What are common pitfalls to avoid when choosing a software development outsourcing company?
Communication
Communication is absolutely critical to keep software projects going. Before deciding to outsource, take the time to get clarity on goals and initiatives for your organization. This will set you up with the right knowledge to communicate effectively with the company you outsource your project to.
Setting Expectations
When choosing a software development company, you should have expectations in mind. It would then be best if you had a conversation about expectations with the vendors you’re considering to ensure that they can meet them.
Budget
Be mindful of your budget and understand that it’s more important to choose a software outsourcing company that can deliver the quality you need. Vendors that can offer both value and quality are the ones that should be on the top of your list.
What are the different types of software development outsourcing?
1. Onshore
Onshore outsourcing (also called local outsourcing) is the process of either working with an internal team or working with local talent to complete your software project. This outsourcing method gives you maximum visibility into the project. However, it also typically comes with higher costs and a smaller talent pool.
2. Offshore
In offshore software development, organizations outsource all project tasks to a third-party or team of developers in another country. While offshore outsourcing can work, communication and quality are more significant concerns than they would be with other methods.
3. Nearshore
Nearshoring is similar to offshore development in that it requires outsourcing to another country. However, the difference here is that the location you outsource to is near your own. Typically, this approach is cost-effective and gives your organization access to a larger talent pool. It serves as a great balance between onshore and offshore options and often allows you to maximize the benefits of outsourcing.
4. Hybrid
While this is less common, some organizations also offer a hybrid model. A hybrid model combines these different approaches to outsourcing. This is a fit for some projects, but blending multiple models can also add a complexity level that isn’t always ideal.
What to look for in a software outsourcing company
It’s important to look at the company’s software development culture and its core values. Ask questions about how their business operates. Ask about the qualities that they look for in their developers and the way they work with clients. The values they have might be an indicator of how successful the project will be. You will likely be working with this company long term, so it’s important to understand how they work and ensure that aligns with what you’re looking for.
Deciding to outsource is an exciting venture for most businesses. It gives you the ability to bring in additional expertise and often complete the projects you want to work on more quickly. However, outsourcing can also come with many obstacles and risks. That’s why choosing the right partner or vendor is so important, as it is a significant factor in the success of your project.
Are you considering outsourcing? This post will share what you should be aware of before you go down this path. Keep reading to learn what a software outsourcing company is and how to choose the right one for your project.
1. Understand (and avoid) common pitfalls before you start outsourcing
Briefly, let’s discuss how your organization can prepare to outsource and choose a software outsourcing company. Outsourcing has many different benefits. 57% of companies feel that outsourcing lets them focus on their core business, and 47% use it to solve capacity problems. This practice is becoming more and more common. To truly take advantage of benefits like this, you must be able to understand and avoid pitfalls. Here’s what you need to be aware of:
Communication
According to the 2017 Global Software Services Report from SourceSeek, nearly one-quarter of software development projects fail because of a lack of communication or clear goals. Communication is absolutely critical to keep software projects going. Before deciding to outsource, take the time to get clarity on goals and initiatives for your organization. This will set you up with the right knowledge to communicate effectively with the company you outsource your project to.
Setting Expectations
According to the State of Software Development report, the number one cause for software teams’ delivery problems is unrealistic expectations. When choosing a software development company, you should have expectations in mind. It would then be best if you had a conversation about expectations with the vendors you’re considering to ensure that they can meet them. If everyone is on the same page, your project is much more likely to go smoothly.
Budget
Many organizations choose to outsource software development as a way to cut costs. Research from Deloitte shows that 59% of businesses use outsourcing to reduce expenses. Often, this is a benefit of outsourcing, but it shouldn’t necessarily be your priority. Be mindful of your budget and understand that it’s more important to choose a software outsourcing company to deliver the quality you need. Vendors that can offer both value and quality are the ones that should be on the top of your list.
2. Understand the outsourcing software development options
Now, let’s talk about methods for outsourcing your projects. There are four different ways that your organization can approach this:
1. Onshore
Onshore outsourcing (also called local outsourcing) is the process of either working with an internal team or working with local talent to complete your software project. This outsourcing method gives you maximum visibility into the project. However, it also typically comes with higher costs and a smaller talent pool.
2. Offshore
In offshore software development, organizations outsource all project tasks to a third party or team of developers in another country. While offshore outsourcing can work, communication and quality are more significant concerns than they would be with other methods.
3. Nearshore
Nearshoring is similar to offshore development in that it requires outsourcing to another country. However, the difference here is that the location you outsource to is near your own. Typically, this approach is cost-effective and gives your organization access to a larger talent pool. It serves as a great balance between onshore and offshore options and often allows you to maximize the benefits of outsourcing.
4. Hybrid
While this is less common, some organizations also offer a hybrid model. A hybrid model combines these different approaches to outsourcing. This is a fit for some projects, but blending multiple models can also add a complexity level that isn’t always ideal.
Each approach requires different considerations. The right outsourcing partner for your organization will depend on your specific project and needs. Some software outsourcing companies will specialize in one or two of these different methods.
3. Choose your software outsourcing company wisely
Once you decide what method is right for your business, you can look at software outsourcing companies. We’ve talked about how important it is to outsource to organizations with a proven track record and industry experience in previous posts. Those things do matter, but there are also other critical considerations. It’s important to look at the company’s software development culture and its core values.
Ask questions about how their business operates. Ask about the qualities that they look for in their developers and the way they work with clients. Remember: the people at this company will become your partners throughout your software development project. The values they have might be an indicator of how successful the project will be. You will likely be working with this company long-term, so it’s important to understand how they work and ensure it aligns with what you’re looking for.
Another thing you should be aware of is what methodology the software outsourcing company follows. Here at Unosquare, we believe that agile software development is ideal for software projects. Data shows that agile projects are 28% more successful than traditional projects. This is, in large part, because feedback happens continuously through the development process. To learn more about agile software development, read this blog post.
Ready to choose a software outsourcing company?
Unosquare is ready to help. We focus on finding the best talent globally and putting together a delivery management practice that is your eyes and ears within our organization. Our distributed agile software development staffing solutions provide the best expertise for your teams in a fast, transparent, and efficient way. To find out more about outsourcing software projects with Unosquare, check out our blog.
