Why and How Software Development Outsourcing Works


Many businesses still do not realize the advantages of outsourcing vs insourcing. Software development outsourcing is a process wherein an organization hires a third-party software development agency to work on custom software solutions. 

More specifically, the organization hands over a certain project to a vendor that is capable and qualified enough to handle the required tasks. 

Companies that decide to follow this process find that it bridges talent gaps and decentralizes software development. 

To find out more about why and how to outsource software development, keep reading!

Why Do Companies Outsource Software Development?

  • Flexibility

The best part about software development outsourcing is that you can hire an external team only when you need to. It is better than recruiting in-house developers all year round since you might not require their expertise after project completion. 

Also, the external development team is likely to have a certain list of experts. So, once you hire them, you can be completely sure of their skills. 

  • Lower Development Costs

The costs of hiring, training, and paying the salaries of in-house software developers can add up before you know it. Add to these expenses a range of employee benefits, such as leaves, insurance, and training, and the labor costs keep getting higher and higher. 

Hiring external developer teams who charge by the hour or by the project is much less expensive. 

By reducing your spending, you can keep up with the market demand, as well as grow and scale your business effectively. 

  • Faster Innovations

The software development industry evolves at a rapid pace. However, this might make it difficult for your in-house team to develop their skills in new technologies. 

One of the reasons why you should outsource software development is that it can bring fresh skills to your team without compromising efficiency.

  • More Attention to Core Business Goals

If your in-house team of software developers is overwhelmed with tasks, chances are, they cannot focus on your core business goals. Outsourcing software development will free up the internal team to continue with core activities. 

Plus, working with an external team may expose your in-house team to Artificial Intelligence (AI), Blockchain, and other new, emerging technologies. This may help transfer the outsourced team’s knowledge base to your internal software development team. 

What Is the Best Way to Outsource Software Development?

1. Establish Clear Goals

Many companies decide to hire an external team first, and then set their goals. Instead, define your goals clearly and then communicate those goals to the hired experts. 

The software development outsourcing company you choose should imbibe similar work culture and ethics to those of your own brand. Make plans as to how you will budget your projects, identify and remedy errors, and address emergencies. 

You would also need to test the software in several environments to ensure your clients do not face any problems. 

2. Assess Your Requirements

Based on the goals you have set, it is time to analyze your requirements. Do you need to hire an external project manager, or perhaps an entire software development team? Or would you rather outsource a specific project to an external team of developers? 

In the latter case, the hired professionals would need to manage the project themselves. 

3. Set Realistic Time and Budget Expectations

Developers may find it easier to assemble and stick to sprints once you establish milestones and deadlines. This will help you learn the exact software deployment date. 

So, to improve the efficiency of the project implementation, you need to have a plan for your project, at least an approximate one. 

At this stage, defining your budget is crucial. This is because the budget will determine how many developers you can add to your external team. 

4. Evaluate Software Development Outsourcing Agencies

Now that you have plans and a budget, start researching companies that would be the best fit for your goals and expectations. 

Location is a significant factor here, as there may be differences in culture, language, workflow process, time zones, hourly rates, and more, from one country to another. 

For example, time zone differences may imply a delay in development. Such differences may pose challenges sometimes, so make sure you know what you may be up against. 

It would be better to choose a software development outsourcing company with similar work ethics and practices to make the integration with your company hassle-free. External developers with similar workflow processes and mentality, for instance, are not likely to face any challenges while integrating with your team. 

Evaluate each agency based on the factors below:

  • Team Members

Get to know the members of the software development team. Are they a mix of junior and senior developers? How can the professionals help you with your project? 

Apart from developers, does the team have quality analysts, designers, and engineers, too? 

  • Portfolio

What kinds of projects have the outsourced team handled in the past? Review whether the team has handled any project similar to yours. 

That will strengthen your belief in their project management and development capabilities.  

  • Infrastructure

You may still ask yourself, “Why to outsource software development?” Well, one of the perks of outsourcing is that you might not have to buy new infrastructure. 

Inquire whether the agency you are hiring has the required infrastructure that your company does not.

  • Reviews and Testimonials

A portfolio might not contain all the answers to your questions. To delve deeper into the agency’s work caliber, look for reviews and ratings by their past clients. 

Find out what their clients have to say regarding the agency’s attention to detail, time management skills, and general competence in handling outsourced software development tasks

You can even reach out to these clients directly over the phone or email for more in-depth feedback on the agency’s work. 

It would also be a good idea to ask the clients to give you a detailed walkthrough of their past projects that the agency handled. Inquire about the design, functionality, code, and other intricacies to assess the external team’s expertise. 

5. Start Collaborating

Once you have finalized a software development outsourcing company, reach out to them to discuss the terms of the work. 

Ensure you have access to the source code so that you can have the software adjusted and updated when necessary. Learn what other files you would have access to throughout the project duration. 

Also, both you and the external team should agree upon the range of services to be provided, along with the pricing. Make sure you also ask them to state a realistic timeframe within which they can complete your project. 

After the two parties agree on the work conditions, draw up a contract, setting out the responsibilities of both parties.

Conclusion: Software Development Outsourcing

Remember, using advanced and efficient project management tools will help you gain deeper insights into your project’s progress. 

So, now that you have learned the benefits and the process of software development outsourcing, it is time to implement this, if you need to. 

In case you are strapped for time, though, do not worry! Simply reach out to the IT Support Professionals at MyTasker, who can complete and deliver your software development projects, regardless of the size and the scope. 

By utilizing their team, you can focus on growing your business and outrunning your competitors in the Indian and global markets.

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