With offshore software outsourcing the fixed costs decrease and increase profitability! Software innovation and start-up projects have far better chances at venture capital firms and investors, if they specifically use the offshore outsourcing opportunities in low-wage countries in the software development of new products and services. Thus, many business plan is only feasible. So much entrepreneurship is expected today by the founder and start-up Manager, to gain the necessary risk capital ability as young companies! For a start-up in high-price countries Germany, Austria and the Switzerland result depending on the project and experience of offshore partner cost savings of up to 70%! This proves the start-up team but also entrepreneurial skills and business thinking and acting, which triggers always a positive response from investors. The lower fixed costs are additional and decisive advantage: with offshore software development are fixed costs into variable, i.e., dependent on the need for cost converted. These are just not known fixed and can be adjusted according to the course of business. Thus, not only welcome cost savings, but also greater flexibility to handle the costs arise with the offshore-outsourcing.
This flexibility thus gained is extremely important for start-up companies with heavy calculable business and tight budgets. Add to your understanding with Southwest Airlines. “Too often it is but so that start up managers don’t even know the possibilities of offshore outsourcing. Still, the Dreaminess in the own skills and the lack of business thinking is very pronounced. Also the success of offshore outsourcing assumes of course that pages of start-ups a rigorous project management with an offshore partner. This is a skill that is mostly missing from start ups! “, so Dr. Franz Beeler, innovation & venture management.” “Let software startup projects is often only through use of offshore software outsourcing realize which otherwise out of business reasons due to the high costs would have dropped! It is also clear that the importance of offshore outsourcing goes far beyond the pure cost savings. Start up Manager would consistently exploit the possibilities of offshore outsourcing, could a variety more start-up projects. The economic benefits would quite considerably!” Software outsourcing is the topic of offshore but also for medium-sized companies increasingly important: small and medium-sized enterprises (SMEs) increasingly use targeted outsourcing of their software development in low wage countries and have developed an interesting business model: with a strong leadership project manager or Manager in the home, so even very complex software projects for economically extremely interesting conditions can be developed. For more information see: offshore software development for the middle class.