Outsourcing software development occurs when companies grow and no longer have the internal bandwidth to manage certain tasks and operations. Other motivations for outsourcing are to reduce costs, increase efficiency, improve customer service, and more.
When embarking on a new business initiative, having the right team is essential, and hiring a software provider is not a decision that should be made in haste. It is imperative to consider whether potential suppliers have the technological expertise for your project scope; a proven track record; and an interest in building a strong working relationship to augment your current workforce.
What Type of IT Outsourcing is Right for Your Business?
Location-based outsourcing
This framework focuses on the location or distance of your service provider:
- On-site outsourcing: In this model, your outsourced team reports to your office and works alongside in-house employees. Having outsourced staff on-site speeds up learning processes and working within the system.
- Onshore outsourcing: Under this arrangement, outsourced partners work in the same state or country, allowing for minimal cultural and language differences.
- Nearshore Outsourcing: This model looks for suppliers in neighboring countries that are often in the same time zone. There may be some linguistic differences, but most companies looking for nearshore partners are looking for a more affordable solution.
- Offshore Outsourcing: To save even more money, a company may choose to outsource to more distant locations.
Relationship-based outsourcing
With relationship-based outsourcing, there is a focus on ownership and responsibility and how the third-party provider handles these two principles.
- Staff Augmentation Model: This model is similar to on-site outsourcing. The outsourced team joins your internal staff to manage the programs internally. The client has full control over the projects from start to finish.
- Managed Team Model: Under this arrangement, both the supplier and the host company share responsibilities and designate who focuses on which tasks. The customer also has control over the equipment.
- Project-based model: The third party owns the project after the company informs it of the requirements.
What to look for in a software development company?
Whether you intend to hire a team to build a custom solution from scratch or acquire outsourced resources to augment your team, choose the software partner that best suits them and your customer’s specific needs.
It can be quite a challenge. Entering the wrong partnership can lead to delays, wasted funds, and poorly constructed solutions. When considering a provider, it would be wise to keep an eye out for the following qualities.
Complete list of services
One of the initial steps in hiring an IT provider is to understand what your goals are and what you would need to achieve them. Keeping this in mind will help evaluate and compare equipment; Are they sufficiently equipped to take on your project?
You can start by asking about their team structure. Are they providing project managers, designers, developers, and QA specialists? It would be ideal for solution providers to house a wide range of internal talent and teams. This way you won’t have to worry about paying for additional services.
Various technical skills and experience in the field
Technology is huge and there are a large number of tools, platforms, and programming languages that can be used to develop software. Today’s developers should be aware of the resources at their disposal and should be able to choose the right stacks for the scope of their project.
Companies looking to outsource work should avoid software companies that can only work within one type of architecture; There is no single solution when developing products.
Additionally, while it’s great to work with a company that has worked on a project similar to yours, it would be ideal to find a team that specializes in the same field as the final product.
Understand business objectives and bottom line
Before committing to a particular company, it is important to align business objectives, ensuring all parties are on the same page. The business world is much more dynamic than it was a decade ago, and custom development companies need to understand their short- and long-term goals.
Effective communication
One of the most important qualities that suppliers can have is effective communication. Miscommunication and lack thereof can seriously affect the progress of the project and the final product.
Communication is essential between the outsourcing company and the company, as openness and transparency are essential to the success of a project, mitigating possible misunderstandings.
You can ask questions and initiate discussions to ensure the project moves forward in a way that optimally understands and meets your business objectives.
Prioritize UX/UI
Many software development service providers focus on design, while others focus on technical services.
However, prioritizing one over the other can be detrimental in the long run. Business leaders should look for a development company with experience in both technical support and providing UI/UX development solutions.
Creating intuitive and easy-to-use solutions helps the application be successful and better received because users are its market. Prioritizing UX/UI helps you achieve your business goals, reduce costs, and save time in the long run.
Quality assurance
There is an inherent difference between “quality assurance” and “testing.” Including a QA team in the software development process to identify vulnerabilities that developers might miss indicates dedication to detail.
Tools like Agile and DevOps focus on iterative releases, allowing for a continuous feedback loop. This cycle should include continuous validation stages, including user testing, daily scrums, and prototyping.
Certifications and accreditations
When your company is ready to invest in a software development company to partner with, it would be wise to validate their performance claims.
Being able to show skills and abilities is one of the best ways to confirm capabilities. Look for certifications like Oracle, Salesforce, Amazon Web Services, and Microsoft.
The pricing model
There are some types of typical pricing models in the software development industry, fixed price, time, and material.
Deciding which model would be right for you depends largely on your specific type of project. With the fixed model, you are losing a bit of flexibility, while the other option allows you to pay for work as the project progresses.
Choosing the right software development company for your project
There is a lot at stake when partnering with a third-party provider. Poorly built software costs you more than financial losses (repairs, bug fixes, redesign). Your reputation is also at stake, which can negatively affect your bottom line.
Meticulously researching potential partners is a critical step that should not be overlooked; Choosing the right supplier makes the difference in success. It is important to work with companies that offer software solutions that exceed expectations in all areas.
