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Profit Pie in IT Outsourcing 2017

Right Approach toward your software Development

Profit Pie in IT Outsourcing 2017

Thursday January 12, 2017,

2 min Read

Profit pie by effective savings

Profit pie by effective savings

New Year, New Beginning: Enterprises aim to have a more focused approach to set and achieve their targets for the year 2017. It's a crucial time for them to implement the best strategies targeting towards the projected fiscal profits.

Outsourcing is a prominent strategy adopted to match the inadequate resource supply to the strong demands of delivering market feasible products. In different industries, resources include variants but specific to software industry; A resource is termed as a professional with expertise in a particular tech domain or required skill set. Outsourcing is working on to achieve your target (market feasible product) by placing the right resource, at right time, at the right position and off course within manageable finances.

The Profit Pie

Profit Pie = Price – Actual Cost


Price is customer driven. Price is always a preposition of demand and the need for the value which is determined by the attribute of the value added and quality of the services. If a customer is receiving what he requires, then the last factor affecting any business is the price.


Actual Cost = Cost - Saving

Money saved is as equivalent to money earned and it fits best in the scenario when you consider the budget of software development. It’s vital to evaluate all available alternatives in advance.


Optimum utilization of resources and zero down on the best alternatives to reduce the costs, which lead to improved profit pie for the organization and it is a vendetta for the management team. Comparison of in-house and outsourcing is based on the overheads be it cost and benefits associated with employees and related infrastructure.

Cost to Quality

The value proposition for any business is to get the qualified resources at minimum cost. The need is to set the right expectations upfront and conduct activities within stipulated time.

In the competitive business world, it is obligatory to enhance your strengths and overcome your weaknesses. To sustain in this scenario it is essential to choose the right partner team to coordinate work and surge your profit pie.

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