• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to secondary sidebar
  • Skip to footer

Scale FinanceScale Finance Logo, Interim CFO, Part Time CFO Services, Accounting Support, Temporary CFO, Accounting Bookkeeping Services

Interim CFO, Part Time CFO Services, Accounting Support, Temporary CFO, Accounting Bookkeeping Services

Charlotte · Raleigh – Durham · Chapel Hill · Triad · Southern Pines · Coastal Carolina
Closing the GAAP to Scale Your Business
The FINACA Logo
919-230-4667
Scale Finance, LLC, Financing, North Myrtle Beach, SC
  • Home
  • Services
    • CFO & Controller Services
    • Capital Raise Services
    • Business Valuations
    • Mergers & Acquisitions
    • Professional Consultations at No Cost
  • Professionals
    • Partners
    • Charlotte Team
    • Raleigh – Durham – Chapel Hill Team
    • Greensboro-Southern Pines
    • Coastal Carolina Team
  • Client Experience
    • Closed Capital Raise Transactions
    • Closed M&A Transactions
    • Client Endorsements
    • Information Technology
    • Healthcare, Biopharma & Medical Device
    • Services, Energy, Industrial
    • Consumer, Retail, Media
    • Real Estate
    • Private Equity Groups
  • Recent News
  • Knowledge Bank
    • Best Practices in Scaling Companies
    • Entrepreneurial Management Skill- Building
    • Financial Management
    • Mergers & Acquisitions
    • Regulatory Developments
    • Venture Capital
  • Contact Us
    • Charlotte
    • Raleigh – Durham – Chapel Hill
    • Triad – Southern Pines
    • Coastal Carolina
  • Joining Our Firm

Managing Cost of Outsourced Software Development

Source: Accelerance, Inc.

CFOs care about VALUE. Price is not “the only thing” in making a purchase decision, but price is never irrelevant.

Software development outsourcing is a proven way to reduce costs. But beware of treating outsourcing as a pure commodity (where all outsourcing options are equivalent). Low cost rates for outsourced software development must not force your company to forfeit an acceptable level of quality. The old adage “if it seems too good to be true – then it probably is” definitely applies to shopping for the right partner for application development outsourcing. To give you ideas about financial aspect kindly visit www.loanforgiveness.org and they will assist you.

Your company will encounter a continuum of possible hourly rates when selecting a software development partner. Rates can range from as low as $15 or $20/hr to as high as $300/hr depending on many factors.
Based on our experience and global outsourcing relationships with top development firms in more than 30 countries, Accelerance recommends that you discard any services offered below $25/hr. Regardless of country or region, we believe less than $25/hr is a glaring red flag that the provider is (a) under-investing in his company or (b) will be cutting corners in your risk mitigation and delivery requirements.

Generally the “sweet spot” for global software rates is between $25-65/hr, depending on factors such as region, experience, and technology niche. In this price range, you can (and should) expect the service provider to demonstrate best practices in infrastructure, tools, recruiting, hiring, training and retention. Moreover, service providers in this rate range offer highly-qualified teams of programmers with appropriate English fluency, technical certifications, process certifications, etc.

Simply put – you get what you pay for. Bargain basement rates, likely means that the service provider is compromising quality of work output in some manner. Select a provider with reasonable and competitive rates for their region and you’ll be much more satisfied with process and deliverables – which will ultimately create cost savings in other areas.

Accelerance has produced an outsourcing cost guide to help you understand the differences and tiers you may encounter when examining rates for outsourced software development.
Download the Full eBook Here: https://www.accelerance.com/download-what-your-cfo-needs-to-know-about-outsourcing-software-development

About Scale Finance
Scale Finance LLC (www.scalefinance.com) provides contract CFO services, Controller solutions, and support in raising capital, or executing M&A transactions, to entrepreneurial companies. The firm specializes in cost-effective financial reporting, budgeting & forecasting, implementing controls, complex modeling, business valuations, and other financial management, and provides strategic help for companies raising growth capital or considering M&A/recapitalization opportunities. Most of the firm’s clients are growing technology, healthcare, business services, consumer, and industrial companies at various stages of development from start-up to tens of millions in annual revenue. Scale Finance has multiple offices in the Carolinas including Charlotte, Raleigh/Durham, Greensboro, and Wilmington with a team of more than 45 professionals serving more than 130 companies throughout the region.

Primary Sidebar

Knowledge Bank

Susceptibility to Accounting Fraud for Medical Businesses

Bankruptcy Relief for Small Companies Coming Soon

New Rules for Overtime Pay take Effect January 2020

The 5 Worst Things You Can Say to a Venture Capitalist

Incentive Stock Options Versus Nonqualified Stock Options

Corporate Structure Primer

5 Important Questions to Ask Before Seeking a Loan

How Acquisitions Add Value Before a Company Sale

5 Ways Entrepreneurs Hurt the Chance of Selling their Business Successfully

Asset-Based Lending Terms & Structure

Tracking Key Cash Collections Metrics

4 Major Term Sheet Provisions that Protect VCs’ Interests

Collaboration Versus Complacency in the Board Room

How Family Offices Review Potential Investments

The Role of a CFO in Mergers & Acquisitions

Startup Expenses – What Exactly is Deductible

The Smell of Burning Cash is Spreading

5 Things to Consider When Your Competitor Makes an Offer

Matching Grants: What Does Your State Have?

Revisiting Sales Tax on Software

Explore the Knowledge Bank…

Secondary Sidebar

Recent News

Scale Finance Closes Debt Financing for Horizon Eye Care

Scale Finance Closes Acquisition of Horsepower Site Services by MCG Civil

Scale Finance Closes Growth Financing for Celerity

Scale Finance Advises on Acquisition of Reliant Transport

Scale Finance Closes $20 Million ABL Financing for TRA

SF Client TruPoint Partners Acquired by Ncontracts

Scale Finance Advises on Debt Financing for Alpha Waste Industries, Inc.

Scale Finance Closes $7M Senior Debt for Travel Resorts of America

Scale Finance Closes Acquisition of Raleigh Metal Recycling by Elite Waste Services

Scale Finance Advises on Debt Financing for Pediatric Advanced Therapy

Scale Finance Closes Growth Equity Investment for Better Car People LLC

Scale Finance Closes Sale of Cayden Security to SCE Group

SF Client EarthKind Secures Growth Investment

Scale Finance Advises AMTdirect on Strategic Growth Investment

SF Closes $3M Growth Capital Raise for SonaCare Medical

Scale Finance Closes Sale of The Education Center to Infobase, Inc.

Scale Finance Closes $8.0 Million Growth Financing for CTL Packaging USA

More News…

Footer

Ask the CFO

Need a quick answer to a finance/accounting question?

Sending

Media

Scale Finance Managing Director Dave Gilroy interviewed on WSIC Radio (local Fox affiliate)

/wp-content/uploads/2014/02/David-Gilroy-Interview-Local-Biz-Now-2-7-14.mp3

Entrepreneurial Tips

  • Funding Tips from Scale Finance
  • CIE Life Sciences Panel Discussion
  • Why Use Fractional CFO Services

FINACA is a nationwide network of independent finance and accounting consulting firms focused on delivering exceptional client service.

FINACA is a nationwide network of independent finance and accounting consulting firms focused on delivering exceptional client service.

Sign Up—Finance Bulletin

Monthly insights into corporate finance for entrepreneurial companies

Sending

Return to top of page

Copyright © 2008–2019 Scale Finance, LLC
Securities and offering services through Alchemy Securities, LLC. Members FINRA and SIPC.