Companies look for numerous ways to save cost, and outsourcing IT functions is one of the popularly used ways in this direction. More often than not, companies opt for software outsourcing. They collaborate with external tech experts who have a strong grasp of cutting-edge technologies. So, if you are also planning to take the same steps to save cost, the read this post. In this post, you will get to learn how to effectively outsource software development. So, don’t think much, just read it all! Let’s get started…
What is Software Outsourcing?
Software outsourcing, as the name says is the process of delegating the task of software development to independent outsourcing partner (s). You entrust the production of software to an independent outsourcing partner when you outsource software development. There are numerous companies and individuals, offering software outsourcing services. You can consider outsourcing the entire engineering pipeline or specific tasks while maintaining full control. When it comes to outsourcing, a wide range of IT operations can be entrusted to external providers. This includes software engineering and UI/UX design services, updating outdated systems for improved efficiency and effectiveness, services for Quality Assurance (QA), DevOps and much more.
The software development team work remotely. There are numerous things to integrate when outsourcing software development, including communication protocols, contractual agreements, performance metrics, and project administration practices.
Software Development Outsourcing Models
Here is a brief about the different software development outsourcing models for you. Take a look…
Location-based software development outsourcing models: Location-based software development outsourcing, as the name says is determined by the distance between the client and the outsourced company. It includes, Onsite outsourcing, Onshore outsourcing, Offshore outsourcing, Multisource outsourcing, and so on.
Relationship-Based Software Development Outsourcing Models: Relationship-based outsourcing emphasises the importance of forming strong partnerships and sharing responsibilities with your tech team. In this kind of model, companies primarily focus on fostering long-term cooperation. There are numerous collaborative strategies that are encompassed by this model, such as IT staff augmentation model, Dedicated team model, Project-based model.
Contract-Based Software Development Outsourcing Models: Companies hire outsourcing companies on contract in this model. This model includes two prime strategies, including: Fixed-price model, Time and materials model.
When considering outsourcing software development, one of the main concerns is the cost of IT agencies’ tech outsourcing services. There are two main categories for dividing software outsourcing models:
Why Software Outsourcing is Important?
Definitely, you would have this question in mind – why should you consider outsourcing software development. Well, there are numerous advantages of outsourcing a software development company, including cost-savings, access to a wide talent pool, and the ability to speed up product launches and adjust resources. Let’s now take a look at some of the most notable advantages of software outsourcing. Here we go…
1. Optimising Costs
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The first and foremost benefit of outsourcing software development is optimized cost. Here you get flexibility to choose from various options. Outsourcing makes getting software development task done on time. You can choose to opt for outsourcing services as a contractor, adhering to the mutually agreed-upon project requirements. This allows you to get your product in a timely fashion. Moreover, you don’t need to hire additional staff, resulting in cost savings that you may otherwise spend in recruitment and making available relevant resources and technologies to your team members.
2. Access to a Large Pool of Talent
Of course, you cannot just hire somebody and get your task done. There are various steps involved in hiring procedure. Moreover, you cannot guarantee the success of your product without having right resources and cutting-edge technologies. In such a situation, software outsourcing comes in handy. It allows you to tap into a pool of skilled tech professionals regardless of geographical limitations. You have the flexibility to select the region that best suits your needs. However, it is crucial to take into account factors such as price, service quality, language, time difference, culture, and more.
3. Enhanced Adaptability
When it comes to quick team formation and scalability, outsourcing software development comes in handy. It offers you extreme flexibility to adjust your development resources to meet the evolving demands of your products. For an instance, if you have an IT team but you require additional people to undertake the software development, you can outsource a reliable company for it and get your job done without having to hire additional people in your team.
4. Expedites the Launch Process
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Daily a new software is launched in the market. You cannot afford to delay your launch for any reason. Of course, if you will try to have your in-house team, you may end up spending a lot of time finding the right people. However, that’s not the case with software outsourcing. Opting for outsource software development allows you to expedite the product launch. You can fully utilise their expertise, resources, technologies, and proven engineering and management practices to achieve the desired outcome. This allows you to quickly implement and launch your software solution in a timely fashion.
5. Eliminate Administrative Challenges
Only having a team to develop a software is not enough. There are a lot of things to take care of, including administrative tasks. However, by opting for software outsourcing you def eliminate administrative challenges. You entrust both technical and administrative responsibilities to the dedicated development team. This allows you to focus on core business activities, including marketing, sales, and so on. This, in turn, improves your operational efficiency and help you have competitive edge.
Let’s now see how can you do software outsourcing effortlessly. Here we go…
How To Do Software Outsourcing?
Here is our step-by-step guide for software outsourcing that you can use to keep the process of outsourcing simple and effortless. Take a look…
Step No. 1. Be Clear with Your Business Requirements
First things first, clearly define your business requirements prior to hiring a firm. Prior to selecting a potential software development partner, it is crucial to clearly determine your business requirements. Make sure to have your business objectives of your product clear in mind. Only when you have your business requirements clear, you would be able to choose the right company for your software development. Here are a few questions that you need to ask yourself prior to getting your software developed:
What issue or area of concern am I hoping to tackle with software?
Who is going to be the intended audience for the digital solution(s) I am developing?
What is the right budget and timeframe for creating the solution?
Which functionality modules should I have in my software?
What will it take to incorporate new software with current systems or processes?
What are the corporate objectives for this software? And so on…
Take time to reflect on these questions and carefully consider their answers. Once you have answers for these questions, you would be able to get the right product designed. In addition, you will be able to effectively communicate your goals with your outsourcing partner. This is because your outsourcing partner will begin the process by knowing your goals and business objectives with your software. With the clear answers for these questions, you would be able to collaborate closely with your tech partner.
Step No. 2. Look for the Right Software Outsourcing Provider
Know that the market is swamped with unlimited number of software development firms or providers, with each claiming to be the best in the field. But you cannot just trust to what they claim. You will have to put in a lot of efforts to find out the right partner. One effective method for locating a software development outsourcing company is to consult reputable B2B service provider platforms. Additionally, you can conduct online research to find outsourcing providers based on location, service, hourly rates, budget, and other criteria. Aside from that, you can ask for referrals for finding the right company.
Once you have selected a few firms, visit their website to check reviews and feedback. It is crucial to check reviews and feedback. Choose the one that is known to deliver the best and timely results. Once you have identified the firm that meets your requirements and expectations, just submit your request. Among various countries, India is known to offer the best software outsourcing services at the most competitive prices.
Pro Tip: Make sure to consider the rates of developers when outsourcing your work. In addition, it is important to consider the language proficiency, cultural differences, tax system, and labour laws of the selected region in order to ensure success.
Step No. 3. Evaluate Them and Their Skills
After you have selected the right partner, it’s time to evaluate each one’s technical capabilities and their approach to collaboration. Some of the most important things that you need to consider in your outsourcing partner include:
Knowledge: The IT partner that you choose should have extensive knowledge in the field. It is important to ensure that the outsourcing service provider has technical expertise across various industries, including your industry. Ask them if they have already created software for your industry as well. Know that collaborating with experts who have a deep understanding of your industry is essential. It can greatly improve your likelihood of achieving your goals with your digital product.
Team: Make sure the company you choose has a team of experts. This is because only their team would be able to deliver results. In addition, it is crucial to interview each of their team members to have in-depth understanding of their knowledge and expertise. Know that only a highly skilled team of developers would be able to deliver you with a digital product that will help you achieve your goals.
Portfolio: Don’t miss to check their portfolio of work. You have the freedom to ask about their previous clients. Ask them their success rate so far. You can even explore the vendor’s expertise by delving into their portfolio of successful case studies tailored to your specific industry. Discover how they assisted clients in overcoming their business challenges through the development of innovative digital solutions.
Reviews & Feedback: Whether you believe it or not, reviews and feedback come in handy when it comes to choosing the right outsourcing partner. Make sure to visit the potential firms’ websites for reviews and feedback. Reviewing feedback from past clients will help you have valuable insight into the experience of the tech provider. Take a look at the clients’ reviews to understand how the agency has assisted them in overcoming their challenges and what they have to say about their experience working with the team.
Communication Policies: Communication is an integral part of any process, including software development. Without communication achieving results won’t be possible. When you outsource IT partners, they actually work remotely for you. Of course, managing a remote team is never a cakewalk, especially if it is not yours. Hence, it is important to make sure your partner is well-versed in handling communication issues. For this, it is crucial to outsource a company that has already worked with international or offshore clients. In addition, see if they have reporting methods in place and they ensure project transparency.
Security Protocols: Your security should be the priority of your tech partner, keep in mind. Make sure to choose tech partner that prioritises security measures, data encryption practices, and readily available protocols. Explore more about your tech partner. See whether or not they are able to effectively manage information security. In addition, inquire about the firm’s business continuity plan, which includes data backup, disaster recovery procedures, and so on.
Transparent Practices: Make sure the IT partner follows transparent business policies. Also, see if their team follows a proactive approach and possesses problem-solving skills or not. In addition, your tech partner should be enthusiastic about offering suggestions, being transparent about risks, and take responsibility for project deliverables. This could include providing valuable insights from the beginning, offering advice on prioritising functionality, selecting a tech stack, integrating systems, and more.
Step No. 4. Call or Meet Them in Person
Once you have understood the working procedures of the selected tech partners, you should make sure to meet them in person. Reach out to them to schedule primary consultations. During consultation – inquire about their portfolio, ask as many as questions to gather all the necessary information regarding their approach to collaboration and software product delivery. Additionally, discover whether or not they require a non-disclosure agreement (NDA) prior to engaging in a discussion to ensure the confidentiality of your data.
See whether or not the outsourcing partner is interested in understanding your needs and requirements. They should be asking you all the necessary questions to understand your digital product and business requirements. Tell them the issues you aim to address through your software, in addition to sharing your business requirements with them. Also, see if their team is able to understand your product expectations. Also, discuss about the project deadlines, budget, preferred collaboration methods, and regulatory considerations during your primary consultation with outsourcing providers.
Step No. 5. Ask for Proposals
After the introductory call or meeting, you can ask for proposals. Proposals are the presentations that your tech partner will share with you after a thorough discussion during introductory call or meeting. In it, they share all the details and their approach on how are they going to complete your project. Proposals help you know the potential tech partner’s understanding of your project. They include almost every aspect of software development, including software development methodology, proposed solution, team composition, development timeline, cost estimates, and so on in a proposal.
Step No. 6. Sign the Dotted Lines
Once you have determined your outsourcing partner, it’s time to sign the agreement. Ask your outsourcing partner to share the agreement with you. Make sure to sign the dotted lines only after carefully reading every point stated in there. The outsourcing contract should provide a comprehensive and detailed description of the work to be done, including project timelines, deliverables, pricing terms, responsibilities, intellectual property rights, confidentiality clauses, and other important terms and conditions. If they don’t share a detailed contract with you or have missed certain important pointers in the contract, then it’s a red flag. Look for a new IT partner!
So, these are the steps that you need to follow in order to outsource software development effectively. Make sure to follow these tips to find and collaborate with a reliable outsourcing partner. No matter whether you choose an onsite team or an offshore partner, be mindful when choosing your partner. Finding the perfect software outsourced IT team can help you achieve your goals of digital product seamlessly. Moreover, it is crucial to collaborate closely with your tech partner to clearly define the product requirements, establish timelines and expectations, and establish benchmarks for monitoring progress and measuring outcomes.
