How to successfully outsource development
These tips sound simple, but they are the key to successfully outsource projects and create lasting partnerships.
Outsourcing software, website, and application development projects has become a global trend in today’s business and digital world. Long gone are the days when outsourcing was only a last resort when budgets were tight and businesses needed a quick solution. Outsourcing development has become a common practice in the world of quick turnarounds, expedited timelines, and sometimes smaller budgets.
Businesses who choose to outsource development to a third-party company, such as BairesDev, benefit in many different ways from their new setup as outsourcing offers a number of significant advantages. There isn’t a specific company size that benefits more from outsourcing, either. Companies of all sizes and verticals benefit from partnering with an outsourcing provider.
The practice of outsourcing reduces costs for the hiring business by relieving the need to hire team members as full-time, in-house employees. As members of an outsourced team are a part of the external company, the hiring business only has to pay a flat monthly fee or hourly rate or choose to pay on a project-by-project basis (depending on their contract). Additionally, extra team members may join the projects when companies need to scale up their workforce and may also scale down when needed.
Outsourcing companies provide businesses with access to wide talent and niche skill sets as well. These specialized employees may not have been attainable otherwise. Third-party team members help keep general costs down while helping companies operate at maximum efficiency. This also helps them stay focused on their core business offerings and tasks while still accomplishing their software, website, and application development goals.
How to Outsource Development the Right Way
Hiring and working with an outsource development company is very beneficial and helpful for all types of businesses – when it’s done the correct way. A partnership can quickly go awry when the hiring company doesn’t put in the time, effort, and due diligence to ensure that they are setting the entire team up for success from the very beginning. This failure doesn’t just lead to failed projects either. It means a loss of time and money and a product that may never see the light of day.
Thankfully, there are many ways that companies can help set themselves and their outsourcing team up for success even before starting a project. Below are a few ways that companies can avoid common outsourcing issues and begin a lucrative partnership for the long-term:
- Define the goals of the partnership. Before a company even considers outsourcing development, an outline of the project or company goals need to be put together by the internal team. Many stories about failed products or partnerships cite a lack of clear vision, the product outline, competition analysis, and overall goals as one of the main reasons for failure.
A clear vision of the product or projects at-hand helps keep both in-office and external team members on the same path to success. It also makes it easier to interview and decide on the right outsourcing provider.
- Decide on the best type of outsourcing for the company. There are 3 different types of outsourcing: onshore, nearshore, and offshore. Onshore outsourcing is the hiring of a third-party company from the same country. While this is beneficial for communication, cultural, and time zone efficiency, it’s normally the most expensive option.
Nearshore outsourcing is when a company hires an outsourcing provider in a country neighboring their own, while offshoring is the hiring of a provider in a country further away or on another continent. Both offshoring and nearshoring are beneficial as lower costs of living in other countries mean lower work costs, but other negatives do apply.
Before hiring a particular type of outsourcing provider, companies must weigh the pros and cons for their own specific work case.
- Make communication the top priority. – Effective communication makes or breaks a project of any kind, but especially an outsourcing project. Before a project begins, companies must internally decide on the project goals, intended functionality, requirements, and any other pertinent information that their new outsourced dev team needs to know.
After these decisions, the company must then work with the outsourcing provider to decide on the most effective methods for communication and the frequency. Ideally, this should be an everyday occurrence. Thanks to programs like Skype and Slack, teams located anywhere in the world are able to communicate instantly to get questions answered and problems can be solved on a timely basis.
Whether via phone or video chat, regular meetings need to occur frequently to keep all team members updated and informed on the latest project status, any changes, and so on.
- Set reasonable and attainable project timelines. – Outsourcing companies are typically able to expedite timelines thanks to extensive experience and level of talent. However, projects still encounter bugs, problems, and sometimes need additional development time. The hiring company must work with the outsourced team to ensure that any development milestones and due dates are both doable and fair to all employees involved.
These tips sound simple, but they are the key to successfully outsource projects and create lasting partnerships. Companies must keep them in mind when looking to begin outsourcing to avoid costly mistakes and set themselves (and their projects) up for success.
- Software development trends
- Approaches to software development and workflow philosophies
- Get access to 1,000+ courses geared towards IT and web development for just $79
- Must-have web development tools