Top 5 tips to know before Outsourcing your Custom Software Development
Discover the top 5 tips to know before Outsourcing your Custom Software Development
In recent years, outsourcing has become a global strategy that is used by successful businesses to cut down development costs, stabilize the lack of in-house resources, maximize market uptake, and accelerate business productivity and efficiency.
Many of the popular companies such as Github, Alibaba, Intel, Slack, etc., leveraged the power of outsourcing during the dawn of their business to reach their current heights of success. Recent insights from Deloitte revealed that almost 31% of businesses outsource their work to improve their quality of service. Moreover, outsourcing your custom software development requirements to a software development company helps you to release a high-quality product on time and on budget.
If you are an entrepreneur or a business leader planning to outsource your software development project, it’s important to know that outsourcing won’t benefit your business in any way if not done correctly or managed properly. It will be an easy task for you to find a vendor from google and outsource your project to them, but selecting the right outsourcing vendor isn’t as effortless as it sounds. But, there’s a lot of strategies out there that can make your search a bit easier.
Checklists that businesses should verify while choosing an offshore software development company:
- Financial Background of the company
- Verifiable references from their previous customers
- Portfolio and industry experience
- Assess the offshore facility location and its environment
- Evaluate their technologies to ensure they are in par with the leading-edge technologies and industry standards
- Evaluate their resource pools to validate the skill sets of their project team
- Evaluate their security protocols
The above checklists can be used by companies as an offshore hiring strategy that helps them to partner up with best offshore development teams On top of the above attributes, review the following key factors before you consider outsourcing your custom software development requirements to a third-party company.
1. Evaluate vendor’s Communication Plans
The major challenge in outsourcing a job to an offshore vendor is — communication issues. Assessing your vendor’s communication skills is a paramount step in ensuring your project’s success.
To establish better comprehension and clarity of the project between your offshore team and your in-house employees, you’ll need to overcome certain barriers such as languages, time zones, and cultural differences. So, you must carefully evaluate your vendor’s communication plans before hiring them. This can be done by setting up one on one video sessions with their business analysts, developers, and project managers.
2. Project Delivery Methodologies
Review vendor’s delivery methodologies and make sure the entire project life cycle is supported with appropriate documentation and approval processes. Before proceeding with an outsourced software development project, you must ensure that your vendor is providing precise documentation that explains the requirements, responsibilities, understanding, delivery time and the scope of the project. These documents will help you to align your expectations with the vendor.
Figuring out the right model to deliver your workloads is the initial thing you must do while outsourcing a custom software development project. You can easily figure out this by assessing the abilities, experience, and vulnerabilities of your in-house development team. Apart from that, it is vital for you to assess the expertise and skills of your project management team.
3. Technological Capabilities
Choosing vendors that don’t have enough technical expertise in fulfilling your requirements can wreak havoc on your project. Some vendors can easily deceive companies by showing fake portfolios & descriptions about their previous projects and tech offerings.
To avoid these shortcomings, before you sign an agreement, you must run a deep analysis of their technological and technical. During this assessment, you can easily measure their expertise in handling programming languages, frameworks, and tools.
4. Project Management Methodologies
Lack of proper project management & industry-standard methodologies is the biggest challenge that most companies face with their offshore development teams. An unstable resource pool in your project can cause irregular deployment that will eventually lead to the failure of your project. You can counter this issue by finding vendors with consistent industry project management methodologies.
A Certified Project manager can work between stakeholders and the technical team and can help in the requirement elicitation from the business stakeholders or product owners and document the system specification.
5. Contract Services Agreement
Before you sign on a vendor, you have to engage a legal team to review the contract agreement which explains the Professional Services, Roles & Responsibilities of both parties,
Statement of Work (SoW), Non-disclosure agreement (NDA), Master service agreement (MSA), Project Deliverables, Acceptance Criteria, Change Management procedures, Billing procedures, penalty clauses, Warranties, Intellectual Property clauses like ESCROW, Security Compliances, Data Protection, Confidentiality, etc.
Following these outsourcing strategies will surely help your company to partner up with a trusted software development company. Click here if you want some more insights on how you can solve your resource requirements during the current pandemic situation.
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