Knowing if, when, and how to deal with (+ thrive at!) software development outsourcing might be crucial for your company. How so? Well, choosing to outsource can bring numerous perks! Even if your technical background is quite limited, you can still rely on certain parameters that will help you make the best choice.
In this post, we’ll cover some tested practices, rules that always apply, and all the little hacks that will guide you through the process of finding a reputable BPO company.
What is software development outsourcing?
Outsourcing is a widespread business practice that started to gain its massive popularity around four decades ago. And ever since then, it has been evolving, adjusting, and reshaping. It all began with the manufacturers, but it quickly took a turn toward other industries, niches, and job functions.
Now, the most simple definition of outsourcing points that this business method lets one company hire another one to take care of specific parts of its work. Basically, it all comes down to hiring a suitable BPO company specialized in the exact domain you need assistance and expertise in. The third-party team then fulfills specific tasks within an agreed time frame and by following their client’s requirements, expectations, and plans. When we speak of software development outsourcing, the outside dev team should possess the key technical knowledge and skills and be proficient with a tech stack their client needs them to work with.
Answer the basic question: Should I outsource software development?
There are quite a few valid reasons why we should outsource software development instead of keeping it in-house. But still, the timing must be right, all the necessary preparations and calculations must be done, and there has to be a very reliable BPO partner in sight. So, the most straightforward answer to the question above would likely be yes. However, there are a few variables to consider. For instance – how much time do you have at your disposal? If the answer is We needed this feature developed yesterday, that pretty much says you’re more than ready to outsource! There’s also a matter of accessibility, cost effectiveness, and coverage. Stay tuned & soak in the perks of finding your perfect BPO.
What are the criteria for deciding to outsource software development?
So, aside from the tight deadlines and cutthroat competitors who might or might not do it faster, there are a few other scenarios when hiring a third-party software team is the best choice. Here are the aspects to examine before making the final decision:
- Outsource if your in-house team lacks some key tech skills that are now vital for the project,
- Look for external help if you must shorten time-to-market without missing out on the quality,
- Find a BPO company if you’re short on staff and you lack time or money to hire internally.
Start a meticulous search and find the best match for your business. You will have countless areas to canvas and many qualified remote teams that can help you conquer the market in a snap.
Must-know: Pros and cons of outsourcing
In-sourcing vs. outsourcing was always a tight corner. Both have some super important advantages. And also – both options come along with a few drawbacks we mustn’t neglect. So, let’s start by naming a few risks and challenges one might face when they choose to outsource tech roles or any other functions. First of all, there is a matter of issues in communication due to physical distance or differences in time zones. Then, this issue could grow into a more severe case. It can cause missed deadlines or improper methods of working, and even a decrease in quality. Sadly, it can also affect security negatively and cause some long-term headaches in this domain, especially when there is some sensitive client data involved.
On the other hand, the benefits of outsourcing software development are also huge (and possibly more significant):
- Hiring qualified tech talents around the globe,
- Gaining a competitive advantage fast,
- Obtaining new skills and valuable knowledge in no time and with lower costs,
- Cutting down on basically all the expenses,
- Being more flexible, productive, motivated, and able to focus on more business areas while your external dev team does their magic.
Watch out for the potential problems and make sure to pursue the vendors that will help you feel the true benefits of working with them. If you choose correctly, all risks will be minimal, and the perks will be reached for sure.
How do I choose an outsourcing vendor?
How do you outsource software development effectively? It all depends on the third-party ally you hire. Selecting the most fitting one is what can make or break your future success. So, first, you must assess your internal needs carefully. Also, be very aware of what you can offer and whether your finances are aligned with their expectations. Being honest, transparent, and able to discuss all terms early in the negotiation process will save both parties a lot of time and energy. Not to mention that starting off on the right foot ensures mutual trust and respect. Get ready for a couple more tested tips to pair up with a skilled and trustworthy vendor.
5 Simple tips: How do you choose an outsourcing software development team for your project?
So, if you don’t have a vast coding background, choosing a dev team to pair up with might seem like quite a challenge. But no worries, it is still possible to make a good call even if your experience differs from what you seek. Take these steps:
- Ask the communities and take their advice,
- Be present on various platforms and channels, and monitor the crowd,
- Explore multiple markets,
- Hire a consultant to decide on a tech stack,
- Shortlist several BPO companies.
Once you narrow down your choice, make sure to do a thorough background check. Look into their references, testimonials, and feedback. Aside from the reputation, it’s necessary to have a peek at their previous projects. Finally, it is fine to ask for a trial period. Agree with your potential partner on starting small and moving slowly. Give them a small chunk of work and watch if they fulfill their assignments on time and with dedication.
How much does it cost to outsource development?
Knowing the precise costs in advance is a bit of a challenge. You will have to look carefully into the job market and learn much about several different areas. Each country and region differs when it comes to the hourly rates of freelancers and the fees outsourcing companies charge. Also, the expenses can vary depending on the tech stack and seniority level you seek. Nonetheless, estimating how much you’ll be paying for reliable BPO provider services is impossible without gathering and assessing these key numbers and factors:
- How complex is the project, and how much work will need to be done?
- How many developers and other tech experts will be working on the project?
- How flexible are your deadlines?
Consider your actual needs and explore the market through and through to find a development team that corresponds to your unique requirements and budget. And lastly – be sure that they have excellent background and references!
Know the benefits: Why do American companies outsource?
Many companies choose to outsource parts of their work for numerous reasons. That way, they can speed up the processes, boost productivity, and ultimately conquer more ground. Nevertheless, although the BPO industry is unstoppably evolving, the number one reason for outsourcing is still its cost-effectiveness. And the US entrepreneurs have this advantage in mind. In fact, more than 300,000 jobs get outsourced out of the US each year. And when we acknowledge that more than 70% are more than pleased with these collaborations, we can see that this business strategy drives the desired outcomes for most.
What is the best country to outsource software development to why?
The list of best countries to outsource development is quite long. There are multiple emerging regions to explore. However, the most popular ones now include:
- Ukraine,
- Poland,
- Serbia,
- Argentina,
- India.
Eastern and Southern Europe are the promising new lands that more and more US businesses choose. Many of them set up dev teams here from scratch and establish their presence as development centers. Others outsource to these countries and gain phenomenal results pretty quickly!
Learn about software development outsourcing & nail your targets in no time
If you want to know how to successfully outsource software development with a very little coding background, this article can be a great starting point. Check out these key guidelines, and make sure to explore each of them. In the meantime, don’t forget to do a bit of research from within. Check your company’s strengths and weaknesses, and align your priorities. Then – choose your BPO partner & nail your next project!
