guide to software development outsourcing

A software outsourcing company can help mitigate the risks of developing your project. An experienced team will be able to foresee potential liabilities and identify errors through robust testing and QA practices. Nowadays, software outsourcing providers are seen as valuable business partners who can play a major role in growth. Specialized development areas like blockchain, cloud computing, and the Internet of Things are no longer a challenge for small and medium-sized businesses that don’t have an in-house development team. In this present age of accelerated software development, outsourcing testing is an invaluable asset. Testing service providers prioritize the most up-to-date technology and tools to ensure you attain the highest usability, functionality, and performance output quality.

guide to software development outsourcing

Only after the product is finalized according to real reviews, can it finally enter the market. Making the development easy, process more logical, and the collaboration more efficient with the best experts in their field are not the primary benefits of outsourcing today. But we do agree with the fact that there are a few upsides and downsides of developing software through outsourcing that the developing group faces while they outsource. If you appreciate quality above quantity, you should start caring about it beforehand. Check the skillset (the hard skills and the soft ones) of your upcoming team.


A proven outsourced testing company can be highly beneficial, yet a few limitations remain to consider. Before you work with an external team, consider what type of testing your project requires – automation or manual. Furthermore, which tools do you prefer for your tasks versus the ones the potential partner offers? That means you can access talent with evolving and emerging technologies with a quick phone call to your preferred software outsourcing partner.

You can shortlist companies based on your project size, their tech stack, and other offerings. Ukraine has great tech talent and can be trusted with all types of software development projects. While English is not a common language there, over 80% of their IT populace can communicate in this language. Its time zone also overlaps with the US and UK, giving you better flexibility.

guide to software development outsourcing

Outsourcing gives you an opportunity to look for talents worldwide
and to hire experienced workers with lower rates (from countries
with a lower cost of living). Outsourcing IT development, on the other hand, gives more flexibility. You
decide how large your team will be, and you can quickly scale it depending on
the project’s needs. While this is a worthy investment for large companies with a stable workload,
this is not the best option for smaller ones or for companies that have to
complete only one or two specific projects. A software project handover might be just what your project needs when it’s fully or nearly fully developed.

Software Development Outsourcing: All-In-One Guide

Staying up to date with the latest regulations, policies, and practices is not an easy feat. Working with the best software developers and support engineers makes it easy to manage IT processes with accuracy, flexibility, and structurality. However, you can really succeed at it with the help of a quality software engineering partner and a tight process to guide you. And while that process might differ from company to company and industry to industry, we can sum it up in 5 key steps that determine how it all works. When you outsource a software project, you only pay for the expertise that you need. It eases pressure on internal staff and frees up company time to focus on the day-to-day running of the business.

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To obtain their reviews, open the profile of your future IT partner on such platforms as Clutch, GoodFirms, or Upwork. If it’s not enough for you, don’t hesitate to apply to the review authors via social networks (or in any convenient way) and discuss everything about collaboration with the particular company. Next, select a company – the best way to do it is to read reviews on rating and hiring platforms, Dribbble/Behance sites, etc. Deciding on the particular vendor, dig deeper, checking their portfolio, business ratings, and expertise domains.

Fixed price bid

So, if you have complex software to be developed, it is probably best that you chose some other country. In such situations, a company can take the managed product development approach. You share the product idea with the company and discuss the requirements. The vendor handles everything from MVP development to scaling the product and launch. Many organizations come across different challenges in their work and operations which compel them to outsource software development.

Is IT better to outsource software development?

With an outsourced software development team, businesses can scale up their development capabilities quickly and effectively. This allows them to focus on getting their product to market as efficiently as possible.

Due to high proficiency and use of best coding and time management practices by our developers. A vendor provides you with remote professionals for you to manage directly. You can get an exact number of experts you need, from 0.5 FTE to 100+ FTE. Nothing beats a face-to-face meeting to give you a better picture of who you will be working with. You’ll learn if you can communicate with team members efficiently and learn their processes; jokes and informal communication also matter. The benefits of nearshoring are again in a close location, and it also offers a pool of IT professionals at a lower price than onshoring, but there are cultural and language issues.

Access to Top Tech Talents

This is not a complete questionnaire to discuss with your partner company representative; however, you can expand it according to your project needs and questions you are interested in. Speaking to the vendor, start with clarifying the goals you want to achieve. Tell about the improvements you would like to see and discuss the ways of doing that. During the conversation, you should note the level of creativity they show and their openness to collaboration.

  • If you have any doubts about hiring vs outsourcing, it’s time to face them.
  • Most product owners are looking for the opportunity to develop excellent products fast.
  • Since the outsourcing partner employs developers, you don’t have to pay for employee costs, such as equipment, health insurance, and retirement plans.
  • Outsourcing can speed up the software development process without compromising on quality.

You can protect yourself by picking a company that has already dealt
with sensible data and by asking the team to sign the NDA
(Non-Disclosure Agreement). Most well-known
startups started small but later added extra features to grow their user base. Look for companies with a good reputation on the market, are familiar with
your niche, and work with technologies you prefer. Furthermore, access to a worldwide pool of talents allows you to pick
professionals with different hourly rates, from the ones common in your
country to much lower ones. As with project implementation, the programmer ensures the program’s successful integration into the organization’s environment. Programmers ensure that each set of changes integrates well with other programs, hardware, and servers and functions efficiently.

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We’ll take it step by step, starting with a comparison of in-house development and outsourcing. But finding expert developers in limited time to meet fast-approaching deadlines is only one side of keeping your development moving forward. Amid the coronavirus shutdown, maintaining an in-house team has become much more difficult—and far less cost-effective. As the world is turning into a global village, many countries are opening doors and offering outsourcing services. It can discuss requirements directly with the project manager and ensure the work is done as described. Every organization has a gap that it seeks to fulfill through outsourcing.

Software testing companies cannot reach the peak of their potential if they don’t have measurable and achievable goals. To track progress, Key Performance Indicators (KPIs) are used to measure how efficient and successful the tests are. KPIs are a team tool to continuously improve performance through informed decision-making based on data analysis rather than intuition alone.

Last but not least, understanding the business aspect of the engagement is vital. To do that, check the company’s portfolio, case studies, and
reviews. Let’s review different outsourcing scenarios to understand which strategy
suits your needs and budget best. Setting milestones and timelines will allow you to track the project’s
progress and adjust the deadline if necessary. Describe the project in detail, clearly stating your goal, deliverables,
scope, budget, and other things that matter to you (for instance, a specific

Can software developers be outsourced?

Outsourcing is an excellent way to build software solutions for startups and established companies that don't have an extended software development team. It's a common practice across industries. According to a Statista report, software development is one of the most common outsourced IT functions.

How Outsourcing Works at a request for an organization to successfully complete responsibilities, focuses around business associations just as logistics. If you’ve been looking for a reliable outsourcing partner, then we understand that finding one is quite a task. You may be feeling discouraged and even skeptical that the search is fruitless and you’ll never find the perfect match with whom to collaborate. What was once an easy process, has become a complex task of vetting prospective partners.

  • You can have them handle all seven stages and just pay for the rights to own the program.
  • Right from the start, you need to have a clear vision of what you want from them and follow up with them.
  • Engineers can modify the product after delivery to fix faults or to enhance functionality and improve performance.
  • This is one of the most widespread outsourcing problems connected to many reasons.
  • Given the project objectives, your provider needs to understand your setup, strengths, and weaknesses to make sure that they can complement where there is a need for the collaboration to go smoothly.
  • Assuming that everything is going well may result in some unexpected roadblocks.

You can hire remote developers from India for at low as $15 per hour. The people are also fluent in English, eliminating any language barrier. The biggest advantage of outsourcing the complete project to a software outsourcing company is that it will ensure clear deliverables and reduce friction. All you need is a clear goal, a well-developed outsourcing contract with the scope, and other things listed clearly.

If you have an idea for a differentiator that can distinguish you from your competitors but are not experienced in creating software, getting started could be your challenge. Many small and medium-sized businesses have in-house IT teams with strong skills in maintaining existing software. For us, good software development outsourcing is about positive client relationships. It fosters stronger collaboration, ingenuity, and space to do our best work.

As a result, before selecting an outsourcing provider, ensure no hidden expenses for services and implementations such as connectivity, communications, and infrastructure. English is the global language of business and technology, and it’s more important than ever that tech roles like software developers have a good command of the English language. In particular, having solid communication and a strong relationship with an outsourcing partner is critical since most of your partnership will take place virtually. Successful outsourcing requires a process management savvy and a strong ability to apply technology to solve business problems.

Both individuals and companies choose to outsource to save time and money while increasing quality. You may be a great cook, but when planning a large event, you might hire someone with the expertise, equipment, and dedication to focus on dinner while you manage other tasks for the night. The next step is to check who exists in the software outsourcing market. Luckily, there are recruiting platforms with successfully outsource software development lists of software outsourcing companies, agencies, or contractors such as Clutch and Upwork. Recent research by Deloitte found that 70% of respondents consider saving up costs as the main decision driver for outsourcing software development to distant companies. Software development outsourcing to offshore companies is the most cost-effective technique, and it offers you a pool of IT professionals.

How to choose software development outsourcing company?

  1. Measure expertise.
  2. Tech stack – the fewer the better.
  3. Check out their process and communication routine.
  4. Rule of similar sized company.
  5. Partner chemistry.
  6. Frequent deployment.
  7. A partner who understands the business.
  8. Geography.