5 Challenges faced by enterprises while outsourcing software development

Outsourcing software development to a third party can cause doubt, concerns, and operational and functional issues. From security concerns to communication gaps, most companies planning to outsource their software development project operate in fear that the project will exceed its budget, not meet deadlines, or even worse, fail altogether. While these fears are not unfounded, software development outsourcing is safe and conveys rich value to the client enterprise.

We know that software development outsourcing is of great value. But it doesn't come without its own set of challenges. This article will discuss the 5 major challenges faced by enterprises when they decide to outsource their software development. So let's begin.

1. Trust

There are multiple touchpoints and storefronts available in the market where enterprises can find outsourcing firms for their development projects. Some legit firms will work hard on your project, manage deadlines and offer a stellar final product. Others will take your money, shut shop, and disappear forever.

Building trust is a key challenge in the software development outsourcing industry, making even the most cash-heavy company hesitate before making a decision. Most enterprises are not transparent enough, resulting in trust concerns surfacing.

2. Loopholes in the Contract

Even after a relationship of trust is established, the risk factor associated with outsourcing is not eliminated. In rare situations, outsourcing partners use loopholes in the contract drawn up between them and the client to milk the client for more money and get the rights to the software being developed to rebrand and resell it to someone else.

We advise creating an air-tight contract and has been checked by an expert for loopholes and clear communication regarding the terms and conditions of the engagement.

3. Ambiguous Stakeholders

Outsourcing may throw up ambiguous stakeholders in the form of constantly changing team composition and points of contact. When resource teams and their managers keep changing, it is difficult for the client to stay in the loop concerning project progress.

The SDLC doesn't stop post-deployment, and businesses are wary of inconsistent delivery, unstable project management, and no direct leader to address and resolve issues.

4. Understanding Concerns

Outsourcing software development can sometimes be a very mechanical process where even though development requirements are being met; softer client concerns are completely disregarded. This could be in the form of limited or unclear communication, missed deadlines, and cost overruns.

5. Code Quality Challenges

As an enterprise, you desire high-quality code for your development project. Sometimes outsourcing software development can result in a product that works the first few times but crashes completely when system load peaks. Code performance in the long term is necessary for the outsourcing project to be deemed successful.

We advise choosing a partner who matches international code quality standards and has vetted experience in software development pertaining to the sector your business belongs to. Ensure that your outsourcing partner writes code that is bug-free, durable, sustainable, and can be read and tweaked/upgraded by other programmers who come into the picture.

Good documentation and well-tested code is a pre-requisite, and we suggest steering clear of an outsourcing partner who doesn't offer the above assurances.

Tips to Overcome Issues while Outsourcing Software Development

We now know the challenges faced by enterprises while choosing to outsource. But software development outsourcing also carries numerous benefits like cost efficiency, dedicated teams, and great code quality. So how does one circumvent outsourcing challenges to reap its benefits? Again, fret not; we have your back. Here are 6 quick tips to help overcome the fear and challenges associated with software development outsourcing-

1. Don't take outsourcing Lightly

Analyzing the unique benefit that your business will gain from outsourcing is the first step to ensure project success. The next step is carefully choosing a software outsourcing company that possesses the required skill set, experience, and infrastructure your project will require. As mentioned earlier, trust is a major challenge, and therefore choosing an outsourcing partner from trustworthy sources makes the most business sense. The best way to do that is to get a reference from a peer company that has experienced your prospective partner's service and output quality. Reading testimonials and perusing through high-value listing sites can also help you make an informed, risk-free choice.

2. Pay as Per your Requirements

The 'pay as you go' and the time and material models are perfect engagement methods that keep your enterprise free from risk. You only have to pay for the work done in both these models and when a pre-specified milestone is achieved.

3. Code Guarantees

An error that many enterprises make while software development outsourcing is that they check code functionality directly at the time of deployment instead of watching over the project from the get-go. If the enterprise requires changes or added functionalities and the code stops functioning after the adjustments, the outsourcing company is not liable to face the loss. Therefore, choosing a partner that offers code guarantees. IF the code stops working or the technology becomes obsolete as time progresses, the onus of finding a resolution should rest with the outsourcing firm.

4. Clear Communication

Clear communication is a key factor when it comes to successful software development outsourcing. Fluid multi-directional communication helps keep the project on track and assures the client that its project is being worked upon. Clear communication immediately resolves barriers and gaps that could prove to be major challenges that make the development process unnecessarily complex if unchecked.

We advise using at least 2-3 communication tools available to keep your finger on the pulse of your software development project.

5. Well-Documented Processes

Documentation is another must-have while outsourcing your software development. With proper documentation, you know of every step being taken by the outsourcing firm, subsequently allowing you to course-correct in the off chance of requirement deviation and accomplish milestones while avoiding glitches.

A well-documented process can act as a blueprint for further outsourced projects allowing your enterprise to work on strategy, craft aligned growth plans, and learn from errors made in the past.

6. Confidentiality and Agreement Clause

Data leakages or security breaches are issues that, though fatal, can be overcome with well-set out confidentiality and agreement contracts. NDAs and software agreements bind the enterprise and the outsourcing firm together and help in fostering trust-based, long-term engagements while eliminating disputes.

We advise including all the essential clauses, addressal of points of dispute, and a rock-solid confidentiality agreement.

In Conclusion

To put you at ease, let us assure you that all software projects do not fail, and keeping your development project in-house does not guarantee success. Poor process development, unclear requirement gathering and analysis, underinvestment in vendor management are other reasons why outsourced software development projects fail.

Outsourcing is still going strong, with a majority of enterprises expressing satisfaction with their offshore partners.

Building software with your development team sitting halfway across the world can seem like a daunting task, but understanding the challenges posed and adherence to development best practices can help you mitigate all risks involved with software development.