Software Projects Outsourcing: Step-by-Step Outsourcing Guide

Author: Tomasz Bąk
12 min read
Software Projects Outsourcing: Step-by-Step Outsourcing Guide

Outsourcing the work for your software can be a real game changer for your company. Not only can it have the effect of saving time, but it can also save you money and get working software delivered faster. But what exactly do we mean by outsourcing software development, and what’s the best way to go about it?

What is software development outsourcing?

Outsourcing software development is a business strategy of delegating software development project to an external company instead of executing it within in-house capabilities. The process of software outsourcing begins when a business decides to build start software project through the means of a third party.

The benefits of software outsourcing services

Here are a few benefits of outsourcing software development projects:

Benefits Of Outsorcing

Access to software development experts

When you put a product together, you’re going to want the best quality, right? You might have an awesome in-house software development team, but the chances are that you are going to get the best of the best if you outsource your work to software developers who have the best experience.

With software outsourcing services you are able to hire with a diverse software development team with all sorts of skill sets. They’ll come to development process on-demand and that is going to work out the best for you. You’ll have no doubt that you’re on safe hands if you partner with the right software outsourcing team.

Flexible team capacity and scalability

When have you ever started a software development project that has ended up exactly how you wanted it to when it first started out? Things change. Problems arise that require solutions, individual parts end up costing more (or less) than you expected to and countless other variables occur down the line that are impossible to predict. That’s just the way it is!

Software projects outsourcing companies provide experts match the needs of even the most substantial projects provided that you reach out to them with enough time to get things organised. This allows for greater flexibility, which as we just mentioned, could not be more useful in the software project development lifecycle.

High-quality software development team

Bringing in an outsourced software development company will guarantee good communication and skilled individual team members. Why? Because these guys will have been working together for time already, which will have built up team chemistry. Plus, as we’ve been mentioning, they will certainly have the skills!

Just make sure that with any company you are thinking of hiring, you check them for certified accomplishments, previous examples of their work, solid customer feedback, tenure and other online credibilities, perhaps through the likes of social media platforms.

It’s also a good idea to make sure that these accolades apply specifically to your company, and the project you are trying to get underway.

Software outsourcing is cost-effective

The rapid pace at which technology evolves means that the software development industry is ever-changing. Hiring and training software developers for a project can turn into unnecessary overhead costs.

Software outsourcing companies allow you to quickly gather all neccecery software development specialists and the on-demand model.

Moreover, working with software outsourcing companies that has already built similar project to your will save you a lot of time and allows you to leverage their past in house team experiance.

Step-by-step software projects outsourcing process

Liking the sound of hiring an outsourced software development team? We thought you might. Now, it’s time to find out how to actually get the show on the road.

Take a look at our step-by-step guide to finding the right software development team and hiring them for your next project:

Outsourcing Process Step By Step

1. Define your goals

You’re not going to be able to find the right developers if you’re not 100% sure what you want your software to look like, to behave like and to feel like. You’ll probably also want to run your ideas past other members of your team and perhaps even other people you know in the business so that you know your project sounds interesting and achievable.

2. Prepare Scope of Work documentation

There’s no point trying to reach out to a software development outsourcing company if you have not prepared the plan. They’re going to want to know your budget and your requirements, and good documentation is the best way for this. See: Starting a Software Project — Complete Guide to Project Planning

3. Research the best Software Development Outsourcing Companies

The right software development agency is going to vary from company to company and project to project based on the needs of each assignment, but there are plenty of ways to find these agencies and double-check that they are right for your job.

You may want to make a shortlist after you have done these things. Now, it’s time to filter that shortlist down and find the best one for the job. This can be done with a little more research. This research may seem a little tedious, but it will have huge implications if you get it right! The research you could try is as follows:

  • Checking the company itself. Refer to the ‘High-quality Service’ section of this article for how to do that. A key thing here is to look at their portfolio to see if any of their previous work is similar to your own.
  • TrustPilot, Google Reviews and other comparison sites
  • Contact companies who have worked with your developer of choice. Past clients will give the most honest truth

4. Contact Software Development agencies about your project

It’s crunch time: you’re about to reach out to your agency of choice. There’s no harm in approaching two or three at this stage if you’re not sold already. But what are you going to talk about here?

Firstly, schedule a video or phone call with the company by reaching out to them via email. Being able to see someone or at least hear their voice will help establish a personal relationship and give you a feel for what they are like.

Before you get into that call, take a look at some of the key topics of conversation that you may wish to bring up

  • Communicate your goals and the things you are looking for from the company for the project so that they know whether they will be up to the task and you know whether they are on the same page as you.
  • Ask questions about their style and software development outsourcing process, including the technology they use and the team members within.
  • Discover whether they have similar experiences with prior clients if you do not know this already.
  • Find out what the size of their team is. They should have more than another staff to take care of your project, even if they have other ongoing projects.
  • Enquire as to what they expect the time scale of the project is going to be and if they think they can stay within budget.
  • Will you get a free consultation? Testing support? Licensing?
  • What happens if you aren’t happy with the way the project is going? You should know about what your contractual position is at this point.

If all of these questions check out, it’s time to invite them for a meeting to get to know them a little better and begin the project planning stage.

What are the models for software outsourcing?

Any good software development agency will follow strict rules and standards so that they do their best and most efficient work. This is a great thing to find out about during the interview process as well. If they can tell you which of the following they use, they’re definitely going to look a lot more professional than if they cannot.

Here are the two main models for software development outsourcing:

Managed team model

Here, the responsibility for the outcome and all elements of the software development process throughout a project are shared between the client who’s project it is and the provider of the outsourcing network. Responsibilities are mostly equal, or at least clearly defined early on.

This is a great model to use when you want any or all of the following:

  • Technical expertise for specific areas of the project
  • Quick deliveries for any stage of the project
  • If you want to stay in control of the decision-making

Project-based model

On the flip side of the managed team model is that of the project-based. In this model, the provider of the outsourcing takes responsibility and effectively owns the project from the start to the end of the development cycle.

You will, of course, be providing plenty of specifications etc. but you will be giving a degree of flexibility to the developers, which can often have plenty of benefits.

You’d probably be best off with this model in the following situations:

  • When you need a specific product developed without a management burden.
  • If you prefer your outsourced team to own the execution, freeing up time to do other things.

What it takes to outsource your project successfully?

There’s a little more to software development project outsourcing that we need to cover before you go out there and get stuck in. Here are some top tips for the successful rollout of software outsourcing.

Establish project leadership within your organization

Using the two models we just went through, the first thing you will have to do after you have signed your agency is to establish who is going to take most of the reigns of the project. Check that you have ticked off each of the following things to do.

  • Ensure tech support. Either you or your software development company of choice will need to provide tech support in case things go wrong. Sometimes, technical issues will find themselves out of the project scope of the developers themselves.

  • Acknowledge your own and your team’s limitations and weaknesses. After you decide who’s in charge, you’ll need to assign particular roles and development stages to particular members of your team. A great way to get started with this is to figure out what they are good at and what needs improvements.

  • Have confidence in the software development company. Everybody hates a micromanager, so if you spend all your time leaning over the shoulders of your newfound developers, it’s never going to end well. These guys will know what they are doing, that’s why they have been recruited by the agency. So, have faith and relax. You can judge at the end.

Follow project management methodology

Furthering on from this, it’s important to follow a good software development processes. Whether it be scrum, kanban, or something else, you will need to ensure that you provide the project management tools that your team will engage with.

Establish feedback loop in change management

Anyone who has been involved with software development processes before will know that feedback is one of the greatest keys to success. You’ll need constant feedback between developers, testing engineers, project managers and all the other members of the team.

This will help you to keep on top of the project lifecycle and understand what needs to be corrected or brought forward at every stage of it. An invaluable set of information indeed.

Set up a communication schedule and format

A great way to ensure consistent feedback is to communicate clearly, and a great way to ensure clear communication is to set up a schedule to speak to all the members of your team.

Try scheduling a daily meeting with them and perhaps a work chat on a communication platform such as Slack. Here, team members will be able to speak their mind as and when they need to. You could also go one step further and communicate via video with Zoom or something to that effect. And, make sure that your virtual door is always open by the ways of email.

Measure development progress and metrics

If things don’t feel like they are moving fast enough, it’s a great idea to set up a schedule at the start and consistently keep up to date with the movement of the project. If things aren’t mapped out, they could feel like they are grinding to a halt and you will have a hard time doing anything about that.

This will also help you to gauge the rate at which individual members of the team are moving at so you know when to reach out and offer further support if and when they need it. With these things in mind, there is a much lower chance that you will end up falling behind the schedule

Software project outsourcing with SoftKraft

Need to craft an end-to-end software application with a complete cross-functional team? At SoftKraft we provide Full-cycle Software Product Development. We take project ownership and responsibility for decisions that were taken during the development. Success of the project is the only metric that really matters to us.

  • Engage quality tech professionals

    15+ years of experience in engineering custom software solutions for startups and SMEs.

  • Results-driven design thinking

    Design Workshops to clarify your business idea and build a much better product faster.

  • Business-minded engineering

    Work with engineers who understand the need for bottom-line results from tech initiatives.

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There are countless benefits to outsourcing software development for your next project. Saving time and money is just the tip of the iceberg, but think about the quality you can get if you get the right people through your door!

Plus, it’s surprisingly easy to do. Our tips to finding software development outsourcing partner should get you on the right track, and from there on out things should be plain sailing.

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