Software Outsourcing in Switzerland – The Importance of Local Presence

POSTED: March 13, 2019 12:21 pm, By admin

Software Development in Switzerland is growing day by day, and based on the ICTSwitzerland survey, in 2018 alone, the Swiss software industry has had a 14.8% growth, pushing companies to constantly look for innovative ways to improve their business.  When an industry grows, the need for outsourcing and resource allocation becomes a vital factor for succeeding in this industry, thus a lot of Swiss companies have been using outsourcing as a strategy of growth and cost optimizing. In Switzerland, the most common outsourcing form is on-shoring & nearshoring. Based on the same survey, more than 70% of Swiss companies choose Switzerland as their outsourcing destination for Planning, Managing, Deployment and Maintenance, while implementation and testing are either nearshored or offshored.  There are a few reasons that push swiss companies to select an onshore supplier rather than an offshore firm.  Here is a list of reasons why Swiss companies still prefer to outsource their software development to a software outsourcing company with a local presence.

1. Quality
   Assume that your company decides to outsource its software development, then the question is, will outsourcing affect the quality? The quality of your software will directly depend on the quality of the provider you hire. If you choose the right provider, then you won’t have to worry about the quality, but if the wrong provider is chosen, then it can cost in time, glitches, delays, and other related problems. One of the reasons why 70% of the software projects are being on-shored in Switzerland, is Quality. It is globally known that “Swiss Made” is a synonym of quality and trust, thus, the partnership with another firm within the Swiss country means that the quality won’t be compromised. Software Outsourcing shouldn’t only be seen as a cost reduction strategy, but a form of creating high-quality software by using external resources. When you work with a great provider, they will also ensure to focus on your overall objectives and intended results. Our recommendation is to avoid choosing the least expensive resource and compromise quality, instead, find a reliable vendor who shares the same goal of creating high-quality software to grow your company. The right company will also bring a lot of experience from projects that they may have been involved with, which will translate in faster and better solutions to problems that may be faced during the development.
2. Cost Reduction
   Another benefit of outsourcing is cost reduction. A software company can easily reduce their development costs with outsourcing their software to a local or global provider. Depending on where you decide to outsource, the cost reduction can range from 20% to 40% with onshoring and nearshoring, and up to 60% with offshoring. Even though the cost reduction is a little lower with onshoring, the quality and the time should be considered when calculating the cost, thus, onshoring would be more beneficial in the long run.
3. Cultural Differences
   Besides the talent pool, cost reduction and quality, another important factor that each business should consider before choosing their outsourcing provider is the cultural fit. If choosing to offshore, one of the important factors that should be taken into consideration is cultural differences. It may have a great impact on a different aspect of the product development process like decision making, reporting, the organization of the tasks, discipline, communication. A provider in India doesn’t know the Swiss culture better than a provider with a local presence in Swiss. Which means that communication with a company whose local presence is within Switzerland is easier, because they understand the cultural aspect, know how to behave in different circumstances, understand the importance of the time, reporting, discipline, and know how to properly communicate.  Therefore, when planning to outsource your software development, cultural differences should be taken into consideration.
4. Legislation
   Imagine outsourcing in an overseas country, without properly knowing how your intellectual property is protected, how the law for software outsourcing works, or if software outsourcing is regulated by law, that wouldn’t be the wisest decision, would it? Knowing how the law works, understanding the tax system, and knowing the regulation for intellectual property protection within the country is an important and serious factor that should also be considered when outsourcing. A company with a local presence within Switzerland does know how the legislation work and will obey those rules. That’s another factor why swiss companies mostly onshore their software.

   Finding the right outsourcing partner is the key to successful outsourcing. A company that listens and addresses all your needs offers quality, and which is located within your region or has a good knowledge of your culture, maybe the right company to outsource your software and create long term relationship. If done correctly, outsourcing should be a valuable asset and an extension of your company or corporate structure. Vizah GmbH offers reliable software outsourcing in Switzerland.