How to Outsource Software Development Projects (10 Simple Steps)

How to Outsource Software Development Projects (10 Simple Steps)

12 minutes, 45 seconds Read

We are living in an era highly influenced by the fast-paced advancement of technology, and globalization has erased the lines on maps, letting business transcend through virtual lines and get things done everywhere on the map, and those strategies have yielded results. And one such way is outsourcing.

This collaborative model has brought a plethora of benefits to businesses and companies, such as expediting project timelines, access to a talent pool, easy scalability of teams based on your needs, eradicating the need for micromanagement, and more and all without overhead expenses and compliance-related issues at much lower cost.

The benefits it brings forth are alluring, but if the intended job is not done right, your whole effort and money will be futile. That is why the success of software development outsourcing hinges on meticulous groundwork and strategic execution. And that is why you need to read till the end so you can do it right.

In this comprehensive article, we will equip you with insights into strategically navigating the whole right way to outsource software development projects in 10 steps. Alongside the method, we will delve into the models you have at your disposal to outsource.

So, without further ado, let’s delve into the article, cutting right to delving into the 10-step process.

10-Step Method To Outsource Software Development Projects

Each step of the outsourcing software development model needs you to be strategic and nuanced with your approach and have a well-thought-out execution.

Defining Project Requirements

Fill the digital pages with your thoughts and everything you envision about the kind of software you want. Assume you want an app, so on this requirement page, you would need to elaborately mention everything you want in your app, all the features and functionalities, and the kind of app you want.

If you are inspired by the app, then you may like to include a reference to that app so the potential outsourcing partner can better understand the concept and give you a quote accordingly. If you want your app to be built using a certain programming language or a tech stack, mention it, mention everything possible about the app, the kind of interface you want, the perfect elaboration of the idea, etc.

When pouring out the requirements, see things from the third-party vendor or service provider and contemplate what possibly they would need to perfectly churn out my app. If there are specific requirements, such as being uncompromising about high performance or slowing down, one must mention them so the third party can have a better idea.

In the digital manuscript, include clear project objectives i., your goal, your target audience, etc., and project delivery; mention the duration you can wait for them to develop your concept, what your software should not have, and it is quite important to mention while outsourcing software development project so you don’t assume anything on their own, the project constraints, i.e.,e milestone, regulatory, budget if any, estimated timeline, etc. Also, remember to mention what would be their concern like your budget, project timeline, etc.

Before you outsource software development projects, rigorous and thorough groundwork si essential to ensure you have clarity on what you want to be developed.

Choosing an Outsourcing Model

There are primarily three outsourcing models that are so categorized basically on the basis of the location of the third-party vendor you are contracting for software development outsourcing.

  • Onshore Outsourcing: Onshore outsourcing basically involves contracting a third-party agency/service provider/outsourcing partner within the same country as you or whoever is hiring. The top benefits of this model are proximity, similar time zones, and cultural understanding. Depending on the country and labor cost of a specific country, it can cost the highest and lowest.
  • Offshore Outsourcing: In this model, you outsource the software development to a company that is located in some other region, normally far from you. Assume you are in America and you are hiring some company from Asia. Normally, America, Canada, and European countries adopt this model due primarily to the disparity in currencies between these countries and Asian countries.
  • Nearshore Outsourcing: In nearshore outsourcing software development, the third-party service provider/software development agency is situated in a neighboring or nearby country. Assume you are residing in India in Asia, and you hire a Bangladeshi outsourcing partner, nos these countries exist in Asia, so this would be called nearshore outsourcing.  This model gives you the perfect middle as you are actually outsourcing your project to some outsourcing company that is located not in your country but in the same region.

Which you should choose depends on a lot of factors like the complexity of the project, the delivery of your software, your budget, etc.

Research Top Third-Party Vendors

Finding the right outsourcing partner is akin to having a solid foundation for a building. It is paramount for your app’s success to be developed by a company that knows its art well. The right company would know what programming languages and technology stacks should be employed to create the app you envision flawlessly.

Also, the well-versed third-party vendor would have a solid development team at the helm of the production department. They have hired strategic people, creative designers, highly skilled developers and coders, and top-notch QA and testing people, also, when it comes to deployment, they will also ensure seamless and flawless deployment.

Check out online platforms like Toptal, “clutch. co”, etc.,  and other marketplaces and freelancing platforms like Fiverr, Upwork, Freelancer, PeoplePerHour, etc. Normally, companies have profiles on many platforms to garner more clients. You can search on LinkedIn, and even a typical Google search can give you a list of top outsourcing companies that you can further dig in.

So before you outsource software development projects, ensure either you have found a great outsourcing company or one of these a shot.

Custom Software Development Services

If you think you would be flawed, or you are not confident in picking a company for your project, Here are a few top companies for outsourcing software development.

  1. Intellectsoft: Intellectsoft is adept at diverse services like mobile app development, dedicated development teams, product engineering, UI and UX services, software testing, and QA and testing. Apart from development testing, it also offers IT consulting.
  2. Binmile: Binmile specializes in services like custom software development, software product development, mobile application development, web development, UI/UX design, e-commerce development, software testing and QA, and MVP development.
  3. Saigon Technology: Saigon Technology is adept in domains like web application development, mobile app development, custom software development, AI development services, DevOps services, SaaS application development, software product development, enterprise software development, software QA testing, MVP development services, PoC development services, etc.
  4. Fireart Studio: Fireart Studio offers the full gamut of services of an agile team of JS programmers, product refreshment, full-cycle product development, design out staffing, motion design company, branding, and digital product design.
  5. Aalpha: Aalpha is adept in the landscape of application development, AI & ML services, chatbot development, robotic process automation, data science consulting, natural language processing, video analytics, ChatGPT application development, software development, content management services, SEO services, SaaS development, etc.
  6. ScienceSoft: ScienceSoft is adept at services like software development, web development, mobile app development testing and QA application services, UI/UX design infrastructure services, digital transformation managed it services, IT outsourcing, it consulting, IT support data analytics, cybersecurity, etc.
  7. Aciety: Aciety specializes in domains like web development and QA, mobile apps, e-commerce, website project management, website QA, SEO – search engine optimization, software QA, enterprise application integration, graphic design, logo design, game development, etc.
  8. Tatvasoft: Tatvasoft offers a full spectrum of services of custom software development, UI/UX design, software testing and QA, mobile app development, e-commerce development, software product development, dedicated development team, web development, etc.
  9. BairesDev: BairesDev specializes in realms like QA testing and automation, business intelligence, data science, iOS app development, UX/UI android app development, machine learning, data engineering front-end development, etc.
  10. Iflexion: Iflexion specializes in services like enterprise software development, mobile app development, web app development, QA and testing, dedicated development teams, application integration, SaaS application development, AR and VR development services, etc.

Check References, Testimonials, and Review

In this step, you have to dig into the past work reviews of all the companies that appeal to you. Pore over the reviews and ratings of all companies on different platforms. Also, you can ask for references and contact their previous clients to understand the workflow of the companies better.

Reading reviews and ratings will help you pick an outsourcing partner confidently, and you will assured you are putting your resources and time in the right place. Also, the right company would help keep you engaged throughout the development process and it will ooze professionalism in its process. That level of professionalism will be reflected in the project as well.

Also, try to find an outsourcing partner that has done a similar software you want to get developed because doing so will make you confident you have outsourced your software development project to a company that has experience in creating a similar app.

Evaluate the Outsroucign Company Expertise

It is paramount to evaluate a company’s expertise before you outsource your software development project. And more importantly, evaluating the skills need to bring your vision to life. Apart from this, evaluate the company’s negotiation, communication, problem-solving, analytics skills, etc., to ensure the delivery is smooth.

Suppose you mistakenly or due to your ignorance. In that case, your project is gone in the hands of companies that don’t know the best coding practices or, you may say, the company is not well versed in the phase of the software development; chances of you getting flawless software would be low, and you will end up getting a software that has either performance issues or design issues or has a 0 weak codebase that could potentially expose your software badly and leave it the mercy of hackers and tamperers.

Communication And Collaboration

Communication and collaboration are two things that will contribute to the successful delivery of your projects. Choose a company that is well-versed in communication and collaboration, and when you start the collaboration, it sets up channels for you to communicate your queries with them. Also, communication and collaboration are paramount within the team of the outsourcing partner. A company with good communication and collaboration will deliver better software.

Companies not focused on seamless communication and collaboration can be flawed in the process of your software development.

Quality Assurance And Testing

If the app build has been coded fine but not tested well and thoroughly, then there is a high probability that you will get flawed software. The software, if developed for customers/ users, will cause them trouble, and if you are getting it developed for you, your workflow will be highly affected. So, ensure the company has a stringent commitment towards breathless security and impeccability.

Outsource Software Development Company Your Project

If you don’t understand the legalities and everything around it, you should have a person who can make you understand the contract fully. Ensure there is no ambiguity in the contract; everything is written clearly and has transparency. Ensure you read the document well and then sign it on. Also, ensure the company asks you to pay through standard payment gateways, not some rarely heard ones.

When you are finally outsourcing ensure you establish a project management framework to track progress, milestones, and timelines. Ensure the company sets up channels for you to give and take your input. During the whole development process, it is important to be aware of the project’s progress so you can ensure the delivery is on time. Also, ask the company to schedule meetings like Zoom meetings or some other call meeting and keep you posted with all the updates.

Building Long-Term Partnership

If your project is delivered successfully and you will have more projects to complete, you should build a long-term partnership because finding a partnership that is as full to the point as you want. Also, if you keep working with the company, it may give you relaxation and offer you reduced rates for future projects.

Software Development Outsourcing Benefits

  • Reduces Both Hiring and Costs: So when you give out your software development project, you don’t need to start a whole hiring process, rather, you do some research on companies, contact the ones you find the right one or appealing, and once you’re done with making it understand your project and everything, it is left to vendor to decide. This way, you are actually giving a fixed fee to a company and reducing your cost of the office. if you hire a development team and then you usher on developing your project, the total cost would be way higher than the cost you will give out the project to some other company.
  • Quick Project Start and Delivery. The company you give out your project has already done many projects and is well-versed in embarking on a project and delivering it on time. When you develop the project yourself, you will first need to go through planning and everything because you would be the first. So, outsourcing software development projects can ensure a timely delivery.
  • Chance to Tap into Global Talent Pool: When you are hiring in the team, you are hiring people from areas near your office because people are usually reluctant to go far and get stuck in traffic jams navigate the whole way to the office and return home, but in outsourcing, you get the chance to access the global talent pool where top professionals are working on your software.
  • Easy Team Scaling Up and Down: This is one of the top benefits of software development outsourcing. When you are outsourcing, you are not hiring a team that you have to take care of. Rather, it is the team you hired that can be easily scaled up or down without you having to worry about getting them so they remain indulged in something.
  • Optimized Managerial Efforts: When you develop software projects yourself, you need more than just coders at the core seats, rather, you need project managers that can affect the overall cost. But when you outsource the software development project, the team at the helm of the company’s development department is highly skilled in being a steward of your project, from ideation to wireframing to designing to development to testing to development, it is their everything, you have to keep a check on the speed of the development.
  • Accelerated Time-to-Market: With software development outsourcing, you can massively speed up the project timeline, and reduce development interim. Exnetranl vendors you work with have years of experience, and they know how to develop projects strategically in a way that they are done faster.

Conclusion

The trend of outsourcing software development has been rising. More and more companies are opting for this model to get software developed for the plethora of benefits it brings forth, like access to the global talent pool, business getting to focus on core business, cost efficiency, faster time to market, eliminating the need for micromanagement, easy scalability of the development team, getting to leverage the latest technology, etc. Still, you have to be nuanced because the process of outsourcing software development needs a strategic approach to be done right and result-yielding.

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