Everyone knows that there are many benefits of outsourcing business requirements to offshore vendors. What most of the people, especially service providers, fail to talk about is the risk associated with it. It is very important that clients have knowledge about these risks so that they can easily save themselves by avoiding the risks.

The current business environment requires organizations to hire offshore web development services providers and acquire various web based solutions that would enhance their business performance. However, they need to avoid the risks associated with such business methodology.

Mentioned below are some of the major risks associated with offshore software development services along with most appropriate solutions to avoid them from happening.

The Wrong Type Of Business Engagement Model: There are different types of business engagement models prevalent in the industry. Clients need to choose the right model according to the nature and scope of the project. For example, the fixed price model might seem very beneficial to clients. However, it is not the right approach for projects having wide scope.

The Payment: The normal industry standard requires clients to pay advance payment to service providers. The industry standard is 50% upfront payment. However, this rule should be strictly followed only when the vendor is a highly reputed one and has strong recommendations. Otherwise, clients should minimize the amount of down payment. Further, you should divide the payment into 3 or 4 parts. Set some milestones and pay the vendor when they complete them.

Kill switches: This is one of the biggest risks that you need to avoid. Some unethical vendors tend to include a kill switch in the applications that they develop. This enables them to remotely shut down the application in case there is some dispute. Make sure that your contract includes proper points which restrict them from including any such element in your solution.

The Freelancers: Freelance application development services providers are cheaper in comparison to a well established company and this attracts many clients towards them. However, freelancing is not the best way to get your requirements fulfilled, especially when the project has a wide scope and is critical to your business. The problem with freelancers is that they are not reliable. You never know when they might disappear and leave your project hanging in the middle. This will waste both your time and money. You should always try to hire a reputed and experienced offshore web development services providing company as it is less likely that they would close their business and disappear.

These risks must be avoided by clients in order to receive properly developed web solutions. If they plunge into the development phase without preparing themselves for the risks that may arise during application development then it is very likely that they will have to face the consequences.