10 Mistakes to Avoid When Outsourcing Software Development
It’s true that every business process takes time to learn, execute, and grasp—but they are essential steps, nonetheless, and thus should be meticulously done to keep the company going.
However, it’s also true that all businesses aim to be the best in their industry and to achieve that, they need to focus more time and effort in the activities in which they intend to be experts. When you become the best in the field, you become more globally competitive, giving you an edge against other companies.
But that would mean abandoning other activities which may still be necessary. To solve this dilemma, outsourcing some businesses processes can help, especially with things like IT-related tasks. Outsourcing software development and other functions will allow you to focus your resources on your area of expertise, so you can have more time to modernize offerings, give better customer service, and increase profits.
Rising demand for software developers makes this a more competitive playing field, so it helps to know the best practices to take:
The Selection Process
Now that you’ve decided to get into outsourcing, it’s time to find the right partner. Keep in mind that not all software development services are created equal, so you need to be on the lookout for considerations that fit your needs. Due diligence can make or break the quality of the software, not to mention your business relationship with your third-party service provider.
Some factors to consider include:
- Location and distance of the outsourced company
- Experience and qualifications—including communication skills
- Technical expertise
- Cultural considerations
- Rates
- Legal, physical, and technical protection
Costly Mistakes When Outsourcing Software Development
Not doing market research
Before even attempting to outsource software development, do a bit of market research. Understand the hurdle that you want your solutions to overcome, then find the market for service providers that address said hurdle.
Identify what solutions your competitors are using. Look at some of the more successful brands in your industry. What are they offering? How do they execute their strategies? Don’t worry too much about the negative perception with copying your competitors’ strategies because without market research, you will fail even if your idea is original.
Poor selection process
As mentioned, a thorough selection process can help you find the best service provider. In essence, not considering the factors (perhaps, just choosing one because it’s cheap) is a recipe for disaster. Conduct research and analysis on your prospects, including cost-based and non-cost-based factors, operating model, and get an understanding of how the market functions.
You can also check reviews and feedbacks from previous customers, read their portfolio, website, blog posts, and social media accounts, or learn their company values and culture.
Unclear requirements and vision
Without details of the project, your outsourced team won’t be able to work on anything, and things can get worse if your details are incomplete. You first need to know exactly you want to create to form the idea and implement it through the software.
Along with a vision for the project, you need to have a plan on how to see it through. More importantly, communicate it clearly to the team—everyone from both sides must have a deep understanding of the project and should ask any questions if anything is unclear.
Putting hourly rate ahead of everything
Rates will always be a consideration when it comes to outsourcing, but the problem occurs when hourly rates become the main determinant when choosing a team. What many businesses don’t realize is that, in the long run, they could be spending much more on fixing the mistakes made by their badly-picked team. However, it’s also true that high hourly rates don’t guarantee high-quality work.
Instead, pay attention to the hourly rate but don’t consider it as the most critical consideration, as low prices don’t guarantee savings. Have a range of hourly rates that you’re happy to work with, filter the potential candidates by this factor, and then continue checking for other necessary elements.
Resisting knowledge of modern trends
There are a few reasons why some software development teams are not able to keep up with the newest techniques or trends in their industry. The problem lies when your work requires those modern ways to come into play. However, it’s also never a good indication when an outsourced company fails to learn new solutions to obstacles using the latest technology trends.
Ignorance of cultural differences
This often happens when the outsourced company is located abroad, or a country that is not of your own. Even if there’s no language barrier (as long as both parties speak proper English), discrepancies between cultures will always be evident, whether it’s through the gestures, speaking intonations, traditions, and customs.
When not appropriately handled, differences may cause communication breakdowns and process inefficiencies. Therefore, it’s also important to get acquainted with your partner’s cultural norms and orient your own staff about them.
Not considering the difference in time zone
Another problem that may arise when getting a partner abroad is the difference in time zones. Communication is essential when working with an outsourced company to ensure that the process is going smoothly. However, a difference in working hours may be a problem when progress gets halted due to delays that are the main consequences of different work schedules.
Despite this, there are ways to stay productive and keep the work going. May it be adjusting schedules as necessary or overlapping work hours to give both parties a chance to align, you need to sidestep this hurdle and work with this time zone difference in the best way possible (if applicable).
Poor communication
Contrary to what you may think, having a partner in a different country isn’t the only root cause of poor communication between teams. After all, there are tools like email and instant messaging that can make remote staffing work. It’s merely because, for some reason, there are teams who refuse to collaborate or stay informed about what’s going on.
Utilize multiple channels, so you have a backup just in case one doesn’t work. Make sure to respond promptly when questions or concerns are raised. Having regular meetings to keep the teams up to speed about any problems or what needs to be done next is also important. Orient the team, as well, on how to appropriately respond to emails or messages.
Not hiring your own in-house developer
You may have a solid team of software developers as partners, but who will supervise their work? This is where an expert can help you. Someone who has at least some degree of knowledge in software development can look after the quality and aptness of work. This employee can also set clear-cut requirements for the outsourced team to follow.
Not considering security and protection
Privacy is essential when it comes to many things, including software development. Different countries have different legal systems; therefore, it’s likely that when you get a partner from abroad, you are not automatically bound by the same intellectual property rules.
Before you hire an offshore vendor and trust them with potentially sensitive information, pay close attention to the contract management. Have a legal expert on staff so you can properly set a non-disclosure agreement with all areas clearly defined to protect your project as your intellectual property.
Get Outsourcing Right
In general, the right outsourcing company is one that is equally motivated as you are because you share the same vision, especially if your requirements are bespoke in nature. Having a working partner also entails building and maintaining a good relationship. After all, you’re basically working toward the same goal, and it’s a lot easier to meet the objectives when working in harmony.
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