Does software outsourcing work for every company?

With a growing number of companies choosing to outsource software development, how do you know if it's right for your company? Software outsourcing requires careful planning, detailed specifications, continuous workflow, and thorough testing. You need to know that your outsourcing company can deliver the results you need.

There are several factors to consider when outsourcing your development, including the project deadline, your internal resources, the risks inherent in your project, and your budget.

What is the deadline for your project?

One of the main benefits of outsourcing software development is efficiency. An experienced outsourcing company will have robust workflows and processes to ensure projects are delivered on time.

Outsourcing works well for companies that require fast turnaround times and don't have the resources to deliver development in-house. Research suggests that the average software development project takes just under 12 months to complete. If you need your product to get to market faster, outsourcing could be the answer.

Whether you decide to outsource all or part of your development, a good software outsourcing company will assign an engineering manager and team leads to the project. Having a hierarchical structure ensures that milestones are achieved and responsibilities are met. It also ensures that the client receives regular feedback on progress.

What internal resources do you have available?

If your company already employs software developers, the question to ask is whether you have enough resources to complete the project on time. In our experience, companies often underestimate the number of hours required to develop software, which often leads to staff overload.

To develop high-quality software, companies need to have the necessary skills at their disposal and they need to have enough developers to deliver the project on time. Before you decide to outsource, consider the skills of your in-house team. For example, you may have enterprise mobile app development services available in-house but lack UX Design skills.

Once you know where the skills gaps are in your company, you can identify the elements of your project that you need to outsource. Working with an offshore development team helps fill your skills gaps and ensures you gain the knowledge you need.

With software outsourcing, you only pay for the skills you need, which is more affordable than hiring full-time employees. Outsourcing frees up your in-house team to continue working on existing projects and day-to-day business activities.

In the current business scenario, outsourcing is becoming an essential practice for ambitious companies that want to stay ahead of their competitors. Often, projects need to be released faster than your internal team can deliver. Software outsourcing offers an effective and reliable approach that guarantees a high-quality product.

ONCE YOU KNOW WHERE THE SKILLS GAPS ARE IN YOUR COMPANY, YOU CAN IDENTIFY THE ELEMENTS OF YOUR PROJECT THAT YOU NEED TO THIRD.

What risks are involved in your project?

There is an inherent amount of risk in every software project. Partnering with an outsourcing service can mitigate these risks and ensure your product is brought to market without delay.

Before starting a software development project, you should ask whether your team has risk management processes in place to ensure seamless delivery. A successful development project requires extensive research, prototyping and validation. Even with all these elements, projects can still experience delays without implementing adequate risk management processes.

The risk ratio of your project will depend on the level of complexity and expertise of your team. Projects that are being developed from scratch generally present more risks than those that are being updated on existing platforms.

The best software outsourcing companies will take the time to review all potential risks. They will be able to anticipate any issues and ensure processes are in place to reduce risk.

What is your project budget?

ALTHOUGH COST REDUCTION IS IMPORTANT, IT SHOULD NOT BE THE DETERMINING FACTOR IN THE DEVELOPMENT OF YOUR PROJECT.

Cost is always taken into consideration when it comes to software development. In many cases, outsourcing your project can be a more affordable option than developing it in-house. After considering the available internal resources, you must assess whether you have the capacity to allocate developers to the project.

If developing the software in-house means making developers duplicate projects and pay less attention to existing activities, then outsourcing will be a good choice. Typically, outsourcing software development is less expensive than the costs associated with training existing staff or hiring new talent. When considering outsourcing costs, remember that there are no ongoing training costs or equipment expenses.

Although cost reduction is important, it should not be the determining factor in the development of your project. Even multinational companies need to stick to budgets and find alternative ways to move projects forward.

A reliable software outsourcing company will be able to give you an estimate of how many hours your project will take. Depending on the level of complexity, they may be able to provide an upfront cost, so you know exactly how much your expertise will cost upfront. Other times, retainer fees can be arranged for projects where deadlines are more difficult to estimate.

How to outsource your software development project

If you've decided that outsourcing is right for your company's needs, the first step is to assess what knowledge you need. Consider the skills of your in-house team and identify any gaps that would benefit from outsourcing. Staff surveys can be an effective way to assess where your team's strengths lie.

Once you've identified the skills you need, you should consider what your team's current capacity is for a new development project. If available, you may only need to outsource part of your project – the elements that require specialized knowledge or those that are time-consuming.

Essentially, there are three project delivery options:

Staff increase

Dedicated delivery teams

This method is particularly suitable for companies that require greater involvement from a dedicated, outsourced team. Typically, they would take responsibility for overseeing project management, allocating tasks to developers, and monitoring workflow.

Software Development Services

This delivery method is the preferred choice for companies that require the services of a full-cycle development company. The outsourced company would oversee the entire project, from creating the specification to establishing milestones and quality testing.

Tips for choosing the best development partner

If you do not have access to hire software developers and need to outsource the entire project, you should create a long list of outsourcing companies that can meet your needs. You should also check your reputation in the market by researching your portfolio and contacting previous clients to check the quality of your work.

Once you've narrowed down your search for a software outsourcing company, there are a few additional details you should confirm. Typical questions you should ask a potential outsourcing partner are:

• Do you need something clarified in the project specification?
• What is your workflow process?
• What project management tools do you use?
• How will you communicate feedback?
• How long do you estimate the project will take to complete?
• Do you have references we can contact?

After choosing a software outsourcing company to move forward with, management roles must be assigned and specific tasks allocated to developers using project management tools. File sharing software must be implemented so that everyone involved has access to relevant documents.

Engineering managers must be responsible for ensuring milestones are achieved and feedback must be provided throughout the process. The key to successful software outsourcing is communication.