Detailed Process of Outsourcing A Software Development Company

October 17, 2020

software outsourcing - signity

Welcome to the world of digitization! A cost-effective, efficient, and novel software: that’s what is required in 2020. Software outsourcing has been ‘In’ for a while now, as the modern issues demand modern solutions.

‘You get what you pay for’ – that applies aptly to the software outsourcing this year and ahead. Did you know that by hiring outsourcing developers – one can highly diminish the development cost? Yes, a bundle of bucks can be saved there.

Although ‘software development’ has been in trend for a while, it is still a challenge to hire the best country for outsourcing the software development team.

Certain factors decide how a ‘software development country’ will be selected. It could be ‘market analysis’ and ‘price comparison’ that lets anyone decide the country. Besides, it is the market trend, which assists in deciding.

Any Leading Countries for Software Outsourcing?

Ukraine, Romania, Poland, Bulgaria, Croatia, the Czech Republic are some countries that might give you dedicated and reliable ‘software development outsourcing.’

Also, that’s decided by your business’s needs, budget, and complexity of the project.

How to Choose a Software Outsourcing Country?

So, how do you pick the software outsourcing country? That’s an important question, though!

Here are some real things that matter when you pick a software outsourcing country:

  • Developer’s work cost
  • Technology utilized
  • Market trends
  • The complexity of the project

Other things to consider:

1. Analyze the Country’s Developers

You are in dire need to outsource developers; we understand. But what’s more important is to analyze the country’s developers. Why would anyone struggle to find developers in other countries? Why not their own country, as that would be way easier for anyone to opt for?

The main reason why companies prefer outsourcing software developers from another country is ‘cost reduction.’ That’s the prime reason, though.

Another reason is the hunt for talent, which might lead to better business processes and outcomes. At home, it is not easy to find the talent, or they somehow don’t fulfill our demands. So, cost reduction is the prime reason why anyone outsources software developers from different countries. But, don’t they know that quality requires cost?

Analyzing the country’s developers in numerous countries is essential for landing the best deal.

 

2. Compare Developer’s Costs

Since price matters, developers rate matters – it is obligatory to first analyze and then compare costs charged by different countries.

Of course, you would wish to hire the best one, but that doesn’t have to be done at the cost of hampering the quality.          

Begin by comparing the cost of the developers, the average ones. Then, proceed with the pros thereafter.

Comparison matters, especially when you are an outsourcing development team from a different country.

Of course, you must have researched your country’s market. That might have given you an idea of what you are looking for in other countries. So, first, analyze the market of your own country, and then proceed with researching other countries for better results.

3. Study the Market, Technologically

Market research is of the utmost importance, when you are hiring the software development country in 2020, and even after. For that, you need to be technically sound. By that we mean, you need to have a thorough knowledge and understanding of how things work in your industry.

If you are not technically sound, there is no way you can end up hiring a good software development team.

Just imagine noobs setting hiring criteria for the professionals in any industry. Isn’t that really unjustified?

Of course, that doesn’t really help in making the correct decision for any company, no matter how gigantic a company is or how well the selection criteria is – there has to be someone with apt knowledge and experience of the software industry; otherwise, it is a fail.

You need to know what technology does exist in the market, what is readily available, and what has become stale. Is there anything that doesn’t match your business requirements? If yes, how are you going to mention your requirements to the software development team?

Of course, different countries have an extensive pool of IT developers and specialists. You need to comprehend the technology and current market for deciding what expertise level does your project require. Be specific about the technology you pick, as the project’s success exclusively relies on that.

4. Suit Up for ‘Cultural Differences’

Understand how different your cultures will be! Of course, when you are looking for software development from another country, cultural differences are bound to happen.

Cultural compatibility has to be matched and maintained. It, indeed, is tough to measure, but that’s not the case when you are technically sound and open for adjustments and amendments.

How can you know which country will best fit your business requirements? Of course, it might be your first-time outsourcing software from a different country, in that case, you can grab information from other entrepreneurs, who might have experience dealing with other companies.

Besides, always contact the owner of other countries to clear all your doubts; understand the legalities and tax system in their countries too. To check the cultural compatibilities, discuss the working hours and time zone – that will identify the real compatibility of your work and their culture.

Since you don’t wish to affect your project in the future, it is mandatory to scrutinize these factors prior to finalizing your software development country. Of course, a difference of a few hours (one or two) doesn’t really affect your work, it is not recommended to choose a country that has a huge time difference with your own country.

Plan out to adjust timings, in case you have a few hours of the time difference, otherwise, look for a country that suits your time.

Pros of Software Outsourcing

Well, there are so many!

1. Exposure to Fresh Talent

So, when hiring a software development team from another country, you experience new talents. Dealing with fresh talent and new people can be quite exciting. Skilled software developers can be fun to work with.

Besides, you might have researched a few countries for hiring the best out of them. Chances are you have prepared a list of a few talented engineers from across the world. The best part is you can reach them in the future, maybe for a different project.

So, you have created a pool of talented software developers for your upcoming projects too.

2. Diminished Expenses

That’s the most evident benefit of outsourcing a software development team from another country. Cost reduction can be expected when you outsource software development from a different country.

But finding the cheapest software developer won’t help, as that can really hamper the quality of your work.

So, there has to be found a balance between the cheapest and the most expensive ones. The average developers work the best, as they don’t charge too much, but try their level best to deliver the best services.

Hence, work to maintain a balance when hiring a software developer from a different country.

The balance is to be identified between the quality and cost (affordability).

Also, you don’t have to buy any equipment, tools, or invest in technologies, it is highly likely to save a huge amount on the development cost.

Realated Read: 10 Things to Consider When Outsourcing Software Development

3. Huge Time Savior

Tight deadlines could save a lot of time for your project. The best is to hire professionals who can work and deploy the expected results in the given time frame.

Discuss the time limits in advance, and you will not be scratching your head later on. Be very precise when discussing the work details and time structure with your potential software developers from another country.

In case, you have already mentioned the same to your team from a different country, it would be way easier to complete the project at the expected time. Otherwise, it will be a mess. Be clear about how many in the team will be required to complete the tasks.

Discuss the capabilities and experience you need in your potential team, and things will be easier to manage in the long-run. That’s how you can improve productivity without actually compromising the project’s quality.

4. Simplified Resource Management

Well, your in-house team might be biased towards your business and the operations. But, when you hire a software development team from a different country, the chances of growing rate is much higher.

Why? Because they can’t be biased towards your business – they don’t know you really and don’t know how you have been operating inside the business.

Hence, you can expect unbiased feedback or communication when hiring a software development company from a different country. That, indeed, is a perfect way to improve your flaws that otherwise might have hindered your project’s success and growth.

Hence, hiring a software development company from a different country will lead you to enhanced progress, in terms of your project and business too.

5. More Time for Core Operations

Now, you don’t have to take the headache of solving those development issues – there is a dedicated team doing that for you. Since you have more time now to dedicate to your core operations, it is evident that your internal business processes will improve, and you will lead a better in-house team.

Besides, your offshore developer will be handling all development tasks, there is no time required to fix those development issues.

More time means better business and progress. Invest that time in marketing, content management, and other essential operations that could possibly help your business reach new heights of success. So, hiring a development team from a different country, indeed, is a smart move for a successful business.

Related Read: Benefits, Risks, & Challenges Associated with IT Outsourcing in 2020

Cons of Software Outsourcing

Of course, you might have to bear certain drawbacks while hiring software development from a different country. Here are a few of those cons:

1. Miscommunication

Obviously, that could be one of the prime drawbacks of outsourcing software development teams from a different country. If you are unable to handle your newly hired software development team, it is easier for the entire project to fail. Instead of enjoying the benefits, your firm could face the challenges, which otherwise wouldn’t have occurred.

Besides, such mismanagement can lead to frustration and irritation amongst you and the other party as well. Hence, hiring a software development company from another country should be done only if you are sure about managing your team aptly.

Since the cultures are going to be pretty different, chances are it will not end up being a good solution for your business. The solution, hereby, would be to make a plan for managing your team outside the country. Think about potential problems that can occur, prepare some solutions that might work, and voila, you can manage everything aptly.

2. Diminished Service Quality

That’s another drawback – and there are higher chances that this could happen, until and unless you are relying on a team of highly dedicated professionals. Research thoroughly about the company you are hiring – their history, work experience, relationships with their ex-clients, and even how they understand feedback.

You can get in touch with their previous clients to understand their working process. Besides, you can always read online reviews given by those who have availed their services for choosing a better software development team.

Before making a decision, of course, you need to have a clear picture of whom you are collaborating with – that’s the basics to follow when you are hiring a software development team from a different country.

3. Higher Risk Involved

Working with your in-house team is possibly easier. You have everything in front of you – be it the good or the bad – you can see everything. However, that’s not the case, when you are outsourcing software development from a different country.

You can barely rely on some video calls or weekly meetings – however, you can’t see what’s actually going behind the scenes when your team is working internationally.

Evidently, there is a risk factor involved in the case when your software development team is from a different country.

The Takeaway Message

Of course, the outsourcing development team from a different country can be a profitable deal only when you have thoroughly researched the market. keep in mind a few challenges that you might face too – so that there is no hindrance to the project’s success later.

Amit Dua

Co-Founder at Signity Solutions
A tech-evangelist, he has an uncanny ability to synergize and build associations, thriving teams, and reputable clients. His vision to grow his decade-old company as per global standards, and his deep analytical skills to foresee market trends, as well as global challenges, has enabled his company to come up with products and services best suited not only for local, but global markets as well.

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