What are the Criteria for Deciding to Outsource Software Development?
In recent years, various companies have successfully outsourced their software development needs to IT resource companies around the world. Previously, companies hired individual resources, one each for a specific task. It brought in management and timely tasks completion concerns. Although, a project manager ensured the productivity of each employee and went through a lengthy process to ensure quality. The in-house teams no longer have to deal with projects that require special attention and time. Finding the right resource and hiring them for life seems like a dream. However, in most cases, companies do not afford the expenses of hiring full-time service-based resources. Therefore, businesses look for a match-made-in heaven resource company ready to take over their projects. Yet, we are still confused about the criteria for outsourcing software development.
The global IT outsourcing company thrives each day and increases market share worldwide. Nowadays, resource provider companies expand their reach and connect with leading enterprises or small businesses. Moreover, the remote working teams dedicate their time, efforts and skills to outsourcing their software development needs. Despite this, businesses are still confused about software development outsourcing for their company.
So, let’s first discuss the criteria for outsourcing software development.
The Criteria for Outsourcing Software Development
What would you do if you cannot find a suitable resource within your in-house team to manage software development processes? Such a situation might cause panic. Hiring the right fit for the job at short notice and going about the HR process could be a hassle. This is where offshore companies come into question. Now, are you ready to outsource your business projects to a third-party offshore company? This is nothing new; numerous companies have claimed to reap the benefits of outsourcing software.
Whether outsourcing the entire project or only a part of it, the experts residing worldwide would take up the projects and manage software development processes for you.
Identify the Need for Outsourcing
Before outsourcing the project to a third party, identify the reasons why outsourcing at this point is important for the company.
- Access to expert and skilled developers
- Advanced knowledge of software development processes
- Cost-effective and time-efficient project management
- No hassle for micromanagement of projects
- No expenses of office space, equipment and tools
- Implementation of Agile methodologies
- Availability of suitable team for product management
- Flexible scalability of the software
Determine the Budget
Software development and deployment is a lengthy process. Hiring specific resources for the job to create a hospitable workspace gets expensive as it is. So, a company’s financial situation matters most when outsourcing software development or hiring a whole bunch of expert software developers. Lets’ face it, the cost of hiring an experienced developer is way too high as per the market rates. Also, going about the HR protocols, offering a handsome salary package, accommodation, or rentals if the employees fly down to work for you would cost a fortune.
Therefore, establishing an in-house team would be out of budget for most companies. Here, software development outsourcing saves the day for businesses aiming to set up new software. It will dial down the expenses and share the burden of the software development processes. Thus, it is necessary to determine which option suits the company and save on the expenses.
Confirm Your Project Timeline
Another important criteria for outsourcing software development is time. When outsourcing the project to an offshore resource group, determine the project timeline you wish to follow. You do not want to get it all done haphazardly. Think of it as, when you have decided to outsource the project, several factors come to the surface. Consider the following;
Determining your requirements
- Hunting best matched the third party
- Planning out the software development process
- Following the process with careful consideration
- Going in the extra mile with the offshore team
- Streamlining project as per business requirements
- Following development to the deployment process
- Getting the software up and running in time
Furthermore, make sure the third party follows your timeline to avoid confusion before or after the project development.
Get a Project-Dedicated Team
Once an offshore party is shortlisted, ensure a dedicated team is available for the entire project management from development to deployment. The team needs to carry out the full product development cycle within the set timeframe. For instance, an offshore company allots a self-managed team for your company to manage remotely. These teams responsibly carry out effective communication on a daily basis and report on the project status. Precisely, the teams comprise front-end and back-end developers, designers, project managers, QA engineers, and other experts for successful application development.
Moreover, a fully equipped, talented and skilled developer team works dedicatedly throughout the contract. Additionally, some offshore outsourcing companies extend their developers teams for a longer period of time. The resources remain connected to your in-house teams and continue with their software development services.
Setup a Constant Communication System
Outsourcing the project to a third party means you need a constant communication system. For example, checking up on the remote team, assisting them and finalizing the product requires a stable communication system. Also, in case the team is in a different time zone, reaching the resources at the appropriate time becomes a challenge. However, if the third party resource company is ahead of time, more productivity and timely completion of tasks are evident. The IT outsourcing service provider companies usually have stable 24/7 communication systems to keep in touch with remote companies.
There are numerous communication platforms in use, such as; slack, skype, zoom, google hangouts or Microsoft teams. Fortunately, digital technology aids in fast track and constant communications across seas.
Consider the Risk Factors
Following the criteria for outsourcing software development is no child’s play. Be prepared to consider the risk factors that might come in the way. For instance, watch out for the risks of timezone difference, security issues, and authenticity of IT resource companies. Also, the issues of communication gaps, team performance, eligibility criteria and pricing may arise while on the go. Moreover, some cases also report fraudulent activities at the end of resource provider companies. So, how to stay vigilant? The best way to go about it is to consider all the mentioned aspects before shaking virtual hands with an offshore IT resource company.
Companies should do prior research on the third party to overcome such risks and check out portfolio and client reviews. Also, reach out to their partner companies for more insight into their expertise and credibility. Word of mouth always is the best approach. So, once you have investigated the company, interview the resources and team members individually to gauge their understanding of your product and the type of services they offer. These factors might seem unusual but would prove helpful along the way. In addition, pre-negotiate the payroll concerns, contract timeline, communication systems, etc.
Wish to kick-off successful product development and deployment for business applications? Software development outsourcing is the answer to your concerns. However, the decision proves a wise one with the right approach and planning. Most importantly, businesses need to determine why, when and how to outsource software development. Then, with set criteria, companies decide better on outsourcing their software development needs.
Sourcing Square is the leading software development outsourcing and IT consulting company, operating in Asia and extending software development services worldwide.
Why, When, and How to Outsource Software Development
How do you manage piles of work? Managing tasks, making sure it’s going in the right direction and supervising everyone is as hard as it sounds. Running complex business projects with limited resources onboard is challenging. But with good resources onboard, IT companies can accomplish any task. However, the debate continues on why a company needs to outsource its software development needs. When exactly there’s a need to outsource? And how does a company hunt and hire the best software developers for their business? Wondering why this debate is necessary? Well, the IT offshore business has marginalized with most companies maximizing their businesses. Now, it is the need of the hour to outsource software development processes to leading resource providers across the globe.
So, if you are not yet outsourcing software development, it is time to rethink your practices. It offers numerous benefits that your business most definitely requires. Recently, with the world becoming a digital village, companies have access to the most talented and skilled pool of software developers. Be it a large enterprise or new business; most companies prefer outsourcing the headache of software development. Considering the many benefits, we don’t blame them.
Why Outsource Software Development?
Take the burden off of your internal IT specialist team and outsource software development to devoted experts. The main reason for companies to hire a third party is to maximize their profits and achieve better economies of scale. Also, it helps on-site resources and executives to focus on core company tasks. Mainly, software development outsourcing enhances product quality and productivity on a limited budget. In fact, 78% of businesses reported outsourcing to third parties, a positive turnout for their business.
Here’s a list of convincing reasons for companies to get back in the game with hiring offshore software developers.
- Save on hiring permanent software developers
- Save on entire software development process
- Bring domain knowledge experts onboard
- Forget about hiring expensive specialists
- Expand the overall scalability of your project
- Let managed team services operate
- Shift focus to core business agendas
Still, wondering how outsourcing is essential to your business? Then, consider the following benefits of outsourcing development needs.
Onboard Untapped Resource Teams
When looking for the best fit for your software development needs, make sure you do your research. Studies have indicated that the best software developers and IT specialists reside in Asia. It is the offshore resource market companies need to tap on. So, use online resources to effectively outsource your products. Get access to the world’s top skilled individuals to take up development to deployment processes.
Real-Time Risk Management
Outsourcing your software development processes to a remote team ensures real-time risk management. In some cases, outsourcing the product to multiple offshore teams doubles the chances of detecting risks and managing them quickly. Whether you outsource projects or hire long-term resources, software risks are continuously managed in real time. Therefore, it makes sense to put money wisely and resource your software development products to trusted individuals.
Secure and Scaleable Solutions
The in-house IT team may not cover the security issues with your software and risk the entire company security. Like, with full software development lifecycle responsibility, the product’s security and scalability can suffer. This is precisely the kind of situation where software development outsourcing becomes necessary. Thus. with software development outsourcing, all the processing and coding systems get secured. A devoted team is there to care for your software while you sleep peacefully.
When to Outsource Software Development?
The issue is still of great concern about when it is best to outsource software development. Leading IT companies worldwide prefer an in-house team to cover all their software demands. However, that is where they face the music and risk all their company’s reputation. For instance, incompetent staff leads to the downfall of software during the development and deployment phases. In this situation, a single team can only focus on the company’s core tasks. In fact, they fail to perform effectively with complete software development outsourcing responsibilities. This is where small businesses and large enterprises trust outsourcing companies with their software development processes.
Therefore, it is logical to outsource the products at the right time to the right outsourcing company. In this case, choosing the right company with the appropriate skillset and expertise is important. Here are some guidelines on how to target the right resource company.
- Advance software and tool knowledge
- Affordable and efficient
- Lengthy online portfolio
- QA and Testing Services
- Complete SDLC Service provider
- Responsible and active communication
How to Outsource Software Development?
There are a few steps to take while playing your part to ensure that your software is in good hands and under good care.
Choose the Right Resource Provider Company
Hunting for that one suitable resource provider company is challenging. The search may go about for months. But, they say, better safe than sorry. So, take time exploring, interviewing and inquiring about the resource companies to shortlist some of the best talents available. Then, once you’ve identified the resources of interest, match them with the type of software development you’re looking for.
Plan Out the Work Modules
If your company picks an offshore outsourcing team for its software development outsourcing, wisely hand over the project to them. Communications with remote teams could be difficult. It is necessary to catch up and guide them through each day. So, the concerns of timezone differences and language barriers may come in the way. Therefore, devise a careful work module for the resource group to follow. An outlined work module with constant reporting and checks would be easy to monitor.
Set Clear Goals for Outsourcing Projects
If you expect to outsource the product to a company with affordable charges, you need to rethink your practices. First, do not compromise the quality of work based on the prices. Do the search and set goals to hire a team with high tech knowledge, fast-track processing and constant supervision over the software to reduce any risks. Next, it is important to decide on the timeframe of services you wish to avail. There are two ways to do it. Either you can outsource the entire project or onboard the resources with the company for a contract based timeframe. Therefore, it is important to decide beforehand how you’d go about the process and what you expect from outsourcing the software development.
Work on a Non-Disclosure Agreement
When a resource provider company takes up your software development responsibilities, you should consider a non-disclosure agreement. The sensitive and confidential information of the agency needs to be protected. The company is bound to abide by the agreement and keep the information confidential from unauthorized individuals. Also, the agreement applies till a certain period of time for both parties to oblige.
Outsourcing your software development is as tricky as it sounds. However, offshore resource teams can take over product development with careful steps and planning. The above-stated text offers a clear guideline for why, when and how to outsource software development processes. Follow the lead and use the services of global experts and professionals at your disposal. Sourcing Square is one such platform offering expert software developers’ services for businesses worldwide.
Get in touch today and trust our resources with your business goals.
Why Do Companies Need Managed IT Service Providers?
It’s common for companies, regardless of their size, to use the services of a third-party resource team. Their collaboration and expertise help the company accomplish vital business processes. Not to mention, information technology is playing a vital role to achieve tasks that would otherwise require manual efforts and time. Therefore businesses realized the importance of the managed IT services model in order to succeed in the marketplace. These managed IT service providers third party, outsource their services to companies worldwide struggling to manage their infrastructure or cloud.
Importance of Managed IT Services
Do you wish for proactive infrastructure monitoring for your company? Then, stop dreaming and start looking for a managed IT service provider company that’d take up your business projects and treat them like their own. Whether remote or regional, a self-managed service provider company would be a great step ahead.
Outsourcing business IT administration and management responsibilities to a third party service provider benefits companies in the long run. A managed service provider delivers end-to-end solutions: cloud storage, server maintenance, infrastructure management, systems administration, data backup and disaster recovery, network monitoring or security. So why take the headache for something when you can get someone else to untie the knots in your head? The answer to your failed, and stuck projects is hiring managed IT service providers.
Let us state the possible reasons why companies need managed IT services stepping in 2022.
Efficient and Reliable IT Operations
Wonder why companies expand over different continents? The lack of employee force in their region makes them look for credible resources elsewhere. Companies start to look for resources with an impeccable reputation who offer managed IT services. As a result, a qualified IT staff is made available at the company’s disposal. As a matter of fact, managed IT services would ensure your IT operations’ scalability and reliability. These resources do not replace your in-house IT team. Instead, it maximizes the capability of your IT infrastructure design, development and administration.
Not just that, the use of the latest technology and tools by IT experts benefits global organizations. However, technical support defines the potential of managed IT service providers. Their expertise involves cloud consultation, computing, monitoring and management services. In addition, the necessity to keep the efficient and end-to-end operations in check a managed IT service provider company is needed to gel-in the team.
Ensured Security and Compliance
Businesses today keep stressing over the security and regulations of their IT operations. Managed IT service providers ensure maximum safety and compliance for your infrastructure and cloud operations. For instance, smartphones, laptops and other operating systems are responsible for data storage and transmission. Therefore, it raises concerns for the security and compliance of businesses relying on an in-house team.
So when a company deals with a hacked system or security breach, their lack of expertise and knowledge causes big troubles. For instance, they may suffer huge money losses or degraded reputations in the marketplace. These situations cause panic situations for the company. However, when a managed IT service provider is on board, the company easily comes out of any such crisis. Your service provider is efficient in considering the policies, formal procedures, and protocols for ensuring security and compliance for the overall IT operations.
Focus on the Core Projects
Divided attention to business projects could risk a company’s precious time. The IT management needs to grow as the business grows. The increased workload makes companies hire more resources that are not IT professionals. All the headache causes managers to divert their attention to IT administration duties. In return, the core company projects suffer. Moreover, it makes your employees under-perform on the tasks they were hired for.
Thus, the need to hire a managed IT service provider arises. These service providers fill in the gaps of your team and take up all the strain of your IT operations. They work with you at the same pace picked by your in-house team. Once the direction is determined, a third-party service provider company thoroughly takes over the IT operations and allows you to focus on the core projects.
Save On Overall Business Expenses
Hiring a single resource to do each task for you can be very expensive. The hassle of finding the right resource and paying them well could cost you a fortune. However, with an IT managed service provider team, all your business IT operations are well taken care of. Onboarding a third-party service provider operating remotely would bring drastic benefits for the company. The remote teams would only charge you for the service they offer. Businesses save on their travelling, health and accommodation expenses when hiring an outsourcing company. That is, companies broaden their resource base and stand out in the marketplace.
No unexpected expenses would bother the company when a third party team is only responsibly managing your IT operations. Now, everything is managed over the internet. For instance, companies communicate with their service providers online over the internet. No one has to fly down to attend a business meeting. Operating remotely helps build a strong relationship among teams and helps keep everything professional. In fact, the statistics show that about 70% of the global organizations rely on managed service providers, be it a small business or large enterprise.
Round the Clock Management
Is your company struggling with hiring resources to work day or night shifts? Well, let us share a smart business tactic with you! Hiring a remote managed IT service provider would give you the edge through time zone differences. If you get a five or more hours difference, the resources would effectively work before your expected timelines. Also, cloud infrastructure management demands 24/7 supervision. Your dedicated managed IT service providers (MSP) would continuously care for and monitor the infrastructure while conducting compliance and security checks.
However, an important thing to note here is that these services must be in sync with the company’s existing business policies and strategies.
Realizing the importance of an MSP, companies now effectively outsource their IT operations hassle to a third party. Being one of the leading resource provider companies, Sourcing Square extends its expert IT resources and professionals to offer entire MSP services to businesses worldwide. Do you wish for digital transformation and organizational success? Of course, you do! So why not let you focus on the core company projects and have our service providers offer continuous automation, real-time monitoring, security checks, uninterrupted support, database checks, monthly reviews and audits of your IT operations.
How is Software Development Outsourcing Beneficial for Businesses?
In times like Covid-19, businesses have faced a hard time recruiting good resources for their long-term projects. In-house recruitment has not only declined but has also proved unnecessary with the digital revolution. As a result, many corporations have taken all their dealings online. They either operate remotely or hire a whole remote team on project-based contracts. This is exactly why companies find it best to outsource their business projects. They either hire remote employees to take control of their business processes or outsource the entire project. Thus, the concept of software development outsourcingcame into being. Precisely because, the IT industry is the top expert developers supplier in the business market. The rise of outsourcing made businesses realize the value of benefits of outsourcing software development.
Be it a small business or large enterprise, it is impossible to succeed without a strong software development outsourcing team. In fact, it is now realized that most businesses save themselves the hassle of interviewing resources or go through the protocols of hiring new employees. Also, there are several challenges faced by the company.
Challenges with In-House Software Development
- Trouble looking for the right resource
- Little or no knowledge of the development process
- Low budget
- No direction on streamlining the tasks
- Overall project delays
- Lack of in-house experts
Why Choose Software Development Outsourcing?
Outsourcing the software development processes to a third party-offshore company may seem like a daunting task. However, it’s the most beneficial for your business. The idea is becoming popular with each passing day, providing companies with a promising revenue stream. Statistics have shown that around 60% of the leading IT companies resorted to outsourcing their software development projects. So, if you wish to keep up with the market trends, hire remote resources to take control of your software needs.
Below are some of the benefits of outsourcing software development.
The Benefits of Outsourcing Software Development
Uncompromised Professional Services
When you outsource your projects to an outsourcing company operating internationally, they match the right pool of resources to your business type. Their talent acquisition is your gain! You get the smartest and experienced IT professionals on your plate. Additionally, the professional services they provide are unmatched compared to any of the resources you might have hired on-site. A third party takes the responsibility much more seriously than your in-house team. Also, they agree to deliver scalable projects within the timeframe set by you. These individuals are well-equipped with multiple languages and the best fit for your projects.
Managed Team Services
The in-house team also demands a set of managers to assist them through the process. However, you need not worry about team management and direction when outsourcing your software development services. The outsourcing company you opted for would take care of your matters from conception to completion. Although, a little supervision by the in-house team would be required to coordinate with the tasks. Their list of responsibilities include;
Investment in Core Projects
The most you get out of your software development outsourcing is that your in-house team can focus on the core company projects, rather than being stuck with software development processes your team would invest in the execution of critical tasks. Moreover, with the right direction from your remote team, it will be easy to manage company tasks. Your valuable resources may only invest their time and energies on tasks other than software development. With a fresh mind and perspective, all your on-site and remote teams would be operating at their assigned tasks. Therefore, it is essential to hire highly skilled and experienced developers in the field to take control of the entire development process.
Customized to Fit Your Needs
Before deciding on outsourcing your company projects to an offshore company, make sure they meet your requirements. Firstly, it is important to decide if you wish to outsource the entire project or onboard remote resources for the long term. Once the type of contract is confirmed, you can check which and what number of resources are necessary for the project. Then, based on your needs, a smooth software development process begins. Further along the road, you have the option to downsize or expand resources as per the requirement of the projects. There are no permanent limitations to keep using the services post contract. After project delivery, you can easily part ways with the outsourcing company.
Moreover, it is important to outsource your development projects to a company that already has a staggering portfolio. They should have expertise relevant to the project and understand its nature better.
Cost-Effective and Time-Efficient
Outsourcing software development allows businesses to save on hiring permanent employees. It saves you the hassle of payroll and HR. Moreover, extending the project to an offshore team helps you save up to 70% of the tech and tools expenses. Most importantly, small businesses or beginners benefit most from outsourcing software development. They cannot reply on building basis of their business with incompetence and lack of experience. Therefore, to be safe from the troublesome experience of trial and error, companies prefer hiring project-based software developers.
On the other hand, this approach helps you save the time that would otherwise be compromised by hiring and firing new employees. In addition, with setting up a contract, a remote team is ready to take control of the project within 24 hours. These innovative approaches help businesses operate efficiently and stand in a competitive market.
What to look for in an Outsourcing Company?
There’s growing competition in the software industry, which keeps companies on their toes to update their service trends and expertise. Each resource they hire is essential to their business. In fact, the more convincing the proposal and portfolio of the outsourcing company, the more credible it is for businesses. Thus, outsourcing companies win with better communication skills and an efficient approach towards life. The following qualities define an outsourcing firm;
- Up-to-date tech and language approach
- Continuous onboarding of new talent and skills
- Quick problem-solving approach
- Efficient Communication
- Extensive portfolio
- Online credibility of social media platforms
- Stability of the company
The resource outsourcing industry is expanding each day. Developing countries with a large pool of talented candidates and few job opportunities outsource their services globally. Similarly, Sourcing Square is one such company, extending its software development outsourcing services for companies worldwide. You can either hire a remote team to work for you or outsource your entire software development project for the company to work on. The platform welcomes businesses of all sizes and types to outsource their software development project and watch our teams deliver remarkable projects in time. Do you wish to hire expert resources to operate remotely for your company? Sign up for a free demo and avail of our top-notch services.
Author | Mubashrah Rahim