For major enterprises the development of software in India or South Africa Software has been the rule for quite a long time. But this approach is not profitable to small and medium-sized entities (SME) and the risks are too big, aren´t they? Experts think that this is not true. On the contrary, the outsourcing of software development and IT services might be particularly worthwhile for SME. Dr. Franz J. Beeler, physicist and expert on technology management, in an article on the subject estimates:
“As compared to premium price countries such as Germany, Austria and especially Switzerland, offshore software outsourcing leads to cost cuts by up to 70 percent!” Not only are costs lower, if planning is done carefully, but capable specialists can also be more easily found in Eastern Europe, Asia and some other emerging regions of the world than in Germany. This leads to advantages in terms of time and quality. However, there are also additional costs in terms of business organization, cross cultural risks and legal particularities of the country in question.
The Bayerische Industrie- und Handelskammertag (BIHK) provides a 60-page comprehensive guide on outsourcing for SME which is available as download. An interesting evaluation of the possibilities for SME due to outsourcing is given by Peter Driessen, deputy managing director of the Chamber of Commerce and Industry for Munich and Upper Bavaria in an interview with the Competence Site. 