Software outsourcing is not for the unprepared. Together with the benefits come risks. Understanding what the possible risks are can help you address them proactively and minimize the effects even if they do occur.

Intellectual Property Protection

Legal systems in other countries may not offer the same protection as offered here in the U.S. Even if the protection is similar, having a lawsuit across borders is still time-consuming and costly.

Quality

No matter how brilliant your idea is, if the software developed for it is buggy, your customers will be unhappy and they will spread the words.

Communication-Language Barrier

Even though the distribution of English as a spoken language is far more widespread than any other spoken language, including Mandarin Chinese and Hindi (mainly spoken in northern and central India), it is not a primary language in many countries. When you outsource your software project to a different country, chances are your English is different from “their English.” The result? Your communication could be ineffective and soon you would feel frustrated.

Communication-Time Zone Difference

Depending on the country and the location, the effect of time difference can range from mild to extreme. The time span between the west coast and Asia, for example, ranges from 12 to 14 hours. In a typical office situation, no synchronized communication is possible between these two locations. It’s ok if it’s only once or twice that you have to stay several hours late or come in several hours early. When this has to happen frequently then it becomes a real burden.

Other Risks

Other risks include status and cultural differences, legal and regulation differences and so on.