How to Outsource Software Development Projects

Quick Overview:
To choose a precise, authentic, and reliable outsourcing software development firm, you should follow the industry-defined process. It helps you make the right choice and mitigate future threats after analyzing all the essential factors. This blog provides the entire procedure with a brief of all its steps. Following it will help you select the right firm and have your software solution within business constraints.

Outsource Software Development Projects

If we look into market statistics and insights, outsourcing software development is booming around the globe. It’s helping organizations to work with the top 1% of experts, have global exposure, save development costs, and align with current trends.

However, to avail the benefits of outsourcing software development, you need to choose the right outsourced partner. Otherwise, the benefits can turn around and make your software project rickety. However, no need to fret, as here we have described the complete procedure on how to outsource software development within minimal time.

How To Outsource Software Development: The Complete Roadmap

The approach to outsourcing software development is quite streamlined. With the following short nine-step procedure, you can effortlessly find the right development partner.

Define Objectives and Stakeholder Requirements

Before initiating your search for a software development company, you have to be clear about your requirements. It’ll help you discover the right firm that has the required experience and expertise in the required domain.

At this step, you should define the following factors:

• The type of software (Website, Web-app, mobile app, or desktop software)
• The core features of the application
• Any specific needs of the primary and secondary stakeholders

It’s not compulsory that you should be 100% clear about everything. You can also discuss your requirements with a development firm, and they can also help you define business and technical objectives.

Describe Project Scope and Constraints

With the requirements, you should also focus on the budget and timeline for your development project. It’ll help you choose the right team within the budget constraint. However, before deciding on the overall project expenditure, you should analyze the current app development metrics, such as:

• Hourly and monthly compensation of developers
• The overhead cost of software development and maintenance
• The system required system upgradation to support the application

Although every outsourcing firm has different cost offerings, so make your budget a little flexible.

Choose Between Outsourcing Hiring Models

In outsourcing software development, where to outsource software development projects? You have to choose between onshore, nearshore, and offshore outsourcing models. The onshore means that the development firm is in the same country as yours. In nearshore, the developers are in another country, but it’s nearby. For instance, you are in America, and you choose a firm in Canada.

Lastly, offshore, the development partner is on a different continent, and there’s also a time difference. You have to analyze outsourcing software development pros and cons of all these models based on your geographic area, cultural differences, and currency exchange rates.

Look for Outsourcing Software Development Firms

Once you have decided on the outsourcing model, start looking for a software development firm in that particular region or country. You can use different platforms for this purpose, such as LinkedIn, Freelancer, Toptal, Fiverr, and more.

In addition, you can ask people in your connection for their recommendations. Moreover, you can use Google and other search engines to find app development services. It’ll help you access the official websites of the organizations and gain an overview of the offered services, their portfolio, engagement model, and recognitions.

Assess and Shortlist Firms

While searching for an outsourcing development firm, you’ll find a lot of them. You need to shortlist them on the basis of the following factors:

• The services offered by the company. For instance, if you are looking for hybrid mobile app development, ensure that the firms offer it.
• The location of the firm. If you want a nearshore or onshore firm, shortlist only them.
• The success rate and portfolio of the firm.

In addition, you should use platforms such as Clutch, IT Firms, Crowd reviews, agency spotter, and up-city to undergo the reviews from their clients and partners. Lastly, shortlist them on the basis of the defined merits.

Discuss Requirements and Engagement Model

From this stage, you will get a little busier as you have to maintain communication with different development agencies. Firstly, create a document with all your requirements and schedule meetings with all the shortlisted enterprises.

Further, discuss your software needs with them and provide insights on how they will progress with it. In addition, ask for the frontend, backend, full-stack, cloud, and all other technologies that your development partner will use. Additionally, discuss engagement models, such as dedicated team, resource-based, and time-based, for better budget insight.

Interview the Software Development Team

Now, you have to make sure that the team going to develop your software is well-versed with the technologies and has relevant experience. To ensure this, you must interview them based on their previous projects, qualifications, roles, and responsibilities.

Additionally, the team members should be analyzed on the basis of both technical knowledge and soft skills, as communication is equally important. However, if you feel that someone is not a great fit, you should ask the firm to replace that resource.

Decide the Development Partner and Sign Contracts

At this stage, you thoroughly know about all shortlisted development firms and their teams. So, you must decide with which you want to work. Once you make your decision, move on with defining the terms and conditions of the project.

Furthermore, be sure to sign the following documents:

• NDA (It protects the data integrity and confidentiality)
• MSA (It helps to define payment terms, dispute resolution process, and project lifecycle)
• SLA (It lists the KPIs, reporting, maintenance, hosting, development terms, support and hosting policies)
• SOW (It defines the deliverables, development timeline, project overview, development stages, and USPs)

Establish Communication and Progress as Planned

Now, you are at the last stage after signing all the contracts. It is time to establish the communication channels, configure project tracking software, and complete pre-project conditions, if any.

You can use different sets of tools for project management and communication purposes, such as JIRA, Slack, Basecamp, Trello, Google Meet, MS Teams, WebEx, and also the official mailing system. Move on with the progress and get hands-on with your software solution developed by partnering with an outsourcing software development firm.

Concluding Up

To outsource your software development project, you need to clarify the requirements and then start looking for a nearshore, offshore, or onshore firm. After this, you have to analyze the offered services, their expertise, previous projects, client reviews, and engagement models. When you have all the details, check which company best fits within your budget, and going to be dedicated to the project. Once you decide, sign the contract and start development.

However, if you don’t have the required resources to complete the process, look for a consultant and have some professional support.