Biometrics technology vendor Next Biometrics has outsourced software development to GlobalLogic, with the company’s CEO Peter Heuman asserting in a blog post that the move would help him save cost and focus on what the company is best at.
San Jone, Calif-based GlobalLogic has delivery centers in Argentina and India, in addition to several European countries.
GlobalLogic’s previous experience in developing software for biometrics providers made it the perfect choice, according to Heuman.
Oslo, Norway-based Next Biometrics has in-house software developers who carried out the job until a few months ago. However now, Peter says, there is no point in spending so much money on software development at a time the global economy is struggling to cope with the disruptions caused by the COVID-19 pandemic.
Considering Peter’s argument, outsourcing software development is cost-effective, and sometimes inevitable, especially for mid-sized companies that cannot afford expensive IT talent.
Next Biometrics has already begun reaping the dividends of its move. Two months after it outsourced software development, Neuman says “we jumped out of the blocks in a great way, and our customers and sales staff are now appreciating the improved competence.”
The biometrics technology vendor was quick to announce cost-cutting measures when the pandemic began scarring the global economy. Now, it wants to cut operational costs by as much as US$2 million annually. In the past one year, it has saved US$6.2 million.