Software Development Outsourcing Guide

What is Software Development Outsourcing?

At its core, Software Development Outsourcing involves partnering with a third-party vendor to develop software applications or web-based solutions on behalf of your business. This can encompass a wide range of services, from custom software development and mobile app creation to website design and maintenance.

By choosing to outsource software development, businesses can unlock a myriad of advantages, including:

• Access to a Global Talent Pool: Outsourcing opens the door to a vast pool of highly skilled and experienced software developers from around the world.
• Reduced Costs: Outsourcing can lead to significant cost savings in terms of salaries, benefits, infrastructure, and other overhead expenses associated with in-house development teams.
• Accelerated Time to Market: By leveraging the expertise and resources of an external development team, businesses can expedite the software development process, enabling them to launch their products or services faster and gain a competitive edge.
• Enhanced Focus on Core Competencies: Outsourcing non-core functions like software development allows businesses to redirect their focus and resources towards their core competencies, leading to increased efficiency and productivity.

How to hire a development team

How do I hire a development team? Let’s compare three viable strategies and find the best one to match your business goals. 

Hire freelance developers

Hiring freelance developers can be a good idea. In this case, you aren’t limited to the location but still can access the tech talents pool. You can also hire not only developers but designers, testers, and marketers to run your project fully remotely.

Still, this option is suitable only for those businesses which have practical experience in working with freelancers and managing them. You should also validate your talent choices carefully, since freelance specialists are usually less committed to the project compared to in-house and dedicated team members. 

Hire in-house (establish your own R&D center)

Some companies prefer to establish their own research and development centers in the countries where they outsource development services. While the cost to hire developers is perfectly matched with the business value they deliver, having an R&D makes sense for the companies moving along the way of digital transformation. 

However, get ready for the fact that you will have to manage all the processes on your own, establish clear communication between your R&D and main office, and deal with taxes, payrolls, and salaries. So, this is the tactic for the companies ready to be responsible for their R&Ds without the third-party’s help. 

Hire a dedicated team

In this case, the software building process will be running fully remotely by the third-party vendor which already has all the necessary talents and other resources to transform your idea into a tech solution. Dedicated development team members are usually committed to only one project, which can promise better engagement and staying on the same page with the customer.

Most companies that outsource their project development choose to hire a dedicated development team since this is a cost-effective opportunity in the long run since the dedicated vendor is fully responsible for the development process while you can better focus on the core business tasks. 

While the tactic to hire a dedicated software development team isn’t the only one you can choose, it still promises the best match of the price and quality with no additional headache. In this case, you are both free from searching for the team members on your own, such as when hiring freelancers, and increasing operational costs for R&D establishment.

The best practices to choose a software development company 

Let’s find out how to choose and hire a software development company to ensure the perfect expertise, price, and quality match for your future project. Below are some life-proven practices. 

Know where to look for

In addition to the essential criteria to make the right choice, you should also know where to look for top software development companies. Below are some ideas. 

• Clutch.co and GoodFirms. These are B2B social platforms listing the best companies from different industries, supported by transparent feedback from the customers collaborating with them. 
• Recommendations from colleagues and partners. To get in touch with proven software development companies, ask for a recommendation from someone you can trust. For example, most of our customers reached out to us after getting a recommendation from their colleagues or partners. 

Look for niche-specific expertise

To put it simply, get started by shortlisting the companies with relevant and specific expertise. For example, if you want to create a cross-platform mobile app, partnering with an embedded development company has no sense. Consider those development teams that are well-versed in your niche and understand its specific not only from the technical but also business expertise. 

Pay attention to social proof

Since the software development outsourcing threshold is relatively low for vendors, it is better to collaborate with a company that has a solid reputation, backed up by social proof. Research the reviews on Clutch and Good Firms, and ask your colleagues for a recommendation to partner with a proven company. 

Review the portfolio

At the next step, take a look at the software development company’s portfolio. Ideally, it should have case studies similar to the solution you would like to create, or at least, the showcased experience should prove their technical expertise, problem-solving skills, and result-oriented approach. 

Ask for the first consultation and estimate

After you have shortlisted several companies, get in touch with them and ask for the first consultation. This is the right time to evaluate their business ethics, communication approach, attitude towards a prospective customer, and engagement in your project. If your communication feels comfortable and effective, ask for your project estimate. You are also welcome to ask how they are going to estimate your software development cost since there are several tactics to do it. 

Check ready-made team availability 

Most modern projects have strict deadlines and are usually created in a dynamic market environment. In this case, the availability of a ready-made team and the opportunity to get started quickly is another advantage you can expect from the development vendor.

Ensure company tech-savviness

A reliable development team should be perfectly skilled with the technologies you need, plus several related programming languages and frameworks. Such an expanded skill set matters for the right choice of technology to build your project with and its most effective usage. 

Software development outsourcing pitfalls and challenges checklist

Also, keep in mind the possible challenges you may face when hiring a software development team. Use the checklist below to protect your project from mistakes and ineffective decisions. 

• Ineffective communication. Remote communication issues are one of the main concerns customers have when considering outsourcing their projects. That’s why it makes sense to discuss the established communication practices in advance. Don’t hesitate to insist on the channels and approaches that suit you best - the customer-centric company will always find the middle ground. 
• Unaligned vision. An unaligned vision is the direct result of ineffective communication between a Project Manager and development team with a customer. Fortunately, the feeling of staying on the same page usually appears during and after the first consultation and the preliminary estimate. These two simple steps will help you make sure that you and your developers are about to have the same goals. 
• Lack of control opportunities. Communication and control also go hand in hand, so you are better to discuss the result delivery in advance. Usually, the customer is welcome to make daily and weekly calls with the team and PM, reach out any time if there is an urgent question, and take part in discussing the next development stages. 
• Non-transparent pricing. There are three types of contracts in software development outsourcing (Fixed Price, Time and Material, and Dedicated Development Team). Make sure to review and compare these options in advance to follow the most effective model for your project. 

A-Team Global: Your Trusted Software Development Outsourcing Partner

A-Team Global is a leading provider of Software Development Outsourcing services, offering a comprehensive suite of solutions tailored to meet the specific needs of businesses of all sizes. With a proven track record of success and a dedicated team of highly skilled software developers, A-Team Global is committed to delivering high-quality, cost-effective, and innovative software solutions that exceed client expectations.

Contact us today to learn more about our comprehensive Software Development Outsourcing services and how we can help you achieve your business goals.

Conclusion

There are a lot of software developers, and their programming skills are perfectly matched with the reasonable price for their services. Making the final choice, make sure both country and vendor suit your project by carefully revising the destination’s specifics, getting in touch with several carefully chosen local companies, evaluating their expertise, and making sure they are reputable enough to contribute to your project development.