How to Manage Outsourced Software Development Teams Effectively

When you work with an outsourcing partner in the software development process, there are many rewards, from cost savings to faster project turnaround and access to niche expertise. At the same time, you may have trouble giving up control of your project. How do you maintain oversight without micromanaging outsourced teams?

It's a delicate balance, for sure, but it's certainly possible to manage a development team without getting too involved in the process. This is your guide to successfully outsourcing software development – ​​and managing your team without micromanagement.

Understanding Different Outsourcing Models

• Increase in IT team
• Dedicated Teams
• Outsourced development services

There are several pros and cons to each model, as well as situations in which one is more appropriate than another. In some cases, you can take an even hybrid approach, leveraging several different outsourcing models. Let's take a look at what each involves and when you should use it.

Increase in IT team

In the IT staff augmentation model, software developers and technology professionals from the outsourced development team join the company's internal team to complete the project. It's a highly scalable model – one of its key benefits – that offers flexibility and the skill sets you need when you need them.

When choosing the staff augmentation model, it is important to ensure a cultural and organizational fit with your external team to avoid conflicts with your internal team. Outsourced team members will join your in-house team, and all professionals need to be able to work side by side towards their common goals.

Dedicated Teams

In the dedicated team model, autonomous teams of experts, typically comprised of a PM, software engineers, QA engineers, and other roles as needed for the project, are managed by a Scrum Master and the client's internal product owner. Although the team works autonomously, they will continue to communicate with the company and provide frequent status updates to ensure you always know what's happening with your project.

The dedicated team uses Agile methodologies, which means your feedback always plays an important role in shaping the final product. In many ways, this approach is the best of both worlds: your outsourced team will complete the project independently according to your requirements and specifications, but you will maintain oversight of the project's progress and deliverables.

However, this is a little less flexible than the staff augmentation model since you already have a team in place. It's best for situations where you need a project done without your in-house skills and talent – ​​or when you don't have a development team – so you can focus on your core business.

Outsourced development services

Companies with clearly defined project requirements and objectives can turn to outsourced development services, which bring their specialized skills and a high degree of experience to their partner organizations, acting as a unit with all the qualifications needed to bring a project to fruition – from software engineering to UX design to cybersecurity and more.

This model is ideal for smaller teams that need help achieving their goals and don't have the necessary internal talent to do so. It's a long-term solution that allows companies to scale their services and provide reliable, customized software to meet their unique needs.

Choosing the Right Outsourcing Software Development Partner

How do companies choose the right outsourced development partner to work with their internal teams and complete their projects successfully? This is important because you want to choose a partner who is reliable, competent and fully equipped to meet your needs. These are the steps you should follow to choose the right partner.

#1: Evaluate Technical Experience

When considering an outsourcing partner, it is first critical to assess the skills and technical knowledge of the software development team. This is important for the entire development process.

#2: Assess Communication Skills

In any business environment, effective communication is essential to conducting business smoothly and effectively. To assess your partner's communication practices, ask about factors such as:

• Communication frequency
• Communication channels
• Preferred modes of communication

It's best to talk about these methods beforehand so everyone is on the same page from the beginning.

#3: Checking Reputation and References

Your potential software development outsourcing partner should have a strong reputation and proven experience in your niche and industry – not just software development in general. To assess your partner's reputation, you should check online reviews through resources like Clutch.co, ask for references from the supplier, and request details of previous clients so you can discuss the supplier with them.

Setting clear expectations

It's important to set clear expectations with the development team from the beginning. This establishes standards early in the process. Let's break this down a little more.

#4: Defining Project Scope and Requirements

The project scope is the boundaries of the project, including the schedule and requirements, as well as the specifications. Documentation is also important, as are user stories and wireframes. This is a critical step because you need to have a plan and requirements to follow as the project progresses.

#5 Setting Milestones and Deadlines

A strong outsourcing relationship includes establishing realistic milestones, goals and deadlines. As part of this process, you must plan and schedule different project phrases and benchmarks, which serve as checkpoints to ensure the project is progressing as planned.

#6: Agree on Communication Protocols

It is clear that effective protocols and communication channels are essential to achieving the partnership’s objectives. Steps include scheduling regular meetings, defining your preferred communication channels, and setting response time expectations, keeping everyone informed and on the same page.

Managing the outsourced development team

Managing your outsourced development team requires a variety of communication, collaboration, and project management tools and platforms. It also means exercising control without micromanagement. Specifically, here are some important steps you should take to solidify your management practices.

#7: Monitoring Progress and Performance

Throughout the project, you will need to continue monitoring your progress and the team's performance. This is important to ensure everything stays on track. You don't want to know that problems are occurring without you noticing. You must also keep track of your team's performance, both on an individual level and in relation to the team as a whole.

Monitoring progress and performance requires the use of project management tools and platforms. For example, there are many simple tools, such as kanban boards, that allow you to view the progress of each task, as well as who is responsible for individual parts of the project. In addition to taking advantage of these tools, you should perform regular status updates, holding meetings and check-ins to know where you are at each step.

#8: Provide Feedback and Support

Managing outsourced teams isn't just about solving problems when they occur. It also depends on offering timely and meaningful feedback and support to the outsourced team alongside your in-house team.

You must be proactive in providing feedback to each team member. This includes positive comments and constructive criticism – this is how professionals learn and grow. It's also how you'll create stronger connections and team bonds and complete your project successfully. In addition to providing feedback, you must be fully available for support. Make it clear that you have an open door policy and welcome questions and concerns.

By establishing a culture of open feedback and support, you will encourage this behavior in others too. The goal is to strengthen your team and make everyone feel supported and able to be open with each other, as well as with their leader or manager.

#9 Ensuring Quality and Safety

Last but not least, when managing outsourced teams and projects, you should always have high expectations, including quality and safety standards in place. You already know that cybersecurity and quality assurance are absolutely essential. But how do you actually put these standards into practice?

One of the most important parts is establishing quality assurance (QA) processes. Software development outsourcing may include QA engineers provided by your partner's team or they may come from your in-house team. In both cases, they must be closely involved in the process and carry out numerous tests, in partnership with developers and other professionals to achieve the best possible results and ensure that the final product is as defect-free and safe as possible.

If you liked this article, be sure to check out some more articles about outsourcing.

• Nearshore vs Offshore Outsourcing: Which is Best for Your Business?
• Leveraging the Hybrid Outsourcing Model for Maximum Software Development Benefits
• Identifying and mitigating risks in software outsourcing projects
• Pitfalls of Software Developer Outsourcing (and How to Avoid Them)

Common questions

What are some common challenges when working with outsourced software development teams?

There are some common challenges you may encounter when working with outsourcing companies. For example, communication barriers can hinder project progress, as can time zone differences and cultural differences. To overcome these obstacles, teams must establish communication channels upfront and determine how and when you will connect. You must also ensure that everyone speaks the same language.

How can I maintain control over my outsourced software development project?

To maintain control over your outsourced software development project, you must set clear expectations, monitor progress, and provide frequent feedback. It's also important to balance maintaining control without micromanaging members of your own or outsourced team.

How can I ensure effective collaboration between my in-house team and outsourced team?

Effective collaboration between your in-house team and outsourced team depends on a variety of methods and platforms, such as using collaboration tools, setting joint goals, and fostering a team-oriented mindset and culture of collaboration.