Myth busting: Outsourced Development
Outsource. The hype around this word has generated strong misconceptions about the benefits outsourcing can provide.
You outsource your needs everyday, from your food to your babysitter.
But for some reason when it comes to business, things get a little muddy and while it is understandable, it is not concretely based on facts.
Here are some common myths and misconceptions about outsourced development we see get tossed around and well, are not very credible.
Myth #1 Outsourced Developers Can Steal Your Intellectual Property
This is the initial concern for those who are looking to outsource development. Is my idea going to be stolen?
For US-based freelancers, this is not an issue. Ownership of intellectual property can be made clear in terms and conditions and if you find rogue developers running off with your code, they can be easily shut down in court.
Most likely you won’t find anybody risking their reputation and livelihood in an act of futility.
Myth #2 Fixed Fee Is Better Than Hourly
Understandably, many companies ask for fixed fees. It makes sense, by asking for a fixed fee, accountability is left on the shoulders of the developers. I mean, they should want to finish faster so they can begin more work right?
Yes and no.
Because they shoulder all the risk of delivering a quality product, they will require you to provide all the details beforehand. This means you won’t be able to ask for any changes once the project is underway without coughing up a large sum.
The ball is in their court and they hold all the power, they will do their best to create the highest margins.
Projects are always changing and evolving to meet the requirements of the business and market. You will find yourself having saved money if you had stuck to an hourly rate, because everything is transparent and implementation of new features is entirely under your control.
Back in the day, fixed price was common because the communication process was tedious, but now communications can be as easy as a live chat, or a video call. Many trusted outsource companies are offering 1–2 project managers free of charge to keep communication at the highest level. And furthermore, if you followed our guideline on how to choose a development company, accountability and trust will not be an issue.
Myth#3 Outsourced Developers Drag Out The Time So You Overpay
The other reason companies ask for a fixed fee. They do not want to overpay.
However, it really is in the best interest of the developer/development firm to create a strong relationship and uphold a good reputation.
Your app or software is going to need updates and you can hire an in-house developer to take care of those responsibilities, but who better to ask than the developer(s) who made it?
You pay an hourly rate, and you haven’t had a reason to distrust them. Win-win.
Myth#4 You Have Less Control Over Implementation
Many companies feel like once they hand the project over, they lose control over it.
That is not true.
If you require firms to give daily reports, you have a clear understanding of how and when things are done. You can easily ask for changes through a video call or email.
Any technical issues, usability problems, or possible delays, you will be the first to know so you can make a decision as to the direction of the development.
Myth#5 You Are Just Another Piece On The Developer’s Plate
Once you hire a developer, they will essentially be a member of your team. Because they want to generate the best results, they will focus solely on your project and take the time to understand your business.
This gives them an opportunity to learn about the project in-depth, what your business objectives are, and come up with creative, innovative ideas.
Myth#6 Teams Cannot Be Scaled Up Or Down, Costing You Time And Money
Sometimes development will require more developers, sometimes less. You are in control of how much you want to pay and ultimately, how many developers you hire. So you are able to scale the size of the team depending on the needs of the project without compromising quality or the timeline.
With an outsourced team you can take them off the project as quickly as you put them on without ruining the relationship. In comparison, with an in-house team, adding more developers takes time and laying people off never feels good.
Myth#7 You Pay Extra For Quality Assurance
Quality assurance should come with the package. By following our guidelineon how to outsource correctly, you will have made sure the developer(s) you hire:
- Provides quality code
- And are reputable and trustworthy.
- Will send daily reports and are supervised by a project manager all free of charge.
Concluding
Many businesses who outsource development correctly continue to do so again. They find there really is not much to be scared about and outsourcing actually saves time and money.
They find themselves often moving much faster than their competitors. You probably heard the story about the latest Snapchat acquisition (Looksery) for $150M. The development team was based in Russian and Ukraine, while the founding team was located in the Silicon Valley.
Once you build a relationship with the remote team members, they will come to understand your business and deliver outstanding results. For more information on outsource development please subscribe to our blog.
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