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.
Looking for an outsourced software provider to enhance your business' IT capabilities? Look no further than your expert team at Intelligent Bee!
The Future Of Technical Support Outsourcing: Top Trends And Things To Know
2018 is coming to a close, and most people live, breathe, and eat the Internet. It has empowered consumers to perform a lot of tasks that previously took a lot of time to do, such as shopping, learning, banking, and more. The world has become a smaller place because of this, as the internet allows people all over the world to meet at a common place: online.
To keep up with the needs of the people, businesses have also migrated to this space. Naturally, each company aims to provide the best products and solutions for consumers globally.
In an ideal world, business operations go smoothly and customers never have any problems or issues at all. Sadly, we’re not living in that world. If your website, e-commerce store, customer support system, or any other online channels break down, various aspects of your business could be compromised. It could even create a negative impression with your consumers or hurt your sales.
So, in a world connected by the internet, social media, and smart devices, it’s in almost every business’ best interest to invest in technical support outsourcing. It’s more than just the digital version of calling a plumber to fix your leaking pipes.
Tech Support Outsourcing at a Glance
Companies need tech support for a variety of reasons, and the core focus of the support will depend on what their priorities are and the industry that they operate in. Here are some of the most commonly outsourced tech support functions and how they add value to a company:
Data security – Secure data servers are essential for the business as well as their consumers. For one, company data may contain business plans, financial plans, and any or all tactics that companies use to grow. This is top secret information that should not fall into other people’s hands. On the other side, there’s sensitive information that customers entrust businesses with (credit card details, residential address, etc.) that should also be protected at all times.
Automation – Processes run faster and more efficiently when things are automated—whether it’s payroll, marketing, or inventory management, analyzing and improving the processes that can cut down operation times is crucial.
Customer service – In the age where the customer is king, it’s absolutely essential to add value to the customer experience wherever possible to stand out from the competition. Customer service and support play a huge role in defining the overall customer experience quality. And although it might not directly affect business growth, it more than makes up for it by fostering trust, loyalty, and advocacy.
Software Application Development/Maintenance – The digital age has brought about an increased number of software projects, which can be costly to develop in-house. Outsourcing app development and maintenance helps reduce overhead costs associated with software implementation and provides the necessary technical expertise to provide high service quality.
Cloud services – The usage of cloud services has been commonly associated with Software as a Service (SaaS) and Platform as a Service (PaaS) businesses. This involves applications that are hosted by the vendor and made available to customers through a network (the internet). This approach lets businesses create and implement applications without needing to invest in the underlying infrastructure, reducing costs and increasing overall efficiency.
The Future of Technical Support Outsourcing
Technical Support Outsourcing Market Growth
Earlier this year, it was revealed that the technical support outsourcing marketing is growing steadily. It is set to achieve a CAGR of 8% by 2022, denoting that the industry is about to expand due to new technologies and higher demand from businesses.
Chatbots and Virtual Assistants
IBM reports that 85% of all customer interactions will be handled without human agents by 2020. Customer-centric business practices are here to stay, and chatbots help businesses achieve this. By always being there for the consumer, their questions are quickly addressed in a fast and timely manner.
This opens up new opportunities for the tech outsourcing scene by creating new roles and functions within the industry. IT experts will now have to work with the latest technology like AR, VR, IoT, and the like.
Cloud Services
Cloud services are not just limited to enterprises anymore. Small-to-medium businesses are set to migrate to cloud computing to optimize their business process, increase productivity, and reduce hardware costs. It is projected that cloud traffic will increase 3.7 times by 2020.
This is easily becoming one of the top reasons why companies outsource IT support. It’s efficient, cost-effective, and these days, they’re a business staple.
Emerging Markets
IT services are commonly outsourced in India, Malaysia, and the Philippines. In the coming years, this is set to change. Studies suggest that new markets in Vietnam, Colombia, and the Czech Republic will compete with existing markets in offering the best and affordable tech support. This signals that demand is rising, and the tech support outsourcing industry is growing.
Augmented Reality
The adoption of AR can change the tech support industry as a whole by allowing remote teams to help each other more effectively. A great example is Porsche’s AR program Tech Live Look, which allows their tech experts in Atlanta to help on-site mechanics solve issues in various dealerships. They were able to cut down service time by almost half and communicate with other team members more seamlessly while in different locations.
Predictive Analytics
Data has gotten smarter with predictive analytics. Benchmarking and calculating performance improvements will become more manageable as new tech can now analyze past metrics, customer behavior, and service outcomes. This will allow businesses to focus on their ops and keep all teams aligned with their goals.
Rising Demand for Cost-Effective Solutions
Having onsite technicians can burn a hole in a company’s wallet. Outsourcing has long been proven to help lessen that cost, and still allow businesses to provide high-quality support internally and to their loyal customers. The rising demand for this service creates a bigger market share for the tech support outsourcing industry.
Network Security
A 2017 Enterprise IT Services Survey notes that networking security is the number one priority of digital businesses. Almost half (47%) of the enterprises surveyed mentioned they outsource data security more often than any other IT service.
With the recent data breaches from major digital companies (i.e., Facebook and Google) enterprises are now compelled to focus on corporate and customer data. IT outsourcing contracts will include specific clauses to prevent data breaches and manipulation.
Customer-centric Servicing
Automated customer service is not limited to time zones or public holidays. This allows companies to deliver round-the-clock customer service and resolve issues at a faster rate. In effect, this can increase brand loyalty.
Online Reputation Management
Companies, whether digital or not, all have an online presence. They quickly realize how pertinent having social reputation management is to their name, whether they tap social media, online PR, or SEO services from their outsourcing partner.
AI and Robotic Process Automation (RBA)
RBA will continue to lower the cost of outsourced tech support services. Companies will prefer vendors that can provide this versus those that can’t. This makes use of AI workers and robots to automate common and repetitive software development tasks for increased process efficiency and cost-savings.
Adopting Emerging Technologies
With the rise of the Internet of Things (IoT), blockchain, and machine learning, among others, tech systems face a lot of advancements and updates at a much faster pace. Outsourced tech support agents are usually the best people companies can approach, as they are always updated with the latest tech buzz and innovative software.
Customer Identity and Access Management
CIAM software can provide a seamless cross-channel customer experience. It’s a rich database containing all information about your buyers. With this, both IT teams and managers identify the best way to market to customers. Yet another function businesses are looking to outsource.
Closer Relationships with Managed Service Providers (MSP)
The search is on for professional and loyal IT teams. Managers are now keen on the idea of having Managed Service Providers as consultants and business partners, further illustrating the importance of tech support for organizations.
Complete Integration from Managed Service Providers (MSP)
Companies prefer to have one MSP providing all their outsourced IT functions. In line with making MSPs business partners, this will allow for seamless integration, so that all business functions can work together in sync.
Final Thoughts
Thanks to our increasingly tech-filled world, IT services aren’t going out of style anytime soon. Effectively managed tech support and services can pose a lot of benefits for your business, from increased manpower and lowered costs to higher customer satisfaction and retention rates.
With the rising demand and advancing technology, the tech support sector is definitely poised to continue growing rapidly over the next few years. It’ll be interesting to see what other developments come next!
Contact us today to learn more about what the future of technical support outsourcing means for your business!
When Should Businesses Outsource Custom Software Development?
Most, if not all companies have a common goal – and that’s to be the best in their field. As industries are becoming more globally competitive, it’s crucial that you continuously evaluate and improve the way you do things to avoid being left behind. It’s also critical that you make the right business decisions, such as when or why you should outsource your company’s digital application or software development needs.
Here are different scenarios where you might need to tap the services of an external custom software development team for your business:
When you’re trying to focus on core business areas
IT work takes up time, which might prevent you from concentrating on core business activities that drive revenue. If you see that building your IT projects takes time away from your main business, you might be working on your priorities all wrong.
When you free yourself from IT-related tasks, you can focus your assets and resources more appropriately on your company’s area of expertise. This can help you establish leadership in your industry since you’ll have more time to innovate your current offerings, resulting in better customer satisfaction along the way.
When you lack the budget
A low budget for your IT department can be a significant challenge, mainly because developing software is costly. You’ll have to pay upfront costs to build your IT infrastructure, purchase development tools and licenses, and hire and train IT staff. These costs can further increase as your team grows.
By contrast, there aren’t many overhead costs involved when you decide to outsource custom software development to third-party contractors. Often, these vendors offer full-cycle development services in custom software, mobile application, and web application development at cost-effective rates.
When you’re short on expert developers
Software development has a very technical nature to it, which makes it mandatory that you hire only the most experienced developers. If you don’t have access to highly skilled developers, you should definitely consider outsourcing a team.
Expert developers have more experience in this field and will be able to better design software that suits the specific needs of your business. As they work on your project, they can anticipate possible problem areas and immediately make helpful recommendations.
Hiring developers with complete skill sets can lead to many positive things once the software goes live, including optimum efficiency and usability levels, better security, and ultimately, a high return on investment (ROI).
When you don’t have the infrastructure
You’ll need to invest in a formal tech infrastructure for software development. However, if your business model isn’t directly related to this discipline, it might be unwise to build an IT infrastructure from scratch in-house.
In their years of being in the business, outsourcing companies have already established a robust IT infrastructure. They have state-of-the-art technologies and solutions to address even the most complex projects. Your business will also benefit from a fully functional IT infrastructure, so the security of your customer data and other company resources will not be compromised.
When you lack support and maintenance manpower
Software design or development is not a one-time project. You’ll need to continually monitor and modify how it works, depending on the needs, demands, or expectations from end-users.
If your company doesn’t have a dedicated team of tech support, your product could quickly become problematic. An outsourced team will be responsible for introducing new features and fixing system bugs to make sure that the product works as efficiently as possible. This way, you don’t have to replace or rework the software altogether every time an issue shows up.
When you have limited access to cutting-edge technology
When it comes to technology, things are always moving in the fast lane. What’s new today may not be so unique tomorrow, with developers constantly coming up with and releasing more advanced programs. To help your company adapt to rapid technological shifts, you can look to outsourcing companies since they have ready-access to the latest technologies, tools, and resources relevant to software development.
When product movement is quite slow
Tech guys agree that dev work is a step-by-step process, where shortcuts are not always possible. Then again, there’s the business perspective that the sooner you can get your product out there, the better.
To prevent your company from having to deal with this dilemma, you’ll need to exert more control over how long your software development takes to finish. Software development companies recognize this need and are reliable enough to deliver what’s expected of them within a reasonable timeline.
When your quality assurance processes are insufficient
Outsourcing companies take pride not only in their technical expertise but also on their knowledge about market trends, which allows them to deliver high-quality work to clients. With their technical skills, they can help you improve your products to deliver an enhanced experience to both your employees and end-users.
You can ask for as many product testing and trial sessions as needed before finally rolling out your software to the public.
Final Words
Your custom software development needs to be precise, organized, and timely to have the competitive advantage that you’re aiming for. Since many aspects in software development require specialized skills, you’ll want to work with the best team you can find.
Intelligent Bee’s track record in providing custom software development services is like no other, as we offer software solutions that suit your business needs and resources. Contact us to start your project today!