Top 7 Things To Consider While Outsourcing Software Development in 2022

Company owners are often faced with finding the right software development outsourcing partner to take their products and services to the next level. When done right, outsourcing software development can yield tremendous benefits.

It allows businesses to focus on their core competencies while tapping into marketeting trends and utilizing the latest technologies without investing in long-term staffing or infrastructure. 

When done wrong, however, poor outsourcing partnerships can cost your business time and money while creating irreparable trust issues between you and your vendor team.

So how will you determine which software development outsourcing partner to choose? Will it be based on the technical abilities of their developers or the size of their office and project portfolio? 

If you have been wondering how to choose the right software outsourcing company, here are seven critical outcomes that you should seek to ensure that your software project is delivered on time and within budget.

1) The right technical approach

Software development outsourcers with whom you may be unfamiliar can present themselves in several different ways. The terms they use and their services can vary greatly from one outsourcer to another. 

Identifying which of these services are most important for your project is critical—and it’s often very difficult for clients. You must make an honest assessment of what these differences mean for your project. 

And remember, understanding technical approaches don’t simply mean understanding methodologies; you should also consider other factors when selecting partners, such as team size, experience levels, and geographic location. These factors will all play a role in delivering a successful outcome for your software project.

2) The right staffing model

You may have heard of agile development, which involves short, focused bursts of work followed by periods of analysis and feedback—but not all staffing models are created equal. While there’s no one-size-fits-all approach, it’s important to find an outsourcing partner with a model that matches your goals. 

If you’re looking for flexibility and agility, a software product development staffing model based on independent contractors will likely provide you with better results than one based on W2 employees. 

On the other hand, hiring employees will often be your best bet if you need long-term support or want to minimize overhead costs. It pays to do your research before deciding which staffing model is suitable for you; speak with other software companies about their experiences working with agencies and direct developers.

Their advice can help you determine whether going direct or using an agency makes more sense for your specific needs.

3) Relevant experience

Software development outsourcing is an expensive process, so you should be sure that your outsourced partner has industry experience. Experience isn’t necessarily how long they’ve been in business—it’s how much experience they have with your type of software.

If you don’t already have them on staff, look for a partner that offers: expertise, creativity, ingenuity, and problem-solving abilities. Look at their portfolio and find out what software companies similar to yours are using as well. 

This will help you decide if it would be wise to move forward with one company or not. Don’t waste time talking about low bid options; price does not reflect quality in software development. Your best bet is moving forward with a mid-market option (still cheaper than doing everything in-house). This way, you’ll get better service and lower costs.

4) Relevant certifications and licenses

Your custom software development outsourcing partner’s certification and licensing requirements should be considered before engaging in a relationship with them. 

This is important because it can help ensure that your partner has specific essential competencies and knowledge, reducing or eliminating associated risks. 

For example, look for partners who have an ITIL Foundation certificate—this indicates that they understand basic service delivery concepts. If you’re considering hiring developers from overseas, then another relevant certification is ISO 9000—this ensures that they understand quality assurance practices. 

Many states also require software companies (and outsourcers) to obtain licenses before operating within their jurisdiction. Check with your state’s insurance department and see if such laws apply where you are located.

5) High-quality communication

A vital consideration when selecting an outsourcing software development partner is communication. You will be relying on your outsourcer for updates and information, so be sure that they have several channels of communication that you feel comfortable using and are convenient for your schedule. 

The most common channels include phone, email, webchat, team project management tools like Slack or Skype, and video conferencing applications like Zoom or Google Hangouts. If a company is only available via Skype, but you find yourself frequently unable to get an internet connection, then it’s not going to work out well. 

Similarly, suppose they only use email as their primary channel but never respond until late in business hours when all of your US-based colleagues are unavailable. In that case, it’s not going to work out well either. 

Find someone whose preferred methods of communication fit your style. Be clear about those, too, because there’s nothing worse than having something important happen at 11 pm on a Friday and expecting someone from India to jump online.

Make sure you select a software development outsourcing partner who has someone in your time zone handling daily tasks. 

6) Price and Rate Model

What is your budget? What will you be paying your partner on an hourly, monthly, or annual basis?

In order to ensure that you are meeting your business needs at a price point you can afford, it’s important to evaluate different vendors and work with those that can provide value in alignment with what your company needs. Keep in mind that pricing does not always indicate quality; make sure you are selecting partners who have a proven track record of success within their industry.

Once you’ve finalized your rate model, expect to pay additional fees for every change request that comes up during development. Make sure both parties agree upon these rates before any code is written and reviewed thoroughly at the initial planning stages.

Ideally, vendor selection should take into account all these considerations when choosing a software outsourcing partner for long-term strategic growth plans. You need something more reliable than selecting based solely on cost alone if your goal is sustained long-term business growth through stable platform development which delivers significant improvements over competitors.

7) A sense of urgency

You want your development partner to have a sense of urgency. This means you don’t want partners who will drag their feet on projects or become distracted with other priorities that emerge during outsourcing software development. 

Make sure your partner has everything they need to be as efficient as possible and that they’re using time-management techniques such as Kanban board management to ensure they’re delivering high-quality products promptly.

Final Words

Too many organizations outsource only after they’ve tried, tested, and failed at outsourcing. This is often due to a lack of knowledge regarding key metrics that make or break an outsourcing relationship.

To avoid making these common mistakes and choose an outsourcer wisely, you need to think carefully about your priorities before approaching any service provider. Make sure you don’t miss out on the above seven critical success factors to look for when selecting a software outsourcing partner.

Good Luck With Your Project!