Times are changing before companies even have had a chance to blink. To maintain an edge above others in the hyper-competitive software technology market is an uphill task for enterprises as a new software is innovated at frequent intervals. This is driving enterprises towards embracing software outsourcing to reach goals faster and within budget. Enterprises across certain geographies have limited access to manpower with requisite technological acumen which is imperative as new software populate the market. This is leading such enterprises to enter into partnerships with third-party vendor across the geographical boundaries to gain access to efficient technology resources.
On a global scale, enterprises are exhibiting a penchant towards software development outsourcing with a view to fulfil their goals in a cost-efficient and a faster manner. This business model is observed to offer multifarious benefits to enterprises apart from cost-efficiency. Access to high-skilled professionals, tapping the global talent pool are some of the many benefits promised by this business model.
Another common outsourcing trend in the IT industry is for migration services like for Office 365 migration. This Office 365 migration is imperative for a competitive edge and productivity enhancement. While outsourcing a partner for the same, several factors need recognition. The basic reason is to decide on the strategy for migration based on one’s business requirements and assistance in configuration settings. These pointers are critical to handle since discrepancy of any configuration might lead to disruptions and long term communication errors.
Software outsourcing or software development services is the practice of selecting a 3rd party service provider, an expert in software development services, capable of managing all the tasks involved in a software development project. In essence, a company delegates control of a specific business area or project to a qualified software development company that has the resources, talent, capabilities, and time to handle the required business needs.
However, while a company may be considering adopting the concept of software outsourcing, it is also very common to see the program falling apart due to unavoidable mistakes. Let’s learn about this and more in detail.
Types of Software Outsourcing Models
Onshore Software Outsourcing:
Onshore software development companies refer to those enterprises that partner with local development teams. Despite the fact that, partnering with local vendors removes the potential communication pain-points, this outsourcing model entails skyrocketing expenditure in the due process.
Offshore Software Outsourcing:
Offshore software outsourcing involves partnering with teams located across geographical boundaries. This is the most viable option in terms of affordability as offshore software development companies operate remotely. This means that the outsourcing company will not have to spend on building the requisite infrastructure to support functions of external software development teams.
Nearshore Software Outsourcing:
This concept involves partnering with teams within similar time zones. Nearshore software development companies are at the centerpoint between the onshore and offshore options.
Pros of Software Outsourcing
Minimize expenses on software innovation and operation: Outsourcing software development tasks promotes cost-savings at a significant rate. Prospects of cost reduction must be aligned with the business growth trajectory. Software outsourcing aids to optimize the overall expenditure that is re-allocated to hire expert technology resources. This negates the obligation of the hiring company to cover the gamut of employee benefits including healthcare, insurance, training, among others. Software outsourcing companies bill a resource on an hourly rate that is the actual cost that a client has to bear sans any employee benefit. This manifests into huge cost savings as opposed to maintaining an in-house developing team.
Clients have the flexibility to hire software outsourcing companies based on immediate project requirements as opposed to maintaining a long-term partnership. To hire resources based on seasonal requirements as opposed to maintaining a permanent in-house software development team has proven to offer significant cost advantages to enterprises. The location of software development teams has become irrelevant as the concept of working remotely is now commonplace. This allows access to developers from the global pool of talent resources with uncompromised quality of service and skills.
Unlock access to highly skilled development professionals:
Partnering with external software professionals opens up the door to new talents with robust skills on a global scale. Such a repository of talent boosts clients’ confidence to streamline a range of software processes to its entirety as well as implement new projects. Partnering with third-party software professionals effectively unlocks opportunities for enterprises to scale their abilities in terms of innovation and operation at a significant rate.
Deepening focus on core business objectives:
Outsourcing software development tasks enables enterprises, non-IT in particular to focus on their core operations that are fundamental for their growth trajectory. The software outsourcing provider offers resources who are commissioned to fulfill all the labor-intensive tasks that are typical of a software development team. This frees up the time for their client to deepen their focus on the core business objectives such as improving customer service, management, marketing, and other operations that are imperative for the client’s business growth.
The Common Pitfalls to Effective Software Outsourcing
Unclear requirements and vision:
Not having clear details of the project leaves the outsourced team handicap and unable to work on anything. Things can get worse if the project details are incomplete from the get-go. Companies must know exactly what they need to be created and then implement it through the software. As much as having a clear vision is important, it is also necessary to have a plan on how to see it through, communicate it clearly to the team, and ensure that everyone has a deep understanding of the project.
Not doing market research:
A bit of market research before even attempting to outsource software development helps understand the hurdle that a company needs solutions for and then find the right service providers that can address the said hurdle. Along with it, it is also essential to identify what solutions the competitors are using.
Poor selection process:
Since not all the software development services are created equal, one needs to be on the lookout for considerations that checks all boxes. Due diligence can make or break the quality of the software, along with the business relationship with the third-party service provider. A few factors to consider are the location and distance of the outsourced company, experience, and qualifications, technical expertise, cultural considerations, rates, legal, physical, and technical protection, etc.
While a thorough selection process can help one find the best service provider, not considering such factors can be a recipe for disaster.
Not hiring an in-house developer:
During the search to get a team of developers as partners, companies often neglect the need of having in-house expertise to understand their work. Having knowledge in software development will ensure all aspects of quality and are considered. This person can also outline the requirements for the outsourced team, thus making the job easier.
Privacy in software development is non-negotiable and crucial.. Since legal requirements pertaining to software security differ in different countries, it is essential to hire someone having a deep understanding of the intellectual property rules. Furthermore, before hiring a vendor and trusting them with sensitive information, a company must hire a legal expert on board to look into contract management and enter into a well-defined agreement to safeguard the projects intellectual property.
Undue weightage given to experience:
There is no doubting the fact that experienced software developers have a thorough know-how of factors that move the needle of the software technology development. However, to consider this experience as the deciding factor to hire a software development company is not a viable option. Dismissing startups simply because they are not as experienced in the industry is not worthy as companies often miss the chance to work with bright programmers with new ideas and approaches. There are at least a dozen other factors like technical acumen, creative bent of mind, expertise in communication, work standards, reliability, among others which must be given their due weightage while exploring the feasibility of partnering with a software outsourcing company.
Going for hourly rates :
Considering the cost involved is important, but problems occur when hourly rates become a hurdle while choosing an outsourced team. In the long run, companies many a time end up spending time correcting the errors made by their badly-picked team. Moreover, high hourly rates do not guarantee high-quality work.
Engaging with software programming companies with archaic mode of operation:
A majority of companies fails to stay at the top of the trends that drive the overall software technology market. On this note, a careful scrutiny of a provider’s alignment to the latest technology trends is imperative to avoid hiring a company that still uses programming software and methods from eight or ten years ago. Although demonstrated methods have earned their spot and are worth implementing many times, however, it is critical for the technology-driven software development industry to assert on new-age techniques. Roping in an outsourcing company that are restricted to primitive techniques of coding software can cause problems during the actual launch such as inability of the software to scale up to the client’s operation ecosystem, customization issues, and other critical issues. Things any company would like to avoid.
Averse to modern trends:
Similarly, a company must not resist trying out new methods and be in step with with the latest techniques or trends in the industry to have leverage over competition. Having modern ways is also a good indication that an outsourced company will not fail to embrace latest solutions.
Not considering the difference in the time zone:
Understanding the difference in time zones and communicating around is critical when you work with a third-party partner. A difference in work timings can halt progress due to delays when expectations are not set on the time differences. However, one can be productive and keep things working by making changes to schedules as necessary to the benefit and convenience of both parties.
Having multiple communication channels and setting the right process can eradicate issues and lead to better collaboration since it makes it easier for everyone to be on the same page. Banking on multiple channels and having backups ensures proper and on time response. Besides, holding regular meetings to apprise team about problems, priorities, orienting them, and more can also make things efficient.
Setting impractical expectations:
Hiring an outsourcing company does not guarantee a magic wand. Companies new to the software development sphere often have a vision of how they want software to function but when introduced to the capabilities of talented, proficient software programmers, they start setting unrealistic expectations that are practically impossible to cater to. Just like an in-house team, an outsourced software programmer also needs accurate and practical ideas and processes to develop something worth the money and the time.
Setting impractical deadlines:
This is in line with the previous point. A majority of enterprises have a knowledge gap when it comes to estimating the overall time taken t build a software. Their expectation ranges from three days to a week which is quite unrealistic to get a fully functional software up and running. To arrive at an ideal time to be taken for the complete software development cycle is a daunting task as the timeline strictly depends on complexity of the software features. However, the timeline needs to be flexible to take into account critical functions such as debugging, quality assurance testing, and additional tweaking in the structure. Always allot a feasible deadline to your software developer that can also accommodate any unexpected operational downtime.
About the company
Flatworld Edge is an ISO certified global company and is engaged with providing outsourcing services to support technological requirements. The company has a decade of technical experience in mobile application development, custom software development, migration, among others. Further, our in-depth subject knowledge, robust process, dedicated support, and a completely transparent business approach enables outsourcing easy and convenient for every client.
Our legacy of trustworthiness and efficient project delivery can be analyzed by customer loyalty of over 300+ satisfies clients for over 600 projects and more. We have a global presence with delivery centers across 45+ countries and employ over 350 developers with extensive software knowledge across varied verticals.