Whether you are looking to scale up quickly, find specific expertise, or cut operational costs, outsourcing is often the answer. According to Deloitte’s 2018 global outsourcing survey, IT continues to be the most commonly outsourced function. This strategy has quickly gained popularity among businesses because it helps enable competitive advantage.
However, we must tell you. Things won’t always be easy, sometimes your outsourcing experience can turn into a bad experience, but don’t worry! Not everything has to be bad. We are here to help you avoid mistakes and share helpful tips to boost your chances of software outsourcing success.
#1 Define your project
You might think this is obvious but really define your project. Don’t take it for granted or as if you already know it, sometimes we might forget about it. Define everything.
Start with a clear statement of what you are hoping to accomplish, define your project requirements and give as much information as you can about what you need to be delivered, and the way in which you need the work done. As the nearshore partner, we need accurate, complete information to present you with the right proposal. And don’t forget to mention time. When are you expecting to receive the final product? This will help build realistic schedules around your project to complete it successfully and on time.
#2 Choose the right partner
You might have heard this before and maybe too much. But, we will tell you one more time: Choose the right partner. Many bad experiences come from choosing the first partner that comes across. And why is bad to do this? Well, first of all, if you chose them maybe because it was the lower cost you could find or that seem “good enough”. But think it twice before making a final decision. Have you done enough research on this partner? If not, you should do it.
Just like you are hiring a new employee: interview your partner. Ask for recommendations from other companies, take a look at their case studies. Do you like what you see? If the answer is yes and their work speaks for themselves, you are on the right track. But please, trust your gut, if something doesn’t seem right or you are not sure, keep on searching.
#3 Avoid selecting on price alone
We mentioned this in tip #2. One of the most common mistakes in outsourcing is choosing a partner just because of the price. Now, that doesn’t mean that you’ll always have a bad experience just because the partner you like has a lower price compared to others. What we are trying to say is that lower prices aren’t everything you must look for. Keep in mind that outsourcing rates vary.
A study conducted by our partners, Accelerance, Inc., one of the most respected firms in the industry of software outsourcing, determined that outsourcing rates vary considerably by region, skill level, experience, the specific technology stack involved, and the length of the project. Ignoring these aspects can result in a bad experience for your business.
Which type of outsourcing are you choosing? Get to know the rates (shown below) and don’t compromise quality.
#4 Look for specific experience
When you are defining your project make sure the team you choose master the skills you are looking for. You don’t want someone who “kinda” knows what they are doing. If you are looking to develop a mobile app or to migrate your data to the Cloud make sure the team has actually completed projects on said services.
Look at their portfolio or case studies. Do they have verifiable experience? Which industries have they worked with? Get to know them well, no matter what you are outsourcing, this applies to any type of service you are looking for.
#5 Start small but wisely
If your business is just starting but you have a big project in mind, make sure it is going to have the success you are expecting. Or that you won’t be spending too much money and time on something that won’t be successful. What about you start with an MVP? You can read more about what an MVP is in our article “What you need to know about an MVP”.
If your partner, besides offering software development services, also offers Discovery Sessions, we recommend you to choose it. Especially if you aren’t sure about the final product usage. This will allow you to discover the right way to carry on your initial idea, with the professional guidance of a Software Development and Design team. Don’t risk too much. Think wisely. If your “small” project goes as expected, now you have the partner and resources to make it big.
Outsourcing is a great strategy for your business when done right. You can access top-notch expertise any time you need it and stay focused on your core business. We hope these 5 tips will help you on your journey to look for a software outsourcing partner!
We are Applaudo Studios, a nearshore software development company with over 7 years of experience building solutions on any language, stack, or platform. For both web and mobile. We have a solid understanding of business processes, trends, tools, and best practices in the Tech industry. Whenever you need us, we are here for you.