Business

The Benefits and Challenges of IT Project Outsourcing

Software development projects don’t always go to plan - the vast majority of them run into complications, but often for very preventable reasons. For example, many companies have in-house software development teams that handle their projects. Companies that can afford an in-house team tend to just be more comfortable with that which is understandable. 

However, in-house teams are not without risk; for example, let's say a company is taking on a big process automation project. The in-house team gets the brief and notices that some of the requests are not in their ballpark of expertise. This is a simple problem, it happens often. These are 6 common consequences of ignoring it:

  • Going over budget

  • Significant project delays

  • Low-quality final product

  • Dissatisfied stakeholders

  • Damaged team morale

  • Damaged company reputation

This is just one very simple instance of something that can go wrong in-house and there are endless potential challenges all with their own set of consequences when it comes to developing software. However, effective execution during software implementation has a major emphasis on RISK MITIGATION which is why businesses often choose to seek consultancy.

Alibaba Example

To give you a real-world example - we’ll examine Alibaba. Alibaba is a company doing well over $140 billion in revenue today - but it wasn’t always that way. In the early stages of being a startup, Jack Ma, the company's founder, was facing trouble accessing the resources he needed while living in China. 

What he needed was web development, and when he eventually found specialists in the United States, he outsourced development to them and started seeing results immediately. This led the company to set a record in funding at $25 billion by 2014.

What It Means To Outsource

Outsourcing software development doesn’t always mean you bring a project to a third-party right from the jump and get them to take care of it. It can sometimes, but outsourcing can also involve project takeover which is needed in cases where the project has been done poorly or the in-house team has too much on its plate and it’s not a priority at the moment. 

Whatever the case may be - bringing in a third-party development team can be a great move for businesses and avoid the trap of project failure before the project even has a chance to be completed. 

With that said, when the process is executed optimally, there are 3 key benefits seen from outsourcing that you wouldn’t see from in-house development:

  1. Cost reduction: Software development is expensive, and when you add employee benefits and vacation time off to that, it adds up to paying for results you’re not getting. On the other hand, when you outsource, you're only paying for the results of the project you get from the team. You’re not paying the same salaries when work is slow or results aren’t optimal. With outsourcing, you quite literally get what you pay for and nothing less.

  2. Talent pool: Software developers have a lot of flexibility in terms of their working conditions. Some may work for a company and freelance on the side, or even work at several companies each for short terms. The point is, top talent may not want to be confined to one company. So yes, while an in-house team will have developers with an employee mindset and dedication - their capabilities may be limited in certain aspects of performance that you could only get from a diverse portfolio. 

  3. Further domain knowledge: Outsourcing companies will have experience working with various companies in your industry which means that their experience level is fueled by observing different approaches to serving other businesses. This is not disregarding the expertise of an in-house team, however, there is a tendency to follow the “do things the way we’ve always done it” mentality which is not sustainable in 2023.

When a company hires an outsourcing team, they now have access to new mindsets and opinions, not just from an outsider looking in - but from trained professionals who’re ready to pivot and take on whatever you give them.

Deciding Whether Or Not To Outsource

Anytime you’re faced with the question “Why should we outsource this project?” start by examining why you shouldn’t outsource it. When an investment is being made for the greater good of an organization, it makes the most sense to start by analyzing all the risks involved. 

From that point, you can see if the benefits outweigh the risks and make an informed decision. The reason we recommend the “negative first” approach is that oftentimes teams get caught up in fixating on all the potential rewards that they neglect to construct proper contingency planning. 

Challenges From Outsourcing

The most common industries that outsource IT services include Finance, IT, Payroll, and CRM services. The most common projects companies from these industries typically reach out for include cloud services, process automation (especially robotic process automation), API integration and customer service support.

While all this is going on, some obstacles will arise but the whole idea is that with an experienced team of experts, you won’t have to worry about these obstacles impacting your project. With that being said, here are some of the most common issues to look out for:

Project Delays

Delays often occur when there are communication barriers between the service provider and the client. Both parties can be at fault for not properly outlining the scope, timeline, deliverables, or even changes made to the project. To avoid this, both parties need to prioritize having regular check-ins that ensure that the project is on track.

Quality Issues

Outsourcing a software development project can also come with some quality risks. When working with a third-party provider, there is a chance that the quality of work may not meet your expectations. This can be due to a lack of understanding of the project requirements or inadequate skills on the provider's end. 

For this reason, It's non-negotiable to have a proper quality assurance process in place that will catch any issues early on. In addition to this, there needs to be sufficient communication before the project starts to ensure expectations are understood and that the outsourcing team can support your needs.

Security risks

The phrase alone emphasizes how important it is to team up with a reputable software development firm. Now, when you think you have the right team, remember that you will be sharing sensitive information. For this reason, companies looking for outsourcing services need to make sure they ask about the teams' security and confidentiality measures.

What’s Important to Understand

There is risk involved with any level of change in an organization, however, we’re living in an era where change is inevitable with technology, especially watching AI becoming more advanced by the day. Companies need to re-evaluate their business processes in 2023 and find ways to implement this technology to still be operating in 2033. 

Businesses need to asses their assets and find any that are expendable. In some cases, it may make sense to delegate work to a third-party software services provider. This is a recommended path if it means it’s going to help your business succeed.

Written By Ben Brown

ISU Corp is an award-winning software development company, with over 17 years of experience in multiple industries, providing cost-effective custom software development, technology management, and IT outsourcing.

Our unique owners’ mindset reduces development costs and fast-tracks timelines. We help craft the specifications of your project based on your company's needs, to produce the best ROI. Find out why startups, all the way to fortune 500 companies like General Electric, Heinz, and many others have trusted us with their projects. Contact us here.

 
 

The 6 Best Programming Languages for Artificial Intelligence

Artificial Intelligence (AI) is seeing wicked adoption rates in 2023, so much so that the most successful companies in the world are finding unique ways to integrate it. Take Facebook for example, they’ve innovated and re-branded into Meta to show their intentions of branching beyond a social media platform. While services like Skype, once a mere video call platform, have now integrated chatbots that can be used just as you would Chat GPT.

On the back end, software engineers are using AI tools to enhance the coding process, but this raises the question; who’s building the platforms that do the building? Now, AI tools are in no way suggesting that software engineers will be out of jobs anytime soon; rather, it’s a step in the direction of enhanced results from developers since programming can now be done more efficiently. 

Who’s Interested in Using AI Extensions?

Integrating AI into your platform can be done on any size scale using tools like Chatbots, Machine Learning, process automation, etc. What’s important to know is that for a platform to measure the effectiveness of artificial intelligence solutions, the main place to pay attention to is customer satisfaction. Recent research is suggesting that AI improves customer retention by nearly 70% and that those who are most interested are aged between 18-24.

How to Make It Work for You

The future of AI technology is unfathomable right now because it’s still too new with so much left to discover. 

While the future of AI technology is still unfathomable due to its novelty, programming is the backbone of anything digital, making mastering AI a top priority for software engineers. With that being said, here are the 6 best programming languages that help software engineers create seamless AI platforms:

1) Python

There is no debate when it comes to AI development that Python is a necessity. It’s an interpreted language which means that programming can be executed on the fly without needing to be compiled. 

The important role that machine learning plays in AI performance should be noted. Machine learning trains the system to act a certain way and is a key subset of AI. During AI integration, this makes development happen fast and machine learning algorithms can be tested quickly. 

2) Java 

Java is a language that can be used in just about any platform to handle the server side (behind the scenes) of the operation. Software developers will resort to using Java when building AI solutions, specifically when they’re trying to build a multi-faceted application or incorporate machine learning algorithms. 

Outside of AI, there is a strong case for Java being a more efficient option for certain tasks than Python since it’s compiled. However, software development is contextual. For instance, if a FinTech was implementing software for data analysis, Python would be the better option. 

3) Julia

This language is fairly new in the programming world with a small community of software developers utilizing it already. Though it’s not as widely used as other languages, it has earned its position among the best options for AI programming languages.

The main draw to Julia for software developers is its performance and speed which is said to be greater than Python due to its compiled nature. Oftentimes, Julia is used for data analysis which is why it’s commonly compared to Python.

4) R

R is a language with one primary role in AI development; number crunching. Data is significant and difficult to handle during software development, which means that to arrange it efficiently, you’ll need some math skills. This means that R will come in handy during machine learning development.

With that being said, here are some of the best R packages for Machine Learning development:

  • CARAT: Useful for training integration and predicting models. 

  • Gmodels: Provides tools for fitting models.

  • Nnet: Perfect for AI as its purpose is to replicate how the human mind functions. 

  • Tidyr: As the name implies, this package is used to tidy up data. Specifically by observing rows, inserting variables in columns, and value in cells.

5) Lisp

Any seasoned software developer with experience in AI will tell you this is one of the oldest languages still used in software development.  The name is an abbreviation for “list processing” which makes the language a great option when working with complex data structures. 

A few features under the hood of Lisp include:

  • Program modification (into data)

  • Rapid prototyping

  • Creating dynamic objects

  • Collecting garbage

  • Running programs based on data structures

The program remains highly sought after because it’s highly flexible and easily able to express the programmers’ intent.  

6) C++

This language is known, like many of the other languages we’ve listed, for its speed and interoperability with machine learning and neural networks. As anyone would guess, developing an AI application is highly complex and data-intensive which makes having languages that are quick, reliable, and efficient a necessity for software engineers

When it comes to AI, C++ is going to be able to handle a lot of low-level programming which translates directly to a programmer's ability to manage the production of AI models. 

Choosing a Programming Language

Tech stacks are chosen based on several factors that every project entails. First, what resources are available? What kind of budget is the team working with? What is the timeline, talent expertise, hardware and infrastructure involved, etc? Considering the languages we’ve looked into in this article, some strong tech stack choices would include:

  • PyTorch: Supports Python, C++, and CUDA.

  • OpenCV: Supports  C++, Python, MATLAB and Java.

  • TensorFlow: Supports Python, C++, and Javascript

  • Keras: Supports Python

This gives a sense of how software developers would structure the infrastructure for an AI platform and also demonstrates that languages complement each other to build something great. 

The Takeaway

Software development services are highly adaptable which is what makes them so sought after by businesses of all sizes. If you’re trying to find the best programming solutions for your business, you’ll need to evaluate the long-term goals driving that desire. 

AI is just another step in the direction of inevitable change that industries are undergoing as a response to the advancement in consumer interests and the technological resources available to accommodate them. If you think your business deserves these enhancements to respond to the changes in your industry, don’t hesitate— get started.

Written By Ben Brown

ISU Corp is an award-winning software development company, with over 17 years of experience in multiple industries, providing cost-effective custom software development, technology management, and IT outsourcing.

Our unique owners’ mindset reduces development costs and fast-tracks timelines. We help craft the specifications of your project based on your company's needs, to produce the best ROI. Find out why startups, all the way to Fortune 500 companies like General Electric, Heinz, and many others have trusted us with their projects. Contact us here.

 
 

What Software Engineering in Finance is Like in 2023

We talk a lot about software development in the financial world, and for good reason— this is a hot-button topic that needs attention. Financial services are data intensive and heavily rely on the analysis and interpretation of that data. This can include (but is not limited to) interest rates, stocks, income/cash flow statements, and balance sheets. 

It can be a lot to take in when looking at how IT brings innovation to an organization; in this article, we’re going to break it down simply. We will look at why software engineering is so important in the financial industry and some examples of what businesses should look out for to ensure they have the best possible team leading their digital transformation journey.

Every financial firm will have its unique requirements, the software is just there to help keep everything functioning seamlessly. Development teams working for financial service providers need to be aware of this, by recognizing the unique requirements of the industry and remembering they are there to provide solutions…

Why would we say that? Software developers know what to do for FinTech companies right? 

Software development for financial firms is high pressure since the business is naturally extremely high pressure, which means that there’s just about no room for error in any utilized IT systems. 

When errors do arise it can be extremely detrimental, in the United States alone, faults from IT systems take out $150 billion from the economy annually. 

This is intimidating for both software developers and the companies who invest in their services, but it is why reliability, credibility, and transparency are such important aspects when it comes to choosing a software development team.

The Best Software Engineering in Finance Looks Like…

Finance and banking are among the top 5 industries demanding software engineers according to industry reports, with entry-level salaries starting at over $110,000. In addition, more than 95% of financial companies deem it “critical” to have solid software engineers in order to sustain the company long-term.

The job of a software engineer is strictly to examine, make predictions, and come up with comprehensive software solutions based on the variables they’ve examined. As a software engineer working for a financial service provider, the projects in scope may include:

**If you don’t recognize some of the topics, check out our previous blogs on them**

When a financial service provider hires a software development team, they’re not looking for someone to put a bandaid on their current processes, they want innovative solutions and digital transformation to make their services stand out in the most competitive market in the world. 

Digital transformation, like anything else in running a business, will look different for everyone. 

However, with experienced software engineers, you can find the future that looks exactly like the vision of success you’ve always wanted. This may include (but again, is certainly not limited to):

  1. Cloud computing: This is one of the most prevalent trends in software development as a whole for its ability to store and access data. For a banking/finance company, this is everything to their users and it leads us to the next point.

  2. Mobile Banking Services: Let’s not forget, two-thirds of the American population alone use mobile banking for their day-to-day needs. In 2023, mobile banking is a nonnegotiable for young consumers especially, which tells you everything you need to know about where the industry is headed. 

  3. AI: By now, Artificial Intelligence has entered normal dialogue though it’s caught some people by surprise. For the financial industry, it’s brought many great benefits when it comes to:

    • Repetitive task automation

    • Minimizing errors

    • Aiding in the decision-making process

  4. Cybersecurity: The major threats financial firms have to consider when implementing software systems in 2023 include: 

2,200 - The estimated number of attempted cyberattacks each day.

$9.4 million - The average loss financial firms saw from ransomware attacks in 2022

Cybersecurity is a necessity in an age where FinTech service providers are at the pinnacle of banking. Companies need to protect their assets and data which is why when software programmers today build systems to protect service providers, they must remember they can mitigate a breach before it is attempted. 

Each of these aspects leads to a well-rounded platform that users will feel comfortable relying on. More than that, it’s something that can be sustained long-term which makes it better for companies who want to scale their operation. 

Where Custom Software Makes Scaling Easy

When you invest in custom software, it’s not a temporary fix— rather, it’s a foundation being implemented that when it continuously undergoes innovation can take a company from a startup to a large-scale enterprise. 

For instance, a custom mobile app could help a FinTech startup grow its user base by reaching new users, while customized cybersecurity measures can protect against potential threats as the company scales. It’s the little things like this that make a big difference long term.

The Takeaway

Software engineering is where the majority of the heavy lifting happens since execution is based on the analysis done during this time. To maximize the results a company sees from software development, prioritizing the planning stage is a crucial step. Lay everything out on the table; current pain points, long-term goals, market research, etc. Putting this in the hands of the right software development team will guarantee the best possible outcome. 

Written By Ben Brown

ISU Corp is an award-winning software development company, with over 17 years of experience in multiple industries, providing cost-effective custom software development, technology management, and IT outsourcing.

Our unique owners’ mindset reduces development costs and fast-tracks timelines. We help craft the specifications of your project based on your company's needs, to produce the best ROI. Find out why startups, all the way to fortune 500 companies like General Electric, Heinz, and many others have trusted us with their projects. Contact us here.