Outsourcing: What to consider before hiring IT solutions
Every company in need of a competitive edge knows that outsourcing custom software development makes good business sense. All that is required is for a company to partner with the right software development team.
Although choosing the right software development partner is not rocket science, it can be challenging if the client does not know what to look for in a software development team. In the past few years, computer applications have played a significant role in improving service delivery and reducing labor costs in many organizations. However, if the right partner is not chosen for outsourcing software development services, the results could be costly and time-intensive to fix.
Here are some common mistakes to avoid when outsourcing software development for your business.
Failure to understand the scope of the project
Failing to correctly define your project before outsourcing it to a remote team can lead to catastrophic results. It is crucial that the parameters of the project's overall scope are specified before assigning it to the software engineering team. Start by determining your company's objectives through analysis to achieve a controlled outsourcing experience.
Without proper or complete instructions, the software development team may continue working on your project, delivering completely different results than expected. Without clearly defined goals, an organized engineering process in tandem with timely, well-stated responsibilities, and commitment from all stakeholders, the project can have adverse results. The project could easily grow too expensive to remain a viable venture for your company.
However, by partnering with the best nearshore software developers such as KNDCODE, your project and company will avoid these risks. What KNDCODE can offer your project:
- Ability to identify and scrap bad ideas
- Improve productivity and reduce costs
- Shorten marketing time
- Enhance smooth internal working processes
- Post-service maintenance
Focusing only on up-front costs
Budgeting is a factor that companies should consider when outsourcing software business consulting services, but pricing the bottom line should not be the decisive factor. Upfront cost savings are possible, but might incur costly updates and adjustments in the long run.
Some models may also seem more appealing based on per-hour pricing; however, nearshore outsourcing services are customarily led by experienced software engineers and specialized senior developers who can deliver the same results more efficiently (5:1 ratio compared to junior developers, sample below.)
Instead of relying solely on cost to choose a custom software development team, companies should also consider other critical factors, such as experience and expertise to avoid falling into the "MIM" practice (Man-in-the-Middle). Commonly used by some outsourcing models, a single person negotiates, manages, and assumes financial responsibility for outsourcing projects sent abroad. There is usually only one person who speaks English with good technical knowledge, and that person is handling all communication with international customers.
Development is then handed over to a team with less field experience who is not deeply familiar with the brand or the market. This can result in higher risks, delays, and quality issues.
Professional software development teams such as KNDCODE have the required certifications that include IBM, MCPD, CISCO, MSCE, and others that guarantee high-quality services.
When it comes to outsourcing, do not underrate proper communication. Consider challenges affecting your mode and communication pattern, such as differences in time zones, cultural conventions, and languages. Hiring a nearshore partner will help you overcome language barriers, different time zones, and different practices in work and social culture. A seamless work flow requires a smooth channel of communication with your remote team.
Not doing market research
Before you even attempt to outsource software development services, do your due diligence and market research to understand the available options. Understand the challenges that need to be overcome and look for service providers that can meet these challenges. Doing market research will aid your project planning, and you will likely see your desired results even faster. Specifically, you need to know what solutions your competitors are using, how they execute their strategies, and what kind of services or products they are using. This will help your company to keep up with emerging trends and stay ahead of the market.
Lack of solid contracts
Lack of a solid contract covering all aspects of the project can prompt the contractors to exploit any available loophole, leading to significant monetary losses. The contract should include the assigned workforce's layout, time commitment, expected deliverables, deadlines to be met, and penalties if any project aspect is not met. The contract should also specify if the software development contractors will offer any post-delivery services, such as testing and maintenance. The intellectual property right clause should also be included in the contract to ensure that the developers will not use your code for other clients.
Should you hire offshore or nearshore software developers?
Deciding whether to hire nearshore or offshore software developers can be challenging, especially if you do not have any previous outsourcing experience. While both have their advantages, hiring a nearshore outsourcing service provider such as KNDCODE has considerable advantages.
Here are some of the benefits of hiring a nearshore custom software development company:
Smooth knowledge transfer
Any outsourcing partnership should establish a smooth procedure for knowledge transfer. Your team should work with the software development team to define the new project's desired product and technical requirements. The software developers should also train your staff to use the new software or system for better results. This can only happen if the developers are working hand in hand with your staff.
Minimum cultural difference
When you outsource your services within your geographical location, cultures are almost identical. This makes it easier for all the teams involved in the project to blend and work together smoothly. Similar cultural conventions enhance proper communication, improved efficiency and productivity, and high-quality deliverables.
Similar time zone
Similar time zones simplify real-time collaboration, which includes
- Easy meeting scheduling
- Timely problem-solving
- More fruitful interactions
- Real-time project evaluation
Easier audits and higher security
Nearshore contractors give you better control of your intellectual property. Since similar laws will govern you and your contractor, it will be easier for you to draw contracts to enforce confidentiality during and after the project.
When it comes to outsourcing software development, do not look at saving on costs only. Consider other factors such as accessibility and experience. It would be best if you also engage with contractors who are willing to offer post-delivery services to ensure that you enjoy all the benefits of your newly developed application. KNDCODE offers post-delivery services to ensure that bugs and other system breakdown forms are identified and addressed before they escalate to total system failure. They also provide consultation on when to upgrade or change the system's entire component to improve performance and cut costs as your enterprise scales.
KNDCODE Always Ahead, Forward, Near.