Challenges in outsourcing BI to offshore software development companies

More and more companies realize the importance of business intelligence in improving one’s business and the need to find people with the right skills to develop BI analytics is very important. Some might have their own in house BI development team capable of providing them with all the business analytics to be tracked and monitored. Some might not have their own personnel and could opt to outsource their BI needs to specialists outside, either within their geography or to an offshore software development company.

Outsourcing your BI development needs to an offshore software development company has its own benefits. The consultants and developers are technically strong enough to address your needs and you get that at a much lower cost than when developed at your location. It’s not just about the cost advantage alone. A large offshore company could provide you with flexible resource supply to handle higher demands and also give you access to a variety of technology spectrum under one roof.

Despite all these advantages that an offshore company could offer, outsourcing BI to an offshore company does have its own challenges as well. It’s not just about the coding, development and technical skills. Most offshore companies are great in these aspects. But unlike other software development needs, Business Intelligence is not just about development. One would have to understand the business in order to provide solutions that would help the business users track, monitor important business analytics and in turn, aid in their decision making. By the time you reach a design that is detailed enough for the offshore team to understand, you might very well have invested the same time in getting the development done at your end. The development company by themselves will need to have the expertise in understanding the business of the customer and study your entire business, systems, process & needs and provide consulting based on them. So basically, it makes sense when the offshore company themselves have the expertise to understand your business and convey them to the developers.

It’s not a bad idea to employ an onsite/offshore strategy in this case. Understanding the business, evaluation and planning of the technology, tools, architecture with your key team members could be done onsite, while the development works are kept at offshore. The onsite consulting will help in saving considerable amount of time and effort and also increases the quality of the work. The development works being made from offshore ensure, you get the cost advantage as well.

Tags: Microsoft BI
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