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Your own development center v/s Outsourcing to third party companies
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Your own development center v/s Outsourcing to third party companies

Low operational cost compared to outsourcing to third parties.
You can operate an office at even 15$ per hour. But if you choose
outsourcing to third parties you will have to pay minimum around 30$.
These all are indicative figures, this may vary depend on the
technology in use for your projects, quality standards etc.
For e.g. you found that Company A is suitable for implementing your
Definitely, the project cost will have to include cost for quality
standards, operational mode, organizational structure etc of company A.

Better control of day-to-day operations. If you follow the second model
you will have to adapt to the business model of the company you have
selected for the projects. For. e.g. A certain task in a project, your
company feel that it can be implemented in 20 man hours, the same task
may require 40 hrs for third party company since it has different
business model.

Initial cost will be high for setting up your own firm. But this is
nominal compared to money required to set up your own office in US or
any other European countries. For e.g. if you have 0.3 million us
dollars you can set up a your own small office for 20 people at Cochin
in sothern India. This is nominal against the gain in long run.

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