Outsourcing software development can be a game-changer for growing small and medium-sized businesses. It’s not just about saving money or getting work done faster, but also about tapping into expertise that can take your business to the next level. If you’re new to working with a software development company, it’s natural to feel a bit overwhelmed.
In this guide, we draw from 15 years of experience in outsourced software development to break down what you need to know. We’ll cover the benefits, the challenges, and the strategies for outsourcing. Plus, we’ll highlight the key things to consider when choosing a software development partner. Our aim is to help you make the most out of outsourcing, so you can focus on growing your business. Let’s dive in!
What is outsourced software development?
Outsourced software development refers to the practice where a business chooses to have its software development tasks handled by an external company, instead of using its own internal resources. This approach starts when a company decides to entrust its software project to a third-party organization.
In 2021, it’s anticipated that global IT outsourcing will hit a staggering $351 billion. This significant figure is driven by companies of various sizes leveraging outsourcing to get ahead in the market. By outsourcing, these businesses can speed up their IT project completion. They benefit from the expertise, skilled workforce, and the ability to adjust team sizes as needed, which are provided by the specialized outsourcing agencies.
Why do businesses choose to outsource software development?
Here are some main advantages of entrusting this task to external teams.
- Cutting Down on Costs: The ever-evolving nature of technology means constant changes in software development. Employing and training a team in-house can lead to significant expenses. Outsourcing offers a more cost-effective solution.
- Access to a Diverse, High-Quality Team: Outsourcing allows you to collaborate with a varied group of experts with different skill sets. These specialists offer valuable insights into the market, both from a technical and domain-specific viewpoint.
- Time-Efficient Hiring: The old adage “time is money” applies here. Opting for pre-vetted professionals through outsourcing saves considerable time and, consequently, money. The process of assembling an outsourced team is often quicker than recruiting even one in-house developer. This efficiency translates into substantial time and cost savings.
- Access World-Class Talent Easily: Outsourcing networks offer a unique advantage: the ability to easily access some of the world’s best software developers. You can collaborate with top talents from across the globe, using project management tools to harness these benefits effectively.
- Flexible and Scalable Teams: Outsource software development is like having a service on-demand. It’s helpful to think of a balance between skills and costs. This flexibility lets you scale your project according to your needs, saving both time and money.
- Efficient Team Management: Outsourcing doesn’t just save on individual manpower; it also optimizes management. While finding the right in-house manager can be challenging, outsourced teams come pre-managed. This reduces the management burden on your company, although you’ll still need some oversight for the project’s direction.
- Concentrate on Your Core Business: The final and perhaps most significant advantage of working with an outsourced software development company is the ability to focus on your core business. Without distractions, you can maintain a clear vision for your project, potentially leading to superior outcomes.
How to Successfully Delegate a Software Project?
The benefits of outsourcing software development include enhanced productivity, superior product quality, and cost-efficiency. But, to outsource IT development effectively, meticulous planning is essential. The cornerstone of this process is formulating a robust outsourcing strategy to select a partner that aligns with your needs. But, what are the steps to create such a strategy?
Establish an Outsourcing Strategy
Every project involves various stakeholders, and not all of them need to be involved in every aspect of the project. Stakeholders may include company leaders, end-users, and customers, among others.
The nature of outsourced projects varies, and sometimes stakeholders may come from outside your organization or even be individuals who will directly use or be impacted by the final product.
It’s also wise to discuss your ideas with your team members and possibly others in your industry. This ensures that your project has clearly defined objectives.
Develop a Scope of Work Document
Before reaching out to a software development outsourcing firm, ensure you have a detailed plan. They will need to know your budget and specific requirements, and having well-prepared documentation facilitates this.
Choose Your Technology Stack
As software development outsourcing often occurs remotely, it’s crucial that your chosen partner’s technical capabilities align with your project’s needs. To achieve this, compile a resource list for your project. Also, don’t neglect security and data protection, as data breaches are a common concern.
Hire an Expert Engineering Leader
The foundation of a successful engineering team is an accomplished leader with robust technical skills, responsible for selecting the right technology talent for the job. This leader is adept at guiding clients, overseeing remote teams, and safeguarding against issues related to team coordination and quality assurance.
A Step-by-Step Guide to Outsourcing Software Development
Creating software, no matter its complexity, requires it to be flexible, maintainable, and upgradable. Achieving this demands careful planning at every step, from initial concept to ongoing maintenance. Different software development companies might follow varying stages in their software development life cycle (SDLC).
- Requirements Gathering: This step involves identifying a need or opportunity in the company’s application framework. It’s crucial to thoroughly understand and document the business requirement to choose an appropriate solution. Stakeholders should be encouraged to keep an open mind and not rush into preconceived solutions.
- Design: After the requirements are clearly documented and approved, the design phase starts. Companies need to decide whether to develop a new custom system or purchase a pre-existing one. This might involve processes like a Request for Proposals (RFP) or a Request for Information (RFI).
- Build: During this phase, what was outlined in the “requirements” and “design” stages is turned into functional software by developers. This could include creating front-ends, back-ends, databases, microservices, and more.
- Deployment: In this final stage, the software is loaded into its intended production environments and platforms. These could be physical servers in a data center or, increasingly, cloud-hosted platforms.
Conclusion
Outsourcing software development grants you the opportunity to tap into a wide range of technical expertise, accelerating your project’s progress while also being more economical. If you’re considering outsourcing your software development, consider contacting Saigon Technology. We’re eager to showcase our portfolio and explore if we can assist you in achieving your goals for your upcoming software development endeavor.
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