Many things changed, like how people saw and did business, and remote work became the new normal for them. Also, the tech sector was one of the few that had not faced any major issues, and they were quickly able to offer services.
Companies not only benefited as the employees were able to complete projects on time, but the productivity was relatively higher. Companies were able to save money on infrastructure, improve cross-team collaboration, and have an expanded talent pool.
And now, remote work has become the new norm, and many companies prefer to outsource software development services from anywhere in the world rather than execute it in-house.
Outsourcing software product development is the best approach for small and medium-scale enterprises because it saves money and you get the product in the required time frame.
Let’s discuss in more detail why it is best to outsource a project from a development company. Let’s Begin!
What is outsourcing software product development?
Outsourcing a software development company is all about hiring a software development team for your project rather than developing it in-house, or from a third party.
As per Statista, the IT outsourcing industry in 2021 is expected to generate a combined revenue of 351 billion U.S. dollars.
Furthermore, you can outsource various tasks or services, such as programming, application development, etc.
What are the different types of outsourcing?
Three different types of outsourcing exist: onshore, nearshore, and offshore.
Onshore outsourcing means hiring an outsourcing services provider in your own country or region, either remotely or on-site.
“Nearshore” outsourcing means outsourcing the development services to a company in a different country, but it must be nearby.
Offshore outsourcing means outsourcing projects to a company or freelancer in another country.
How do I outsource a software development project?
The question is, how to plan a strategy? Companies go with outsourcing projects because it saves costs, increases productivity, and improves product quality. But before outsourcing, it is best to develop a proper strategy and hire a development company after checking the details.
- Define Goals: It is essential that you have clear goals in mind that are realistic and well-balanced so that the development companies can achieve them. Thus, the goals may vary as per the project, but clear expectations are essential.
Look for an experienced company. Your software’s quality depends on their experience and reputation in the marketplace. Therefore, while hiring for custom software development, outsourcing companies check their reviews and testimonials and, importantly, ask for previous projects they have done.
What type of questions can you ask to outsource a development company?
The questions will depend on several factors, like the tech stack, location, etc., but here are a few general questions:
What kinds of projects/technologies have you worked on so far?
Have you worked on a similar project?
Can you provide references from your previous projects?
- Define technology stack: If you are outsourcing your project, check for development team tech stack experience and accordingly check if it matches your project requirements or not. Thus, it is best to create a resource list for your project.
- Bring an experienced team leader onboard: A team leader plays an essential role in a team as they need to manage the team without compromising the team’s productivity. A strong leader can manage remote teams properly without risking project quality.
Plan out the budget and project timeline: Plan out the budget and timeline for your project. For that, it is best to follow an agile approach to budget management, as it is a shared responsibility to develop the product on time.
Custom Software Development Outsourcing Models
Staff Augmentation: In this strategy, the outsourcing company is accountable for putting together the software development team, managing daily operations, and completing the project.
Dedicated Team: In this method, the team is retained for future tasks while the outsourced services company handles every part of the project.
Project-Based: This method deals with the client on an individual basis. The outsourcing services handle most of the project’s judgement calls, while the client is only informed via progress reports.
The Key Benefits of Outsourcing Software Product Development
Cost-saving: Outsourcing projects will reduce your costs by around 60%, which is all because of lower development rates in countries like India, Mexico, China, Ukraine, etc.
Global talent is just a click away: Outsourcing is like buying something online. So, decide how you want to go ahead and outsource software development to a company of your choice. Outsourcing allows you to get an advantage of technologies, frameworks, etc., giving you ample choice when you take this approach.
Faster time to market: If you outsource software development services, you delegate all the development tasks to third-party developers. This means there is a team to handle all the development tasks and deliver the product faster.
Give yourself time to think about your core business. If you outsource a project, you get plenty of time to focus on other essential aspects. Thus, concentrating more on your business will give you better results, as there will be nothing to distract you from your business strategy.
Flexibility: You must keep giving developers work and keeping them busy with work even when it is off-season, but outsourcing frees you from this, as the outsourced software developers will work for you without any commitment.
Skilled team for software development: By outsourcing software development projects, you can recruit a diversified software development team with a range of skill sets.
Wrapping up:
When it comes to development, the first question that comes to our mind is: Is it good to outsource software development? Well, outsourcing software development gives you access to a wide range of tech talent, which can help you move your project along more quickly and inexpensively. Also, by cutting down on costs and development time, outsourcing can increase production and efficiency in your business. Thus, you must outsource software development companies for your projects, especially if you are a startup.
