Growing your business involves upgrading your services and catering to larger market demands. Companies are offering a vast number of software-based solutions to all kinds of large and small-scale businesses. One such solution is offshore development. Many businesses are still conflicted about outsourcing their business requirements to other companies. The major reason for this is that they don’t know how to pick the right company for the job. So, how to choose the right outsourcing software development company?
We are going to discuss that in this article. We’ll talk extensively about what outsourcing is in the software industry. What kinds of outsourcing options does a business have in software development? Also, how to know which software development company is right for you and the right questions to ask them.
What is Outsourcing Software Development?
To keep up with the increasing market competition and to better cater to clients with transformative digital solutions, you can do two things. One is to spare some more resources and funding and spend a lot on software development. The other option is to look for a more efficient and smarter option, which is outsourcing.
Many businesses are starting to switch to outsourcing services for their software development requirements. This is to cut down on costs, improve efficiency, and still be able to hire a skilled workforce. In this age where software solutions play a key part in the growth of an organization, choosing to outsource is the best and most viable software solution option for a business.
Choosing to outsource your software development requirements will open up a new world of possibilities. You’ll also have access to a versatile team of skilled developers and engineers from across the globe. Before choosing an outsourcing service provider there are a few things to keep in mind.
As a business going for outsourcing, you have to make sure that the option (service provider) you are choosing has the bandwidth for such a project. Do they have the right team? Will they be able to scale your business with their solutions? These are just a few of the questions any business should have before outsourcing their software development requirements.
You need to understand that various kinds of outsourcing options are available in the market. All of them are viable options for various reasons. Now, let us see those various types of outsourcing options.
Types of Outsourcing Services Options
There are two categories of outsourcing options, which are based on business location and business relationship. There are a few other subtypes under them which we have listed below.
Outsourcing Services based on Location
This should be pretty obvious as we are talking about location, the outsourcing option you choose will vary based on the distance between you and the service provider.
With this outsourcing model, you can hire a team of developers (outsource team) who will work at your place along with your own team. The best part about this is that there is no delay in any kind of project information and communication as the two teams can work together.
The only downside you could see is that this option may not be as budget-friendly, since the team may have to commute to your workplace.
You hire an onshore team from the same country or state. While they may not be physically present, there is no interference in communication since there are no major language or cultural differences.
If you are looking for more affordable options but then again, don’t want to have major differences in the language or time difference then Nearshore outsourcing is the right model for you. Here, you outsource your work to neighboring countries, perhaps someone who shares the border with you.
This is probably the best option out of these 4 and the most affordable one. Pick any country with the right kind of skilled team and resources that can understand your business model and deliver the desired product. Arguably, there could be minor hurdles due to time differences but that isn’t stopping many businesses who have entrusted their deliverables to companies with strong service-based leadership, domain expertise, and process methodology. Why should it bother you?
When it comes to offshore development, BPK Tech has been offering world-class IT solutions to various industries. We have a huge team, ready to deploy on any project and in any industry. All they need to mobilize services is a “Go” from the starting block.
Outsourcing Services based on Business Relationships
In relationship-based outsourcing, the whole development process is handled depending on the responsibility and ownership divided between the service provider and their client. There are 3 other types in this relationship-based outsourcing model.
The project-based model is one where the company outsources the project to a third party. After the company provides the third party with all the necessary requirements, the third party owns the project until the whole thing is finished.
Managed Team Model
If you choose this model for outsourcing software development then you have to share responsibilities with the outsourced company. The service provider and you will divide tasks and decide who will work on which tasks. The minor advantage here is that the client will have full control over the team.
Staff Augmentation Model
If you want full control over the project but also want an outside team to help then the Staff Augmentation model is the best option. You’ll have an outsource team join you on-site to work on the project and work together with your own team. In many ways, this is similar to the onsite outsourcing model.
How to Choose a Software Development Company for Outsourcing?
Now that you understand what outsourcing software development is, and its various types, let us discuss one major aspect of outsourcing. This major aspect is, “how to choose a software development company for outsourcing?”. There are quite a few important things to keep in mind before outsourcing your project and questions to ask a managed IT service provider. We will discuss all these things below.
Here are a few tips that will help you choose the right outsourcing software development company.
Does this company possess the right technical skills, and can they work on the technologies required for your software development? This a probably the very first that should come to your mind before going to outsourcing software development. Don’t forget to check their portfolio.
Scope of Work
Discuss this at the very beginning of the deal to understand whether your project comes under their scope of work. You don’t want to hire a company that might struggle to develop proper software for your business. Know if they have an understanding of your industry.
Understand the Company
Adding to the previous factor, knowing how the company operates, and if they have the right tools, proper team, and resources will simplify the decision-making process of outsourcing. Also, if they are ready to work for the budget you can afford.
Can the service provider handle both technical requirements and the design part, or do you have to hire a separate team for that? This can be a major turn-off if you have to hire a separate team for the design and the technical part.
All these things will help you understand how to choose a software development company for outsourcing.
Questions to Ask a Managed IT Service Provider Before Outsourcing your Software Development Requirement.
- Does your company have any certifications and accreditations?
- What goes into your discovery phase?
- What kind of compliance framework do you use?
- Any biggest issue that you have had with a client?
- Can you explain your pricing structure?
- How do your services improve my business’s efficiency?
- Do you have any references from past clients?
- Who are your partners?
- How would they handle problems, what’s their disaster recovery plan?
- What isn’t included in their services for a project?
- How do your services reduce costs?
- How can you scale my business?
These are some of the important questions you should ask the managed IT service provider before selecting them for your software development.
Despite reading a ton of articles or hearing how other businesses are going for outsourcing companies, skepticism can still persist. The best course of action would be to take a leap of faith, but not so blindly that you forget to ask the essential questions. Well, we’ve provided all the necessary questions that a business must ask and the valuable services to seek before outsourcing software development requirements.