Contact us anytime to know more — Abhishek P., Founder & CFO CISIN
Outsourcing software development services allow your IT department to concentrate on core competencies like growth and innovation.
You can outsource your entire development process, just like 64% of companies!
Let's take a look at some custom software development services you can outsource:
UX Design: Provides usability consulting and front-end and UX design services to TV, PC, and mobile devices.
Feasibility Study: Helps you benchmark your product idea via feasibility study, proof-of-concept, and user testing, to minimize risk in the early stages.
Consulting: Provides technology advice for implementing the best technology stack to meet your custom software development needs.
Software Architecture: Helps to design solutions faster and more efficiently for projects of different sizes.
Software Testing: Provides a complete range of software testing services to produce a reliable, efficient, and fast software product.
What Are the Different Types of Outsourcing?
The world is a village. There are many outsourcing companies available. The options include different working methods and different locations.
These are the most popular types of software development outsourcing models that businesses use around the globe.
Homeshoring:
Is a software development outsourcing that involves handing over your project to a single developer or a software team in your country
This type of outsourcing allows for regular face-to-face meetings and the ability to work on complex software development projects. Homeshoring can be convenient, but it can also prove to be costly.
Nearshoring:
Is the most common form of software development outsourcing. This involves finding a team of developers in a country that is near your home and is also easily accessible by cost and location.
Nearshoring is a popular choice because it offers a wide range of benefits, including similar skill sets, costs, language, and time zones.
Offshoring:
Is a type of outsourcing that has declined during digital transformation. It is the practice of outsourcing software development work to remote countries like India and China.
Businesses often pay a different price. Language barriers, time zones, long transport times, and customs issues can affect your core business.
Onshoring:is when work that has been offshored or near your country is returned to a software developer.
You may need more involvement in the project or a new partnership opportunity.
Want More Information About Our Services? Talk to Our Consultants!
Key Benefits of Outsourcing Software Development
Cost Savings
This is why outsourcing custom development services is so popular with companies. Outsourcing is a cost-cutting tool that 59% of businesses use!
What makes outsourcing cost-effective?
It can be costly to hire an in-house software developer because you have to use resources for recruiting, training, and onboarding new employees.
You can save money on hiring an outsourced team. You won't have to spend on office supplies or training.
There is also a significant difference in living costs between developed and developing countries. The cost of living in London, for example, is much higher than it is in countries in Eastern Europe like Ukraine and Poland.
Outsourcing your software development company/software development project can help you hire high-quality talent from developing nations like the Philippines for a fraction of what it costs!
Time Savings
Nobody expects that the project will fall behind its deadlines. First, the market is competitive. The more time it takes to complete a project, the less you will be able to compete in the market.
This second reason could be due to cost concerns. The more time it takes to complete a project, the higher the cost.
It isn't easy to build projects from scratch. It takes time to recruit, develop and then deploy people. It can sometimes lead to stress from a lack of resources and time.
Experienced offshore software companies can speed up development and deliver software development projects on time by offshore developers.
They can analyze the development process combined with Agile methodology and other software development tools. They will ensure that the project delivers on time, with continuous improvement and flexible responses for change.
Working with an offshore software development team/ offshore software development company is advantageous because you can work with another company in a different time zone.
You may find that overlapping time zones can shorten your project requirement in offshore development centers.
Allows Time to Focus on Specific Tasks
You can save much time by hiring experts offshore outsourcing. Start-ups often have limited time. They are struggling to make it in the industry, and secondly, they lack manpower.
A software development outsourcing company will relieve your start-up of the responsibility for recruiting, training, and housing employees to app development for your business.
You will have access to an offshore team of highly skilled professionals immediately, allowing you to concentrate on your core business functions.
They will assist you in achieving your business goals through their expertise and experience in app development.
Gain a Competitive Edge
Businesses are increasingly relying on innovative technologies. Businesses worldwide have turned to IT trends such as BI, AI, ML, RPA, and Blockchain to streamline operations.
The implementation of these technologies can be difficult. This is why many businesses look to outsource their software development projects to companies skilled in these software technologies.
Innovative Potential
A wider talent pool can help you expand your innovation potential. Diverse backgrounds can bring out their unique ideas and mindsets to help your business.
A diverse group of experts can help you gain an edge over local talent. This is a great thing for businesses trying to innovate.
Scaling The IT Development Team
Scaling up or down your resources is essential for any business's development process. You may not require the same resources for your business or software project.
You may not need as many IT professionals to develop and work on your project at certain stages. However, if your project has reached a certain stage, you may need to reduce your dedicated development team.
But scaling up or down a development team will cost more. It would be difficult to manage an IT department.
This will help you save time, money, and energy when building your development team. How? The development team will become yours once you have formed a partnership.
The offshore company will manage the development team. They will let you ask for more or less staff depending on your needs and requirements.
Connect with Teams Around the World
You don't have to be a local candidate to find the right person or connect with an offshore team that meets your needs.
The great news about offshore software development companies is no geographical restrictions.
Global access gives you more freedom when it comes to financing and helps with deadlines and meeting targets. It can also help speed up the completion of projects.
Although it might seem difficult to use different time zones, this can be a great advantage.
If you work with an experienced team, it is possible to have work completed quickly. Each aspect of the project can be handed over to another professional for them to complete the next phase.
Time zone differences can be a blessing when you are short on time.
Pitfalls to Avoid While Offshoring Custom Software Development
You're likely to outsource work in Canada or Ukraine as in the UK or USA. This is not only for non-tech companies and start-ups.
Slack and other major companies such as Alibaba, GitHub and WhatsApp have been able to reap the benefits of outsourcing development from their infancy, helping them reach their current success.
While outsourcing can improve efficiency and reduce time to market for your application, it can also result in significant cost savings.
However, this must be done properly. Outsourcing custom development solutions come with significant risks. These risks can have a negative impact on your bottom line and could cause projects to fail before they are launched.
Failure in Understanding the Scope of the Project
Clear communication about the requirements and deliverables you expect, the expected timeline, and the overall scope of your project is crucial for outsourcing success.
These details can lead to scope creep and misalignment of the product vision if they are not communicated. These issues will cause software engineers in software engineering to continue working in silos, increasing the gap between what you expect and the deliverables.
You must do the groundwork and document the features you wish to include in the app. The software requirements specification (SRS) document is a great starting point for the development team to gain insight into the requirements.
Ambiguity of Stakeholders
One of the greatest disadvantages of outsourcing is the lack of ownership. The actual project manager ownership can become complicated if the outsourcing partner you choose only employs programmers part-time and on a contract basis.
Because there is no project leader or team that is consistent and accountable for the project management, inconsistency can occur in delivering the deliverables.
You should understand the roles and responsibilities of each person involved in developing your software project.
Also, ensure consistency throughout the process by ensuring that at least one of the project managers is consistent. These are the people you can hold responsible for and should be present at regular check-ins, email threads, and video calls.
Code Quality Challenges
It is difficult to determine if the outsourcing team adheres to quality standards while coding your application.
This challenge is magnified if you are a non-tech company or have little coding experience. Because there are no clear definitions of high-quality and low-quality code, Quality Assurance automation testing can be ambiguous.
Quality code is a set of attributes that must be communicated to the outsourced development team. My experience has shown that good code must have clarity and maintainability.
For long-term success, it is important to have well-documented code that is tested and adheres to the formatting conventions and coding conventions for the programming language being used.
You can't squash them all.)
To maintain code quality in an outsourcing model to offshore teams, it is important to communicate expectations, set quality benchmarks, and hold regular briefings with your team.
Things to Consider Before Approaching Offshore Custom Software Development
Before software outsourcing There are many factors to be considered when a company decides to outsource its software development.
The process should not be easy if you do your research. You shouldn't make a decision solely based on cost or other factors. There could be other important things you are missing or that you should settle for.
Software outsourcing is not just about cost. There are many other factors to consider. It is important to research each company carefully and consider these key factors before deciding.
Analyze Their Procedures and Roadmap
Analyze the software development vendor's programming methods, build styles, and process roadmap. Outsourced providers should be clear, concise, and thorough throughout.
They should also have a clear, structured, and well-organized working structure. They will be able to communicate effectively what the custom software development lifecycle (SDLC) will look like. This is a great way to hire and outsource staff for your small business.
To find the best-outsourced software developers, you must analyze your expectations, roadmaps, procedures, etc.
Define Development Goals
Also, discuss your development and building goals with your outsourcing software provider. You should list the goals that you expect your vendor to achieve.
These goals could be related to software product development quality or desired features. You must ensure that your objectives are realistic, achievable, and timely.
This will certainly impact overall efficiency, performance, and scalability. It will also help you assess the success and reliability of your outsourcing efforts.
Routine analyses of the progression of your goals are important as your SDLC progresses. You can then make adjustments and strategic modifications before it is too late. With your outsourcing software developer, you can define your development goals.
Prepare to Protect Your Intellectual Property (IP)
You may meet with a legal team before proceeding with an outsourcing project. It is essential to maintain confidentiality, especially when working with a new product.
It is important that you ensure that the NDA lists who have access to source code, where it is stored, who is responsible, and what information is confidential.
Understand the Company Culture
Cultural differences between countries are a major barrier to outsourcing. However, companies ensure that cultural differences are not hindering doing business.
As an outsourcing company, it can be flexible to meet the needs of each client and their schedule.
It is important to work with an outsourcing company where you feel comfortable. This can be done by understanding the culture of the provider.
To get a feel for the workplace, you can visit their office and talk to one of their workers. It is also worth looking at their social media profiles, as they may have posts that will give you an idea of their competition.
Cultural differences are not a problem. Businesses can arrange themselves as they wish. They adapt to the requirements of their client companies.
They work the same hours and follow the same leave schedule. This makes them identical in all cultural aspects, even though they work at different locations. They don't necessarily need to be in the same office to remove this cultural barrier.
Are you Going to Make the Most of your New Software?
Software development can be costly, whether you outsource or build it in-house. Individual costs, such as wages and purchasing resources, can quickly add up.
Before you hire a team of specialists to develop your software, make sure you get the best out of it. It can be difficult to determine how much you will use the custom software.
Ask your staff if they feel it is necessary.
Also, you should check out the current market for software that may be a good fit for your needs. You don't have to make every software unique.
This could save you money and help you avoid costly development.
If you're looking to specialize in a specific field, developing software for your company is worth the effort.
Just make sure you know how much you will use it before investing.
The Key Takeaway
You can successfully outsource small business software development service by following a few key steps. Analyze the offerings, roadmap, and processes of your outsourcing provider.
Next, make sure that your provider is a good fit for technical tasks. This usually requires extensive experience with Docker containerization tools and container registries. Also, communicate clearly with your vendor about your development goals.
Be sure to discuss the prices before you agree to the terms. Throughout the vendor selection process, technology innovation should be prioritized.
You can create a customized software product that is future-proofed and advanced. You can follow the above steps to learn how to outsource software development for your small business.
