Software Development
Human Capital Management

How To: Outsource Software Development




IT Outsourcing? What to consider

Hiring third-party organizations to perform specific functions within the company workflow has always played its part in business. From accounting duties to HR functions, there are many operational facets of business that most companies already outsource. In many ways, outsourcing can be that growth-spurring decision that companies need to grow quickly and sustainably. The advent of the digital revolution has only accelerated the growth of outsourcing.

One of the most significant factors for this growth is the ability to telecommute. This possibility has made it even easier to connect with talented professionals around the globe. With the enhanced reliance on digital growth, the opportunity of outsourcing software development emerged, being one crucial aspect of business that seemed particularly ideal for outsourced talents.

Software development is a highly specialized business process that keeps growing in relevance as we go deeper into the digital age. For many businesses, having a good software development team can be the difference between profitability and failure. The problem is that talented software developers are hard to find and even more challenging to retain. Naturally, companies turn to outsourcing software development to specialized firms and agencies. Doing this, helps organizations save money on developer salaries while still maintaining a high level of digitalization. Still, more importantly, it allows business owners to keep the focus on their core business without having to oversee one more team.

Why you should consider outsourcing Software Development?

Whether the project is for a front-end application for enhancing user experience or a back-end tool for streamlining business processes, these development jobs will need a team of talented software developers. However, keeping a team of developers can get expensive. From salaries to benefits, the amount of money required to keep an in-house software development team can quickly get out of hand, especially if the organization is not a particularly digitally focused business.

Staff augmentation

To help minimize the costs of in-house software development teams, companies tend to outsource parts of the development process to third-party firms. This way, the outsourced developers can tackle the more specialized aspects of the software.

Access to a larger talent pool

While there is no denying that software development is a highly technical endeavor, there are some creative aspects to it as well. It's essential, therefore, to find a software development partner that shares the same creative vision as your company.

Focused work on Software Development

A lot of in-house IT teams perform a multitude of roles within the company. From database management and cyber-security to network and computer systems integrations, the job scope of an IT employee can span across multiple roles. This multi-role setup can interfere with software development functions since it's usually a highly involved endeavor.

A distracted software development team might accidentally leave their programs with vulnerabilities or software bugs that can significantly damage operations. Therefore, companies might want to consider hiring a specialized software development partner to minimize such problems.


IT Outsourcing


 What to look out for?

Unlike what many people might think, outsourcing is not about finding the cheapest solution in the market but about finding an excellent match for your company's software development needs.

Finding the right software development partner guarantees you will receive the perfect solution for your company while saving money by avoiding unnecessary iterations.

If you're looking for a software development firm for your project, then you probably already know that there are quite a lot of providers to choose from. And a lot of them have compelling value propositions on their websites that can make it difficult to decide who to hire.

So, if you have this dilemma, here are some ways you can sift through the noise and find the perfect software development company for you.

Work samples

Like hiring employees, the best way to know whether a candidate is worth the investment is through their work history. Usually, a software development company's work should talk for itself. Ask for a sample of their work for a previous client. Typically, by reviewing them, you'll be able to gauge the quality of their projects and whether they're the right fit for your company.

Vision and workflow

You have a vision for what your software project looks like and how it functions. Unfortunately, it's not always easy to fully express your idea to the development team. That is why it's crucial to assess whether the outsourcing company you're considering has a similar vision for the project.

From the software's visual design to its feature set, your development partner must be able to visualize and develop the software according to your specifications.

When it comes to workflow, it's important to remember that they're working on your timeline and that they should be able to finish the project within your deadline. Since software development is a collaborative endeavor, the team's work process should match your company's workflow.

Post-delivery support

In technology projects, more than any other type of project, it is imperative to have the best post-delivery support, not only during the development and implementation process, but also during adopting the new software. Having proper post-delivery support ensures your software remains secure, maintained, and enhanced well after it launches, but this is not always the case.

Effective Communication

Communication is the lifeblood of the relationship between you and your software development partner. So, it's essential to ensure that lines of communication are always open and feedback is received correctly and acted upon promptly.

When looking to outsource any service, language is a relevant factor to consider. Companies that offer nearshore outsourcing services to Western countries often have employees who speak English, when looking for a software outsourcing company, make sure they speak your native language.

Another aspect that affects the quality of communication is the frequency of contact. Often, this proves to be just as important as the quality of the work. This is because it is difficult to maintain a strong relationship with your software development partner if you don't have frequent contact with them.

Look for companies that have established communications channels that facilitate feedback and are located in a similar time zone (Central & South America's time differences are minor compared to outsourcing in Europe or Asia).

You should also ask about the process they use to ensure they stay in touch with their clients, including periodic status updates and issue tracking tools.

What you should provide?

Having a solid team of developers from the get-go is crucial for success. But so is ensuring a good collaboration between your company and your development partner. When outsourcing your project, it's important to provide the team with a clear and detailed scope of work. Having clear goals with defined deadlines is beneficial to both the client and the provider as it lets expectations be clearly laid out from the beginning.

Discussing the budget beforehand with your software development partner also helps avoid any surprises regarding fees or rates. As a final but often overlooked point, a company needs to maintain a certain degree of flexibility and autonomy for its outsourcing software development team. While monitoring the work is essential, it is equally important to keep yourself from micromanaging the process. This is easier to do when you know your project is in the hands of experts capable of fulfilling your vision.


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