Outsourcing has been identified as a talking point for most of the industries in the last several years from its inception. Outsourcing or Outside Resourcing has undeniably been widely accepted across the globe. Moreover, it is irrelevant what software developers label it, but it depends more on the way clients use it.
You will be excited to know that the IT outsourcing industry's market valuation in the year 2019 stands at 66.52 Billion USD. Another survey of Industry Analysis states that the Software Development Application, with a share of 64 percent, is at the forefront of outsourced IT services.
Most business enterprises, corporates, and other organizations are realizing that digitization is a must for their growth and survival in the market. But, the major challenge comes: how will they go to achieve this? So, here they need software developers to decide whether they want to hire a software developer permanently or choose to deal with a Software development Outsourcing company?
If you find answers or look for a comprehensive guide that tells you "Everything About Software Development Outsourcing." Then you are at the right spot. In this write-up, you will get every piece of information related to App Development Company in India. Factors that need to be acknowledged while hiring a Software Application Developer for outsourcing are why to choose Outsourcing Companies for Software Development App, etc.
We will also discuss the advantages and disadvantages of software outsourcing companies, followed by some of the important tips for outsourcing your software project for reducing your software development costs.
So, let us start without wasting any single second and grab "Everything about outsourcing Software Development."
What is the concept of Software Development Outsourcing?
In simple words, it is the process to employ a software development outsourcing firm, or you can use a third-party software development service provider for managing the companies software development projects.
The software development services can be for your organization as well as for the customers of your organization. In other words, the software development company will create customized software used by the organization or creating software for the organization's customers.
Also, these software and app developer companies will make your Internal IT team more focused on their core working areas as they will not be stressed with developing apps or creating a software.
Why to hire an Offshore Software Development Company?
In the last few years, using Outsourced Software Development services is emerging as an essential aspect of an organization's journey. And, It is imperative to adopt such technology for enhancing the true capabilities of an organization.
Even the Deloitte Global survey reported that 93 percent of companies or we can say that more than 500 corporate executives are now exploring cloud technologies for outsourcing web development.
It means that many of the corporates are implementing this agile software development methodology. Here are the following, some of the key reasons these corporations are hiring Software Development Outsourcing Company.
- Using Outsourced Software Development will give you access to the huge pool of talent that will be a wide variety of expertise. Like you are searching for python developers, .NET or JavaScript developers, or anyone with expertise in a different programming language, you can easily hire them.
- If you hire a software application developer, then it will be economical for you. If you are using outsourcing companies' services for developing partial projects, it will save your huge software development costs.
- It enables your In-house IT team to shred off their load. So, they can focus on their other duties and projects. Moreover, your In-House Development costs will be reduced to a great extent.
- By hiring web and app development companies, the corporate leaders make their organizations capable of reaching Global markets and International business partners.
- Finally, if you are thinking of hiring the best software development companies, it can be daunting. Apart from hiring cost, training cost, salaries, perks cost, and compensation, the company will have a burden of In-house team maintenance costs.
The list of such reasons is never-ending, but all of the above-mentioned reasons are practical and observed scenarios we face every day in our businesses.
Resources on which the decision of hiring developers for Companies' Software Development depends
Team of Experts like certified software developers etc.
Undoubtedly every organization has expertise in their particular business or tradeline. But, they don't need to require expertise and experience in the Software Application Development activities too.
Infrastructure to manage software projects
Your organization may have an appropriate Infrastructure to handle your In-house operations. It may be possible, and the organizational infrastructure does not have proper utilities like software development kits, network connections, hardware, etc.) to create a software.
Human Resource
The last but the most important resource for developing software for an organization. Most probably, you do not have Software application developer professionals in your workforce. And, it is obvious because you are hiring people competent in your business niche.
Key factors that need to be considered while hiring the Top Software Development Companies in India
There is a range of things to weigh when an organization decides to outsource software development. If you continue with proper research, the procedure should not be simple and quick. If you only make a decision based exclusively on cost or other single considerations, there may be many other things you're skipping out on or compromise for.
Of course, the cost is a major consideration when it comes to outsourcing software. However, there are a lot of other factors to acknowledge. The main way is to thoroughly take every corporation's time and investigate with the following enlisted factors to make the correct decision for hiring an Offshore Software Development Company in India.
Qualified Tech Experts
The perfect way to align your preferences with a software outsourcing company is to decide what technological expertise your software needs. List these capabilities and acknowledge them to be a necessity when selecting the applicants. Technical expertise could be centered on enhancing the customer's experience or essentially enhancing the software's quality.
Work Culture
Take a glance at the software outsourcing company as a whole to know about their work culture. If they have a team of professionals committed to teamwork and innovation, they are much more likely to be satisfied with their performance and do the best they can.
Also, you will have to collaborate along with the organization for a longer period to work with someone who shares a common ethos and competitive drive to make the outsourcing services smooth.
Assurance for the Quality and Security
The significance of safety and quality control can never be overlooked. These two elements should be prioritized by the specific software development companies you are reviewing. It would be best if you asked to demonstrate how they leverage them as part of the sustainable development process. Daily testing is vital to ensuring security and quality assurance, and any company cannot ignore it.
Experience in the Industry
Hiring topmost software development companies with industry-specific expertise makes a significant difference. A software development company that would not explicitly mention the fields in which they specialized may not be your wisest option.
Enterprises in the health sector have distinct software requirements than those in the petroleum industry. The more experience a custom software development team has with your particular industry, the more they can consider your requirements and develop a perfectly suitable solution for your business.
Software Development Costs
Budget is indeed a major concern when it's time to employ custom software development services. It would be best if you didn't even go with the lowest rate and don't want to pay over the odds for things you really don't desire.
Once you consider the other aspects listed above, you would have a slightly great chance of deciding the appropriate amount of money to pay. The further boxes a software outsourcing company ticks off, the greater the probability that they will be a good fit for the role.
What are the various kinds of Outsourcing Processes a business firm can opt for?
When a business organization uses an Outsourced Software Development Company's services, they try to hire them nearby to their location. This is not possible as software development outsourcing services can be far away from the organization's location.
Moreover, it may be possible that you will not meet the developer of the software. So, the following are the outsourcing process types, based on the location of the Software Development Company.
Local Outsourcing
This involves hiring an outsourcing company within your city. However, it offers you the advantage of the convenience of meeting and visiting the development team but can be an expensive affair.
Near-Shore Outsourcing
In this Outsourcing Process, the corporates can hire software developers in a country with similar work cultures and time zones. However, it will be a cheaper option for all the Outsourcing types.
On-Shore Outsourcing
When the Outsourcing of software development is designated in the residing country, it is called On-Shore Outsourcing. It offers you an advantage of cultural compatibility and the same time zone, but it can be an expensive option.
Off-Shore Outsourcing
Off-Shore Outsourcing can be considered as a drastic cost-saving option. In this outsourcing, option corporations can select an outsource company from a company of other continents that can have different time zones or work ethics.
However, most business leaders prefer to opt for Off-Shore Outsourcing Software Development Companies as they save a huge amount of Software Development Costs.
Steps involved in the process to Outsource Software Development Projects
Here is the most important part of the journey "Everything About Outsourcing of Software Development Projects." Here is the detailed step by step process that will assist you to Outsource Software Development Projects in the right manner.
Step 1: Define the Objectives
You can hardly initiate a project and believe it will be successful if you clear your goals. It is vital to be transparent about it and discuss these objectives first with your internal business management, then with the external stakeholders, with the Outsourced software development company you want to employ.
Step 2: Investigate the best options for Outsourcing services
The next thing that should be done is to investigate particular countries with a great culture for outsourcing. Many strong alternatives include India, Ukraine, China, Hungary, and South Korea.
You have to pay special attention to how often software developers charge per hour in these countries and the time gap between where the enterprise is and where the company or developer is situated to ensure seamless interaction.
Step 3: Investigate the Best Software Development Outsourcing Companies in your preferable Region.
This step is one of the crucial steps of the entire process. You can complete your search with the help of Google or Safari. You need to type "Best Outsourced Software Development Companies" followed by the name of the region.
For example, if you are searching in India, you can type "Best Outsourced Software Development Companies In India." After this, you can make a list of the topmost Software Development Companies that ticks off every desired criterion of your search.
Then try to do some extensive analysis of selected profiles by checking their client's feedback, past projects, referrals, etc. Moreover, you can contact their former clients to know about their experience with a particular company. If you are satisfied with the conversation, you can proceed further.
Step 4: Set up a meeting with the Offshore Outsourcing Software Development Company to discuss every single detail of the Software Development Project
After reviewing the company's past performance, the next step is to discuss every detail about the project to easily select the right option for you, which will handle your project efficiently and professionally.
You can connect with them over the audio or video call via normal call, skype, Zoom, Google Meet, etc. At this phase, it is important to communicate explicitly about your priorities and project specifications. It ensures that you and your service provider have the same wavelength for the software development process.
You can ask them various listed questions related to their working culture, payment, and delivery terms, etc., for your reference.
- In which type of technology, the developing team is specialized?
- Have you ever had a chance to work with a project that is close to our project?
- Will our team access the source codes through various software like Trello, GitHub, etc.? What type of files can we access during the development of the project?
- What will you, as a development agency, go to provide in our project? What will be the charges for the same? Will your development team provide assistance, consultation for design, license, quality, etc.?
- How many times are you required to deliver the project? What will be the maintenance intervals of the Software?
- What happens if our company is not satisfied with the operations? However, it is an unfortunate fact that almost 50 percent of outsourcing developers fail to meet the criteria.
Yes, there are many more questions, which can be part of the above list, but every hirer will ask these common questions. The rest of the questions depends on the specification of the project, the expectations of the management. However, these questions can be a good conversation starter.
Step 5: Select the Best Web and App Developer for your enterprise.
The whole process takes time to complete, so you have to keep patience in selecting your firm's best developer. If any of the prospective selected options do not reply on time, it's a clear sign that they are not trustworthy.
However, if any of them positively answer all the questions, it can also be a sign of paying attention. As somehow, it is impossible that a company knows everything.
But if you are confident about your decision that you can prepare the agreement documents that have to be signed by you and the Outsourced Software Development Company. Following are the agreements required to be signed:
Service Level Agreement (SLA)
This agreement represents all the requirements of the project, timings of meeting, and reporting criteria.
Key Performance Indicators (KPI)
From its name, it is understood that it is an agreement that specifies the standards based on which performance of the software will be evaluated at different project phases.
Software Requirement and Specifications (SRS)
In this piece, all the requirements and specifications of the project will be listed by the hirer.
Non-Disclosure Agreement
Nowadays, stealing data is common in the Software Development Industry. So, this legal document will protect the rights of the hiring company. So, ensure the developers will surely sign this.
Now, you are at the completion phase of the process. All you need to do is proper communication for tracking regular progress to ensure that your software development is on the right path or not.
Advantages of using services of Software Outsourcing Company
Of Course, cost saving is one of the biggest advantages of the Outsourcing Software Development Project. But, besides this, the following are the advantages you should be aware of.
Access to the Pool of Talent and New Technologies
With outsourcing, you're not limited to regions while you're hunting for talent. Instead, you get access to millions of third-party companies worldwide to run your custom software development initiatives.
Many of these software development companies have gained professional experience by collaborating with a wide number of clients. Outsourced teams will have connections to edge software development solutions to handle these organizations and projects.
This would allow them to respond quickly to any needs you have. No matter how specialized the project is, there's always an outsourced team to do it for you! Also, outsourced teams can use Agile development methods or DevOps to make them more efficient. These processes will also significantly help up time-to-market performance, allowing the company to expand its technical capabilities faster.
More emphasis on global industry processes
Outsourcing rewards to the in-house staff as well! By assigning time-consuming tasks to a third-party provider, they will reduce the internal tech staff's workload. As these outsourced teams do not need external guidance, the team will be working on tasks that directly lead to company growth.
Instead of pushing the in-house staff to manage tasks, they are not prepared to work with, outsource them to a third-party company! This way, the fulltime team will be working on strategic priorities that complement their expertise while the outsourced team works on these specific tech solutions.
Improves the quality of Service
Getting an external software development team will also boost the consistency of the final result. Your outsourced team may provide dedicated monitoring and quality assurance tools to ensure that the final software solution is secure for enhanced user experience.
In fact, when the outsourced team could get fresh suggestions to make the applications better, it may lead to more advancement. They might also propose new ways of addressing current market challenges.
Disadvantages of Outsourcing Software Development Company
There is no denial about the fact that everything comes with its own advantages and disadvantages. And, this is applicable in the Outsourcing Development Scenario too.
Mismanagement and Communication Gap
Obviously, this may be one of the inhibiting factors of outsourcing software development teams from a different nation. If you cannot maintain a recently hired software development team, it is easier for the whole project to face a failure. Instead of enjoying the rewards, your business may be confronted with issues that might otherwise not have existed.
Besides, such incompetence will lead to disappointment and annoyance between you and the other party as well. Therefore, employing a software development team from another country can only be achieved if you are assured that the workforce can be well handled.
Involvement of Higher Risk
It might be better to collaborate with the in-house staff. You've got everything in front of you – whether it's positive or negative – you can see it all. However, it's not the situation when you're outsourcing software development from another country.
You can barely depend on audio conferences or frequent meetings – so you can't get what is going on behind closed doors while the team works globally.
Definitely, there is a potential risk involved when the software development team comes from a different nation.
Ownership and Command Rights
It is one of the common myths that a corporation will lose control of the software development process or the result's rights. If you're working with a professional association, there's a marginal risk of getting dumped. Finding an organization that guarantees total accountability and maximum dedication in the development process is one of the hardest tasks.
In Nut Shell – Outsourcing Software and App Development Process
We hope that the comprehensive guide – "Everything about Outsourcing of Software Development" addresses all the questions in a detailed manner. Moreover, it will assist you to have a firm decision whether you want to Outsource the Software Development Project or not?
While emerging technologies offer sufficient opportunities, they are tagged with greater challenges. Well, some 'jack' can't master all of it, and few things are best left to the experts.
To be successful, you need to select a highly qualified and reliable Software Outsourcing Company to achieve your strategic goals through industry best practices and time-testing processes.