How to Successfully Outsource Software Development in 2020

So far, the year 2020 became a turning point in social structure and now it`s common to outsource software development. It became more difficult to build a stable business strategy during the modern world epidemic. Costs and economic losses increased and it is time to take a look at outsourcing. Nowadays, hiring another company to make software is not just a way to cut costs, but is a necessary strategy in a social isolation time. 

In this article, we’ll guide you on the journey of how to outsource your software development successfully.

Create a vision of your perfect software product

To avoid edits, missed deadlines, and demands for budget increase when you outsource it`s good to have a clear description of your final product. At the same time, you need to be open to fresh ideas and innovative thoughts while negotiating the product design and implementation with the outsourcing team. With an idea for your product, you can move on to the outsource model choosing.

Time and cost estimation method

This model is used in the case when a final goal is already defined. This outsource model is classic. Two companies enter into a fixed-price outsourcing contract which defines the scope of work. In the next step, the outsource develops or provides the required solution, depending on the nature of their business.

The final step of this type of agreement is the exit criteria. It can be a software product or launch of a service. This outsourcing model does not suppose the project extension. Product support is implemented by a separate contract.

Fixed-price method 

This outsource model has more risks and can be used in project-based engagements.

Payment does not depend on resource costs and the time it takes the development party to complete the project. The project self-cost (eg.: workforce initiative, technology and resource expenses, etc.) is not disclosed to the customer. It is extremely important, at this time, to have a clear description of the final product. 

The dedicated team outsourcing model

In this way, an employer company can manage each of the parts of the team provided by the contractor directly. It is similar to having independent contractors ready to collaborate with you. Companies commonly use this type of outsourcing model, to produce product support services.

Choosing an outsourcing company

Now, having an understanding of outsourcing types, we can move on to choosing the right software developing company with a clear idea of your final product and a way of implementing it. 

To help you make the right choice, here are a few tips:

  1. Read past customer reviews about a company you are considering.

Feedbacks are a status representation of a company.  Buying services in 2020 can be tricky and overwhelming due to a plethora of outsourcing companies competing for your business.

  1.  Previous projects.

The next step is to see what past customers of the company in question received in return for their investment. Study the past web applications, website, etc., depending on what product you need. 

  1. Common outsourcing problems.

At the communication stage, it is important to know how the outsourcing team deals with typical problems such as security risks and communication barriers, it also will not be superfluous to know about the company’s QA testing methods. 

Work process 

When you chose the company, it is time to speak with outsourcing project managers. The main task is to explain your view and to determine the implementation of the project with the developer team. If necessary and realizable, you can ask about a project trial, but this option is used in very special cases when the high risk present in the project can be mitigated with a prototype or a demo.

Most companies have many tools in-store to complete your project in a set time and on a set budget. Their team of dedicated professionals will work with you on the outsourcing agreement and clear description of the project. Finally, we came to the critical part of the project and it appears reasonable to ask what level of involvement the development team expects from you in the product design phase.

There are tools to build the process of outsourcing software development smoother in the present day. If your product stores and processes your customers’ private data, make sure the development company has experience with the production of secure systems. An example of this experience can be a credit card processing software or a CRM solution. Lastly, communication about the product between the two parties can be cluttered and misleading. To avoid confusion, try to use video conferences for important and complex topics. This can help build a clear understanding between you and the outsourcing company.

Here are a few tips to make outsourcing simple: 

Agile methodology

Agile methodology is oriented on deploying the first increment in several weeks and the entire piece of software in a few months. This kind of work organization requires the client representative to work side by side with the developer every stage of the development process. This combination of communication and action ensures the process stays on track regardless of changing requirements or tight deadlines. It is easy to track the success and the development velocity regularly with an agile environment. Team tunes and adjusts the process continuously, following the KIS or ‘Keep It Simple’ principle.

Project management tools

Software developers use a number of digital applications to organize the bulk of their work into manageable, trackable tasks that simplify the development process. Together with the development tools themselves, the team calls the collection of the software they use a ‘technology stack’. Some teams use their project tracking tools to communicate their current position on the project initiative to the customer. It can help software developers manage project tasks, calendars, and conversation threads alongside customer relations.

User experience design

The last topic to consider is User Experience. The UX designer creates the interface, provides the design, and distributes the functionality of the software across the software’s interface window. A UX designer creates a workflow layout for software engineers to start developing according to the design after the client approves the UX.

Many companies focus their resources on the implementation part of the software lifecycle, overlooking the mechanics of how each part of the software lifecycle influences the other parts. Though Software Lifecycle Management helps to shift the perspective of the project management and team coordination towards overcoming a wide range of obstacles at their early stage as they appear daily, throughout the development. Accordingly, such an approach allows every member of the organization to contribute towards better project management for everybody.

SLM’s aim is to deliver enhanced customer experience and value. The lifecycle Management process includes many elements and roles such as, requirements management, software architecture, computer programming, software testing, software maintenance, change management, continuous integration, project management, and release management. This means a dedicated team of professionals carries out software support and you do not have to deal with potential problems after the software release. Additionally, software support provides real feedback which, transformed into the market analysis, helps optimize not only the software product but the SLM itself.

As a result, the fast-evolving tech sector leads to companies adopting more specialized services. The outsourcing industry is living through a digital refactoring in 2020. The technologies that are breaking out of the digital system will become ubiquitous. Consequently, it will influence not only outsourcing but our lives as a whole. Therefore, it is safe to say that we are witnessing the transition to a new level of software development and its place in society.

Author avatar
Julia Melnik
Content Writer