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.

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. 

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;

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.

In Conclusion

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.