Things to Consider When Outsourcing Software Development

Yes, nowadays for every business to cope it is really important to induce software applications within their businesses. Companies around the globe are making software development an imperative for their businesses because of the benefits it offers businesses. With this becoming a priority for businesses, there are many amateurs in this role who want to outsource but are not sure of what aspects to be considered and what should be ignored. Here this blog will give you a complete insight into how businesses should take up outsourcing and what factors they must consider. 

Developing a software application is simpler because businesses just have two options. They can either develop the software in-house with the help of their company’s internal talent and skill sets. The other way is by taking help through software outsourcing companies who hold expertise in developing trailblazing applications. They are increasingly dependent on outsourcing development as a tactic to stay up with the competition. According to Global Industry Analytics research, the IT outsourcing industry is expected to expand at a 5% CAGR between 2020 and 2024. Let’s see now things to consider while outsourcing.

1. Defined Project’s Goals and Objectives

The unprecedented growth of usage of software has empowered many businesses to take this step. All of them are organically moving towards outsourcing projects. But in such cases, the biggest mistake that businesses make is not knowing the goal and what the business wants. So, it is very important for businesses to realize their need and accordingly look for an outsourcing partner. 

The first and primary step to consider before outsourcing IT is to clearly outline your project’s goals and objectives. You must know exactly what you want and how you want it to be done. It is critical in this setting to be specific about the project’s scope and scalability. When you select a software outsourcing partner, you must know what your outsourcing needs, budget, and if possible the specific technology. This will not only provide you with a better understanding of your project but will also aid the hired outsourcing business.

This ever-expanding service industry offers larger benefits of software outsourcing. There is fierce rivalry among the many outsourcing industries. Everyone claims to provide you with the greatest services. Hence, it is advised to find out the full information of the outsourcing company before initiating the business. You may accomplish this by compiling a list of the shortlisted outsourcing businesses and weighing their advantages and disadvantages. A firm may be correct in some aspects but lacking in others. As a result, be certain that you select the one who can handle your job with ease.

2. Communication

The next step and one of the most important steps to consider while outsourcing is establishing communication. We know offshore outsourcing means delegating business to a company that is located at a distant location. When it comes to outsourcing software development projects, communication is by far the most crucial element to consider. 

The first step is to identify the development firm and team that will be allocated to the project. It is critical to speak with the development team sporadically. So, it is advisable to analyze them, and identify their prior expertise in various projects produced by them, as well as to ensure they have a clear understanding of the requisition.

The innovations in technology have made communication easier. There are many applications that provide real-time updates. We have Google Hangouts by Google, skype by Microsoft, Slack, and other communication tools that allow consistent monitoring. This draws a thin and fine line of communication for businesses to constantly interact and gain insights on projects in real-time.

3. Cost & Budget

You are rightful to validate this fact from any business that makes an outsource? The answer will be the same for all businesses and that is the Cost Factor. Cost is a fundamental reason why businesses tend to outsource. Also, it wouldn’t be wrong to say that because of cost-effective strategies, offshore software is the most considerable option. 

When it comes to hiring bespoke software development services, the cost is usually a major consideration. You should never choose the lowest option, but you also don’t want to overpay for services you don’t require. When you consider the other criteria stated, calculating the appropriate amount of money to spend becomes a lot easier.

Collaboration and communication might be difficult if the supplier you’re interested in works in a different time zone. It can become an impediment to efficient scheduling and feedback. Problems like these might derail your project for a long period. Worse, it may cause missed deadlines or project delays. Make sure you deal with a provider who is available 24 hours a day, seven days a week.

4. Understand the Company’s Culture

One of the major barriers to outsourcing is the cultural difference that countries have against each other. But then, when you do business, the companies make sure that the cultural differences are aligned in a way business gains profit. The outsourcing company as a whole can work as per the client’s business needs and calendar. 

You should engage with an outsourcing firm with whom you are comfortable. Understanding the provider’s corporate culture is one method to identify this. You can perform an intense examination of their office to get a sense of the working environment and speak with one of the workers. You may also look at their social media accounts because the posts will offer you an indication of their competition.

Ideally, cultural difference is no big deal, nowadays businesses arrange themselves in any mold they want. They work as per the needs of their client company. The timing is the same, and the leave calendar followed is also the same. Hence, this makes them similar in all other cultural aspects, even though the development team works at an offshore location. They do not necessarily have to work in the same office to remove this cultural barrier. 

5. Ensuring  NDA or Agreement is Signed

One of the most important concerns is to handle data and apps with security. Businesses would be passing out sensitive data, which might be dangerous not just for your company, but also for the consumer. There is a chance that there is a compromise and your data leaks after you hand it over to the third party. It is never intentional but your data is at stake. Thus, businesses ensure that they must sign a contract that gives them all the rights to codes, sensitive data, and financial information including post-deployment rights.

You must make it certain to the third-party company beforehand when you are considering them in the list. They must ensure to provide all the security requirements in place. You should give priority to securing the premises and preserving the intellectual property and source code. So, before you sign any contracts, double-check the security and protection procedures.

When you select a third-party company, you must sign an agreement or a Non-disclosure agreement that would prevent any kind of business needs. Finding a company that best suits your business needs is challenging but then if the requirements of the security are not met then there will always be a lack of trust and reliability while doing business. 

Since you as a business cannot afford to travel to offshore locations every now and then, it is necessary to stand by the ground rules in order to get expected results with security and sustainability. When you break the clause of the signed NDA, there are certain repercussions that businesses need to face after that which will certainly not be in favor.

6. Conclusion

Offshore Outsourcing has the power to make or break the business. Many of you will agree with this fact and must have seen practical results for your business. So, make a choice wisely. Choosing a software development company for your business is not child’s play. You need to have the intellect to decide which one goes best for you. This is a daunting task to find an ideal business for your software development needs. We hope this blog on factors to consider while outsourcing has helped you extract all the important facades that need to be taken care of when you hire a software development company. Because only the right choice of company can bring profitability and performance for business. 

Itesh Sharma

Itesh Sharma is core member of Sales Department at TatvaSoft. He has got more than 6 years of experience in handling the task related to Customer Management and Project Management. Apart from his profession he also has keen interest in sharing the insight on different methodologies of software development.


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