What is the difference between software outsourcing and customized software development?

In the software development industry, software customization development and software outsourcing are two words that are often mentioned. Many people may not be very clear about the difference between the two, or few people will analyze the relationship and difference between customized software development and software outsourcing. Here, I will give you a brief introduction. Software outsourcing Software outsourcing refers to an enterprise outsourcing all or part of the work in a software project to an enterprise that provides software outsourcing services, mainly to focus on the core competitive business and reduce the cost of software development. This is a service model based on information technology. According to the contract, the software company accepts the invitation of the developer and provides the developer with software development outsourcing related services. Software development services provided by software companies are called information technology outsourcing, or ITO for short. A typical case is that a bank outsources the development, testing and online launch of its back-office software processing system to a software company with knowledge in the financial field. Because in the field of financial software, especially software development, bank staff are not good at developing these softwares, so in order to facilitate management and reduce costs, they will outsource them. There is also a software outsourcing service, called business process outsourcing for short. The main purpose of this software outsourcing service is to reduce the cost, that is, employers outsource some repetitive non-core business processes to suppliers, so that they or their customers can obtain higher professional service quality from BPO service providers. ? In addition, in recent years, new business forms have emerged in the outsourcing field, such as knowledge process outsourcing (KPO). The threshold of software outsourcing business is relatively low, the initial investment is small, the risk of business execution is small, but the profit is not high. Because most customers outsource non-core business, the technical and business thresholds are relatively low, and the quality, cost and delivery time of most outsourced business are controlled by customers, so software outsourcing suppliers can reduce investment and research and development in this area. Software customization development Software customization development is a kind of software development form widely adopted by foreign people. In China, customized software is still a new chain in emerging industries. Software customized development means that a software development company customizes a set of software customized development scheme for customers according to their needs and implements it according to the scheme. Another is that software development companies provide customers with a general solution, that is, software companies put forward solutions to solve problems with software according to some problems, deficiencies, defects and needs that have been reflected or can be expected. A software company can have two services, namely software outsourcing or customized software development, or they can be mixed. At first, many software companies mainly focus on software outsourcing mode, and later they will gradually turn into customized development companies, with providing customized software as the main mode. Compared with traditional software development, customized software development has many advantages, such as strong pertinence, easy management and low management cost. However, software customization development generally takes a long time and costs a lot, and enterprises with real needs will choose software customization development.