Strategic Considerations When Outsourcing Your Software Development

As such, they’re also the point person for nurturing your outsourcing partner’s relationship with you. Here are some of the aspects you should pay attention to in order to properly manage your outsourced development team.

outsourcing software

And that means managing schedules to find an appropriate slot, which could drag the process out further. Partner With Tiempo Our nearshore business model, mature agile practices, deep expertise, and exceptional bilingual and bi-cultural talent ensure we deliver exceptional client outcomes with every engagement. This model consists of outsourcing end-to-end management of the entire software project. When you hire an outsourced team, you can save money on these hiring expenses. Additionally, you won’t need to invest in office supplies or training them. Hiring an in-house software developer can be expensive because you’re using resources for scouting, training, and onboarding new hires. A critical component is to make sure that the necessary development tools, platforms, and communication channels are all available and accessible.


Even if you have the least amount of control with project-based outsourcing, your in-house Project Manager/Product Owner will keep in touch with your outsourced partner. The frequency of these contacts is determined by your project and your sql server 2019 outsourcing partner. The most conventional and hands-off of the three outsourcing models is project-based outsourcing. You’ll choose your managed team outsourcing provider in part based on their previous expertise with similar projects.

This model provides many of the benefits mentioned in the previous cases. After you decide who’s in charge, you’ll need to assign particular roles and development stages to particular members of your team. A great way to get started with this is to figure out what they are good at and what needs improvements. When you need a specific product developed without a management burden.

  • In short, software outsourcing is a practice or arrangement that allows an organization to transfer some of the business processes to a third-party vendor.
  • As a result, you will have created a high-quality product that’s secure, reliable and performs well even when you push it to the limits of its capacity.
  • An experienced outsourcing service provider has efficient workflow processes in place to make sure that progress is monitored, targets are met and projects are completed on time.
  • With this said, you need to know what your outsourcing software should do for your business before deciding which one you will purchase or rent.
  • But when it comes to developing software – it’s their know-how that you benefit from.
  • The build-to-order software application process at Svitla Systems is comprised of these stages.

Making the contract right is important so that there are no loopholes. Code quality is an ambiguous term because there are arguably no strict definitions for high quality and low-quality code. The Code review IT outsourcing industry garnered $62 billion in revenue in 2018 and has become a truly global business; you’re just as likely to outsource work to Ukraine or Canada as you are to India or Brazil.

Failure In Understanding The Scope Of The Project

Preparing a collaboration environment for your project will require minimum time and effort — a workspace in Slack, a project on GitHub, a board in Jira or Trello — and you are basically all set. You will meet the PM in the very first stage of your project development and will work with them on its plan.

outsourcing software

If you do, staff augmentation or a managed team may be the right choice. Your outsourcing partner will handle the whole development process, delivering the finished product to your requirements and on schedule. The recruitment process takes a lot of time from job advertisement to onboarding. Staff augmentation model provides you the quick way to hiring extra developers independently of type of contract. The outsourcing provider takes the most of the responsibility and own the projects from start to end. He or She completes your development projects according to your specifications. The first wave was the unfriendliness from Google to the website with no mobile version.

Software Outsourcing Process

Basically, you want to ensure flawless daily processing without draining resources from or interfering with your ongoing development. While some companies are known for coding excellence, others offer stellar consulting services. To find a perfect outsourcing fit, it’s critical to define exactly which tasks you want to outsource. With outsourcing or offshoring, information about quality control and labor conditions are often missing from your effort to gain insights into the company processes and activities.

These include software and hardware upgrades, increased salaries, personnel, and office expansions, and much more. But, most stakeholders consider software outsourcing to be necessary for any organization aiming to maintain a competitive edge. A survey shows that 78 percent of organizations were happy with their outsourcing partnerships. Understanding requirements and user stories to cover the software development aspects of all business needs.

outsourcing software

We are also enlisting all the challenges that CTOs, product managers, and other organizations. Cutting down your cost is one of the biggest advantages of outsourcing. You can cut down your cost by a large margin if you strategically plan your outsourcing endeavor. If your objective is to minimize your cost or launch the software at a minimal cost, there is no better option than outsourcing. Today, organizations of all sizes are looking to build new outsourcing relationships or strengthen the existing relations with offshore IT companies to fight the unexpected turns brought in after the pandemic. But many still have their inhibitions and questions about outsourcing.

Companies require top-notch talent but the pool of expertise and skills is not always available within a specific geographic region, which is why it is common to search elsewhere for solutions. It’s very challenging for companies to stay ahead or stay afloat in an outsourcing software environment where new software is emerging on a daily basis. Thus, companies are shifting their strategy towards software outsourcing to reach goals faster and within budget, all in the hope of gaining a competitive advantage in the software technology market.

Make sure that whoever you plan on working with has their strategies in order, so that they can make adjustments to them on the fly, as your needs change and evolve. It’s fair to say that choosing between in-house development and outsourcing—or even some mixture of both—largely depends on your needs. However, outsourcing is the best way to cut down on costs and time, while also increasing the general talent pool available.

Within the Cost Plus pricing model, you pay the developer’s monthly salary as well as a fixed fee for your vendor. The vendor’s fee includes payroll, office infrastructure, fees, support staff, and workstations. While cost savings are the main reason to onshore, skill shortages can also drive businesses to look for talent in alternative locations. Extreme time differences can definitely come in handy for companies that need to provide uninterrupted tech or customer support, and for those who run constant updates and maintenance work. “When evaluating a country for outsourcing, I will first consider the ability to communicate well with the remote team. This is related to mentality issues and the ability to understand each other well.”

While the managed team operates autonomously, your outsourced Project Manager reports to and meets with your in-house Project Manager / Product Owner on a regular basis. Whatever the requirements of your project, a competent outsourcing provider will be able to customize the structure of your team to achieve the best results. Software projects outsourcing companies provide experts match the needs of even the most substantial projects provided that you reach out to them with enough time to get things organised. This allows for greater flexibility, which as we just mentioned, could not be more useful in the software project development lifecycle.

Different organizations have different requirements which we have depicted using various scenarios. Many other companies believe that outsourcing can help them scale up their teams quickly. Outsourcing companies take over the complete project, saving you from expanding infrastructure or investing funds in the same. You can hire dedicated developers who will work just like your in-house team and help you with the work. Tech innovation requires specialists who do not just have expertise in the required tech but are also driven to perform. However, the majority of the CTOs find it difficult to find the specialist owing to several reasons, the geographical limitation being one of the biggest.

The scope explains the exact understanding of the vendor based on your requirement elicitation. Access to the purchaser systems by the outsourcer needs to be considered in the context of current New Zealand privacy legislation, which is intended to protect personal information about identifiable individuals. An outsourcer may only require system access at certain levels to enable them to perform their service. The system specifications should be defined for function, performance and availability as part of the RFI and RFP phases.

You can outsource domestically, that is to a company that’s based in the same country, or internationally. Nearshoring is outsourcing to a company based in a country that is close to yours, while offshoring refers to working with a partner located in another part of the world. Furthermore, you can choose between outsourcing the full development of your product or temporarily augmenting your already-existing development team with outside talent. Highly skilled software engineers are available in many countries but their price tags vary greatly depending on the location. It is likely that working with a dedicated team based abroad can offer you significant savings.

This is commonly called “Scope Creep” and can plague a development process. Just make sure you don’t lose control of the tech decisions that are being made.

Since March of 2020, we have watched colleagues and clients learn on the fly how to accommodate a new situation where everyone’s working remotely. We have team members across nine time zones, and they deliver working software more effectively than my teams from the past who sat within feet of one another. If you can learn to manage outside teams, they will feel like an extension of your own business. We hope you have a clear idea of what and how Setup CI infra to run DevTools development can help you with your business.

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