Over the last two decades, software development has seen many transformations – in technology, in the application, in platforms, and of course, in hiring.
With the year 2022 bringing new tides and new (acceptable) notions of work, many businesses have been forced to adapt to new development processes to keep up with changing market demands and customer requirements.
All-sized firms nowadays outsource their technology needs in some grade or the other. Software firms as big as FAANG or as little as your neighborhood fledgling startup expect their software development outsourcing company to streamline processes and increase revenue.
Source – Researchandmarkets.com
By 2022, Deloitte estimates that the outsourcing industry worldwide will be worth $10 trillion. As a result, the global outsourcing and remote services market is expected to reach $19.5 billion by 2025.
Outsourcing software development has several advantages, including
Lower costs: simply since you are distributing software development to experienced yet cheaper resources,
faster time-to-market: by reducing attrition losses, hiring additional resources as and when needed, and working with a vendor,
Access to the best talent: global talent pool access – have developers in India or Ukraine mull over your project as you hash out strategy and vision, and
Access to the most up-to-date tools & technology: hiring is easy, especially for skills and tech experience not ‘locally available.’
According to a Deloitte 2020 report, 70 percent of organizations prefer outsourcing to save money.
The problem arises when choosing the best software solution for your company. It’s due to a lack of information about the service, the KPIs, and the process – they are new to outsourcing or staff augmentation and don’t know where to begin.
With this blog, we’re looking to give you a glimpse into how to find the best outsourcing partner for your project before turning it into a feasible initiative.
How to Select the Right Software Development Outsourcing Company? Step-By-Step Guide
Recognize Your Requirement Gathering
You must evaluate challenges and analyze viable solutions to determine your project needs. Choose outsourcing service vendors based on the nature of your project, the resource requirements, and the tech stack needed while exploring potential solutions.
Remember not to be oversold – since that is the premise of this exercise – hash out requirements and expectations and maintain a contractual obligation towards it (having it enforced verbatim as well).
The steps you must take to comprehend your requirements –
Business goal and the budget consideration for the project
Technology consideration and assessment of the potential size of the project
Timeline and QC for the project deliverables
What tools and technology do they use
Additionally, keep a check on whether:
The vendor sets a Requirement elicitation process
There are aspects of flexible delivery
There is due process and diligence before the project by the vendor
After defining your requirements, you may look for a reliable partner.
Be mindful of the process-oriented schema and assess whether your outsourcing partner is just winging it or do they have a process in place.
Exposure to Latest Technology with Strong Technical Skills
Take your time and try to choose an offshore outsourcing partner with the technical competence your software requires. Remember not to select a vendor with legacy stacks and old-school experience. Examine your potential software outsourcing partner’s talent pool, developer profiles, knowledge base, experience, and tech exposure.
Only expect a great little code out of a vendor whose developer pool is still tinkering with legacy stacks and models.
Always look for an outsourcing partner who can offer developers with –
Complex project management experience
Communication efficacy for collaboration + remote readiness
Experience with tools, frameworks, and scripts pertinent to your chosen tech stack
Try to grasp how the software Team works and how serious they are while interacting with them. Always choose a vendor with access to the most up-to-date technologies and its adherent process and management ethos.
Quick Plug: Our team has decades of experience helping organizations build Teams of high-quality IT professional/s (onshore, offshore, nearshore) that align well with their business goals and culture. You can also reach out to us to build your team by learning more about our other engagement models.
Budget & Size of the Company
Consider the size of the organization you plan to engage with. The company’s size and the scope of its services are significant. Companies that primarily engage with big companies will be unconcerned about your shorter batch of requirements if you’re a small or medium-sized business. However, several small to medium-sized companies can take on projects of any size and provide an expert or bespoke solution.
Then comes the cost of hiring an outsourcing firm. The first reason most organizations choose outsourcing is to save money. Remember to select a provider that can meet your business needs on time and within budget while also providing a high return on investment.
However, the quality should be noticed. Inquire about software development outsourcing vendors’ services, packages, or offers. You can compare their costs (including additional fees) to the cost of hiring internal employees.
Industry Acknowledgment
This is one of the most essential software vendor selection factors to consider. Consider the most respected industry awards to assist you in selecting the finest software development firm. For example, N-iX is frequently named to the IAOP’s Global Outsourcing 100 and the Software 500, Inc. 5000, GSA, and other prestigious lists.
Developed a Security Policy
Adherence to data protection standards is one of the main principles that ensure secure data access and usage in a digital relationship. N-iX, for example, adheres to the following data protection standards to ensure that our organization satisfies all commercial, legal, and regulatory requirements:
ISO 27001:2013. This standard requires a corporation to set up safe management systems for its customers.
ISO 9001:2015. The standard denotes an advanced degree of organizational management.
PCI DSS: This mandatory requirement assures the financial data protection of businesses that accept credit cards.
GDPR: Compliance with this EU rule provides data protection and privacy on European Union territory.
HIPAA. This standard guarantees the safe handling of sensitive medical data of patients.
Technologies, Collaborations, & Certifications
One of your software provider selection criteria must include the partner’s technology stack. You must understand the technology they use, the solutions they are acquainted with, and the tools they use to accomplish the outcomes you want.
Technology alliances with established software firms are often a strong indicator. Being a certified partner with global digital giants such as Microsoft, Amazon, OpenText, Google, and others signifies that the firm provides knowledge that industry leaders recognize. Such certificates lend legitimacy to the company’s identity and ensure high-quality service.
An Appropriate Engagement Model
You should clearly understand the project’s scope and ultimate purpose to prevent your spending from soaring through the roof. The engagement model you chose will affect the project’s budget. Thus it should unquestionably be one of your selection factors for software vendors.
For example, a full-time professional is unnecessary if you require their services temporarily. Furthermore, paying your professionals an hourly cost when they will be actively participating in the project is not acceptable. Since hourly rates are significantly higher than monthly rates, a long-term partnership is inappropriate for a Time and Material (T&M) contract.
Strong Portfolio
Ensure a firm has experience working on projects comparable to yours before beginning cooperation with a particular provider. You must be aware of the solutions they have previously worked on and the sorts of goods they generally produce. So be sure to set aside time throughout the technology vendor selection process to review the vendor’s portfolio.
Check Cultural Background & Geographical Location
The quality of a software product might need to be improved by exceptional values and distinct corporate cultures, affecting delivery and causing project delays. If you want your software collaboration to succeed, you’ll need to dig deeper into the cultural background and ethical notions of vendors (no need to take a philosophical dig – consider reviews, ratings, and past projects).
Also, while seeking a partner abroad to engage dedicated software developers, a convenient geographic location is a critical criterion that any organization should consider. Little or no time differences and a convenient location are two advantages that can help you boost your partnership significantly.
Post Development Service Support
Finding a business that would invest in your company and your project is complex, but it is well worth the effort. Remember that many organizations can provide you with an outstanding array of customer logos, pitch decks, and a solid portfolio of previous projects to help you acquire clients. But, rather than signing a contract for project completion, it is up to you to do your homework and establish long-term engagement.
Ensure that your provider provides adequate post-project service for future support. It would help if you connected with their technical team, which will provide post-production services like bug fixes, maintenance, and upgrades.
To Wrap Up
High-quality software is a critical component worth your time and money when it comes to growing your software firm. In the end, selecting the right talent and an appropriate software development outsourcing company is key.
You’re investing your faith in a software development agency’s ability to build tailored software solutions to your organization’s difficulties when hiring them. Following the criteria mentioned above, you can map specific considerations to your hiring process, and finding an outsourced software development team will save you time, money, and effort.
Jumpstart your outsourcing needs with our IT staff augmentation services.
