The term software outsourcing is quite common, and the best industries take pride in offering custom solutions to their clients. The custom solution ranges from augmented staff arrangements, handling entire development process segments, serving as an autonomous, or end to end team that produces software. The worst of these firms or failures by these firms can cause havoc on their unsuspecting clients.
The fast development and continuously evolving global technology makes it difficult for companies to maintain the entire spectrum of software solutions in-house. Technology up-gradation forces companies to maintain a competitive advantage by optimising operational efficiency, improving customer service, and bringing new products to the market.
“If you deprive yourself of outsourcing and your competitors do not, you are putting yourself out of business.”
Lee Kuan Yew, founding father of modern Singapore.
The right team of software engineers/developers is the correct answer to these questions, ensuring a complete focus on overall business objectives and goals. Your dream team does not need to be in-house. Now find a team with the right skill set within your country of operation or outside easily.
Software outsourcing is a great way to cut operational costs and a great platform to scale up and benefit from external skills and talents. If you do it the wrong way, you can end up in cost overruns, damaged customer relationships, termination of outsourcing arrangements and worst of all ruin of goodwill.
Follow our checklist of outsourcing recommendations to ensure smooth sailing.
Tips to avoid possible pitfalls when hiring a software outsourcing team
- Do I need to outsource? Question yourself
Many companies are using outsourcing, and thus it is becoming popular because of its undeniable benefits. It can prove a significant competitive advantage. But this does not mean it will do the same to everyone.
Firstly measure and define what you want to achieve (cost saving, new product development, business process optimisation, service quality improvements etc.) and check the resources you have before implementing ideas. Find out what things you lack and take time to analyse, calculate and gather business metrics to bring value to your project. If you have enough resources, leave it for in-house. And if your employees are working more than 50 hours a week than it’s better to hire a remote team. Knowing when to outsource is equally essential to know when your business is undergoing major restructuring or shift in senior management.
- Find out the scope and outsourcing goals.
Always know your destination i.e.; where you are going. If you have decided or made your mind on starting a project, decide what you want to outsource. Analyse your project and divide the task between two- things you can do in-house and skills you don’t have.
Identify both long-term and short-term requirements for successful software outsourcing. Make sure you have a clear vision and have written responsibilities and expectations for your remote team. Get ready to answer multiple queries from your potential outsourcing team. A right contractor will shower you with a list of questions about your business and project goals. Before the project is underway, your overseas company will try to clarify as many requirements and expectations as possible. Your hired team will do their best to understand the unique nature of your business.
The more information you give, the better estimate you get in terms of size, cost, and project process. Without clear goals, your project will resemble to irony the blind leading the blind. We think you don’t want that. Never outsource your core functions, strategic initiatives, and activities that are unique to your business. Retain adequate in-house control over critical business processes and leave non-core competencies for outsourcing service providers.
- Choose the right vendor.
The service provider that aligns with your business objectives and culture along with the understanding industry is the best bet. Spend a little more time choosing an overseas service provider and save yourself from future troubles. Please start the process by short-listing five promising outsourcing development companies, compare their range of service, benefits, perks and study vendors in person. Take a look at culture and values, processes, approaches, and a clear vision of the vendor companies. Thoroughly analyse and shortlist vendors.
- Focus on value over cost
Cost matters and companies that allow you to save cost should not be the only reason to opt. Never select a cheap and easy way to offload work. Outsourcing free up time for strategic focus. The rates for offshoring or hiring a remote team reflect skill, experience, and work quality. If possible, never go for a fixed price.
- Frame a detailed written contract
To avoid technical, communication and management in the future always list the requirements and specific details of the project upfront. Write a contract which clearly defines service levels and shared risk. Everyone should take responsibility for fulfilment of the appointed task, and a contract should be linked to a detailed statement. Before signing a contract, mention minute details to avoid future misunderstandings.
- Define communication model
Project failure happens because of ineffective communication, as per the Project Management Institute study (PMI). The holy grail of outsourcing development is communication and needs to clear and beyond the initial meeting. Business goals change or evolve; you need to explain your point to the vendor to make the relationship productive. Establish communication channels with your remote team and use incredible communication tools such as video-conferencing and messengers.
There will always be obstacles and difficulties on the way to successful outsourcing. In every business, benefits come with risk. It’s up to you how you decide wisely and act smart. Well, skilled developers ensure faster, cheaper, and easier development of your project. Understanding strategy and risk for offshore outsourcing determine the roadmap for the success of your business. The above tips will help you avoid possible mishaps and reap the benefits.