How to Choose the Best Software Development Outsourcing Company?

Global spending on outsourcing could hit $731 billion by 2023. To break it down by segment, IT outsourcing spending is projected to reach $519 billion in 2023. A whopping 22% increase above the numbers of 2019. — As per a report by Deloitte

Why consider outsourcing software development?

Well, there are many reasons to take this route;

• Access to specific expertise

• Access to domain-specific expertise

• Avoid the overheads for hiring & recruitment

• Save costs incurred for wrong hires

• Save overall software development costs

To a greater surprise, 70% of companies outsource software development, to save costs.

Well, as we are done mincing enough about why companies outsource software development, let’s see how to decide on the right outsourcing partner.

Let’s begin

It is never easy to choose the right software development, outsourcing partner. Especially, when you are open to choose from any locale across the globe.

To make it easier for you, we have jotted down a step-wise approach that helps in landing just the right software development outsourcing company. And, we are sure that this will put you at ease.

Clearly define your goals and requirements

Before you approach software development outsourcing companies, you must have the groundwork ready — clearly chalked software development goals and feature requirements.

This one proactive step will save you from the early stage confusion and will make your communication concise and clear.

A lot of leaders tend to make this mistake and end up landing on the wrong outsourcing partner. Let’s understand how.

Here’s what happens when you are not clear about your software development requirements:

• When asked about the scope you don’t have a clear idea of what needs to be done and this creates confusion for both parties.

• When you fail to communicate your requirements, the outsourcing partner may fail to gauge the project requirements. And, ultimately you might land on the wrong partner with inadequate expertise.

• Unclear requirements may create confusion while deciding on the costs for production. And, you may end up losing a potential outsourcing partner.

• When the project kick-starts and out of the blue you present a new requirement, it may cost you more than what it’s worth.

• When you put across clear requirements, you are upsetting a firm foundation for your project.

Make a list of legitimate vendors

Now, it’s time to burn some brains after finding legitimate vendors and adding them to the waiting stack. Remember, this may be a little bit tedious, but it will be worth it when you will land just the right software development outsourcing partner.

You have to decide on the qualification criterion for the outsourcing partners. Only the ones who tick all the boxes should be on your list, the rest should go off.

Here’s what a standard criterion for choosing a software development outsourcing company should look like:

• Recognized & reviewed by certification bodies

• Experienced & Certified Professionals

• Good Customer Success track record

• At least 10+ years in service

• Proven ROI reports for what they have done for their customers

There are a number of web portals that review and provide customer ratings for software development companies. You can choose to visit a couple of portals and match your set qualification criteria with the companies listed.

The shortlisting process has to be quite rigorous as you are going to choose your software development outsourcing partner out of this list.

Validate the Work Portfolios of these vendors

Now, it’s time to taste the soil.

You are going to validate the work portfolios of all the vendors on your list. This is going to help you understand more about the expertise and experience that these companies bring to the table.

You may opt to validate them for the following parameters:

• Technology expertise that they carry

• Domain-specific expertise and what sort of projects they have delivered

• Customer Success stories to testify what they have accomplished over the years

• What process do they follow?

Your project’s technology stack drives the flow, completely. Depending upon the expected time to market, the outsourcing vendor is going to offer a delivery window. And, technology stack plays a crucial role here.

Finding an outsourcing partner who already has worked in the same domain as yours is nothing less than heaven. Half of your job is already done, as the company knows your domain in and out.

The expertise part is taken care of by the above two points, but customer stories testify that whether the outsourcing company has done what it claims.

And, last but not least — you got to see what approach the software development company follows. Alignment of approach is going to play a huge role in your project’s success.

Vouch for Client Reviews before you make your decision

Now, as we are done about what the software development outsourcing companies have to say about themselves and what they can do, it’s time to shift the focus. It’s time to investigate what their clients have to say about them.

You can vouch for top reviews and rating sites that are legitimate in nature and check what customers have to say. This gives you an unbiased picture of what the outsourcing vendor commits and what they deliver.

How to create an effective outsourcing strategy?

Outsourcing can result in chaos if you do not have clearly chalked business objectives, neatly specified business requirements, and the right outsourcing software development company to support your project development.

To avoid a crash before you launch your project you need to define a clear outsourcing strategy for yourself. Here are some essential factors to consider for designing an effective outsourcing strategy.

Closing Notes

We would not say that the above-listed threats are the most common. Also, there are no rules for this — as it all depends on the project’s features. However, if you are challenged to implement your project successfully, consider what we have written here. Considering the issues mentioned here is a perfect guide for you, which suggests what you should not do and how to deal with the threat. If you are still left with any queries regarding custom software development services, feel free to connect with us, and we’ll be happy to answer your questions.

Please send us an email at [email protected], and someone from our team will connect with you within 1–2 business days.