If you have a big business, you need to outsource software development services. You will be able to get tremendous ROI. The Accelerance report shows that by 2025, companies will need to spend $133.4 billion to outsource development. Some companies will regret to have spent that much, while others will consider it an investment. When you decide to outsource software, the hard truth is that some projects will fail. The leading cause of the failure can be that you used a weak strategy in your outsourcing. Failure to articulate your needs well will fail your project. Choosing the wrong outsourcing partner will also make your project fail.
You need to create a strong strategy. Plan everything well and use a systematic approach to get the best fit developer. When you do this, you will reduce incidences of project failure. Here, you will get an outline of how you can successfully maximize your odds. You will be able to outsource software development projects.
Know well what you want to develop
It’s important to know what you want to build. After understanding what your project is all about, you will easily communicate your needs. The software development company will understand you well. Ask yourself the following critical questions:
- Is it a brand-new concept that nobody has tested before?
- Does the project have a PoC (proof of concept)? Do you have its technical validation?
- Which technology will your software use?
- What problems will your successful project solve?
It’s essential to understand the fundamental idea you need to build before outsourcing.
Write the scope statement for the software project
Before you choose any development partner, you need to go a little bit deeper into your research. Iron out some questions to make the process easy. The things you need to tackle in your research are:
All these create the roadmap for your project.
Decide whether to outsource
Decide between outsourcing and in-house development. To make a workable decision, you need to weigh several factors. Price isn’t the sole factor to check. The one of the best benefit of outsourcing software projects is very competitive pricing. You will enjoy this if you get a competent partner who understands your vision.
Also read: advantages of outsourcing to India
Choose between offshore, nearshore, and onshore outsourcing
While outsourcing a partner, the location of every potential partner is essential. It will affect your communication, price, and the general quality of the product. The best way to weigh and review your options is to use the following three categories. These options rely on partner locations.
- Onshoring (onshore outsourcing)
Choose your partner based on who is in your country.
- Offshoring (offshore outsourcing)
Choose a partner in a far (distant) country.
- Nearsourcing/nearshoring (Near Outsourcing)
Choose a partner residing in a neighboring or nearby state.
Why do English communication, expertise, and cultural alignment vary?
Certain countries have massive English-speaking people like India. Many Indian professionals have an exemplary level of fluency. They have an in-depth of the cultural difference and how to fill the gaps in communication.
How will you know the company you will outsource has excellent communication skills? How will you know it provides quality products and technical understanding? Look at their record. Have they ever worked with international brands? Do they have the client’s positive feedback to back up their superior services? Any partner you outsource should provide a history of achievement. If you don’t get the history, you will be risking dealing with them.
Choose the best outsourcing model
There are three forms of relationship-based modeling:
- Managed teams
- Staff augmentation outsourcing
Choose only a method that will fit your budget, long-term plans, and requirements.
It’s a model where you outsource staff from a different organization. They come to complete your project temporarily. It’s an excellent move to bridge talent gaps in your organization. The staff will work under your guidelines and help your team complete the project.
The model moves the managerial role of your team to the outsourced project manager. The manager communicates your needs and creates timelines for colleagues. The model doesn’t mean you will give complete control to the manager. However, you will take part in important decisions in the project. They include prioritization and development of the project product.
Virtual or managed teams
A virtual team model is a mix of project-based and staff augmentation models. In the virtual team’s model, you hire remote developers team with different experts. For example, the team will have designers, analysts, backend, and front-end developers. In addition, it can have QA analysts handle your project.
The team works in tandem with your employees, and it will be under your project manager. The model will not involve the daily management of every employee. It’s different from how you will do in the staff augmentation model.
Shortlist the companies
After knowing the country, you will outsource the partner narrow down your research. Then, vet the development agencies and begin a thorough internet search. Use the following tools to tackle this stage:
Review software developer websites
Websites like GoodFirms, Clutch, G2 Crowd, Crowd Reviews, and Agency Spotter are good to use. They give company lists for the software developers. Search for the best development agency and base your filters on the following:
- Talent pool
- Hourly rate
Consult industry friends, colleagues, and clients
Talk to colleagues and friends who have previously outsourced any software project. From their experience, they will refer a few agencies that you can use. Your success odds will increase if the referred company has a good track record.
You get software developers from freelancing portals like Upwork and Fiverr. Other portals include Toptal, People Per Hour, and Freelancer.com. Some portals will need you to list the project budget and requirements. On other portals, you will have to reach out to certain providers with your needs. You can reach via portals and filters that rely on budget needs. Others rely on location and duration, among other considerations.
After shortlisting providers to select a few, you have to interview them. The interview helps to evaluate their expertise. Consider the following in your evaluation process:
- Company size
What’s the size of the development company? Does it have enough developers to give what you want?
- Business longevity
For how long has the company operated? Choose a company that has operated for over five years. Such a company will not get stuck along the way.
- Technological experience
Is the company familiar with the technology you will use?
- Development methodology
Is the company open to Waterfall, Agile, or any other method based on your preferences?
- Request free consultations
After shortlisting the companies, contact their experts and sales teams. They should offer a detailed discussion about their case studies and portfolio. They should explain how they will handle your project.
- Sign the paperwork
After choosing a partner that matches your needs, processes agreements and sign them. The agreement should have the payment terms and confidentiality terms. Don’t forget the dispute resolution and the audit process, as they can pop up anytime.
- Choose the communication channel
The last step is to select the communication channel. It will help to track the development progress. You can use zoom, ClickUp, Slack, or emails.
The essence of outsourcing
Outsourcing software development has the following advantages:
- Cost reduction
- Technical expertise
Do you want to outsource part or the entire software development team? The above guideline will aid in getting the best service providers. They will meet your requirements and the market needs of your product.
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