia when in reality all the work is being done overseas.

One of the biggest risks associated with outsourcing custom business software development is the lack of control and transparency that customers generally want.

For example, some customers may not have access to the source code or may not have the necessary documentation or backup scenarios in place to ensure that the software can be maintained or modified in the future.

Having these options can lead to additional costs down the line when customers need to reverse engineer the software or try to reconstruct it from what has been deployed.

It’s a difficult situation to be in!

To avoid these risks and ensure that custom business software development is a successful and cost-effective solution for their business, customer should work with reputable and experienced software development vendor that is transparent and open about their processes and that involve the customer in every step of the development process.

This includes providing access to the source code and documentation, as well as ongoing communication with developers and project managers.

By taking these steps, customers can ensure that they have the necessary control and information to make informed decisions and avoid costly pitfalls in their journey to have a product created.