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How do I outsource software development
Outsourcing software design and development has become a global trend in today’s fast-paced market. The market size of IT outsourcing has been estimated to be worth $66.52 billion in 2019. 59% of companies have resorted to outsourcing software development as a means of cutting expenses and approximately half of the companies based in the United States have resorted to software outsourcing practice at least once, for some reason.
In the dynamic technology market, the local talent pool often seems to hit the roof as the race for churning the best of technology keeps pacing up. Thus, companies often have to reach out and look for global talent across the world. As a software development project takes a considerable amount of time and money, an organization often falls short of required time, manpower & money. This is where assistance from an experienced professional or a dedicated outsourcing firm comes into play.
Assuming that your company has decided to finally outsource software development and considering how there are a plethora of software developers these days, finding a top-notch software development outsourcing company that meets your project requirements becomes increasingly more difficult. But be attentive, as the quality of your product depends upon the vendor you choose to work with. Normally, you would want the outsourcing partner to leverage their experience and set up a platform for the smooth integration of services. However, you being the owner/caretaker, must leave no stones unturned to ensure you have outsourced your work to the right party.
Let us go through a step-by-step process that elaborates how to outsource software development projects carefully and effectively:
Define Objectives and final goal
A famous quote says “a person without an aim is like a ship without a rudder”. Here, in this case, the person is your product and the aim is the outcome the way you wanted it to be. Your product will not take off or crashland in the middle if you do not set your goal from the get-go and define a pathway to achieve that. This is a highly important stage where proper communication is required within your own company first and then with the external partner to present a clear blueprint of how this is going to be.
Look out for the best firms for outsourcing and make a list
To make sure you work with the best, sort out and make a list of possible outsourcing partners whom you see fit the role on a glance. Don’t just stop with the local vendors but if possible, reach out and research specific countries that have a good outsourcing culture. Some good choices these days include Ukraine, Hungary, South Korea, China, and India. Note down the particulars regarding how much do the software developers charge in those countries per hour, the time difference between your location and theirs, the legal procedures in stipulated for making contract and the location of agency or developer to ensure smooth communication.
Research the best local software development outsourcing companies
Once you have a list of five to six agencies, start researching each company. Here are some of the factors you need to focus on while researching:
• Reputation: Check the companies reputation, both in their home nation and abroad. Go through reviews about them. Make sure you don’t count on manufactured reviews, hence try digging into neutral websites or technology forums with unbiased opinions of the company.
• Reviews: Seek out for their portfolio and carefully examine whom they have worked with and what kind of projects they have worked on. If possible, try finding out the outcome of their past projects. Check their customer testimonials, referrals and if you know someone from inside the industry, approach them with your queries and inquire about their relationship with the outsource software development company you are vetting. They should highlight the positive and negative (if any) aspects of the company which should tell you if you need to move to the next stage or abort.
• Financial Stability: Now this is a very important factor to focus on. The last thing you want is a financially unstable partner. A wobbly financial standing could be an indication of mismanagement, past project failure, lack of clients. Stability is an important factor and tumbling finance might throw your hopes out of the window.
• Marketing facet: Check for companies who run affiliate programs to promote their services and focus on their social media handles. Marketing campaigns require a lot of money and a lack of any distinctive marketing efforts means the company doesn’t bring in any substantial revenue. Check how often they post on social media and see if there is a significant number of followers. If you notice a decent, healthy engagement with their followers with most feedbacks being positive, there is a good chance the company is competitive and good enough.
• Attrition rate and relation with employees: High attrition rate has created a nuisance for many companies as employees always look out for greener pastures. A high attrition rate can be an indication of either a shaky workplace or a weak employee relationship. The attrition rate can be also be attributed to employee salary. However, it doesn’t matter whatever the cause may be, you certainly don’t want your project to be stranded in the middle sea with employees leaving and uncertainty looming over its outcome.
Contact Offshore software development agencies about your project
Now in the next step, reach out to the companies you have previously reviewed and shortlisted. At this stage, it is essential to communicate your product goals and requirements with the utmost clarity to ensure that you and the outsource software development agency are on the same wavelength. Take this time to share ideas and ask as many questions as possible.
Select the best software development firm to outsource
When an agency doesn’t respond to your queries for a week or longer, it is a sign of an unreliable partner. What you need is a prompt response from someone, especially when there time difference between you. One more fact, a “yes” and “yes we can” answer to every question should turn on the alert button in your mind. Nothing is perfect and no one knows everything. That is a sign of over-confidence, not truthfulness. After all, trust is the key.
Once you have finalized your choice, based on research and interviews you’ve conducted, put your agreement to paper (or an electronic one).
Here are a few documents you would want the outsourced to sign before taking off with project:
To outsource or not to outsource software development? only you can answer that question after a careful assessment of your company’s needs, manpower, budget, and a few other things. The choice is not that easy to make and you have to consider a lot of factors before you do.
Why and when should a company outsource software development
There are two proven aspects tech organizations rely on to survive and outpace their competitors in the market:
Control, under which cost, resources, and capabilities are managed and Speed, which makes sure the product appears at the market. For these two ensure a steady flow of benefits and future bloom.
But it is not a case of black and white but rather, multiple shades of grey as making a product is not the only task you have to tend to. The aspects of management, marketing, sales, analysis, employee management come into play. Being a jack of all trades is appreciable but not practical when you are running your own company. You need a helping hand and this is where outsourcing software development comes in. Software development outsourcing is a process followed by companies that hire a third-party software contractor to do the particular software related task that could have been done in-house. Developing a complete software application in-house asks for both money as well as time and to be honest, not everyone has an extended IT team. In these circumstances, tech companies turn to Software outsourcing companies.
For the record, stats show that annual global revenue from the information technology field by outsourcing software development has been estimated to be around 60 billion $ as of 2019.
Outsourcing software development projects help businesses achieve a higher economy of scale and let them focus on their core competency without spending a considerable amount of time and money.
While you are considering outsourcing software development to a 3rd party, you are probably questioning about quality of work, the budget required, and the overall risk associated with outsourcing. This write-up intends to focus on the benefits of outsourcing software work. They are as follows:
Access to a large pool of skilled resources
Generally, outsourced companies have access to a larger talent pool of experienced and skilled specialists in the industry, owing to their years of collaboration with multiple firms from varied fields. Outsourcing helps you to find the right talents for the right project while shifting off your human-resource issues. Many companies also have an interviewing facility with an expert panel where you get an opportunity to select the expert candidates with the right skills and experience fit for your project. Most of the software application development companies maintain an extensive database of skilled employees.

Adore flexibility
Outsourcing software development allows for flexibility within business operations. Human resources are one such area which gets a breather, as you do not need to be attentive to recruiting and hiring procedures. Plus, you are worry-free about scaling your employees to change team size from one project to another project.
Save on time & cost
Outsourcing saves an immense amount of time spent on recruiting, training, and settling employees for in-house projects. And let us not kid ourselves, the biggest reason for people to outsource is to cut costs. Outsourced projects reduce development expenses by 60% – 70% less than in-house projects and help to reduce your workload. One of the important cost-saving factors is that you don’t have to perform upfront investment. Time-saving and cost reduction has always been the first choice of any business. And, outsourcing makes sure these issues are well addressed and taken care of.
Perks of advanced technologies
It is one of the prime reasons to hire a third party to develop a software application. Keeping up with modern technology space is a daunting task as it evolves day to day and keeps on introducing techs. By authorizing your software project requirements to a software application development company, you enable them to implement the latest technology for your project. These new trends and technologies are a result of such companies having years and years of experience with clients from various fields. Outsourcing has brought a new perspective to the workspace which encourages new technology put up by specialists who possess diverse technological expertise. Therefore, one need not worry about overhauls of ever-changing technology.
Risk alleviation
Outsourcing your software development task means you do not have to worry about risks associated with the development cost, resource allocation, on the failure of the development. As you hand over the responsibility to the 3rd party vendor, it becomes their prime responsibility to deliver the pre-defined outcomes for you. So outsourcing pretty much alleviates the risk.
High-quality services
While you go for outsourcing services, the outside firm guarantees high-quality services with zero downtime. And, they deliver quality results all the time. Outsourcing also opens up opportunities for up to-the-mark custom software solutions. The biggest benefits of outsourcing are high-grade services. This is the reason why more and more companies are selecting for outsourcing.
Post-deployment services
The team which worked on your software development is also capable of solving all the issues related to it. Hence, when faced with product complexities, the outsourced team will help you to fix it. A lot of outsourced companies have a 24×7 support team to assist you with issues about the concerned project. This ensures a hassle-free experience with great services. The service provider companies offer support, commitment, and maintenance throughout the project and also after completion of the project.
Transparent work policy
This case particularly helps when you have outsourced to a reputed company. When you are outsourcing, you might be clouded with concerns about privacy policy. Sharing an idea with an outside party is always a matter to ponder upon. But when working with a reputed organization, they will make sure full work transparency is maintained and all the compliance standards are adhered to. The catch is, you need to know which service provider to approach and the nature of engagement revolving around agreement papers and legal hassles.
To obtain digital transformation and growth through innovation while reducing risks and increasing profit simultaneously, outsourcing software development is a great tool. It also helps businesses achieve competitive advantage without losing focus and efficiency. Your product remains in capable, trustworthy, professional hands, and you get to focus on running your business. It is a key step to helping your business take off.