Signs You’re Ready to Outsource Software Development

A recent survey on global outsourcing by Deloitte revealed that over 70% of companies outsource IT activities. The most commonly outsourced functions are UX/UI design, QA, and coding. Outsourcing of software allows businesses to streamline operations. It also facilitates better use of in-house talent in core activities.

Software outsourcing today has become a necessity for businesses. It lets them innovate faster, scale smarter, and become more competitive. They can tap into the expertise of skilled talent ready to contribute.

Can outsourcing also benefit you? You might not have a single answer right now. Don’t worry. Keep reading to discover all the signs that signal you are all set to jump on this trend.

#1 Project Timelines Are Falling Behind

Do you find yourself constantly anxious? It’s natural to be so when your in-house developers aren’t meeting the release deadlines. Delays in product launches can prove ruinous for your business. You might have tried hiring more in-house staff to fix the issue. But deadlines still keep slipping.

At this point, outsourcing your software project will be the right step. Why?

• The outsourced teams have the required experience to complete your project speedily.
• You can access a vast skill set globally. No longer do you need to rely on the limited abilities of your in-house teams.
• An experienced outsourcer helps you tap into new ideas from diverse expertise areas. They help you use various platforms to develop your product swiftly.

64% of software projects consistently miss deadlines. Only 31% are delivered on time and within budget.

#2 You Don’t Have the Right In-House Talent

Around 4 in 5 businesses globally have a tough time finding the right talent. No, it’s not because AI is taking over their job. On the contrary, there’s a shortage of workers to fill the developer’s position.

According to TotalJobs, it takes around a month to find one suitable person. The tech industry is very aggressive. Businesses can do anything for skilled IT specialists. If you limit yourself locally, you’ll keep fighting to attract a small talent pool.

Do you find yourself spending more time finding the right people? This precious time can be spent completing your project. If this scenario feels real, software development outsourcing can help.

Doing so will give you instant access to a global talent pool of developers. You don’t have to endure the lengthy hiring process. The result? Quick access to skilled IT specialists. These people start working on your project almost immediately. Thus, you can focus more on strategic business functions. At the same time, you benefit from the expertise needed for a successful project outcome.

According to the Bureau of Labor Statistics, there are more than 3 million software engineering jobs in the US. Yet, only 1.3 million people have the skills to fill these roles. 

#3 You Want to Cut Costs Without Compromising Quality

Is your software project eating your budget? One way to fix this is to lower your product’s quality. This, as we all know, may help you stay within your budget. However, it will prove to be disastrous for your project.

So, what’s the alternative? You guessed it right. It’s none other than software project outsourcing.

When made strategically, your outsourcing decision will result in massive cost savings. Here are the key reasons why.

• It allows you to focus on your core business processes. Thus, you improve your strategy over time and boost ROI.
• Software outsourcing allows you to leverage the expertise of the best talent. Their code quality is very high. Thus, you save more in the long term.
• You don’t need to invest in infrastructure, equipment, or software licenses. The added cost of hiring, like salary, insurance, etc., also gets eliminated.
• With cost savings in so many areas above, it becomes easier to scale your operations.
• You don’t need to worry about technical issues halting your project’s progress. Remote outsourced teams have the expertise and resources to fix them. Thus, the added costs of fixing these glitches are also removed.

According to Forbes, businesses can save up to 70% on operational costs through IT outsourcing.

#4 Your In-house Team Is Overburdened

You might have the best developers in the world. But even they are humans. With a dramatic rise in the number of tasks and projects, they will feel overburdened. Is this the case with your team? Outsourcing software development projects will be the right choice for you.

Overwhelmed teams cannot perform at their peak. They ultimately feel burned out, which badly affects their work quality. Another consequence is failed deadlines.

Outsourcing relieves your team of the high workload. The new teams bring in novel viewpoints. This has a positive effect on your ability to innovate. In the meantime, your in-house team can focus on critical business functions. Outsourcing is thus a strategic move that benefits both your project and your core staff.

Recent Gallup surveys reveal that 83% of software developers experience burnout at work. High workloads (47%) are the prime cause of burnout. 

#5 Flexibility to Scale Up or Down

When you outsource, you get a scalable team. You can scale it up or down according to your needs. This isn’t the case with an in-house team. If you feel that you need this flexibility, outsourcing of software is the way to go.

Suppose you are building an MVP for your project. You don’t want to hire new staff. In this case, you can easily augment the outsourced team. If your MVP turns out to be successful, you can expand it into a dedicated team. The outsourced developers will continue to iterate and improve your MVP.

Contrarily, if your MVP doesn’t yield desired results, you can reduce the team members. Outsourcing gives you a higher degree of flexibility than your local team.

Scalability allows software projects to handle increasing workloads without performance sacrifice. This enables businesses to adapt to growth, enhance user experience. 

How to Choose the Best Software Outsourcing Partner?

Still reading? It’s likely that you need outsourcing. But zeroing in on the right partner isn’t easy. You need to consider several factors. The advice below will help you make an informed decision.

1. Establish a Clear Scope of Work

Write a scope of work document. This is critical in helping you make the right decision. Find out the functions you need help with. Then, assess how outsourcing can help you with that.

Keep in mind that the outsourced staff that does not deeply know your business. So, don’t set up impractical expectations.

Instead, be very specific about what you want. For example, create a web app with these features. Tell them about your target audience and your project goals. This will help them work more effectively.

2. Evaluate the Expertise of Potential Outsourcing Partners

Assessing the expertise of your outsourced partner is key to project success. You want someone with hands-on experience in delivering solutions as per your needs. The best outsourcing teams stick to your project scope even if it expands during your collaboration.

To find such a partner, evaluate your potential outsourcing teams based on:

• Technical skill sets
• Access to the current tech stack
• Experience in creating solutions in your industry

3. Consider Any Potential Outsourcing Partner’s Market Reputation

Today, the market is flooded with vendors with big promises. Not all of them deliver what they say. As a business, the service quality of your outsourced partner is paramount. What they deliver has a direct impact on your business’s reputation.

So, to make a good decision, properly check all references about your preferred vendor. Read their online reviews to get a better idea of their reputation and history. This will help you connect with trusted vendors.

4. Communicate Clearly About Your Budget

Cost should never lead you into choosing a low-quality partner. Having said that, you need to consider your budget to some extent. Find out how much you can afford to spend. Then, communicate it clearly to your vendor.

Remember, skilled teams aren’t cheap. But you should not go over your budget. Finalize your budget before reaching out to your vendor. Discuss costs openly and consider the value you get from spending more. The better you communicate, the easier it is to solve any misunderstanding related to this aspect.

5. Safeguard Your Data And Intellectual Property

Outsourcing of software comes with risks of data breach and intellectual property theft. This is because you provide confidential data to your vendor. Below are some best practices to avoid this unpleasant scenario.

a. Legal Protections & Contracts

• Enforce strict contractual agreements. They should define IP ownership, usage rights, and confidentiality duties.
• Include non-disclosure agreements (NDAs) to impose confidentiality on sensitive data shared with your partner.

b. Thorough Due Diligence

• Verify the reputation, history, and earlier IP protection record of your vendor.
• Assess their compliance with data protection laws and industry policies to secure confidential IP handling.

c. IP Rights Transfer & Licensing

• Clearly outline the transfer of IP rights from the vendor to your company when the project completes.
• Define any licensing terms or restrictions linked to the use and distribution of the developed IP.

d. Monitoring & Quality Control

• Regularly check the outsourcing vendor’s compliance with IP protection measures and contractual duties.
• Define strict quality control processes to ensure the accuracy and security of the created IP.

6. Choose A Software Outsourcing Partner Who Uses Agile Methodologies

Agile software development promotes adaptive planning and ongoing improvements. It also leads to early delivery. Agile makes room for flexibility when it comes to changing requirements. This, as we all know, is so common in software projects.

It doesn’t matter whether there’s a change in the early or later part of the project. Outsourced teams working using the Agile approach can handle it all. Due to this, the product they deliver is closely aligned with your user needs and market changes.

This is the reason why it makes sense to choose a vendor who uses an Agile approach. Outsourced Agile teams allow you to quickly scale up or down your team. You do this based on the needs of every sprint. Agile’s extreme flexibility makes it the number one choice for businesses outsourcing software development projects.

Accelerate Growth With Software Development Outsourcing

Outsourcing software is a proactive measure for businesses today. It helps them overcome bottlenecks that cease their progress. Outsourced teams are highly talented. They can respond to the changing project demands rapidly. Hopefully, you are now in a better position to know whether to outsource. If you do, use the tips in this post to choose a trustworthy partner. Tap into their expertise to propel your business success.

Frequently Asked Questions

1. How do I prepare for outsourcing?

Define your goals, research, and choose the right outsourcing partner. Once you have the team onboard, establish effective communication channels. Offer detailed instructions and training. Track their performance regularly to check your project’s progress.

2. How to decide whether to outsource or not?

If you want your project to meet the deadlines without compromising quality, outsourcing is a good choice. You can also look into it if your in-house team does not have the expertise to complete the project.

3. What is the most commonly outsourced IT service?

Software app development is the most commonly outsourced service in IT. Businesses usually choose third parties to create, change, and maintain their apps. This lets them focus on other strategic tasks related to the business.

4. What is the top 1 outsourcing country?

India is the top outsourcing destination. Businesses across industries in the US choose the country to outsource software projects. This is because India offers the right balance of skilled developers and cost-effectiveness for businesses in the West.