How to Build a Strong Relationship with Your Software Development Outsourcing Partner

Collaborating with a software outsourcing company can be a game-changer for companies that wish to benefit from a wider array of tech expertise. However, establishing a solid connection goes further than simply signing a contract.

Outsourced development can give you access to a fully committed software development team without depleting your funds or burdening your internal team. Yet, to effectively capitalize on these advantages, it’s important to agree on a few key aspects.

The success of your project can depend heavily on an outsourcing partnership, so it’s vital to cultivate a relationship based on trust, mutual comprehension, and common objectives.

Many businesses start with lofty expectations during the initial months of working together, but laying the groundwork starts sooner — with the identification and selection of a service provider that meets your requirements.

Software vendor vs. software partner: Why do business relationships matter?

Selecting the right software development firm can be an adventure, but it can also easily become overwhelming due to the multitude of choices. It’s crucial to realize that even though all software partners are vendors because they deliver a service, not every software vendor will act as your partner.

So, how can you distinguish between the two?

Software vendors are an excellent choice if the software being developed isn’t critical to your business operations.

Similarly to how you wouldn’t rely on your web hosting provider for guidance on your product’s optimal software architecture, you shouldn’t anticipate vendors to customize their strategy towards you or support your procedures.

Vendors provide universal solutions that are typically pre-built and require limited interaction with them.

Contrarily, a software partner is committed to the success of your project from its inception. They work collaboratively with you before, throughout, and after the development phase to help you hit your key business objectives.

They also assume responsibility for the products they create and for keeping you up-to-date on progress. When dealing with partners, open communication and personal interaction are as needed as technical abilities.

3 traits to look for in a software development partner

Both vendors and partners have distinct roles within the software services sphere. If you have a smaller or medium-sized website, it isn’t logical to reinvent the wheel or develop your own CMS; you could simply purchase a subscription plan instead.

But what if a vendor cannot meet your specific needs?

Software partners frequently operate in untapped areas as they need to understand your previously unmet needs to create a solution tailored to your requirements. This requires problem-solving and cooperation in your relationship with them, making these three qualities indispensable for any potential candidate.

They value soft skills at the same level as technical skills

When you delegate a software project, you’ll likely be communicating regularly with your external team.

A development firm with a partnership focus gets this dynamic and places equal importance on interpersonal skills and technical knowledge — from their responses to initial emails to how they manage status report meetings.

They take responsibility and think long-term

Partners are equally invested in the project’s outcome, which encourages them to prioritize long-term strategies.

This could materialize in various ways, such as:

• offering continuous technical assistance and upkeep
• avoiding potential technical debt by making smart engineering choices
• incorporating new technologies to meet evolving user expectations and business objectives

They focus on the solution, rather than the problem

Vendors center their attention on the problem, attempting to align your case with the pre-set solution they’re offering.

On the other hand, partners are geared towards finding solutions. They are involved in outlining the scope, generating documentation, and establishing requirements, as well as making the necessary technical decisions that will move your product ahead.

The building blocks of a win-win software development partnership

Each business relationship is unique, just like each human relationship is different from the others.

Thus, while there’s no universal recipe for outsourcing success, there are certain aspects you can prioritize to enhance your collaboration and ensure its long-term sustainability.

Clear expectations and shared goals

A reliable software development partner can understand your objectives, embrace your vision, and convert these into consistent deadlines and outcomes.

Gartner research shows that only 11% of companies meet their self-set launch targets; so, aligning expectations and goals is essential for market success.

However, it’s not just about having a roadmap, it’s about mutually understanding the vision behind that roadmap.

With your “North Star” success metrics identified, you and your dedicated team can collectively work on all core aspects of the development process, including:

• Speed and efficiency of development
• Testing and security protocols
• Quality of software
• User experience and design

Communication

It’s well known that communication is key to a positive outsourcing experience.

In fact, it’s so critical that 73% of clients are ready to pay more for products or services from businesses that communicate openly and transparently.

Project Managers and stakeholders need to cooperate closely to maintain effective communication, quickly clear obstacles, and set up feedback cycles.

Since the Project Manager serves as your primary contact, collaborate with someone you feel at ease speaking with.

Mutual trust and accountability

Establishing a mutually beneficial partnership requires both parties to trust each other.

As the client, it’s expected that you differentiate reasonable expectations from unrealistic ones, avoid pressing for changes that aren’t pre-discussed, and supply the external team with any necessary information or feedback.

Simultaneously, your software development partner should fulfill their obligations. Implementing a system of accountability can diminish the risks associated with software outsourcing substantially.

A clear working arrangement, routine check-in meetings, and demo calls where the team shows their progress are some of the most productive methods to enhance accountability.

Starting your outsourcing partnership on the right foot

The first several months of collaboration can forge the direction for the whole outsourcing relationship.

Strengthen your partnership from the start, enabling workflow coordination and leveraging each other’s expertise to the maximum.

Agree on communication and team management protocols

Selecting the appropriate collaboration model is just the beginning.

Whether you intend to expand your in-house engineering crew or collaborate with an external partner focused on your project, it’s essential to know how communication will be conveyed between you and the development team.

Addressing such aspects early on cuts unnecessary back-and-forths seeking answers.

It also clarifies accountability within the cooperation:

• Who is designated as the primary contact for the project? If there are multiple contacts, what is each person responsible for?
• Will you play a role in managing team members or resources?
• How frequently do you anticipate communicating with the development team? For instance, will you participate in weekly planning or only demo meetings?
• What’s your preferred communication method (video calls, text messages, emails) and which channels and remote collaboration tools do you plan to utilize (such as Slack, Google Docs, Jira)?

Establish collaboration terms through legal agreements

A Master Service Agreement (MSA) outlines the legal terms and conditions guiding your collaboration with the software outsourcing firm.

This is inherently linked to a Statement of Work (SOW), which concentrates on project-specific details, such as the start date, overall scope of work and deliverables, and team size.

These legal and project-specific structures set your project on a firm foundation. It marks one of the initial steps in synchronizing legal obligations, and also goals, processes, and the overarching vision.

Finalized versions of these agreements are typically reviewed by representatives from each party to ensure all terms are mutually agreed upon, enabling you to kickstart your collaboration with trust and transparency.

Introduce your software development partner to your organization

An outsourcing partnership works both ways.

Just as you need to decide the extent of your engagement with the external team, you also have to determine their level of involvement within your organization.

Will they participate in your internal meetups, planning sessions, or even holiday festivities?

There may be cases when you’re uncertain or specific information is not available to you. During such times, it’s invaluable to have other stakeholders in your organization intervene.

By fostering this level of involvement early, everyone will feel more comfortable reaching out when needed. It also simplifies the creation of escalation routes, as you know whom to get in touch with, and you’ve already made their acquaintance.

Adopt a common Agile mindset

Firms that think together, function together.

However, one company’s interpretation of an Agile mindset may not overlap with another organization’s comprehension of Agile.

You and your IT partner will need to adhere to a working model that portrays a shared understanding of such practices.

Embracing an Agile methodology can bolster resilience, quicken delivery times, and improve your capability to handle shifting priorities. It doesn’t just provide a shared vocabulary when conversing with your software development partner, but can also improve your internal procedures.

A Gartner survey indicates that businesses adopting an Agile mindset report a 30% overall uplift in operational performance.

Maintaining a successful collaboration in the long term

The more you collaborate with a software development agency, the more they comprehend your company culture, operations, team dynamics, and hurdles.

Therefore, switching a development partner can be costly and time-consuming as it’s uncommon to find someone who grasps your business from the get-go.

This is why stability and consistency are always beneficial for software outsourcing. Establishing a long-lasting relationship sets the foundation for improved decision-making, seamless workflows, and solutions that meet your company’s long-term goals.

Make time for social interactions

Similar to your in-house team, becoming acquainted with the human aspect of your outsourced development crew increases the likelihood of a long-term partnership.

Engaging in casual conversations occasionally might seem insignificant, but it’s these little things that leave lasting impressions.

During the various tasks and responsibilities in building software products, social interaction often gets sidelined.

However, deliberately sparing a minute or two for casual conversation at the start or conclusion of a meeting can foster a sense of connection and motivation among the teams.

Align on how to handle project changes or roadblocks

Change is inescapable, and may spring up even after you’ve meticulously documented and planned every detail.

In the realm of software development, it’s less a question of if there will be project modifications, but rather when. This also stands true for minor or significant blockers.

Many partnerships struggle over time because they do not account for alterations and obstacles.

Suppose you intend to implement a new feature.

What is the procedure you follow to propose and agree on this change without impacting the workflow?

Or perhaps, your team has hit a snag that’s causing delays.

Aligning change management, evaluating risks, and formulating contingency strategies with your development partner is important for ongoing success.

Set up transparent reporting practices and track progress

Transparency and trust are closely intertwined.

Embracing a “no surprises” method in outsourcing indicates that your partner is competent and prepared to sincerely update you on their advancements and keep you posted on any issues that emerge.

Transparent reporting also promotes a culture of continuous improvement, with KPIs serving as indicators highlighting where to concentrate your efforts more.

Whether it involves routine catch-up sessions, weekly progress updates, or real-time collaboration via project management tools, having a clear view of the project’s developments forms the basis of trust.

A transparent, well-orchestrated development procedure helps in avoiding hidden costs and clarifies how time and money are allocated.

Encourage two-way knowledge sharing throughout the project

The exchange of knowledge is needed for forming and sustaining a fruitful, mutual partnership.

As an expert in your sector, you equip your team with insights about your company and product, constructive feedback, and any information they need to progress.

Likewise, you depend on your partner’s tech know-how to make optimal decisions concerning the tech stack, architecture, and product strategy.

The strength of knowledge sharing extends beyond mere information exchange. It’s about leveraging each other’s strengths to collaboratively tackle issues and confirm that the final product doesn’t underperform due to neglected knowledge gaps.

Start building a reliable software development partnership today!

At ETEAM, everything we’ve discussed in this article is a part of our everyday operations. With a team of top-tier developers and a proven history of delivering premium solutions within the agreed time and budget, we’re dedicated to the long-term success of our clients.

Drawing from nearly a decade of experience, we have a strong, mature ecosystem including proficient personnel, tools, and best practices, encompassing everything from client onboarding and product discovery to post-launch help and maintenance.

We keep transparency and accountability as the cornerstone of our software development process, discussing expenses upfront to avoid hidden charges and utilizing centralized dashboards and comprehensive reporting.

If you’re in search of a long-term software development partner, and not just another vendor, let’s connect and embark confidently on your software outsourcing journey!