In today’s competitive market, an increasing number of companies have turned to outsourcing as an effective tool for minimizing costs, maximizing profitability, and optimizing operations. Software development companies are among the most enthusiastic proponents of this practice, as it offers numerous benefits for anyone operating in the technology sector. For a better understanding, let’s take a closer look at outsourced software development.

Outsourced Software Development

What Is Software Development Outsourcing?

Outsourcing refers to delegating certain tasks or functions to an outside third-party vendor rather than using internal resources and personnel. It has become common practice in multiple industries, including software development. Outsourcing carries numerous benefits as well as a few challenges. One of the main benefits is it allows a company’s internal information technology (IT) team to focus on critical tasks that contribute to more growth and innovation.

Many software development services can be outsourced. Some companies outsource consulting services or the conducting of feasibility studies that include proof of concept and user testing phases to minimize risk in developing a product idea. Outsourced development services can also design software architecture, run software testing, and oversee UX design for PC, TV, and mobile devices.

Benefits of Outsourcing Development

One of the biggest benefits of outsourcing your company’s software development is cost savings. In-house software development involves recruiting, hiring, and training the right personnel. Depending on where your company is located, you may also have to pay significant salaries to compensate for the high cost of living. Outsourcing avoids these in-house costs, and you can often reduce salary by hiring skilled technicians from markets that have lower labor costs.

Speaking of global markets, outsourcing gives you access to a much larger pool of talent so you can hire the best of the best for your needs. Software development agencies that provide outsourcing services not only have access to this global talent but have acquired much greater technical expertise as a result of working with numerous clients. This leads to new approaches and novel solutions as outsourced professionals collaborate with your in-house team.

Challenges Associated With Software Development Outsourcing

In order to reap the benefits of outsourcing, it’s important to be aware of what challenges you may face in adopting this practice for your company. One of the more common challenges is a communication barrier that can arise when companies outsource certain services to colleagues in foreign countries. When this sort of problem appears, it often has to do with language issues, cultural misunderstandings, or time zone differences.

Another challenge that can occur with software development outsourcing is disagreements about code quality. This often has to do with poorly communicated expectations for generating well-formatted and bug-free code. Privacy is another challenge, as sharing company data with any outside party is a potential risk. These challenges can be addressed with clear communication and agreements on best practices from the beginning of the engagement.

Common Outsourcing Models

Different aspects or phases of software development can be outsourced using a variety of models, providing companies with a great deal of flexibility. One of these is staff augmentation, where you retain management of core project processes but add outsourced talent to supplement your own in-house personnel. The project-based model involves outsourcing an entire software project to a dedicated team that will manage every aspect of it from start to finish.

There is also the dedicated or managed team model, where the third-party outsourcing vendor provides a team of skilled experts to run a particular project aspect or set of tasks. This team might include people such as UX specialists, software engineers, or software designers. In addition, it will often include a project manager who oversees the outsourced team and reports to you on a regular basis.

General Outsourcing Tips

If you are considering an outsourced vendor for your company’s software development needs, one of the first things you’ll want to do is assess the quality of their previous work. Take particular note of mobile functionality, loading times, and the overall quality of the user experience. It’s important to be very clear about your goals and expectations for this collaboration, and you may want to establish specific metrics or deliverables.

If you have a good feeling about a particular outsourcing vendor, one good tip is to start with a smaller test project so you can align processes and work out any bugs before engaging in more important projects.

Contact Riveraxe to learn more about using an outsourced provider for software development, and help your company realize its full potential.