outsourcing Agiliway 22 | 05 | 2023

5 Ways to Successfully Outsource Software Development

Undertaking digital transformations requires a significant investment of time, money, and effort due to their intricate nature. Digital transformation occurs throughout an entire organization, not just one department, resulting in new modes of communication, a new level of cohesion, and a more robust company culture overall. This results in increased efficacy and output. According to the report, global spending on IT services for digital transformation is expected to soar to an impressive 3.4 trillion US dollars by 2026.

In such a transformation, software development is frequently outsourced, a trend that is expected to grow in the coming years as organizations contend with their digital transformation objectives. Historically, companies have outsourced software development to enhance their digital transformations predominantly due to cost reductions. This rationale, however, is no longer a priority. Currently, the strategy focuses primarily on gaining access to the most innovative technologies and the best engineering talent.

Moreover, swift change is inherent to the nature of labor. Businesses must now change their involvement models and cultures if they want to get the most out of their digital shifts. Business executives believe their organizations will lose competitiveness if they do not adopt an operating model for the next generation.

In addition, digital transformation may involve fewer new technologies and more connectivity. Organizations recognize that their ability to adapt to this new economic model is crucial to their continued existence. They must go digital to automate and enhance processes to improve customer experience, accelerate project delivery, and increase business agility.

Yet, despite the undeniable writing on the wall, businesses seeking to enhance their digital transformations by developing custom enterprise software continue to doubt their decisions. They question, for instance, whether recruiting permanent personnel or outsourcing a software development team is preferable.

Outsourcing software development is the delegation of the task of developing a software product to a third party, such as a consultancy. Here are the main benefits and drawbacks of outsourcing software development.

Benefits of IT Outsourcing

Cost control. Outsourcing allows you to reduce expenses. This is the main reason why businesses do it. A business can pay for services on an as-needed basis and avoid making significant infrastructure, software, and personnel investments.

Proven workflows and processes. Because the outsourcing company has likely worked with a variety of clients, it can frequently implement processes that are effective within a particular industry.

Quick time to market. The outsourcing company can manage and optimize workflows by best practices.

Scalability. Outsourcing companies frequently have large talent pools, enabling businesses to scale projects faster than if they were retained in-house.

Top talent. Outsourcing firms have access to exceptional talent and industry experts who are available to consult and discuss solutions with the business, which is an added benefit.

Utilizing cutting-edge tech. When working together with outsourced software developers, you can trust their expertise. They stay current with the latest industry technologies, providing you with a competitive advantage. Your company may gain more consumers if you incorporated cutting-edge IT practices like artificial intelligence, automation, and machine learning into your operations.

Move on to the drawbacks of outsourcing software development.

Drawbacks of IT Outsourcing

Business failure. A business is at risk of failing if it loses control of the project and is unable to effectively manage the outsourcing company.

Language barrier. Problems with communication can arise when interacting with offshore firms from diverse cultural origins.

Limited motivation. Compared to in-house developers, the outsourcing firm may lack the same level of motivation to complete a project successfully.

Limited control over the development team. If the outsourcing firm employs freelancers and contract employees, the employing company is two steps removed from the actual developers performing the work.

Low-quality code and documentation. If the outsourcing company lacks stringent quality controls, the code and documentation produced by its employees may be of poor quality.

outsourcing team

5 Key Ideas for Successful Software Development Outsourcing

After weighing the benefits and drawbacks of outsourcing software development, you’re likely to consider commencing immediately. When performed correctly, software outsourcing can save you time and money while delivering a product of high quality. However, if done improperly, it can be a costly error.

Here are five suggestions for reaping the benefits of software outsourcing:

1. Identify your business objectives

Before reaching out to a potential offshore outsourcing partner, you should carefully consider the project’s objectives. What issue are you attempting to resolve? What characteristics are required? What is your price range? These queries will assist you in locating the ideal vendor for your requirements.

2. Carefully examine their company profile

Once you’ve determined your search, it’s time to conduct your research. Consult with your network of business proprietors for any recommendations.

After you have narrowed down your options, spend some time reading online reviews and exploring the website and portfolio of your prospective external vendor. This will provide insight into their work approach and suitability for your project.

3. Establish a strategy

Numerous business owners commit the error of not having a comprehensive strategy for software development or business process outsourcing. Before signing any contracts for outsourcing services, you must have a full project strategy outlining your objectives, milestones, and deliverables. This will ensure that you and your remote team are on the same page from beginning to end.

4. Be present at all actions

Even if you are outsourcing, you still need to be active in the project to make sure that everything is proceeding as planned. Schedule meetings or virtual check-ins with your service provider to monitor progress and provide necessary feedback. Because it’s your endeavor, don’t be afraid to speak up if something isn’t proceeding as planned.

5. Set reasonable objectives

Finally, having realistic expectations regarding the benefits and drawbacks of outsourcing is crucial. Ensure that your service provider understands the project’s scope and is aware of your budget and timeline limitations.

It’s important to understand that outsourcing software development or knowledge processes comes with some level of risk and delays may occur. Don’t expect everything to go perfectly. If both parties are aware of the potential challenges before starting the project, they will be able to handle any difficulties that arise during the process.

Why partner with Agiliway?

When it comes to outsourcing your software development, Agiliway is a solid choice. Our experienced developers are proficient in various programming languages and have worked with clients worldwide for years.

Agiliway benefits

With every project we take on, we promise on-time delivery and complete customer satisfaction since we know how important it is to fulfill deadlines and provide high-quality work.

Therefore, if you’re searching for a dependable, cost-effective, outsourced development team that can help your business reach the next level, schedule a free consultation with Agiliway experts today!


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