There are three primary grounds on which IT businesses outsource their custom software development projects to software development outsourcing companies.
They are to do the following:
- Save time!
- Save resources!
- Acquire expertise!
Outsourcing is a feasible option when a company doesn’t have sufficient experience and expertise in a certain field or doesn’t want to invest too much of its resources in it.
The time and expense associated with hiring can be greatly reduced through outsourcing. You get a ready-made team of IT professionals from your outsourcing partner. Therefore, you don’t need to stress about hiring in-house developers and paying them competitive salaries.
However, if you collaborate with the wrong outsourcing partner, it can make a lot of things go south.
Let’s take a look at 6 common roadblocks to outsourcing software development and learn how to overcome them.
Overcome Outsourcing Custom Software Development Roadblocks
1. Finding a Reliable Software Development Outsourcing Company
A reliable custom software development outsourcing company must:
- Have the expertise and skills to complete a project within the estimated deadline
- Show dedication and understand the requirements of their clients
- Provide solutions that lead to the best outcomes
Many software development outsourcing companies in the USA offer custom software solutions. But you must choose the one you see fit for your organization.
They need to understand your requirements, work accordingly, and refrain from offering solutions from their own understanding of your company.
So how do you make sure that it works out your way?
Before beginning the project, make sure that your chosen custom software development partner gathers all the necessary information regarding the development project. Ensure that they take complete responsibility for the development project, from development to launch.
The custom software development company should also be thoroughly interested in learning about your business, your industry, and your desired goals for the software solution. They should then provide achievable solutions that meet your client’s expectations.
2. Accurate Estimation of Software Development Project
Establishing an accurate estimation of the custom software development business can be challenging. When the development project is big, even slight changes from the original plan can result in significant expenses.
Therefore, it is important to check the following factors in order to prevent unforeseen blunders in the cost budget planning of the custom software development project:
(A) Ensure clarity on the requirements of the software development project
Make a list of all plausible project development requirements. Invest time and effort in preparing the list, as it will save you a great deal of effort, time, and money at the later stages of software application development.
Create a spreadsheet with all the requirements, and based on your budget and understanding, include specific cost estimates. This will enable you to establish a quote that is accurate (and negotiable if necessary).
(B) Make ballpark estimations
Making such estimations gives flexibility in an agile way. The custom software development project is planned and divided into many development stages, with cost estimates provided for every stage.
This fosters accountability to provide high-quality results and enables you to implement changes without incurring significant expenses. Even if the project is terminated after the first development stage, your organization will not lose more than one-third of the software development cost.
(C) Steer clear of fixed-price software development projects
You won’t be able to make necessary changes when needed if the bespoke software development cost is fixed. Additionally, until the project is finished, you won’t have the flexibility to evaluate the quality of the output produced.
Regardless of the quality of the development work, the rate of the project is fixed and must be paid in full. Any changes will result in additional expenses and substantially increase the budget of the software development.
3. Service Quality Level of the Software Development Outsourcing Company
Poor quality standards of the outsourced software development company are one of the most common risks of outsourcing and are a nightmare for the IT company.
IT organizations choose outsourcing firms with the lowest prices in order to cut costs, but they often fail to look into the factors that lead to these low service costs.
To avoid poor results and falling for cheap rates, ask the software development outsourcing company to show you the following:
- What they have built in the past
- Who their previous clients have been
- Which industries have they worked for
Make sure your outsourced custom software development partner uses DevOps practices and agile project management methodologies. Additionally, procure a service level agreement (SLA) that transparently lists the development services that will be provided by the outsourcing company and their expenses.
Hire a tech-savvy professional to assess the work of the remote team. A skilled project manager will assist you in ensuring the end product code is of the best quality. Additionally, they will assist you in preventing other unnecessary technical risks associated with outsourcing.
4. Key Individuals Quitting Before the Completion of the Development Project
Since the employees can always be replaced or hired again, the outsourcing company is not concerned about resources quitting working on the project mid-way.
However, the problem arises when the resource partner is unable to fill vacant positions by a certain timeframe.
This would result in the project running behind schedule because of the lack of qualified IT professionals.
Software development outsourcing companies must uphold the initial agreement between the two parties concerning their roles and responsibilities.
If the outsourced software development company delays fulfilling its commitments for any reason, it will result in legal issues. On the other side, the IT company will have to hire another outsourcing partner, leading to delayed outcomes and increased expenses.
Therefore, to avoid this outsourcing roadblock, you must do the following:
(A) Run a complete background check
In order to fill essential job roles, background checks are crucial. The skills and capabilities that a person can bring to the table cannot be fabricated, but resumes can.
(B) Hire personnel with a stellar reputation
Many people frequently change jobs and lack the reliability to commit to a project for a long time. Therefore, seek qualities that reflect consistency in a person’s job commitments.
(C) Pay in line with industry standards
Competent resources yield high-quality results. Since they are the ones who manage many aspects of the software development project, it is crucial to compensate them adequately. This will enable you to retain them for a prolonged time period.
5. Cutting Development Costs Without Jeopardizing the Quality of the Services
You need to treat both as equally significant when we talk about cost versus quality. You must never, under any circumstances, sacrifice the software application’s quality for financial reasons. Almost invariably, better quality work carries a price that is commensurate with its value.
Therefore, keep the following in mind to ensure that you don’t jeopardize quality by putting extra emphasis on cost-cutting:
(A) Price is not the top priority
You should choose a software development company based more on the quality of the services they provide than the price they are willing to charge.
Do an extensive background check. Their past performance will speak loudly about their abilities to produce quality work and finish software development on schedule.
Additionally, it will help you to learn about their talent pool and the scalability of their services. You must realize that choosing a custom software development business based just on price is never a good idea.
(B) Hire in-house project managers
An in-house project manager can help you save time by effectively collaborating with the outsourced software development company. They can help you manage the software development processes as per the initial project planning and expectations.
A skilled project manager who can work successfully with the outsourced software development team can help you yield the best outcomes.
6. Prioritize Data Security and IP protection
While considering the outsourcing model, you need to be aware of IP and data security risks. You must implement necessary measures to prevent damages that may result from:
- Potential data security breaches
- Intellectual property rights when outsourcing services
Sharing personal or sensitive information about your IT systems can result in decreased security. Therefore, keeping your data secure when collaborating with an outsourced partner requires regular risk assessments.
When choosing an outsourcing partner, data security is typically factored in. Any risk that comes with outsourcing should be held accountable by the software development outsourcing companies.
Therefore, collaborate with an outsourced partner who understands security and has contingency plans to reduce security and IP hazards.
Additionally, to prevent IP and data security risks, ensure the following:
- Sign a non-disclosure agreement (NDA) with the outsourced custom software development company (following your local IP laws) before disclosing any sensitive data.
- Before signing an NDA contract with the custom software development provider, conduct research on independent review platforms. Such investigation should examine the software development service provider’s reputation and any prior violations of the intellectual property rights of its customers.
- Additionally, you should look into the custom software development company’s internal risk management procedures. You must also verify their capacity to protect your intellectual property and how they would handle the situation in the event of an internal data security breach.
What Qualities Must an Excellent Software Development Outsourcing Company Possess?
Below is a list of qualities that a good software development outsourcing company must possess:
The most reliable source of feedback is testimonials. It is the primary indicator of whether the custom software development outsourcing company you have chosen can actually provide quality services.
To obtain a clear picture of the past reputation of your selected custom software development outsourcing company, visit their website or look at directories like Clutch and GoodFirms and other credible review sites.
Additionally, reach out to a few of their past and present clients to gain a more unbiased perspective. Inquire about your prospective outsourcing partner’s technical proficiency, communication skills, bug-solving capacity, etc. Remember that social proof and testimonials help establish credibility and trust.
A reputed custom software development outsourcing company must have a stellar portfolio. A company’s past performance can predict its caliber to deliver quality results to a great extent.
A company with experience in a project similar to yours or a similar industry means they can understand your software development requirements and deliver results accordingly.
Additionally, their experience will help them find plausible solutions if they encounter any problems during the development stage.
The key to outsourcing is effective communication. Make sure the representatives of the custom software development company you talk to are fluent in English. This will ensure the dissolution of the language barrier.
The success of any project requires both parties to communicate clearly regarding all requirements, issues, or problems in unambiguous terms. Therefore, you should hire a qualified project manager who will serve as your single point of contact.
Since software development is an iterative process, the dedicated project manager will be in charge of the entire project and must see to it that you are given timely updates regarding it.
4. Technical Proficiency
This isn’t a brand new revelation that you need professional IT experts to help you transform your software development blueprint into reality. Therefore, assessing the technical proficiency of the software development outsourcing company before hiring them is of utmost importance.
Make sure to check their previous projects and what tools and technologies they are proficient at using. That’ll give you a basic idea of whether your outsourcing partner can handle your project.
Integrative Systems Can Transform Your Vision into Reality!
It can be tempting to want to manage every aspect of running a business independently. However, it is not only time-consuming, but it is also not practical.
Therefore, outsourcing is the most convenient solution you can opt for. Software development outsourcing provides advantages where time, effort, and money are significantly reduced.
You can build an expert team of IT developers and effectively plan the entire software development process with the help of a reputable software development outsourcing company.
This is where Integrative Systems comes into the picture. We are one of the best custom software development outsourcing companies in the USA and can help you turn your vision into reality. We have served clients from various industries worldwide.
We offer you over 20 years of industry experience, a vast talent pool, technical expertise, agile project management methodologies, and effective communication skills.
Contact us at [email protected] to discuss your custom software development project requirements!