Nowadays, you can find almost everything to be in a digital format. From grocery shopping to school or college learning, everything happens online. This is probably why you would see close to 70% of businesses adopting a more digital strategy for themselves. Even though the Apple app store has reported having 1.96 million apps, the market is constantly changing and evolving. If you find your app doing well today, it is not always necessary to do the same next month. Users are always looking for the next best thing that offers better content and, most importantly, user experience. This is where you’ll see the usefulness of software development companies. 

This article aims at answering a few important questions when it comes to software outsourcing. Like what do you mean by the outsourcing of software?  Why do companies outsource software development?  How do you know to pick the right software outsourcing company? You’ll also understand what does an outsourcing process looks like.

Software development outsourcing is when a company requires technical help and hires a third-party vendor to perform the necessary tasks and functions. 

Following are the main reasons why you should choose to outsource your software development:

1. Cost

While deciding how to proceed with their software development, many companies assume that the cost will be less if they keep it in-house. But that is not true. You will find that outsourcing your software development is more cost-effective.

You might find new complications and challenges when getting in new people to your team for this task. The new members would have to learn all your internal regulations and process before they even had the opportunity to start the main project. There would be a period of a least one to two months before the actual work could begin properly. By outsourcing the work to a company, you would be reducing this onboard cost.

2. A different technique of recruiting talent

Whenever you hire a new person, there is a testing period. But this period, for obvious reasons, cannot be forever. Outsourcing, however, allows you to do this. The projects you assign to the company can be on a term to term basis. It also gives companies a chance to avoid any kind of problems with a permanent contract.

3. Knowledge in the subject matter

Software development is a subject that is always changing and evolving. The developers in this field need to stay current and know this subject well. When you outsource to a company specialising in this field, you also get their experience from the past. They will detect any kind of missing link or help you bring new ideas to the table. It may be one project for you to work with them on, but they also bring the knowledge from all their past projects.

4. Full concentration and attention

When you in-house such projects, you will often see that people will divide their attention with other tasks in the company. When you hire a software development company, they will focus on what matters, whether it be a small task or a general check-up. For them, it is the only project that matters. By doing so, you can bring back focus on the main functions and primary goals. This way, your employees are doing what they know to do best and concentrate and give their full attention while the experts do the software part of the project.

5. Bring in the best talent

With the help of software development outsourcing, you have an opportunity to bring in the best in the business. Even when you do not have the most expensive budget, you can still find people who know the subject well and, most importantly, know what they are doing.

What are the various processes when you outsource your software development?

1. The outsourcing decision

The first decision to make is the obvious one of whether to outsource or not. This would involve a thorough examination of everything. From the project as a whole, the goals, anticipated budget, etc. Even though the software company would develop a plan for you, it would be good to plan the basic structure yourself. While doing this, you’ll see all the various aspects of the project and see which model works best for your business.

2. Choosing a company

Once you have decided to outsource, your next examination task will be to learn the market. It is a good idea to select about 8-9 firms that would tick all your basic requirements. Then you move into deeper research into these companies. Look into different aspects such as what technology stacks they use, their customer testimonials, and their portfolios. It is important to remember that to hurry and start the project, do not skip any aspect of background checks of the company.  

3. Signing of the contract

The contract must be agreed upon by both sides, about everything from the price to duties. Having a verbal contract is not recommended at this stage at all. Irrespective of the kind of outsourcing model you have chosen, the contract is the best tool to help in coordination and collaboration between you and the agency.  Here are the four main aspects that should be in the contract:

  • Payment details
  • Both parties obligations
  • Technical needs specific to the project
  • Information on the timeline of the entire project

4. Development process and monitoring

This stage is where the actual development of the software starts. This is also the stage that will last the longest. The collaboration and monitoring go hand in hand here. You will have to make sure that the project is happening according to the timeline and all your expectations are being met.

5. Finished project

When the contract scope is delivered, then the project is completed. During this phase, you assess the product, make the necessary payments, and see if there is a chance of future collaboration.