There are various reasons why businesses choose to outsource their software development needs. They are either lacking in resources or lack the necessary competence to accomplish goals. Due to the multiple benefits, an increasing number of businesses are outsourcing their software development needs. It’s unsurprising that it is gaining popularity due to the benefits given.
Offshore development is not a simple procedure. There are several factors of software outsourcing to consider in order to achieve the best potential results. If you’re new to outsourcing, you may refer to this comprehensive guide on outsourcing software development strategies. Regardless of the benefits, it has certain substantial risks and obstacles that must be managed. To ensure the success of your project, it is critical to adhere to industry best practices while outsourcing.
Consider some of the greatest outsourcing strategies that will contribute to the success of your project.
Software Development Outsourcing – Best Practices
Understand your Software Outsourcing Objectives
One of the most crucial outsourcing software best practices is that all projects and collaborations must be connected to the master plan.
According to KPMG’s Future of IT research, businesses that will derive the greatest value from their digital transformation expenditures will prioritise projects that have a direct influence on the business strategy, rather than one-off projects.
To conquer the outsourcing industry, prior to anything else, establish the outsourcing project’s aim. Why are you doing this, and what are you hoping to accomplish? Are you meeting a newly identified client need? Are you seeking to scale your business? Are you looking for a way to save costs?
Whatever it is, it should be focused on a single, quantifiable objective that you can convey in one or two sentences.
Establishing complete clarity around the “what” and “why” of your strategy can assist you in selecting an outcome-driven outsourcing partner. On the other hand, it enables you to do the same thing for your end-consumers.
Additionally, a well-defined strategy can assist you in determining where you will ship the project–based on criteria such as necessary expertise, your degree of commitment, or if the project is a tangential side-project.
Create Milestones and mini-goals
One critical error businesses make is believing the task is complete after they pass over all specifications to the development team. There are several ways in which this might result in devastating consequences.
Rather than that, specific milestones and sub-goals should be set throughout the project’s whole lifespan. This assists in maintaining an accurate record of what has been accomplished and what remains unfinished.
Additionally, the numerous milestones provide visibility into the various functional components of your programme. This is critical since a functional segment in its whole may highlight challenges, possibilities, and the general flow of the software development process. This also contributes to the project’s modularity.
Perform Your Due Diligence
It is widely accepted that “due diligence” is one of the most evident outsourcing best practices. It’s vital to remember that you’ll want to be highly thorough, assessing all possible hazards against your selections.
At this point, it may also be beneficial to conduct a self-assessment. For instance, you may ask yourself the following questions to have a better understanding of your outsourcing provider’s capabilities:
How effective are your internal project management capabilities and project management tools?
Are your goods and procedures consistent with the voice of the customer?
Do you have a plan in place for utilising consumer data throughout the development process?
How are you going to quantify the commercial benefits of your software investment?
Is your current infrastructure capable of supporting a distributed workforce? And is it securely fastened?
Once you’ve determined what you want to accomplish, the following step is to begin looking for an outsourcing firm or an outsourcing provider in whom you can place your faith. This partner should possess the necessary assets, abilities, and expertise to produce the results you seek.
Ascertain that you conduct proper due diligence on prospective vendors. Here, you’re conducting a background check, confirming financial soundness, and assessing external elements such as economic circumstances, natural catastrophes, and local infrastructure for possible dangers. You may also check their status as a software outsourcing company in the market.
Obtain references from individuals you trust, if feasible. Has any of your industry connections already worked with an outsourced firm? How was their encounter?
Additionally, evaluate the team’s experience and capabilities. What methods do they use to recruit and hire talent?
Which technology are they utilizing as a part of their software development services? How about coding languages?
Bear in mind that you should be more concerned with determining whether the vendor can achieve the intended product than with a particular tool or language. The most important characteristic to look for in a software development team is a wide talent pool that utilizes cutting-edge best practices/languages/tools.
Use a collaboration model that fits your needs
In this situation, I’m referring to the payment arrangement negotiated with the outsourced team. These can be flavoured in any of the following ways:
Hourly rates: In this case, the outsourced team gets compensated on an hourly basis. This may be an option for smaller software development projects when the lifespan is relatively short and it makes sense to pay for only the time spent on them. This also works for tasks that require only minor adjustments.
Fixed rates: At the outset of the product of your outsourcing software projects, a fixed budget is established with well-defined objectives, scope, and durations.
Devoted: Typically used for significant projects or businesses that demand the undivided attention of a dedicated workforce. These teams often work on-site.
Once you’ve determined the ideal model for your project’s scope, it’s best to hammer out the details with the outsourcing team.
Pay attention to security on both ends
Inquire about their internal procedures for client projects: How do they ensure the confidentiality of client information and intellectual property? You want to be certain that they will safeguard your data and intellectual property from theft, but security measures only function if everyone follows them. To gain a sense of a company’s cyber-vigilance, examine how they protect their work environment and information technology networks. Are they protected by anti-virus software, firewalls, and tools for active network monitoring? It’s advisable to discuss code testing, penetration testing, and security management with your software partners.
Establish communication channels and schedules
The communication gap between the two sides is one of the most significant issues that customers typically confront while dealing with an outsourced company. Often, the software development outsourcing team lacks clarity, which results in the production of unsuitable software or delays in completing the task. Appropriate communication channels enable it to be avoided. It assists in ensuring that deliverables and the project’s score are expressed properly. Additionally, you may verify that the team understands the aim and scope.
To bridge the communication gap and ensure a smooth collaboration, it’s essential to consider skilled nearshore software development staffing. Nearshore teams can offer several advantages, including shared time zones, cultural compatibility, and ease of communication
Conclusion
While relatively broad in scope, the software outsourcing best practices listed above are mainly concerned with providing your engineers with the tools they need to succeed.
For clients, this entails making an effort to integrate external teams into their company culture, not only by providing them with the tools and context information they require, but also by cultivating an environment conducive to close collaboration with your in-house team toward a common set of goals.
