Short Guide For Outsourcing Software Development Services

Advancing technology in the I.T space always creates endless opportunities for the betterment of the present & future. It also promotes a smart work culture that includes software development outsourcing services.

It wouldn’t be wrong to say that outsourcing software development services are no more an unprecedented concept because many businesses and companies are inclined toward it.

A report by business wire says that offshore software development services would upsurge by 70% in 2023. Many startups are expected to resolve the shortage of staff by outsourcing software development services that will not only curb the hassle of hiring but promote a better software development process.

However, it is not a cakewalk to outsource mobile app development services. One wrong move is enough to bring you closer to the pitfalls of outsourcing. Hence, making an informed decision becomes vital. With the right offshore software development strategy, you can overcome many bottlenecks. Let’s go!

Outsourcing Software Development - A Smart Decision

Gone are the days when the market used to look down on a startup or an established business that outsources development services. Today, several companies turn to offshore software development companies because it is advantageous.

Benefits like the flexibility of working, allocation of professionally sound resources, cost saving, time-saving, and focused strategy can be enjoyed by clients that outsource software application development services.

Several industry titans like Slack, WhatsApp, Ali Baba, and Google acquired offshore software development services to achieve the benchmark for which they’re being idolized by many entry-level companies in a similar vertical.

There are different models for custom software development services that cater to business requirements. Before outsourcing software development services for the business, it is mandatory to understand the purpose based on the project requirements and business goals.

Offshore Software Development Models

Outsourcing software development services can make or break a project. Hence, conducting a vetted analysis becomes indispensable. Businesses must choose the right offshore software development model that encompasses the budget, scope, and scalability of the project.

Nearshore Outsourcing Model

In the nearshore outsourcing model, offshore software development agencies located within the same country are approached by businesses. For example, an established business in Canada outsources software solutions from development agencies based in Canada.

Offshore Outsourcing Model

In the offshore outsourcing model, businesses outsource software development services from a different country. It is relatively a popular model in the industry because businesses can save a lot of money on a project without compromising its quality.

For example, a US-based business can outsource software development services from India at hourly rates due to inexpensiveness.

Onshore Outsourcing Model

In the onshore outsourcing model, a business turns up to local software development services. For example, a business might approach local software development agencies for business-related purposes.

Why Do Businesses Outsource Mobile App Development?

There’s not one but many reasons for outsourcing software development services. Here’s a quick look at some of the prominent reasons that advocate the supremacy of outsourcing software development services.

Budget Specific

It is not always that a company outsources software development services owing to a budget crunch. In order to save surplus expenses, a lot of companies turn to offshore software development. It saves a lot of financial resources by curbing the burden of hiring developers & paying them regular salaries.

Complex Projects

By hiring an offshore software development team, it becomes easier to focus on the core business logic for accomplishing the goal with the least hassles. Companies can change the developer according to the type of feature they’re interested to integrate.

It may include the integration of AI, payment gateways, gamification, etc. without paying a surplus amount to the company.

Deadline Stringency

Another major advantage of outsourcing software development services for the software project is the potential of meeting the deadline. Since most offshore developers are experienced professionals, the dedicated team ensures the timely completion of the software project.

Continuous Workflow

When you outsource custom software development services, project development never stops. Offshore developers are continuously working on the project. When you sleep, they still work on the project to deliver bug-free software prior to the deadline.

There are countless software outsourcing companies and hiring the right one is not a breeze. One wrong move can hamper the entire project if you do not adopt the right outsourcing software development strategy.

Some possible risks with outsourcing software development include delays in project delivery, low-quality work, data ownership issues, cybercrime, etc., How to overcome these problems?

There’s no rocket science in fixing these issues permanently. By adopting the outsourcing software development strategy rightly, you can shield the project under development. Let’s read more about the strategy you must know about hiring offshore software development services.

The Strategy for Outsourcing Software Development Services

Formulating the right strategy can simplify choosing the right outsourcing module for software project development. The following steps would help you to carve the right strategy.

Setup Project Goals

The foremost step in formulating the right strategy is setting up and defining project goals. It will help answer various questions like-

• The outcome that would be achieved
• How outsourced force would aid in achieving it?
• The tech stack required for developing the software
• The parameters for measuring final outcomes
• The budget and timeframe of the project

Budget Estimation

Estimating the project’s budget plays a key role in setting up the strategy for hiring offshore software development services. The project budget can be estimated by three techniques:

• Empirical Technique - Helps estimate the budget based on the data of previous project budgets.

• Cocomo Technique - This technique is based on the constructive cost models where the budget of a project is evaluated by using a regression formula as per industry data.

• Analytical Technique - Estimates the budget of the project through simple tasks divided into operations.

Figure Out Skill Gap

The skill gap can be figured out soon after assessing the tech stack finalized for software project development. Once the tech stack has been identified, the right resource with the apt skill set can be allocated the job.

Strong Communication & Transparency

To keep a track of the project’s progress, it is essential to maintain a strong flow of communication and transparency with the outsourcing services vendor. The communication should be strategic because software development outsourcing has a major difference in time zones.

Companies can stay in touch with project managers by communicating through channels like Skype, Slack, Microsoft Teams, Google Meet, etc., to ensure that the progress is going on the same page.

Understanding Methodology for Software Development

Choosing the right method for completing the project plays a key role in software development. The methodology in software development must be thoroughly analyzed based on the details like the project size, complexity, duration, and purpose.

Right Engagement Model

There are three types of project engagement models and companies can choose an appropriate model that fits their requirements.

• Dedicated Team Model - This is the most common model utilized by most companies. The development team from the vendor’s end is hired for offshore software development. The fee is charged at hourly rates.

• Fixed Price Model - The fixed price model is the project development model where the entire deal (project duration, budget, and integrations) has been set on a fixed amount by both parties mutually. There’s no flexibility in this type of contract.

• Time Model - The time model or time & material model is the model of development in which the charges are levied on the total time consumed by the offshore software developer/development team.

Concluding Thoughts

Outsourcing software development services can transform the business and fetch it gold. It just needs a strategic approach to delve into and find out the apt outsourcing software development services.

Hence, it is mandatory to analyze the pros & cons, budget, timeframe, and the right model that suits the business goals. Hopefully, this small guide gave you ample information about the right strategy to outsource mobile app development.