10 Software Outsourcing Tips to Enterprises for Maximum Benefits
Reports estimate that the global IT outsourcing market revenue will reach $429 billion by 2025. What directs companies towards software development outsourcing are the profitable end results — cost reduction, access to global talent, and timely deliveries.
Software development is now evolving. With advanced communication channels, automation, software development tools, and systems available to simplify the process, outsourcing is a priority for companies across the globe.
When it comes to hiring an offshore software development company, a lot of research is necessary. From the quality of offshore app developers to understanding how dedicated development teams work, only careful consideration will deliver the best results.
This article will highlight the top 10 tips enterprises need while hiring offshore app software developers. They will provide companies the much-needed assistance while outsourcing software development services.
Read more: 7 Custom Software Development Mistakes Every Company Should Avoid
Top 10 tips for Software Development Outsourcing
To understand whether outsourcing is the right choice or not, there are certain things companies need to assess. However, not receiving the right guidance might lead to disastrous results. Therefore, here are the top 10 tips to keep in mind while outsourcing customized application development services:
- Determine whether you need to outsource or not
Just because outsourcing makes sense for one company doesn’t mean it will work for you. The decision to outsource must come from the need to manage internal operations well. Enterprises should also focus on how much benefit outsourcing will bring to their process.
Software solution companies provide simple solutions to complex problems — but do enterprises need to simplify or not at the moment is the question. Therefore, identifying whether outsourcing is necessary or not is critical.
2. Decide what you need to outsource beforehand
Before sending the requirements to the offshore app developers, it is important to identify the enterprise’s requirements. Managers must clearly identify processes that they need to outsource. It will clearly convey the requirement to the offshore company as well.
It will also ensure that the enterprise can find the right talent and skill for the job. They can eliminate unnecessary redundancies in the hiring process and eliminate unqualified candidates.
3. Identify your core competencies & bottlenecks
Enterprises must identify what their core competencies are. When done, it will provide an idea about what they can outsource to enhance their core operations. They must also determine the bottlenecks in the process so that software development outsourcing becomes feasible for them.
It gives the opportunity to stay updated and complete core activities on time. When enterprises identify the bottlenecks, they can become aware of the processes that need change.
4. Understand companies vs. freelancers
There are companies that provide full-cycle custom software development services, and then there are freelancers. Enterprises need to understand who they want based on their requirements. While freelancers are good for a specific need, a custom software development company provides a wider scope.
Outsourcing companies have a pool of custom application developers in different technologies and domains. Enterprises won’t have to go looking for developers as they can find everyone in one place.
5. Scout multiple outsourcing locations
Many enterprises make the mistake of immediately settling on one country when it comes to outsourcing. Either they have a preference for China, The Philippines, Poland, Ukraine, India, Vietnam, or any other country. The best option is the one that provides affordable pricing for high-quality talent.
Scouting multiple outsourcing locations also gives an idea about what prices and talent are available in different countries. India is a big outsourcing destination because it provides high-quality individuals who can speak English fluently.
6. Hire the right partner with careful consideration
Not rushing to outsource custom app development services is an intelligent decision that enterprises will not regret. Finding the right partner depends on multiple factors — experience, portfolio, cost, and more. Careful consideration is necessary if the enterprise wants to synchronize itself with the partner.
Culture is an important attribute that enterprises must consider while outsourcing. Understanding how the other country’s teams work and their operational style will provide valuable inputs about their fit with the enterprise.
7. Agree upon the contract details in advance
The contract for software development outsourcing must be thorough and detailed. Everything must have proper references and agreements. Both parties should understand the details of the contract and the terms included in it.
Timelines and payments are often a challenge for enterprises and outsourcing companies. Finding common grounds for that is essential to work effectively and efficiently. While enterprises avoid long-term contracts, they are usually more affordable and functional than short-term outsourcing.
8. Identify whether you should outsource or partner
There are two ways to outsource — either the enterprise can hire offshore app developers for custom web application development and let them go once the work is done, or consider the company as their “offshore office.”
When expansion is a priority, partnership is much more valuable than simple outsourcing. Hiring a company that can work as an international office will enable the enterprise to expand its foot without setting up additional infrastructure and save a lot of money.
9. Understand the importance on cybersecurity
When outsourcing, data sharing is essential. Enterprises must trust the outsourcing company and share data with them to work on the processes. However, they also need to install security measures in place so that the offshore software solutions companies cannot misuse the data.
There are Non Disclosure Agreements, data protection policies, and several cybersecurity tools to ensure complete data safety. Enterprises must be vigilant of what data they provide and how the outsourcing company uses it.
10. Focus on value rather than cost
One of the most important tips to enterprises that outsource software development is to focus on value rather than the cost. Low-cost companies often tend to deliver moderate-quality products and services. Go for a partner that charges in the budget but also delivers the right things that the enterprise needs.
The goal should be to build a long-term relationship. Any offshore company that offers the opportunity to benefit the enterprise through partnerships, global expansion, or scaling should be a preference over others.
Conclusion
Enterprises need to be confident about who they outsource software development services to. Today, hiring offshore app developers has become a priority for companies that want to reduce costs and improve product quality. Keeping the above 10 tips in mind will enable them to make the right decision without much confusion.
