As we are a software development company, we create software or provide backend development help to our partners on their projects. We know that communication and transparency are crucial for a successful project, just as the clear scope of it.
In this article, we will provide general information about outsourcing and some of our tips to avoid pitfalls.
What is outsourcing?
Software development outsourcing is the business practice of hiring another company to perform services or create goods. Although it sounds simple, most of the time, it can be very complicated.
Demand for software development outsourcing became popular in the last 15 years. Growing companies needs for specific software is increased and finding the right team locally for the task can be challenging.
Also, there are benefits in the case of finding a company to develop your software.
Types of Outsourcing
Staff augmentation is simple as it sounds: you hire a number of developers and you add them to your existing team. They will be part of the company/team and you keep all the responsibility for your project. What we learned over the years when we do staff augmentation, we try to provide at least two or three developers as it was always more effective than just one. With more than one developers the knowledge and experience are shared, they can brainstorm and it’s much easier to manage the process.
Dedicated team is when you contract a team of developers and you use their expertise to make parts of your project. In this form you still responsible for your own project, but for those parts, you assigned to us, we are responsible, just as for the quality of work.
Project-based model is the most widely spread as you define the scope of the project and you simply outsource it. In this case, you don’t need to worry about anything, you will receive a completed project/product and all the responsibility falls upon the provider.
We do all the above-mentioned types. Transparency, communication and honesty – with these kept in mind we always successfully finish the projects.
With outsourcing, you have access to a much larger talent pool. For example, your company needs a particular software, and locally you cannot hire a developer with the right experience. Finding a company abroad or even countrywide with a specific talent is easier than trying to hire that talented person with the willingness to move.
With outsourcing, you also reduce the cost of the recruitment process, the overhead and you only pay for results. You don’t pay for the time when the developer is away -like holidays, sick days or any unforeseen situations.
The Work Institute’s Employee Retention Report estimates that turnover cost for an employee is around 33% of the annual salary of the position. With outsourcing directly, you keep all the money you would spend on recruitment.
Inhouse or Outsource?
So many factors can influence this decision. Do you have access to the talent pool required for the project? Will it be cost-effective for your company? Do you want to focus on your company growth or you want to share your resources? Is it a one time project which makes it unnecessary to expand your staff?
We always evaluate the case first to see if our clients really need a job to outsource, or there are other options for them. We are proud of our honest approach. If we cannot fit the particular needs, we are happy to recommend someone else who will be able to help.
Our advice is to check the market which option is the best for your company and make a decision after.
Pitfalls to avoid
Outsourcing a software project can be extremely beneficial but can be a failure as well. This can happen because of the communication barrier, poorly understood the scope of the project or code quality issues.
When we sign up on a project, we create project-specific channels in our internal chat, therefore the clients always included in the project’s communication and they are always up to date.
As we mentioned above we always evaluate the project before sign the contract. We ask and we listen. Sometimes the clients want something they don’t really need. We always discuss and point out this and the client can decide if that what they really want.
We have well tested coding processes and quality measurements within the company. Well documented, transparent and easy to understand for the clients. We prefer continuous handover because the stakeholders are always informed and they know the code that goes into the project. Alternatively, we do traditional handover involves training sessions, documentation and several meetings to make sure our client will be able to use and take complete technical ownership of the project.
Software development outsourcing is a viable way to grow your business and fill the gaps if you don’t have the right resource available. Choosing the right company to work with can reduce risk and save you time and money as well as producing results.
If you have any comments, ideas or personal experiences, feel free to share with us. We are curious to hear new ideas, solutions, and perspectives regarding the above. Don’t forget to follow us on our social media!
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