Why You Are Unable To Calculate The Actual Cost Of Software Outsourcing?
Published on: December 08, 2021
Last updated: December 01, 2022 Read in fullscreen view
Last updated: December 01, 2022 Read in fullscreen view
Recommended for you
- 01 Oct 2020
Fail fast, learn faster with Agile methodology 864 - 18 Oct 2020 How to use the "Knowns" and "Unknowns" technique to manage assumptions 813
- 14 Oct 2021 Advantages and Disadvantages of Time and Material Contract (T&M) 703
- 15 Oct 2022 Project-based team model for one-off and pilot software development projects 672
- 19 Oct 2021 Is gold plating good or bad in project management? 672
- 06 Mar 2021 4 things you need to do before getting an accurate quote for your software development 557
- 08 Oct 2022 KPI - The New Leadership 514
- 19 Apr 2021 7 Most Common Time-Wasters For Software Development 513
- 01 Sep 2022 Facts Chart: Why Do Software Projects Fail? 500
- 19 Mar 2021 Selective Outsourcing of IT Functions - a new trend in business outsourcing 443
- 16 Dec 2021 Why outsource Python development of your project? 432
- 08 Feb 2022 Software Development: Fixed Cost or Opportunity Cost? 412
- 19 Oct 2020 The hidden costs of outsourcing software development 408
- 28 Dec 2021 8 types of pricing models in software development outsourcing 388
- 10 May 2021 What are things you should look for in a good IT outsourcing company? 380
- 03 Oct 2020 Outsourcing Your MVP Development - Streamlined Solutions for future 373
- 14 Dec 2021 The Top 10 Problems with Outsourcing Implementation and How to Solve Them 364
- 31 Oct 2021 Tips to Fail Fast With Outsourcing 359
- 11 Jan 2024 What are the Benefits and Limitations of Augmented Intelligence? 357
- 16 Apr 2021 Insightful Business Technology Consulting at TIGO 354
- 15 Aug 2021 TIGO Rate Formula - Things the partners should know 353
- 12 May 2021 The Real Cost Between Outsourcing IT vs In-House: A Quick Comparison 348
- 06 Oct 2021 Intellectual property issues with outsourcing software development 345
- 07 Jul 2021 The 5 Levels of IT Help Desk Support 342
- 23 Sep 2021 INFOGRAPHIC: Top 9 Software Outsourcing Mistakes 338
- 01 Sep 2019 Outsourcing Software To Vietnam: Facts, benefits and limitations 326
- 10 Dec 2023 Pain points of User Acceptance Testing (UAT) 322
- 24 Nov 2021 What is the Actual Cost of Hiring Cheap Developers? 320
- 06 Feb 2021 Why fail fast and learn fast? 311
- 22 Mar 2022 8 Mistakes Marketing Agencies or Consulting Firms Make When Outsourcing Web Development 307
- 03 Nov 2021 7 phases of Odoo Implementation and Development: Can they be outsourced? 300
- 13 Oct 2021 Why Outsourcing Software Development Services Is Gaining Traction With Non-Technical Leaders? 289
- 31 Dec 2021 Outsourcing Software Development to mitigate the impact of COVID-19 284
- 01 Jan 2023 4 New IT Outsourcing Pricing Models to consider in 2023 282
- 21 Oct 2021 Advantages and Disadvantages of IT Outsourcing 280
- 13 Dec 2020 Move fast, fail fast, fail-safe 280
- 12 Oct 2021 Vietnam outsourcing path - the silk road connecting ASEAN with the developed countries (EU, US, Japan...) 279
- 01 May 2023 CTO Interview Questions 279
- 25 Nov 2021 Low-Cost Software Development: Buy Nice or Buy Twice? 267
- 02 Mar 2021 Estimate the Cost of Software Development 262
- 04 Jan 2021 VIETNAM AS A BIG ATTRACTIVE DESTINATION IN THE FIELD OF OUTSOURCING 260
- 03 Nov 2022 Top questions and answers you must know before ask for software outsourcing 253
- 03 Nov 2022 Top questions and answers you must know before ask for software outsourcing 253
- 01 Mar 2022 Top 5 reasons why outsourcing to Vietnam is a smart move 252
- 12 Jan 2023 Top 10 Trustworthy IT Outsourcing Companies in Vietnam 250
- 17 Feb 2022 Prioritizing Software Requirements with Kano Analysis 244
- 05 Jan 2022 What Outsourcing Engagement Model is Right For You? 242
- 08 Oct 2024 Vietnam: The Rising Star in Global Outsourcing – Trends and Costs for 2025 237
- 01 Jan 2023 Top 5 IT outsourcing countries in 2023 235
- 01 Apr 2021 IT Outsourcing to vietnam: Why It Is A Good Choice? 235
- 01 Jan 2023 Top Software Development Challenges in 2023 229
- 21 Aug 2022 Forbes: IT Outsourcing Hotspot: Vietnam, A Small But Mighty Powerhouse 228
- 07 Aug 2022 Things to Consider When Choosing a Technology Partner 226
- 10 Apr 2021 RFP vs POC: Why the proof of concept is replacing the request for proposal 225
- 18 Aug 2022 What are the consequences of poor requirements with software development projects? 224
- 10 Mar 2021 The 7 Biggest Mistakes to Avoid Before Outsourcing a Web Development Project 219
- 20 Nov 2022 Software Requirements Are A Communication Problem 219
- 10 May 2021 Project Audit and Second Opinion Services 218
- 06 Nov 2019 How to Access Software Project Size? 215
- 01 Jan 2023 Software Development Outsourcing Trends to Watch Out for in 2023 210
- 16 Mar 2021 Outsource Data Engineering Services - TIGO Streamlined Solutions 209
- 01 Oct 2022 Vietnam is a favorite supply of IT outsourcing services to Japan 205
- 10 Nov 2022 Poor Code Indicators and How to Improve Your Code? 200
- 04 Apr 2024 Unlock Vietnamese-Japanese outsourcing potential 199
- 08 Nov 2022 4 tips for meeting tough deadlines when outsourcing projects to software vendor 193
- 11 Mar 2023 Common Pain Points in Software Development Outsourcing 192
- 09 Feb 2023 The Challenge of Fixed-Bid Software Projects 180
- 26 Dec 2023 Improving Meeting Effectiveness Through the Six Thinking Hats 180
- 21 Oct 2022 Outsourcing Billable Rate 179
- 02 Nov 2023 What are the pros and cons of iIT outsourcing? 175
- 01 Jan 2023 Why is Vietnam the Top IT Outsourcing Destination of 2023? 174
- 01 Mar 2023 Bug Prioritization - What are the 5 levels of priority? 171
- 17 Oct 2020 How Outsourcing can Improve Time Management for Better Business 169
- 09 Mar 2022 Consultant Implementation Pricing 168
- 08 Aug 2021 Why Nearshore Software Development is better than In-House Development? 167
- 01 Feb 2023 [InfoWorld] Is your outsourcer agile enough? 165
- 07 Oct 2022 Digital Transformation: Become a Technology Powerhouse 164
- 13 Jan 2023 What are the Hourly Rates in Offshore Software Development? 156
- 09 Jan 2021 How can outsourcing enable business agility? 153
- 09 Jan 2022 How to Bridge the Gap Between Business and IT? 150
- 01 Jan 2024 What The World Is Flat Means to IT Outsourcing 149
- 03 Jan 2023 IT Outsourcing Costs: Is outsourcing really cost-effective? 147
- 01 May 2023 Streamline Your Business with Outsourcing 145
- 01 Jan 2024 Tech Partnerships: Choosing the Right Software Outsourcing Firm in Vietnam 144
- 16 Feb 2021 Choose Outsourcing for Your Non Disclosure Agreement (NDA) 143
- 01 Jan 2024 Hiring Tech Talents in Asia: An Overview of Skills, Costs, and Potential 142
- 01 Mar 2023 How do you deal with disputes and conflicts that may arise during a software consulting project? 137
- 08 Jan 2024 Outsourcing on an As-Needed Basis 136
- 01 Jan 2024 12 reasons for software development outsourcing 135
- 17 Jan 2024 What are the benefits and challenges of using multi-sourcing or single-sourcing strategies? 134
- 15 Nov 2023 IT Staff Augmentation Types and the Best Choice for Your Business 133
- 28 Oct 2022 Expect the unexpected in 2023 - How Outsourcing Can Help? 132
- 01 Jan 2024 Software Outsourcing Questions for 2024 132
- 05 Jan 2024 Easy ASANA tips & tricks for you and your team 132
- 07 Nov 2024 Outsourcing Crisis Looming: Will Trump's Policies Transform the Global IT Landscape? 130
- 10 Jan 2024 Facts Chart: Reasons for outsourcing 119
- 09 Sep 2022 Close Collaboration and Communication Can Overcome the Challenges of Distributed Teams 109
- 12 Mar 2024 How do you create FOMO in software prospects? 97
- 10 Jul 2025 Building AI-Driven Knowledge Graphs from Unstructured Data 89
- 14 Mar 2024 Why should you opt for software localization from a professional agency? 85
- 02 May 2021 Outsourcing Software Development: Avoid 8 Mistakes 81
- 21 Aug 2025 Top 30 Oldest IT Outsourcing Companies in Vietnam 53
- 01 Jun 2025 10 Sustainable & Unique IT Outsourcing Companies in Vietnam 51
- 17 Mar 2025 IT Consultants in Digital Transformation 48
Some companies are naturally organized and data collectors. They know the importance of analyzing the cost of their business operations and are able to compare both estimates. If that’s you, congratulations! You already have a competitive edge.
But for the rest of us that need to start putting more effort, let’s quickly talk about the problems companies face with their outsourcing costs.
Interesting facts to know:
-
The outsourcing industry has boomed over the past decade.
-
Many companies have accepted cost reduction as a major driver for outsourcing.
-
Many companies have even been successful in reducing costs with outsourcing.
-
Still, many companies are unable to calculate outsourcing costs, let alone reduce them!
Before you start outsourcing and exploring more about outsourcing costs, you need to focus on your current cost. One of the biggest hurdles faced by companies when outsourcing is their poor cost-consciousness.
Poor Cost Consciousness: It is the inability to know the actual cost of operations at various levels like process, product, and activity.
And poor cost consciousness is not the only obstacle stopping you from cost calculations, there are many other barriers as well. Some other challenges that a majority of companies face are:
- Scarce data collection
- Rare data analysis
- Insufficient collaboration
These also pose a challenge to proper cost estimation and might deter you from succeeding with outsourcing.
Not having complete information about the cost of the current operations could drive you away from deriving the actual outsourcing cost. Before you even think about outsourcing to reduce costs, you need to calculate your company’s true cost of operations.
[{"displaySettingInfo":"[{\"isFullLayout\":false,\"layoutWidthRatio\":\"\"}]"},{"articleSourceInfo":"[{\"sourceName\":\"\",\"sourceValue\":\"\"}]"},{"privacyInfo":"[{\"isOutsideVietnam\":false}]"},{"tocInfo":"[{\"isAutoNumbering\":false,\"isShowKeyHeadingWithIcon\":false}]"}]
Via
{content}
Explore more on these topics
Guest Blogging: The Definitive Guide
Top Trending Topics
Share This
Recently Updated News
