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 reputable team means that you can free up more time and focus on growing your business and coming up with new strategies. 

Your staff needs can change over time, and that’s okay. In outsourcing, it’s easy and hassle-free to scale your team up or down quickly, depending on project needs. Compared to traditional in-house hiring, where there’s a bigger commitment, outsourcing is a more flexible solution when it comes to increasing or reducing team size. 

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

Depending on your project and business requirements, you can choose from three main outsourcing models: Staff Augmentation, Dedicated Teams, and Project-Based Outsourcing. 

In the Staff Augmentation model, you can hire individual developers to work together with your in-house team. If you need people to fill a position quickly in your company, staff augmentation is a flexible and affordable solution.     
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. When negotiating the contract, include all the important factors like project scope, timeline, budget, and payment terms. Also, address any potential issues that may come up and how to resolve them. These can be changes in project requirements, delays, or other project-related issues. 

Agree on the communication channels you’re going to use with your outsourcing team. It can be email, phone, video conference, project management software, or chat. Stay in touch with your development team To be on the page and to track how the project is progressing. Make time for regular catch-ups, and use the time to ask or answer any questions regarding any issues related to the project. 

Good project management is an important part of any business partnership. For a productive collaboration, have a good project management plan: set project milestones and deliverables, with regular progress tracking, and offer feedback whenever it's necessary. 

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.