How To Outsource Software Development In 2022?

 / September 12, 2022

It is clear that digital solutions are crucial for a business to succeed these days. In the last ten years, businesses in every industry began a process called “digital transformation”. This led them to use different kinds of software to get ahead of the competition. Knowing how to outsource software development gives you a massive advantage in this regard. 

In the highly digital business world of today, companies can talk to the best software engineers from anywhere. When it comes to making new products, both new and old businesses are looking to software outsourcing for help. 

Do you want to find out more about why so many businesses are investing in development services that are outsourced? You are in the right place at the right time. Read this article to learn everything you need to know about outsourcing software.

What Is Software Development Outsourcing?

At its most basic, outsourcing is the act of giving certain tasks to a third-party provider instead of using the resources available within an organization. Almost every part of the economy does outsourcing on a regular basis these days. Statista says that developing software applications is the part of an organization’s IT operations that is most often done by someone else.

The development of software can be outsourced, which is one of the best ways to connect with highly skilled partners. A remote team will handle your products, and the outsourcing vendor will be in charge of the development process. By outsourcing software-related tasks, you could save a lot of money, get access to highly qualified professionals. Additionally, you will have more time to focus on the most important parts of running your business.

What Is Software Development Outsourcing?

3 Methods Of Software Development Outsourcing

  • Onshore outsourcing is when you give software development work to a company that is in the same country as you.
  • Offshore outsourcing is the practice of sending work to a company in another country or region. This is often done to save money. 
  • Nearshore outsourcing means to hire a software company that is based in a nearby country or region. This choice is about halfway between the other two options.

As you might expect, each of these three different ways has its own advantages and disadvantages. Onshoring, for example, would mean that there would be no language or cultural barriers, but costs could be higher. Offshoring would be the least expensive option, but you would have to work with very different people. They will be operating in a very different time zone and coming from very different cultures. For nearshoring, it costs more, but it lets you keep your employees in the same time zone as your customers.

Recommended reading: Software Development Outsourcing: A Detailed Guide in 2022

5 Benefits Of Software Development Outsourcing

1. Access To A Vast Talent Pool

Because the United States and Europe have such a big talent gap, a lot of companies have started looking for skilled workers in other parts of the world. You can fill gaps in your teams with the help of the talent you can find in key outsourcing destinations. You don’t have to sacrifice quality by hiring people with less experience or knowledge.

When you decide to outsource software development, you are not limited by where you are physically located. The group’s qualifications and experience should be your top priority, not how close they are.

You will be able to find the right team for your project if you do thorough research. This large pool of development expertise will help you make the best product possible. This is regardless of where the developers are, whether they work together or apart, or if they work together in person or virtually.

2. Increased Flexibility

Hiring a software outsourcing company gives you a lot of freedom. Because of this, you won’t have to commit to staying in touch with in-house software engineers. You can instead hire a development team for as long as you need them, and then you can stop working with them without any problems. This is a great solution for businesses that only need development occasionally. Companies whose needs change too much to have a full-time staff of developers will also benefit.

Because the world we live in is always changing, it is important for businesses to be able to adapt. Being able to change their services to meet the needs of the market offers a huge advantage. When you outsource software development, you can change the size of your team to fit your needs, change the scope of your project when you need to, and keep as much or as little control over it as you want.

3. Cost-Optimization

When people think of software development outsourcing, the first thing that comes to mind is cost saving. Working with a group that can help you out for a lot less money than an onshoring crew would. On the other hand, if you go this route, you might end up with software that isn’t up to par. But there are other cost reductions worth going after. When you outsource, you don’t have to invest in the infrastructure for an in-house staff. You also don’t have to commit to salaries, paid leaves, and other costs that come with hiring full-time employees.

Businesses that choose to outsource their software development could save up to 30 percent on costs. The biggest factor in this is the difference between the cost of living in different countries, which affects interest rates. The hourly rates that technology experts in Eastern Europe and other popular outsourcing locations charge are much lower than those in the United States and the United Kingdom. Because of this, you can still get the same services even though you pay less for them.

The fact that your engineering outsourcing partner handles all HR, administration, and infrastructure operations also helps your business save money overall.

Recommended reading: Top 7 Web Development Languages To Use In 2022

4. Application Of The Latest Technology

A company that takes on outsourced software development projects will put new technologies to use more effectively. This is because reputable outsourced software providers have a lot of experience and highly qualified people on staff.

Outsourcing companies can handle everything from planning a project and figuring out how much it will cost to wireframing, software development, and designing the user interface and user experience. The outsourced team will have a lot of knowledge and experience and will be able to do any job, including putting in place cutting-edge technology.

Benefits of Software Development Outsourcing

5. Risk Sharing

Effective risk management is an essential part of running any kind of business. No matter if your business operates in software development, finance or some other kinds of services, you need to reduce as many risks as you can. When you outsource software development, you put a lot of the delivery and other risks on your vendor. This gives you a number of benefits that will help you with the task at hand. 

The most important thing is to choose a trustworthy business partner. To do this, you need to gather all the information you need to come to the best strategic decision. Your success in anything, including outsourcing, depends on how much you know about your software development outsourcing partner.

In the next section, we will talk more in-depth about risks related to outsourcing software development.

5 Problems To Avoid When You Outsource Software Development

1. Security Issues

When people think about outsourcing software development, data security remains their top concern. In the process of evaluating a shortlist of possible offshore service providers, companies often forget to look at a provider’s information security policies and, more importantly, their security plans for business continuity and disaster recovery. When a customer isn’t ready for something like this, it often leads to data leaks or unexpected notices.

Also, let’s talk about the importance of following the rules. Many of the problems that come up with IT outsourcing are caused by the organization not meeting the requirements. These problems show up as problems with business processes and access to data.

2. Miscommunication

One of the best things you get access to when you outsource software development is talent worldwide. However, it also creates a problem: miscommunication. Things like different time zones, languages, and cultures are the causes. But how can we get around these problems? When working with third-party software developers, it is most important to understand what the project needs. You and the other people on your team need to be on the same page. 

The best ways to avoid misunderstandings and break down communication barriers with a remote team are to use collaboration platforms. Jira and Asana and regular stand-up meetings over audio or video conferencing can be good solutions.

3. Low Quality

If you look all over the internet for stories about people’s experiences with outsourcing, you’ll find a lot that sound like some kind of nightmare, especially when it comes to how bad the products turned out to be. Because of these bad experiences, though, a lot of businesses are afraid to outsource their software development. 

But not every case is like that! You can definitely find software developers whose prices seem too good to be true, but who give you exactly what you paid for in the end. As a general rule, you should avoid companies that offer very low prices. Those that don’t have a track record that can be checked are also risky.

4. Contract Loopholes

No matter what kind of engagement model you choose, you should pay special attention to the parts of the contract that deal with confidentiality, liability, data protection, following rules, and intellectual property rights.

But each kind of cooperation has its own set of legal words. The best way to avoid legal problems is to learn as much as you can about the topic.

5. Unclear Delivery Expectations

If you decide to outsource software development, you will almost certainly encounter delays. We should be clear that not all contractors and outsourcing partners will cause issues, and the majority will meet deadlines, but delays do occur. It means you must be prepared for launch dates to be pushed back and plan accordingly. You might also consider different options for dealing with the consequences of the delays.

Setting precise deadlines before the project begins is one of the best things you can do to avoid delays while outsourcing software development. It should be in the outsourcing contract because it makes no difference how amazing the software is if the launch is late. Making milestones and checkpoints makes meeting the deadline easier. It is easier to keep on track if the job is divided into smaller parts.

1. IT Services: What is The Top Reason for Global Outsourcing?
2. 4 Software Development Outsourcing Pitfalls to Avoid
3. Outsourcing Software Development Vietnam: Why You Should Collabora With?

How To Outsource Software Development

Now that you know the basics of outsourcing software development, you can move on to the next step, which is to find the right business partner for your software development needs. Here is a list of the most important things you need to do.

1. List Out Candidates

If you outsource software development to the first company you find, you are making an error. If someone in your circle of trust doesn’t highly recommend the company in question, you shouldn’t choose them until you’ve done a lot of research on what the outsourcing development market has to offer. This means you need to look at a list of possible applicants and compare them to see which one meets your needs the best.

How To Outsource Software Development?

So, the first thing you need to do is make that list. You can always do a Google search for “outsourcing software companies” and write down a few names from that list, but you should do more work. Ask your employees if they know of any good companies that offer outsourcing services. They may have worked with one in the past. You could also talk to people in your field or other experts about what it’s like to work with outsourcing companies. Lastly, if you join online groups and social networking sites, you can find more names to add to your list.

2. Look For Established Security Policy

Every day, we face a new set of problems, such as infrastructure vulnerabilities, phishing attacks, data loss, and IT systems that are overloaded. The fact that these cybersecurity risks could put your data at risk makes them very important.

To reduce the effects of these risks, it is important to find a software outsourcing company that already has a security plan in place. Check to see if the software development company you choose to outsource to international security standards like ISO, PCI, and HIPAA before deciding to work with them.

3. Scan Reviews And Testimonials

Do research on the websites, LinkedIn accounts, and Clutch.co profiles of the suppliers to find reviews and testimonials from customers who have used them before. That will give you useful information about how successful other companies’ partnerships with this provider were, what problems other customers were having, etc.

You can get a decent notion of how the company is evaluated by looking at testimonials. For example, Designveloper‘s clients have provided on the service pages of their website about the successful projects they have completed, which are nice indications of quality.

You can also learn a lot about specific businesses and the services they offer by reading reviews and accounts of software development companies on message boards and websites like Reddit, which are both great places to learn about such businesses. You should also look at news websites and blogs to see if any of the businesses you listed are talked about there. If you want to work for reputable companies, there is a good chance that they have been discussed in some specialized blogs. By reading these blogs, you can find out even more about how real your candidates are.

4. Evaluate Communication Skills

Choose the service provider who wants to learn about your company’s needs and wants, is willing to talk to you more and will send you follow-ups. These things show that the seller wants to talk to you about all of the details and nuances, which will help clear up any misunderstandings.

If you outsource software development to another country, you may find that their work culture is very distinct from yours. This can change how you work with them and the results you get. Because not all companies that outsource their work have caught up with global communication standards, you need to make sure that the company you choose has. This is especially important if they are in a remote area.

Recommended reading: 10 Tips to Successfully Outsource Software Development

5. Conduct Interviews Directly

The last thing you need to do is talk to your potential customers in depth so you can find out more about them. During these interactions, you will not only learn a lot about their services and past successes, but you will also learn a lot about them as people. You will definitely need to ask about their workflow, their methods, how they think they will approach a project like yours, and if they have worked on projects like yours in the past. But you need to look at more than that. You need to pay attention to other things as well.

A meeting with them can give you an idea of how well they use their time and how well they get along with you. Check to see how quickly and correctly they answer your questions, how well they can adapt to your needs, how clear they are when explaining their processes, and how confident they feel when doing so. When you hire a company, you should look for some of these things.

Consider Designveloper As A Software Development Outsourcing Partner

Trying to find a reliable partner to outsource software development to could be quite difficult. But if you are reading this on the official Designveloper website, you don’t need to go through any of the other rings of hell. You are already in the right place.

Designveloper is a team of skilled and eager software developers from Vietnam. We will take on your projects with the guarantee that we will finish them quickly and well. We promise that the job will be done on time, will be done well, and won’t cost too much. You might find it helpful to look at the case studies and services we offer to get a more accurate assessment.

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