6 Risks of Outsourcing Software Development

In outsourced software development, saving time and cost are the ideal outcomes in choosing a one-stop-shop vendor. Software development outsourcing means hiring a third-party service provider to handle software development projects. The services can range from developing software for your company to managing business operations or developing and maintaining software for your customers. Businesses can do it in-house, but it requires skilled developers and other resources, which increases the cost and time to complete the project.

  • And these aren’t just for their own projects but also client projects that they have to undertake.
  • Nearshore outsourcing can give you the best of both onshoring and offshoring.
  • The construction team works according to your accepted plan but does so independently.
  • Make sure you are completely on board with how the project will be developed, the deliverables, the deadlines, and so on.
  • While the outstaffing company provides services to a customer according to the contract, a customer company pays for them.

Once we narrow down the search, we ask you to take part in the interviewing process. You are welcome to ask any questions you have and brief the candidates on the project details. I have worked with people literally all over the world both in business and as freelancer, and people from Devox Software are 1 in a million. Listen to them because they can give strong advice about how to build good products. DevOps Engineers We will find the best DevOps who will manage your team through the backlog.

Hand-selected developers to fit your needs at scale

The onus is on you to read the contract to make sure it covers all the services you need. If you expect the outsourcer to provide project management, then make sure it’s accounted for in the timeline and those costs are included. Explicitly pinpoint the reason for outsourcing a project with your intended partner.

Outstaffing in Software Development

Browse the reviews and try the software products the company has already delivered. That’ll help you find the right team for your software product’s requirements. ActivePlace is a social platform dedicated to health, fitness, and an active lifestyle.

Focus on your core business

With outsourcing, you hire a team that uses certain infrastructure, tools, software, and hardware. And while you have the right to inquire about the team’s tech components and software, you don’t have much control over how the activities are carried out or how the resources are used. Plus, if at some point in the development process, you have to switch to specific technologies , you’ll pay extra for the new tools. Additionally, outsourced teams may follow Agile development methods or DevOps that allow them to be more productive. These processes can also help speed up time to market delivery, helping your company increase its tech capability at a rapid pace.

Compared to an internal development workforce, outsourcing software development might provide you with more oversight over your project. In software development outsourcing, a company hires a third-party service provider to handle its software development projects. The development services can range from developing custom software your company uses or developing commercial software for your customers. We are a company that specializes in hiring software engineers, with a variety of technology stack for our clients around the world. You have the opportunity to hire a single developer or a whole dedicated development team for your project. Each of our developers works directly on your project, which gives a deeper dive into the project’s essence.

When you hire an outsourced team, you can save money on these hiring expenses. Additionally, you won’t need to invest in office supplies or training them. Sonatafy Technology, providing experienced nearshore software developers and engineers. It is achieved by consistently auditing the quality of work produced by the agencies. It means that the agencies that remain in the YouTeam talent pool have consistently demonstrated their skill and will definitely produce high-quality results.

It is a three-sided network that connects people with like-minded individuals, mentors, and businesses – all related to physical activity and healthy living. The company approached the development team to create a wellness app that would cater to different categories of users and provide personalized functionality to each member group. The main goal was to build a unique project from scratch that combined social media and marketplace features. Being a leading outstaffing agency, Devox Software provides bespoke hiring services for a wide range of domains.

Outstaffing in Software Development

That’s why it is worth discussing communication and reporting practices in advance. If you begin your project by building your own startup development team, consider the average time-to-hire in advance. To create a technically powerful product that will be in high demand by the market, you also have to hire business analysts, UI/UX designers, QA engineers, and marketers.

How to Build an Offshore Development Team in Ukraine in 2023

However, language barriers, different time zones, long delivery times, and customs issues could create issues for your business. You’ll typically have two options if you want to scale down the team. The first option is to release members and risk not finding a replacement having their skill set. And the other option is to continue paying the wages to retain them for future projects.

But there’s something more that makes US companies fulfill their 920,000 open IT positions elsewhere. So let’s check what the 5 main reasons to outsource software development are. This can be a disadvantage if you don’t have expertise in developing the project you’ve hired a developer for. The hired employee may be an excellent pro in coding but might eventually hurt the development process if your team lacks QA expertise or effective management. While you may share the guides and ideas with the teams, the outsourcing companies’ contracts usually limit the client’s intervention in the development process.

Outstaffing in Software Development

One of the main cornerstones of your success is well-organized documentation. Consistency around documentation at every stage is vital for maintaining proper communication, work processes, reporting, and facilitating interaction between team members. The flexible nature of a project gives a remote team room for creativity, which can result in discrepancies between the client’s expectations and the end result. Since the vendor handles all the hiring and administrative tasks, you can focus all of your attention on the business aspects of a project. The client has full control over their dedicated team and the workload. T&M involves lots of communication throughout the project, which slows down the process.

The cloud-based platform helps all the industry players to conjoin their efforts, knowledge and clients, providing faster communication, more accurate data and transparency in their ventures. Since an employee concludes an employment contract with an outstaffing company but not with a customer, the latter does not deal with these matters. This approach reduces the load on the customer company’s administrative and accounting departments. Signing the contract makes your relationship with the software development vendor official. The fixed-priced model assumes that both parties agree on the specifications, project scope, and cost in advance.

It’s a common practice among both established companies and startups that benefits business growth. The next step is to check who exists in the software outsourcing market. Luckily, there are recruiting platforms with lists of software outsourcing companies, agencies, or contractors such as Clutch and Upwork. Each model has its rules and agreements, so you’re free to choose the one that suits your project best. By signing the contract on the specific collaboration model, you mitigate the risks of developing your project.

Regardless of the arrangement, you decide on, you should have an agreement with the contractor that specifically addresses the ownership issue. Once you have an outsourcing contract in place, it is essential to get the software registered with the intellectual property board in the country where you plan to use the software. The ownership of software that was outsourced can be a huge problem. Thus, we recommend agreeing to a dual ownership arrangement with the contractor. It is a great initiative as it gives the developer a sense of ownership that often results in higher work quality.

IT Outstaffing Process

This model is best suited for small or medium projects without predetermined requirements. It also makes sense when it’s hard to get accurate estimates right from the start. In the most common model, the product development process is broken down into sprints that usually last two weeks. Each sprint has a goal , which is typically a feature or functional component. After the product increment is developed, it is then tested and demonstrated at the end of the sprint.

Outstaffing in Software Development

They can even act as your technology partner to help you become technologically mature to withstand all other tech challenges. However, even in the middle https://globalcloudteam.com/ of the process, you can change developers or the entire development team. If an exit path is not defined, chances are they could bring many problems.

Select the right software outsourcing model:

You don’t spend time on hiring every engineer, designer, or product manager separately. Instead, you hire a full dedicated team of professionals who care for your project as their own. UVIK is an outstaffing company that’s been providing skilled developers for various projects for over a decade. Our specialists have worked in teams on solutions for legal, fintech, ecommerce, management, and other industries, so they quickly pick up the developing pace and maintain it. Check if the software development outsourcing company has an established quality assurance process with code review and unit testing.

It usually happens when the client is satisfied with the quality of cooperation. The whole process of hiring a software outsourcing team can be equal to or less than the time it takes to hire one single developer into your in-house setup. Think about the time, and therefore money, that this has the potential to save you. When a good software development company hires staff, it will be looking to bring in a team with a wide range of skills. They’re not going to want to hire the same person twice, as any fresh head in the team is likely to bring something new and exciting to the table in some form or another. We’re not saying that your in-house team is not up to the task.

Outsourcing Tips For Success

Kyiv, Ukraine, is among the fastest-developing cities in the region. By the end of 2020, Kyiv tech market is expected to have 75K+ software development specialists. How much does it cost to hire offshore developers in top outsourcing regions? Real estate software development company handles complex challenges by creating products and software for a very demanding domain. Getting the best vendor to outsource software development is a complex process involving proper planning and preparation. You will have to determine your needs, shortlist candidates, analyze them, and discuss your project requirement with them.

Time and Material

Companies are forced to make that choice every time they need to build a project or implement a new feature. We are driven by 15+ years of experience in IT staff augmentation and engineering software solutions. Software development outsourcing agencies, on the other hand, can add or remove team members from the project as easily as you like. As long as you can utilise project management and collaboration tools, you can reap all of these amazing benefits. The choice of a best-fitting engagement model is a very individual case that is dictated by your project’s scope and goals.

Software Engineering Firms

As important as it is to have concrete contracts with set timeframes and punitive measures, it also helps you to be proactive. It may mean having some wiggle room to ensure that even if the requirements are not met, you can also have a bit of time to rectify the problem. Also, keep in mind that your development team may work in a different time zone. When you clearly define your need to outsource software development, let’s explore the key risks you may face and learn about the solutions. But don’t get trapped by choosing the cheapest outsourcing vendor.

Your project might also need specialized skills like AI or virtual reality. However, searching for such a talent pool might consume much of your time. When identifying the right partner, pick a software development company with proven experience in outstaffing model handling multiple projects and different timeframes. No matter the engagement model, we make sure you stay aware of project progress and updates. You can directly monitor the development process or hand over team management to our project managers.