Software Development Outsourcing - advantages and challenges (2023)

Software Development Outsourcing - advantages and challenges (1)

When starting a new software development project, one of the first questions you'll need to answer is: how am I going to build this?

Taking that a step further, you'll have to answer: can my team build this, or will we need to work with an outsourcing partner to complete this project?

We aim to help you answer that question by breaking down the distinct advantages and disadvantages of using in-house development, vs outsourcing, vs a blended approach.

This isn’t a comparison of which option is better – that will likely depend heavily on your company's unique strategy – our goal is to help you choose which option makes the most sense for your current project.

We'll look at each option's strengths and weaknesses in detail, as well as provide links to useful resources to help you further understand each option in depth.

Advantages of in-house software development

Software Development Outsourcing - advantages and challenges (2)

Culture fit

An external agency can easily screen candidates based on technical expertise, but assessing culture fit can be a bit more tricky. By carefully overseeing every step of the recruitment process yourself, you know you're bringing in the very best talent for your organization.

Allows you to build internal expertise

Seniority is one of the most important factors for companies when evaluating candidates for a software development role, and with good reason: software developers build up expertise and become more efficient over time.

Hiring developers directly and on long-term contracts allows you to benefit from the experience they gain through the completion of each new project.

Reliable communication

In-house developers generally have a better understanding of your company’s expectations and internal processes, leading to better communication and allowing teams to get more done with less back and forth.

Challenges & limitations of in-house development

While having an in-house team offers plenty of advantages, it also has its disadvantages. Let’s look at some of the most significant disadvantages and limitations of in-house development, starting with high cost.

(Video) Outsourcing Software Development: Pros and Cons

High cost

The cost of maintaining an in-house employee is higher than with outsourcing. With in-house employees, on top of the hourly rate you’re paying employee benefits, supplying equipment, providing training, bonuses, etc.

With outsourcing, that’s all included in the price tag. This holds especially true when outsourcing to countries outside of North America. Another important factor is the cost of recruitment, whose cost can be unpredictable and difficult to quantify with an in-house team, but is part of the deal when outsourcing. Keep in mind that, when working with a firm, there may be a margin on top of what you might expect to pay an outsourced freelancer – but it will still likely add up to less than an in-house employee all things considered.

It’s a time sink

Having your in-house team develop a process for recruiting software development talent from scratch is an inefficient use of time and resources. Managing the process internally with an inexperienced team often leads to inconsistent or poor results.

Even small teams with experience hiring software developers might choose to outsource the process to save time and allow their in-house team to focus on other initiatives. Without access to a reliable and diverse talent pool, it’s easy to drain lots of time and resources on the recruitment process.

Limited talent pool

There are regularly limited options for in-house talent, especially for companies looking to hire locally. For example, if you limit your search to the state of New York, you’d be competing for a pool of a little over 200,000 developers. If you were to expand your search nationwide, you increase the total to around 1.3M developers. But let’s say you expand your search globally – you're looking at 23.9M developers.

By limiting your search to people who live in your immediate area or are willing to relocate, you are only scratching the surface of the available talent pool. Keep in mind that the cities with the most developers are usually the most competitive.

Lack of versatility.

Most in-house software development teams specialize in one area more than others. Bringing developers in-house that specialize in the niches that are most relevant to your business makes sense from an operational perspective, but also presents a challenge when launching a new product powered by an unfamiliar technology.

This leaves you with only a few options:

  • Make a significant investment in training your existing team on the new technology

  • Hire freelancers or outsource the project to an outsourcing partner who specializes in the new technology.

  • Divert internal resources to recruit a new team specializing in the new technology, which makes the most sense if you’re planning to continue to develop the product in the long term.

What is software development outsourcing?

Outsourcing software development means outsourcing either parts of or the entire process to an external company. Many times, companies turn to outsourcing as a way to save time

and money.

There are many variations and models of outsourcing, including:

  • Staff augmentation
  • Managed services
  • End-to-end software delivery
  • Offshore development
  • Onshore development
  • Nearshore development
  • Hourly pricing models
  • Project-based pricing models

Advantages of software development outsourcing

Software Development Outsourcing - advantages and challenges (3)

Let’s take a quick look at the advantages of outsourcing software development, starting with the ability to scale your team up or down flexibly and on-demand:

(Video) 10 Benefits of Software Development Outsourcing

Scale up or down on demand — flexibly and reliably

Working with an outsourcing partner allows you to scale your software development team quickly, flexibly, and reliably. Scale your team based on shifting business needs without worrying about legal or financial implications. Outsourcing your temporary software development roles allows you to scale your team up or down without negatively affecting your brand.

Lower costs

If you choose to outsource development nearshore or offshore, you can generally expect to pay lower rates than you would by hiring locally. On top of saving on the hourly rate, you won’t need to pay for equipment, maintenance, training, workspace, or employee benefits. In most cases, outsourcing means you’re only paying for what you need and no extras.

Increased efficiency

Do you need an expert? Outsourcing gives you immediate access to a large pool of highly qualified candidates. Don’t waste your resources on recruitment and training, hire an expert who can come in and make an impact right away.

Access to more talent

One of our clients put it best: the best talent isn’t always in your city – or even your country. By going remote you’re already gaining access to a bigger pool of talent, and by opening those positions to developers located outside of North America you amplify that even further. Not to mention the significant financial benefit of hiring developers from areas with lower median salaries like Southeast Asia, Eastern Europe, and Latin America. In most cases, the software developers from those regions are highly motivated to work with North American clients because they tend to earn more than the national average.

Disadvantages of software development outsourcing

No solution is perfect. If you’re considering outsourcing, here are some factors you should consider when making your decision.

Potentially unreliable communication

This is usually the first concern that comes to mind when companies think about outsourcing development offshore or nearshore. Not only do you have to consider potential language and cultural barriers, but many companies struggle with the idea of being limited to tools like Slack and email for communication. This is generally less of a concern for internationally distributed teams and teams that are already familiar with tools that facilitate remote work like Zoom, Slack, Jira, and others.

New security concerns

While your level of concern about cybersecurity may vary depending on the nature of your project, it's important to have basic measures in place to protect your company’s interest. For example, non-disclosure agreements and security protocols help ensure your data and company assets are protected from potential cyber threats.

Less control

When working with an outsourcing partner, you have less control over some of the factors that influence employee loyalty, such as the developer’s hourly rates, benefits, and training. However, if you’re really happy with a developer that you’ve been working with, most outsourcing partners offer the option of hiring the developer directly for an established fee.

What are the differences between onshore, nearshore, and offshore software development?

  • Onshore software development is when you outsource software development to a partner located in the same country as you.

  • Offshore software development refers to outsourcing to a partner in another country, many times a country on the other side of the globe like Pakistan or China. In this model, many times you’ll be dealing with a significant time zone difference, which in some cases can be as much as 12 hours.

  • Outsourcing nearshore, or nearshoring, provides a middle ground where you can still see significant cost benefits without sacrificing convenience or efficiency. Outsourcing to a nearby country – especially one in your time zone – allows you to collaborate in real-time, with minimal effort.

Interestingly enough, the benefits and disadvantages of all three are basically the same but to varying degrees.

For example, the farther away your outsourcing partner is geographically, the lower the rates tend to be and the same goes for challenges like language/cultural barriers. The farther away your outsourcing partner is geographical, the more pronounced the barriers tend to be. It’s important to note that this isn’t always the case – for example, we’ve heard of situations where the level of English and cultural affinity of countries like the Philippines can even rival countries in the Western Hemisphere – but it is a general rule of thumb to keep in mind.

Want to learn more about outsourcing software development nearshore to Latin America? Be sure to check out “Companies Outsourcing to Latin America” & “Nearshore Outsourcing: Hiring in Latin America

(Video) 5 Advantages of Outsourcing Software Development | 2020

Best practices for outsourcing software development

Software Development Outsourcing - advantages and challenges (4)

If you’ve weighed your options and are considering outsourcing, here is some advice to get you started.

Find the right outsourcing partner

Finding the right partner can be really tricky, especially if you don’t have a lot of experience. Not all outsourcing partners are created equal; you'll need to pay special attention to experience, level of transparency, and communication style, among other things.

From there we recommend you look at reviews through third-party websites like Clutch, GoodFirms, etc. Just keep in mind that third-party doesn’t always mean impartial; we always recommend looking at reviews on multiple sources.

Figure out which type of outsourcing is right for you

The first thing you’ll need to decide is which service offering is going to best help you accomplish your outsourcing goals. To do that, you have to understand what options are available, since outsourcing comes in many flavors.

You’ll need to start out by deciding which pricing model makes sense: hourly or project-based. Next, decide whether you need full-cycle custom development or staff augmentation, nearshore, onshore or offshore development. As you can see, there are many variables to consider when making your decision.

For actionable advice on how to achieve outsourcing success, be sure to check out the Outsourcing Oasis Podcast.

Make good use of project management tools

Whether you’re fully remote or have some of your employees working out of a central office, you’ll need to have a good command of project management tools to get the most out of your outsourcing experience.

You have plenty of tools to choose from, including Trello, Jira, and Asana. Efficient use of project management tools will help you keep your projects on track. Learn more about tools that facilitate remote team collaboration here: “Must Have Remote Work Tools For Distributed Teams In 2020.

Set clear expectations from the start and communicate regularly

This is a point that cannot be stressed enough, as it’s the single most common failing point for outsourcing projects!

You need to make it clear from the start what your preferred channel is for communication and what the communication schedule looks like. Be sure to stay consistent even if things are going well. We know it’s tempting to start skipping check-ins when everything is marching along as expected, but tight control leads to better results.

Summary: Final thoughts on in-house development vs. outsourcing developers

Software Development Outsourcing - advantages and challenges (5)

It’s easy to understand why the outsourcing industry is growing at such a rapid pace. It’s an effective and reliable cost-saving measure that allows you to produce results almost immediately.

New software and wider adoption of remote team culture has gone a long way towards reducing the traditional challenges of outsourcing. While companies are champing at the bit at the opportunity of accessing a larger pool of talent, there is still a lot to be said for in-house development.

There is no denying the benefit that in-person meetings and impromptu hallway and water cooler conversations have. This has been notoriously difficult to recreate with a remote team.

(Video) 6 Key Benefits of Outsourcing your Software Development

The tradeoff lies between more talent at lower rates or increased loyalty and oversight. Which one you choose really depends on your goals and what growth stage you’re in. As with many things, you don’t necessarily need to decide between one or the other – many teams have found success using a blended approach to gain the best of both worlds.

Finally, don’t look at this as a comparison of which is better. It’s more about gaining a detailed understanding of the strengths and weaknesses of each. Apply that knowledge to your recruitment strategy, and if you’re successful, you’ll gain a competitive edge over your competitors.

If you need a hand deciding which outsourcing option best fits your organization, schedule a free outsourcing strategy call with us today!

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What are advantages outsourcing in software development? ›

Saving time

Working with an outsourcing partner allows you to delegate a lot of the recruitment process, enabling tech leaders to allocate their time and energy to more high-value initiatives for the company. The Accelerance advantage: We do all the legwork to vet developers, so you can focus on your business.

What are the advantages and disadvantages of outsourcing? ›

The Pros And Cons Of Outsourcing
  • Advantages Of Outsourcing. ...
  • You Don't Have To Hire More Employees. ...
  • Access To A Larger Talent Pool. ...
  • Lower Labor Cost. ...
  • Cons Of Outsourcing. ...
  • Lack Of Control. ...
  • Communication Issues. ...
  • Problems With Quality.
Jul 17, 2017

What is outsourcing software development? ›

Software development outsourcing means handing over all or some software development processes to a third-party vendor while keeping the desired degree of control over the project. This practice helps companies overcome the lack of in-house IT resources and significantly reduce development costs.

Which of the following is a disadvantage of software outsourcing? ›

Quality issues. This is one of the commonest and most prominent disadvantages of outsourcing. The contractor you hire is exclusively in control of the quality of the result. This might be a good thing but on the other hand, it is a herculean task to find the contractor that would deliver on the quality you specified.

Why do companies outsource software? ›

Gain access to innovative technology and creative thinkers

One of the most significant advantages of outsourcing your software development is gaining access to better technologies that are not available within your company or country due to budget constraints.

What should I look for when outsourcing software development? ›

Factors to Consider When Looking to Outsource Software...
  • Industry Experience. Hiring custom software development services with specific industry experience makes a big difference. ...
  • Technical Expertise. ...
  • Quality Assurance and Security. ...
  • Culture. ...
  • Cost.

What are 3 disadvantages of outsourcing? ›

So, what are the disadvantages of outsourcing?
  • Loss of control.
  • Negative impact on staff.
  • Data protection and confidentiality risks.
  • Lack of consistency.
  • Financial and reputation risks.
  • Less flexibility.
Feb 3, 2022

What are the challenges of outsourcing? ›

9 Key Problems with Outsourcing and Their Solutions
  • Choosing the Wrong Outsourcing Model. ...
  • Uncertainty about the Vendor. ...
  • Language and Cultural Differences. ...
  • Ambiguous Costs. ...
  • Loss of Control. ...
  • Poor Knowledge Transfer. ...
  • Lack of Expertise in the Outsourcing Tasks. ...
  • Unfair Negotiations.
May 11, 2022

What is the main problem with outsourcing? ›

Based on TPI's interviews and analysis, the #1 problem in outsourcing implementations is a lack of understanding of post-contract processes and decision rights. Simply put, clients and service providers are not operationally prepared to work together after contract signing.

Can software development be outsourced? ›

Software outsourcing takes place when companies choose to have custom software solutions developed by a third party. Outsourcing software development has many advantages including cost reduction, improved efficiency, mitigated risk, and enhanced security.

Are software developers outsourced? ›

Reduce business costs

This is the biggest driver for companies choosing to outsource software development. According to research by Deloitte, almost 59% of companies outsource with an aim to reduce or control their costs.

What are the disadvantages of being a software developer? ›

5 Drawbacks Of A Job In Software Development
  • Juggling an overwhelming amount of projects.
  • Working consistent overtime and non-traditional business hours such as nights, weekends and holidays.
  • Constant demand to refresh current skills or up-skill to new technologies.
  • Need to carve your own career path and growth plan.
Jul 21, 2020

What are the disadvantages of onshore software development? ›

Disadvantages of Onshore Development:
  • Higher costs. If your business processes are critically dependent on the software you are getting developed, then its cost would be a significant part of your total costs. ...
  • Smaller talent pool.

What are the Top 5 reasons companies use outsourcing? ›

Why Do Companies Outsource? Top 7 Reasons From Business Leaders
  • Cost Savings. “Cost savings is the main advantage that outsourcing brings in. ...
  • Scale Quickly. ...
  • Network Security. ...
  • Focus on Growth. ...
  • Remain Competitive. ...
  • Grow Business. ...
  • Delegate Tangential Processes.
Jan 15, 2019

Who benefits the most from outsourcing? ›

1. Customers benefit from outsourcing: Customers benefit from this because they get the best products at the lowest possible prices. This is because brands can put all their resources into creating quality goods without spending so much on other things.

What are the four main reasons to outsource? ›

Reduce and control costs of operation (this usually the main reason). Improve the company's focus. Liberate inner sources for new purposes. Increase efficiency for some time-consuming functions that the company may lack resources for.

How do I choose an outsourced software development partner? ›

11 Steps for Choosing a Software Development Partner in 2022
  1. Assess Your Project. ...
  2. Define the Project Scope. ...
  3. Define the Time-Frame of The Project. ...
  4. Define Your Budget. ...
  5. Plan Staff Resources. ...
  6. Define Your Technical Stack. ...
  7. Consider Different Types of Outsourcing. ...
  8. Location of Outsourced Talent.

Which approach is best for software development? ›

Top 4 software development methodologies
  • Agile development methodology. Teams use the agile development methodology to minimize risk (such as bugs, cost overruns, and changing requirements) when adding new functionality. ...
  • DevOps deployment methodology. ...
  • Waterfall development method. ...
  • Rapid application development.
Mar 28, 2017

How do you outsource a software project? ›

6 Steps of Software Development Outsourcing
  1. Define your development goals. ...
  2. Analyze your needs. ...
  3. Define budget and time expectations. ...
  4. Research countries for outsource. ...
  5. Choose your future software outsource partner. ...
  6. Sign a contract and start the development process.
Oct 30, 2020

What are the most common reasons why outsourcing fails give 5? ›

The overarching reason for outsourcing failure is the lack of will in top management.
  • No strategic objective. There must be a clear goal for outsourcing. ...
  • Unclear requirements/expectations. ...
  • Poor transition. ...
  • Rapidly changing needs of the buyer. ...
  • Poor communication. ...
  • People factors. ...
  • Over management/micromanagement.

What is outsourcing and its disadvantages? ›

Outsourcing allows a company to focus on its core aspects by delegating less critical functions to the third-party outside organization. Insourcing brings new employees into the company rather than farming out tasks to third-party companies.

Why does outsourcing software fail? ›

Outsourcing often fails due to conflicts between in-house and outsourced teams. This may be due to cultural differences, gaps in communication, and negative perceptions about the outsourced company. Also, keep your internal team in the loop at all times while communicating with the client and other teams.

What is a huge negative to outsourcing? ›

Outsourcing has caused high unemployment, loss of income and loss of competitive advantage, leaving people without financial support and employment.

Can a software developer work from anywhere? ›

The majority of software developers work from home, with 86 % currently working entirely remotely. Since the pandemic, the number of remote software engineer job roles has soared, and at least two-thirds of developers want it to continue that way in the future.

Does Google outsource software development? ›

For instance, Google, a prominent tech company, outsourced the customer support process for AdWords as well as software maintenance and development to other technology vendors. Other well-known companies outsourcing software development services are Skype, Alibaba, Basecamp, etc.

Can a software developer work independently? ›

Software engineers tend to be in more collaborative roles in the workplace, while software developers may find themselves working in a more independent environment. Either of these careers may take place in an office workplace or remotely. People in these roles may work as company employees or independent contractors.

What are the 4 types of developers? ›

What are the types of developers?
  • Software developer. A software developer is someone who designs software and applications that helps users execute specific functions and tasks. ...
  • Web developer. ...
  • Back-end developer. ...
  • Full-stack developer. ...
  • Game developer.
Apr 14, 2022

How do you outsource development? ›

5–Step Proven Process How to Outsource Software Development
  1. Define your goals.
  2. Prepare Scope of Work documentation.
  3. Define your technology stack.
  4. Bring experienced Engineering Leader.
  5. Manage project scope, budget, and timeline in each iteration.

What is the most commonly outsourced IT service? ›

The most commonly outsourced IT services include:
  • Infrastructure.
  • Application management/support.
  • Lead generation.
  • Customer service/help desk.
  • Accounting/bookkeeping.
  • Social media marketing.
  • Web design and development.
  • Software development.

What are the biggest challenges facing software developers? ›

“For me, these are the eight biggest challenges we are facing as software developers: 1) Keeping pace with innovation. 2) Cultural change. 3) Customer experience. 4) Data privacy.

What is most challenging for software developer? ›

One of the most challenging elements of being a software developer is the continuous cycle of tight deadlines. Often the timelines are decided by the leaders in discussion with the clients. The development team has no say in when they can deliver the product.

What are the challenges of software developer? ›

Explore some common software engineering challenges that teams face daily.
  • Shifting Project Requirements. ...
  • Uneven Workload Distribution. ...
  • Transitioning to DevOps and DevSecOps. ...
  • Maintaining Quality. ...
  • Integrating With Other Applications and Systems. ...
  • Planning Accurately. ...
  • Data Privacy. ...
  • Rising Competition.
Jul 6, 2022

What is SWOT analysis in software engineering? ›

SWOT analysis is a framework for identifying and analyzing an organization's strengths, weaknesses, opportunities and threats. These words make up the SWOT acronym.

What are three important qualities that a software developer need? ›

What Makes a Great Software Engineer? Quality #1: Experience and Intuition. Quality #2: Attention to Detail. {Quality #3} Quick Self-Learning, Flexibility, and Adaptability.

What are the 3 most important skills of a great developer? ›

Today, I hope to paint you a clearer picture of the ideal developer as I share the 7 essential qualities every developer must-have.
  • They pick the right tools. ...
  • They keep their code clean. ...
  • They are problem-solvers, with a can-do attitude. ...
  • They are willing to adapt. ...
  • They are efficient through optimization.

What are the dangers of outsourced software development? ›

Loss Of Control Over The Project

One of the biggest risks of outsourcing a software development project is the loss of control. Your project requires creative control and your requirements need to be fulfilled based on your expectations with the tools and technologies preferred by your firm.

What are three advantages to onshore outsourcing? ›

Benefits of onshore outsourcing
  • Communication is easier. ...
  • No dealing with cultural differences. ...
  • Cost savings. ...
  • More quality control. ...
  • Protect intellectual property (IP).

What are the disadvantages of outsourcing technical support? ›

Disadvantages of Outsourcing Technical Support

At some point, it is highly likely that an employee will experience issues that cannot be fixed or easily explained over the phone, in these cases control of their machine will have to be given over to the service provider.

What are the advantages of software industry? ›

Advantages of new software for business
  • cut costs by automating routine tasks.
  • improve the efficiency of staff.
  • increase or measure office productivity.
  • streamline business operations and accounts.
  • replace paper processes.
  • communicate more effectively with customers, suppliers or partners.

What are three advantages of outsourcing external recruitment? ›

Five key benefits of outsourcing recruitment
  • Reduced cost. One of the prime benefits of using an RPO is its cost-effectiveness, and it is often cited as the primary motivation for organisations to adopt this model. ...
  • Scalability. ...
  • Reduced time-to-hire. ...
  • Improved candidate quality. ...
  • Analytics and reporting.

What are the advantages of using outsourced development methods instead of the traditional system life cycle? ›

The advantages for outsourcing software development speak for themselves, really. It's an extraordinarily cost-effective practice, nailing high quality with low cost. It also provides an avenue for building and rounding out effective, experienced teams while saving the time otherwise necessary to develop them.

What is the main advantage of using source coding? ›

Source code is flexible to your unique needs

Access to the source code provides important flexibility to a distributor or manufacturer when they have unique business requirements—because often, no pre-packaged accounting and financial management system exists which fully meets your needs.

What are the major issues facing the software industry? ›

10 Most Commonly Faced Software Development Challenges
  • Advancement in Rapid Technologies.
  • Change in Culture.
  • Disputes with Software Testing Organizations.
  • Cybersecurity.
  • Artificial Intelligence and Automation.
  • Lack of Alignment between the User and Sponsor Needs.
  • Mismanaged Timelines.
  • Importance of Quality Assurance.
Mar 25, 2022

What are the advantages and disadvantages of developing software? ›

Seven advantages (and disadvantages) of bespoke software
  • 1) Initial Costs. The up-front cost is usually the biggest disadvantage associated with custom-tailored programs. ...
  • 2) Waiting Time. ...
  • 1) Individually Crafted Solution. ...
  • 2) Return On Investment. ...
  • 3) Better Security. ...
  • 4) Scalability. ...
  • 5) Time-Saving.
Aug 10, 2020

What is one of the main disadvantages of outsourcing? ›

Disadvantages of outsourcing
  • service delivery - which may fall behind time or below expectation.
  • confidentiality and security - which may be at risk.
  • lack of flexibility - contract could prove too rigid to accommodate change.
  • management difficulties - changes at the outsourcing company could lead to friction.

What are the risks of outsourcing? ›

Here are the top 10 risks of outsourcing:
  • Loss of Control. ...
  • Communication Barriers. ...
  • Unforeseen and Hidden Costs. ...
  • Difficult to Find the Perfect Vendor. ...
  • Privacy and Security Concerns. ...
  • Lack of Experience with Remote Teams. ...
  • Outsourcing a Key Product. ...
  • Vendor Failure to Deliver or Constant Delays.
Oct 29, 2020

How does outsourcing reduce costs? ›

Outsourcing reduces costs by transferring portions of your workload to a third party. According to a recent study, almost 27% of organizations outsource to reduce costs. Outsourcing is used by many small businesses to remain competitive. Large companies may outsource to save money and access focused expertise.

What are the benefits and challenges we would face with outsourcing services? ›

Benefits and Challenges When Outsourcing
  • It's More Cost Effective Than The Local Alternative. ...
  • It Creates Flexibility and Agility. ...
  • It Allows Core Staff To Focus. ...
  • Offshore Staff Can't Come Into The Office. ...
  • There Can Be Language Barriers. ...
  • Time Zone Differences Might Be A Challenge.
Mar 15, 2022

What are the advantages and disadvantages of coding? ›

6. Pros and cons of coding
Advantages of codingDisadvantages of coding
Validation can further improve accuracyValue judgements are difficult to code
Less storage space requiredIf people don't know the code it can slow down data entry
Faster searching for dataIf codes are complicated they might be entered incorrectly
3 more rows

What are the types of source coding? ›

Based on the fundamentals of information and rate distortion theory, the most relevant techniques used in source coding algorithms are described: entropy coding, quantization as well as predictive and transform coding.


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