Today, outsourcing in a business development process has become a troublesome task among leading companies, startups, and successful entrepreneurs. And there are many negative generalizations about outsourcing, for example, loss of administrative control, this business model has been widely adopted by both private and public entities. Basically, it allows enterprises to accomplish their business goals cost-effectively because of the low labor-costs in foreign markets. Also, it makes it conceivable to take advantage of expertise and productivity on a level that an in-house team may not be able to match. Here we are going to look into outsourcing tips for a software development project.
You can also know the reasons to outsource software development at- Why should you outsource the software development?
What is Outsourcing?
Outsourcing is a business practice that includes a company hiring a foreign or local individual or an organization to provide services that are ordinarily done or had previously been executed by an in-house team. In such a working environment, the hired service provider remains in charge of their workforce and computer systems to deliver the expected services either on-site or at an external location. Although interchangeably alluded to as offshoring and nearshoring, there is a fundamental difference between the three. Nearshore outsourcing is a “young offspring” of offshoring as it includes hiring a service provider somewhat closer to home, even though they may still be domiciled in different countries or regions. On the other hand, offshoring alludes to the transfer of business processes to a distant location.
Advantages of outsourcing-
1. Focus on Core Areas-
Redistributing non-core business processes allows you to focus on core business activities. And hence, you can invest your energies in R&D and building your brand.
2. Cost Effective-
The cost-saving aspect is one of the greatest and also most obvious outsourcing advantages. Compared to western countries where compensations are high, some geographical locations like Eastern Europe have lower rates and you can get software development outsourcing services at a much lower cost without compromising on quality.
3. Save on Infrastructure and Technology-
Both offshore and nearshore outsourcing companies put resources into infrastructure and new technologies. By working with such a provider, the need to invest in a similar infrastructure is wiped out as the service provider is responsible for the same.
4. Can get access to Skilled resources-
Access to talented resources is another important part of putting resources into outsourcing. It’s important to note that recruitment, training, and onboarding are resource-intensive processes. Outsourcing service providers are required to deal with all the resourcing needs, also they have a large pool of skilled resources.
5. Increased Efficiency-
Partnering with an outsourcing service provider helps to bring experience and expertise to your project. This implies your job is done by people with a deeper knowledge and understanding, hence efficiently done.
13 Key Tips When Outsourcing IT Services-
1. Selection of right service provider-
Thoroughly searching and confirming your potential software development partner will save you from a future challenges. While evaluating the potential service providers, ask as many questions as possible, check their references and request feedback from their previous clients.
Also know – How to Choose a Software Development Partner?
2. Clear view of objective and scope of project-
If you want your project to run successfully, you should have a clear thought of what you want to achieve. By clearly defining the requirements of your project upfront, you wipe out deviation from the intended purpose. Also, make certain to outline the expected deliverables to their last details as it can highly impact the overall project.
3. Effective Communication-
The main aspect of outsourcing is effective communication. This is due to major hard-to-control aspects, for example, the difference in the time zones and different work schedules. However, with some small effort and the right communication tools like Skype, you can improve the communication.
4. Ask necessary questions-
Try to visualize your project from the start to the end-product and imagine all types of challenges that may occur in between, and list them. Ask as many questions as possible about these challenges and request for straightforward replies.
Here are some questions that you may want to ask the service provider:
- What technologies does the team specialize in?
- What type of projects have you worked on in the past?
- How many (technology’s name) developers do you have in your entire team?
- How do you communicate for project?
- Will you allow me access to the source code via GitHub?
- What exactly am I getting in this project?
- Do your services include support, consultation, design, development, licenses, or something else?
- How long will it take for you to deliver the project?
5. Must have a project manager-
Always have a project manager for your outsourced software development projects. He/she helps to manage small parts in project and also keep the development on track. Involving a project manager in communication with the team helps to solve the issue they are going through. Some teams will spend countless hours dealing with an issue not because they lack the resources, but simply lack the know-low.
6. Payment for pre-defined goals-
Having clearly defined milestones helps you to check the status of your project as it moves toward completion. As the client, always peg the service provider’s payment to these milestones. As a general rule of thumb, you shouldn’t pay over 30% of the total project cost upfront. The other payment package should be based on the subsequent milestone completion.
7. Divide into small sub-tasks-
When managing a outsourcing company for the first time, it’s better to divide your project into relatively small and simple sub-tasks. This will help you in not only establishing their mode of operation but also their capabilities before entrusting them with the “mission-critical” project.
8. Only Pay for services you need-
Outsourcing service providers have a large set of skills that can generally be deployed to work on projects. Sadly, some of them will try upselling some of these supplementary services in a bid to bolster their contracts. Over the span of your working environment, it’s always essential to remember that you just get to pay for the services you need. Avoid the supplementary offerings that won’t contribute towards achieving your current project goals.
9. Value Comes First-
Although it may be tempting to choose a provider price as the main parameter, it could set you up for challenges at a later stage. It’s always recommended to choose a vendor who is capable of striking a balance between quality results and good value.
10. Access for sensitive data-
If the service provider want to access some sensitive data, it is advisable to raise privacy and security. In such a case, it’s better to avoid a private freelancer and choose a company-type solution. Although a freelancer may be truly honest and reliable, their systems and networks may not be as sophisticated as those of a fully established company.
11. Negotiate Ownership Up-Front-
When working on an outsourced software development project, ensure that it is explicitly stated that you own the final product in addition to some other components of the product. Also, make it known to the service provider how you mean to use the product they have agreed to deliver.
12. Support for post-development-
It’s always a good idea to have a support clause or a guarantee if you are to be assured of continuing support from the service provider after the project’s completion. Always negotiate the post-development support clause before the work begins. At last, you should specify whether future changes will come for free or at a discounted charges. This saves you time, money, and unnecessary headaches later on.
13. Must have a contract-
Ensure that you are shielded from potential losses by signing a legally contract report clearly communicating the scope and terms and conditions of your project. Here is a list of important documents that you may need:
Service Level Agreement (SLA) – This document clearly lays down the project’s scope, turn around time, and reports.
Software Requirements and Specifications(SRS)– This document lists all the specifications and requirements for your software product.
Key Performance Indicators (KPI) – Help in evaluating the progress of your project at the different phases of development.
Non-disclosure Agreement (NDA) – Unfortunately, we are living in a world where data theft, is a norm. For this reason, you need a legal document to protect your project’s data.
Similarly, keep track and record even the slightest agreement changes agreed upon and save copies of digital communication exchanges like emails. They could come to save you in the future in case the unexpected happens.
Tips to Choose the Right Custom Software Development Company-
- Think out your product vision: buyer persona, value, business goals.
- Budget all areas of your product development: from development planning to marketing campaigns.
- Know more information about the methods, approaches, and tools applied to deliver a product.
- Confirm the availability of all scope of services like Project or Product Management, UX/UI design, web and mobile development, QA and testing.
- Let the development team provide you with an example of their code writing.
- Make sure that the delivery company will be able to extend your dedicated team when the project blossoms out.
These are some important tips for IT outsourcing. Are you thinking to outsource your project? We at Solace have dedicated developers and managers to help you through software development. You can hire PHP developers and flutter developers of Solace team for effective web and app development. Connect with Solace and get a free quote for software development that help you put a step ahead in this developing market.