Best Practices for Outsourcing Software Development

Many business owners realize that all areas are actively moving online. This is very convenient for both clients and companies. Thanks to such an online approach, some processes can be simplified, and some even can be automated. But in order to make everything work as it should, first of all, you should develop high-quality software solutions. If everything is well thought out and developed, then in this way you will be able to make the provision of your services more efficient. Moreover it is possible to improve the success of your business as a whole and gain a competitive advantage through digital transformation.

Working on a software development project involves many things and nuances. If you have people in your team who are well versed in all of that stuff, that's great. But, sometimes the best thing you can do is to opt for software development outsourcing to a reliable outsourcing software development company. But, how to know if you need it and how to get the desired results? Keep reading to find out what useful tips we have prepared for you in this regard to development outsourcing.

Preparatory stage

Identify your business needs

Before starting to work on a project, you should clearly define what tasks it should solve. That is, think about what you lack for better work processes and what you would like to solve with the help of software development. Also, take a moment to analyze what processes can be automated to relieve the employees' workload so that they can devote their time to more important tasks.

This analysis will help you determine if outsourcing software development is the right choice for your business and identify any skill gaps that need to be addressed. Consider how outsourced software development can help meet your business requirements and improve overall efficiency.

Analyze the market

The next step is to research the market. Focus on your competitors and the giants in your particular niche. Check out what software they use, what solutions they implement in their business, and how effective they are. It will also be good if you will be aware of the market trends and what is going to be in demand in the near future, such as machine learning or cloud development.

This research can help you decide whether to opt for offshore software development or nearshore software solutions. Understanding global software outsourcing trends can provide valuable insights for your development outsourcing strategy.

Clearly define the idea of your future project

Once you have completed the previous steps, it's time to start defining what solution you want to implement in your business. Have a thought about the concept of the future project. Ask yourself what are the main tasks you want it to solve and in which way. Consider how software development outsourcing can help you achieve your strategic objectives and improve operational efficiency. This is also the stage where you should start thinking about the project scope, potential MVP development, and how outsourcing IT development can support your goals.

Make sure outsourcing is exactly what you need 

To accurately determine whether you really need to outsource software development, or whether you can simply go with the staff augmentation method, make a realistic assessment of the scope and complexity of the project. After that, determine how it will be more convenient for you. 

Team augmentation is a good option for projects of medium complexity. In this case, you will need to hire one or more professionals to your team for temporary work (within the project). But among the disadvantages may be:

• the need for additional space in the office;
• additional time to build relationships between the new workers and the in-house staff;
• self-management of the project progress and so on.

Development outsourcing, on the other hand, will be ideal if you want to fully delegate the development to a team that has been working well together for a long time. In addition, you will get full assistance at absolutely all stages of the project and you will not need to control everything, as the teams already have those who fulfill this role.

The approach can lead to significant cost savings and faster time to market, while also providing flexibility and scalability. When you outsource development, you can benefit from the expertise of a dedicated development outsourcing company

Make a list of requirements and set a budget

Before you start searching for a reliable partner to whom you will delegate the development of your software, gather your team for a meeting. Discuss and document all the project requirements, including any specific technology stack or programming languages needed. Next, determine how much of your budget you are willing to allocate for development and what is the ideal time frame in which you would like to complete the project.

It is important to set realistic requirements and deadlines, considering factors like quality assurance, project management, and software testing. This is also the time to consider cost estimation for your software project outsourcing and decide if a fixed price contract or other pricing model would be most suitable.

Choose your outsourcing partner and proceed with project development

Find a suitable outsourcing company 

In order to find a team that will implement your project as you would like it to be, it is worth devoting considerable time and effort to the search. One of the most common methods of finding a software outsourcing company is the internet. So, to choose the most reliable and suitable partner follow these tips:

1. Find a team that is close to you. For better understanding and compatibility in the work it is worth selecting professionals of your mentality, which are in your time zone, or with a small difference in time. This will give you the opportunity to avoid mismatching of work schedules, as well as reduce the risks of misunderstandings due to different worldviews and time zone differences.
2. Thoroughly check out the reviews, success stories, and case studies. You can read customer reviews both on the company's website and on various forums. It is also a good option to ask customers personally about their experiences. This will give you a better understanding of what to expect from the company and whether it is suitable for you. Pay attention to client testimonials and project success stories.
3. Pay attention to the manner of communication. Choose a company that values you. Focus on the speed with which your questions are answered and in what tone. It's worth understanding how seriously these people take their work and their clients.
4. Research the projects that have been developed by the company previously. Usually, the website of outsourcing companies that deal with software development has a section where they list and describe their completed projects. Take a detailed look at each of them. Look at the quality of the work and decide if it's a good fit for you. It's especially great if their projects are in your industry, showcasing their domain expertise and industry experience.
5. Look at the pricing. Do not chase too low or too high prices in the hope of getting a good outcome. It is better to choose a company that offers software outsourcing services in the middle price range. This way you will minimize the risks of getting a poor quality product or overpaying for services. Consider different pricing models like fixed price contracts or time and materials agreements when outsourcing custom software development.

Choose the preferred development model

Choose a method of working on the software that suits you. At the moment there are quite a lot of such models and all of them are diverse, for example: waterfall, spiral, v-model and so on. But, we recommend you pay attention to Agile development methodologies.
This type of work on the project involves breaking it into stages and constant communication with the client. This way you will always be aware of what is going on. Also it will be possible to change something in the project without losses, so you definitely get the finished product on time and without additional expenses. Agile development also allows for better flexibility and adaptability throughout the software development lifecycle. When considering software outsourcing models, discuss with your partner how they implement Agile practices in their development process.

Negotiate all the details onshore 

Before fully immersing yourself and the outsourcing development team in the project, it is best to discuss and document all the details as soon as possible. This includes aspects like intellectual property rights, non-disclosure agreements, and compliance with regulatory standards. This way, you will ensure an excellent mutual understanding between you and your partner, as well as maximize your protection against poor quality results.

Don't forget to discuss security protocols, data protection measures, and any specific compliance requirements relevant to your industry. Clearly define the contract terms to avoid any misunderstandings later in the development process.

Develop a workplan

Making a project work plan and sticking to it will ensure that the completion of the work on time, as well as help you to identify problem areas immediately. Agree when you want to get a progress report, when you are ready for meetings, and so on. As soon as you map out a path, everything will become really straightforward. This plan should include milestones for important stages like UI/UX design, coding, testing, and deployment. Make sure to incorporate collaboration tools to facilitate smooth communication and project management. Consider including version control practices, API development stages, and DevOps services in your work plan to ensure a comprehensive approach to software development outsourcing.

Control the process to get a quality result

Try to be in constant communication with the development team. Take an active part in the testing stages. If you want to add or change something, or if you have a different opinion on something, be sure to let everyone know about it. Remember that the final result is partially dependent on you and your efforts.

Regular communication can help address any cultural differences or communication challenges that may arise during the outsourcing process. Implement performance metrics to track progress and ensure adherence to industry standards. Pay attention to code quality, conduct regular security audits, and ensure that the user experience meets your expectations. This level of involvement will help guarantee the success of your outsourced software development project.

Consider SDH to be your partner!

Outsourcing company Software Development Hub is ready to offer you our help in developing your product. We start working on your projects from scratch. We can help you even if you are not quite sure what you want to see in the end. 

Due to the fact that our team of professionals have been working together for years, they know all about mutual understanding and teamwork. We also build a trusting and friendly relationship with each of our clients. In order to work well together, it's important for us to stay in constant communication and make sure we are 100% understanding of each other.

To view all our projects that we have worked on, you can visit the corresponding section on our website. We are involved in development in different areas and therefore have a wide range of experience. Be sure that if you start cooperating with us, you will definitely become one of our thousands satisfied customers!

As a reputable development outsourcing company, we offer comprehensive software development services, including enterprise software solutions, system integration, and software consulting. Our team possesses the technical skills necessary to handle complex projects, ensuring high-quality deliverables and timely project delivery. We prioritize knowledge transfer and maintain transparent communication throughout the development process, addressing any potential bug fixes promptly. Choose SDH as your outsourcing company for a successful software development outsourcing experience.

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