How to Outsource Software Development

Many businesses find software outsourcing a complicated process, so they choose another alternative, one that may not fit their needs very well. Indeed, outsourcing can be complicated when you don’t know where to start and what to look out for when choosing an outsourcing team.

Let’s take a look at software outsourcing, why companies turn to this practice, and how to do it right from the start. 

Why Companies Outsource Software Development

Software outsourcing is a business strategy in which companies team up with software development agencies to work on different tasks and projects. Businesses outsource for many different reasons, mainly to save on costs and to reach talented specialists across the world. Often, outsourcing is a better option than hiring, especially if you only need talent for a certain project. You can save on costs by not paying for office space, recruiting, or employee benefits.

With software outsourcing, you can hire specialists from anywhere in the world, giving you the chance to find the exact skill set your project needs. Working with international teams, they can bring fresh perspectives and new ideas to your company. Good software outsourcing agencies prioritize staying updated with new trends and technologies so they can offer modern solutions to their clients.

Outsourcing your software development to a reliable team lets you free up more time to focus on growing your business and new strategies.

It's okay if your staff needs change over time. When you outsource, it's simple to quickly increase or decrease your team size. When you hire someone in-house, that's a bigger commitment. Outsourcing, on the other hand, lets you change the size of your team more easily.

You might be wondering how you can launch your software products faster by outsourcing. It's possible when you have a dedicated team working and focusing only on your project, so you can speed up development and solve problems quickly.

Choosing a reputable company to manage the risks that come with changes in technology and shifts in the market and hiring the right people will also help you stay flexible.  
 

Software Development Outsourcing Models

The three main outsourcing models are Staff Augmentation, Dedicated Teams, and Project-Based Outsourcing. Which one you choose depends on your project and business needs.

You can hire individual developers to work with your in-house team in the Staff Augmentation model. It's an easy and affordable option when you need to fill a position quickly in your business.      
In this model, the outsourcing company is responsible for the developer’s payment, and the client has full control over the project’s direction. Staff Augmentation does come with some potential disadvantages though, such as quality issues, communication challenges, or cultural differences.

In the Dedicated Teams model, you get a whole team of developers to work exclusively on your project. In the same way, as in the staff augmentation model, the outsourcing provider is responsible for the team, and the client makes the decisions related to the project. Dedicated teams are more suitable for long-term projects that require more flexibility. This model might come with higher costs, though.

Project-Based Outsourcing, as the name suggests, is about outsourcing a whole development project to an external vendor. They are fully responsible for the project, which needs to be completed within a certain time frame and budget. For businesses that have short-term projects or need to access specific skill sets, this could be the ideal choice, as they only pay for the work done. It’s not the most ideal option if you want to have more control and oversight over the project, as the dedicated team is fully responsible for it.  

How to Outsource Software Development? Steps for Success

Before starting to search for outsourcing companies that match your needs, you have to think and define clearly what those needs are. Defining your requirements for the upcoming project is the first step of successful outsourcing. Knowing your goals and needs will help you and your team keep those in focus throughout the development process. Project scope, timeline, and budget are all part of this.

You successfully defined your requirements, and now it’s time to find an outsourcing partner who will help achieve them. Think about which model suits your requirements best, and based on that, look for partners that offer that collaboration model. Look at their experience and skill, and ask for client reviews and references to check out the quality of their work.

Share your project goals with the outsourcing team clearly and ask or answer any questions to avoid misunderstandings. Being on the same page from the start will help you achieve your goals successfully. Be sure to cover all the key details in your contract—things like the project scope, schedule, budget, and payment terms. It may appear overwhelming, but you’ll find it’s worth it! Additionally, discuss any potential bumps in the road, such as changes to the project’s needs, possible delays, or anything else that might arise. Sorting these things out upfront can save a lot of hassle later on.

Agree on the communication channels you will use with your outsourcing team. You can use email, phone, video conference, project management software, or chat. Keep in contact with your development team. Stay updated and monitor the project's progress. Make sure to carve out time for regular catch-ups, and during that time, feel free to ask or answer any questions regarding any issues related to the project.

As a business partner, you need to be able to handle projects well. If you want to work together effectively, you should have a good project management plan. Set deliverables and project deadlines, keep track of progress regularly, and give feedback as needed.

Wrapping Up

Software outsourcing can give you the opportunity to connect with IT professionals from around the world with the exact skills your project requires. With fair pricing and flexible options, businesses can save money and still get the services they need.

To make outsourcing work, trust and honesty are really important, so pick a partner who offers that along with the skills to get the job done.