The Top Pitfalls To Avoid When Outsourcing Software Development

The practice of having an extended software development team through outsourcing has been steadily rising in popularity across all kinds and sizes of organizations. This is due to the fact that tech-enabled companies are finally realizing just how beneficial it is to maintain one. 

After all, once your company understands just how the software outsourcing process works and how incredibly beneficial it can be, there’s no going back to the slow, time, and resource-consuming processes of yesterday.

what is offshore outsourcing

Benefits of Software Outsourcing

There are many ways that your business can benefit from outsourcing your software development needs. 

  • Cost

    Cost is typically the number one reason why businesses consider outsourcing their projects. For small and medium-sized businesses, finding the funds required to hire an in-house team is very difficult. Larger businesses sometimes lack the time or manpower required to find the right person for the team. The costs associated with hiring someone in-house also add up very quickly when you consider all of the additional things a new employee needs.

  • Time

    Time is typically cited as another top reason why companies choose to partner with a third-party software development company. The expedited and demanding timelines of today mean that your business simply can’t afford to waste a moment when a project has an impending deadline.
    Software outsourcing companies help businesses save time by minimizing the workload for your internal developers while ensuring that projects are delivered on time.

  • OutSourcing

    Outsourcing gives companies the scalability, flexibility, and access to the talent they may need to accomplish their goals and complete projects. For a company that is not working in the world of software, application, or website development, hiring a full-time development team is simply not practical. On the contrary, your company needs more talented individuals to take care of project requirements and accomplish goals at a much faster rate, a software outsourcing company allows for on-demand scalability.

To learn more about successful software delivery with outsourcing, click here.

The Pitfalls to Avoid When Outsourcing

Software outsourcing is an incredibly beneficial practice for all kinds of businesses. However, this is not a foolproof plan for success. Unsuccessful partnerships with outsourcing companies do happen due to a few very common mistakes. Being aware of these common pitfalls will help your company avoid potential problems when choosing a third-party company for your software development needs.

Settling for the lowest cost

  • You settle for the lowest cost instead of doing the necessary due diligence. The search for the ideal outsourcing partner is not a quick one. There are plenty of companies out there who promise the world for a reasonable price but simply can’t deliver. You can’t afford to make the mistake of not thoroughly investigating the market before diving into a software development project, let alone with a third-party company.

    By taking the time to research the market and fully understand the requirements of the project, you will save yourself a lot of problems in the future. There are many companies that will bid for the project but lack the technical skills to get it done. When interviewing companies for the job, do more than simply sharing your project requirements and getting a quote from each potential company.

    Take a look at each company’s own website, their portfolios, and social media. Get a feel of who they are and if they will match with your team as well as if their technical skills are up to par with your needs. It’s common for company executives to simply look at the bottom line of how much things will cost when faced with a business proposition, but this can be a big mistake in the world of software development.

Not having determined Goals & Scope

  • You have yet to determine your goals and the scope of your project(s). If you don’t know exactly what you need and when you need it by, there’s no way for an outsourcing company to give you an accurate estimate. Before you begin your hunt for the right partner, decide not only what the project goals and requirements are, but also what exactly you want to outsource to another team and what you would like to keep in-house.

    For a truly successful long-term partnership, identify both the long-term and short-term requirements of the project at hand and other future ideas. Many companies make the mistake of entering the search process with only short-term goals at the ready instead of focusing on the bigger picture of keeping the potential partnership going for future use.

    Additionally, signing a short-term contract sometimes makes for hasty completion by the third-party team as they aim to deliver it fast and get paid. This increases the risk of poor quality software and results.

Not having the Right Procedures

  • You don’t have the right project management procedures in place from the start. Even if you complete all of your due diligence and finish the interviewing process with the ideal software outsourcing company, things will fall apart quickly without an established project management system. According to a study completed by the Project Management Institute (PMI), ineffective communication is the primary contributor to overall project failure.

    Communication methods must be established at the very start of the project. This can include email, video conferencing, messenger platforms, and phone calls. No matter how much pre-planning you put into a project, the third-party team is going to understandably have questions for you and your in-house employees.

    The outside team needs to know how to communicate with your team and how they should go about reaching out. Even if the third-party company provides a project manager of their own to help keep things organized, your team should prepare to take part in the management process or allocate managers who are responsible for leading the project on your company’s side.

To have in Mind

These pitfalls may sound simple to avoid, but they are very common mistakes for companies to make in their search for the ideal software outsourcing partner. Outsourcing can be an incredibly beneficial and successful venture when appropriately pursued and managed by all parties involved. At BairesDev, our qualified team of professionals is dedicated to working to provide reliable and cost-effective custom software solutions as an experienced development partner. To learn more about our services, contact us today.

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