By Applaudo Studios




How to choose a software development partner

Looking for a software partner? Here’s how to choose the right one.

Finding a software development partner to meet your business needs can be a challenge. When you are in the process of choosing a software development company as your partner, you will want to take into consideration issues such as experienced leadership, previous customer successes, expertise, among others. Hiring software development companies that can bring experience and understand your technology requests are valuable inputs that will ensure you are in the right hands.  

Below, we have selected what you should take into account in order to choose the best software partner. Let’s take a look. 

Technical and Industry Experience

Verify technical experience 

Dedicate the necessary time to your search in order to find a partner with the optimal technical expertise for your software. To find out if they have good technical expertise, identify the top 3 skills your software needs and prioritize them in your discovery process.

It is not only enough to focus on the record of your partner, but also to make sure that they have the required skills that will make a positive impact on the performance and user experience of your project, and its overall quality.

Experience of software development specialists

Development specialists enhance the value of your software. Verify that the specialists of the company you want to hire truly add value to your project and respond to your business objectives, due to their broad base of knowledge and experience. 

Opt for a balanced team of developers. This means a team mixed with junior, mid-level, and senior developers, as these are the teams that work best. Let’s illustrate this with an example. On one hand, low-cost teams made up only of junior developers will lack the needed experience to be productive and efficient. However, on the other hand, a team composed entirely of senior developers will represent higher costs and may cause teamwork problems. That’s why balanced teams are your better option. 


Consider teams prioritizing innovation 

Opt for a software development company in which their teams prioritize innovation. Innovation has turned out to be the only way to overcome competition and be visible in the market. It helps you create more efficient processes to increase productivity and performance. If you are looking for a software development company to meet your software needs, keep in mind outsourcing companies, as they are an innovative solution to entrust your requirements.

Outsourcing software development can help you innovate since you will be leveraging teams outside your company and accessing broader domain knowledge. Nowadays companies are looking to constantly improve their competitive edge by being more innovative, optimizing efficiency, and offering great customer service. The solution? Not only is outsourcing, but nearshore companies too. When choosing an outsourcing partner, keep in mind proximity and cultural affinity. Consider a location culturally compatible with yours when it comes to working with outsourcing IT specialists, and a location that you would fly to and back with convenience, especially for verification purposes. 

What you should know about Software Outsourcing rates

How software outsourcing rates work 

One of the reasons behind choosing a software development partner is the lower operational costs. However, costs vary depending on different factors. Take a look at the following points to learn more about how software outsourcing rates work. 

  • Software outsourcing rates are quoted as full-time equivalents (FTE), where a percentage of each team member’s annual salary is paid based on the length of the engagement, or as a blended hourly rate, where an hourly rate is quoted based on an average salary of several team members. The way of quoting varies from supplier to supplier.
  • You must compare the price you are being quoted with the average price range in the region based on similar software engagements. This way you will be able to recognize when a price is unusually above or below average and when there is something that does not match up. We recommend that you also closely review what is included in your budget and prioritize getting high-quality software for your investment. Don’t be driven by cost alone, saving money is no good if the result is a product that doesn’t work.
  • Also, consider the full cost of the engagement, not only the hourly rate. The total cost of engagement (TCE) is independent of the quoted rate and is a charge that you will need to take into account over and above the quoted rate. For instance, the TCE of in-house teams can be a huge amount, since taxes, benefits, and overhead is added to the hourly rate paid to developers. Outsourcing significantly reduces TCE but does not remove it. It is still worth taking into account the additional management costs and potential travel costs for offshore or nearshore software outsourcing.

What software pricing model should you choose?

You must choose the pricing model that best suits your company. Fixed-price models in theory have less risk to your budget as they retain payment until software development milestones are completed. However, the features and functions of new software applications are not well established, meaning that a fixed offer cannot be accurately estimated.

Most software outsourcing contracts use a team of dedicated developers and the outsourcing company is paid monthly for their work. This is fair because the work is usually done in sprints using the Agile methodology, so you receive the highest priority features and functions first.

Finally, incentive-based and risk-sharing models offer flat fees with increasing payments as goals are reached. They may require additional oversight and higher risk but can be valuable to the quality of your software and your outsourcing partnership.

Take the next step

We all agree that outsourcing software development is a great alternative for any company, especially now where rapid technological advances are having more and more impact.

A company that chooses to work with a qualified software partner handles better its business challenges. As a nearshore company, we can build your product from start to finish, from prototyping to full-scale development of desktop, mobile or web applications, testing, migration, and system management.

Our skilled Software Engineers have a deep knowledge of the latest technologies, a strong grasp of market trends, and a solid understanding of the customer’s insights for each project. What about we start with a Discovery Session?

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