Software development has not just changed with respect to technology, but also in the way it is operated. With globalization and interconnected economies, you can search for the right talent to work on your project anywhere in this world in the right price. But why outsource? For starters, outsourcing allows you to reduce your development cost significantly. Factually, getting development done in India costs you 10 times less than what you would be paying in US. This is a major advantage. But how to hunt for the right talent? What are the things you have to keep in mind while outsourcing your project? What would be the ultimate result? And how to determine if the company is right for the project? There are hundreds of viable questions. In this blog we answer a few. So, lets get started.
What is outsourcing and how does it benefit you?
Outsourcing software development refers to delegation of the work, partially or fully to a qualified company – onshore (within your country), nearshore (nearby country) or offshore (far off in different continent) to the third-party vendors.
There are hundreds of technologies out there, and it is very difficult to get an in-house resource for each and every one of it. Rather than hiring a resource, people find it more advantageous to outsource the project. It helps them focus on what they are best at and get a prolific output from talented people.
- Helps hire the best people in global scenario
- Can help you reduces development cost by 60%
- Hire people for their core competencies
- Faster time in market
- Brings scalability for continuous development and improvement.
In house VS Outsourcing
A lot of people prefer to have an in-house resource rather than hiring someone from other countries. There is no denying, outsourcing projects has their own pros and cons, but that is only when you are outsourcing to a company which is not right for you.
Why not to hire an in-house resource?
Hiring an in-house resource is equally questionable. There are a number of things you need to sort out at your end, such as screening of resources, validating, interviewing and much more. Also, you have to train your resources that is not just time consuming, but also expensive. Other expenses such as salaries, tax, insurances, infrastructural investments, etc. is just going to increase your development cost.
How does outsourcing helps?
Outsourcing can help you reduce the development time and cost significantly. Yes, you have to invest your time and energy in finding the right offshore software development company, but it is not that big of task.
Google searches, references and good listing sites offer you all the information you need while hiring a development partner. It is somewhat better than hiring in-house developer. Furthermore, there would a proper contract between you and the third-party vendor which makes sure the development cost would not increase, you will receive your project on time, and also the security of your project. So, from start to finish, your project becomes their responsibility and you just have to review the development work.
Risks of outsourcing software development
Here are some precautions you must be taken while you are outsourcing your project to a third-party vendor.
- Fear of losing control
Since you are not going to be present on-site during development cost, it can be intimidating. But there is no such thing as losing control of the project. Today, many companies are offering on-site developers for hire or you can choose to have a project manager that provides you regular reports on your project. Furthermore, they take your crucial feedback and communicate that to the developer and design team for the best output.
- Unrealistic Expectations
For example, you are hiring someone to develop a taxi app, and you have uber in your mind and what the apps and software to look like that. But are you putting out the budget that big? No, every project has its own limitations with respect to budget and resources, best way to not go overboard with your expectations is prioritize things and understand what market needs right now and work on that.
- Communication would be lost
While hiring an offshore software development company, you must check their communication channels. A good company offers you a number of ways to connect with them, and also assigns you project managers that makes communication more seamless.
Things to look in a software development company offshore
Every company can be evaluated on a number of factors that gives you enough reasons to chose them over the other. Here are some:
- Cost of development
- Technology Expertise
- Experience of Resources
- References / Reviews
- Communication Channel
- In-depth industry knowledge
By evaluating these factors, you can compare between different companies and choose the right one. This allows you to always hire the right people.
How to hire effectively?
Beware you might be making huge mistakes while outsourcing software development. Factually, only 29% IT projects are a success and for you to make sure your get successfully implemented here are 6 things you need to take care of:
- Documentation (NDA is very important to protect your idea)
- Ask for previous work
- Prioritize things and set clear expectations
- Take regular updates
- Do not ignore testing
Different Software Development Outsourcing Models
There are three widely used outsourcing models available in the market, as per your development needs you can choose the best one:
1. Time and Material Model
There are a very few software development companies that offer you this model, as the project requirements can change and it would just bring more trouble to them. and there is no clear project scope, this model is best for the dream projects and trial projects to see the collaboration, also don’t forget to make a fixed agreement.
Development Cost: You pay for the hourly rates of the labor + the cost of the material.
2. Fixed Price Contract Model
End to end management and development of software project within a fixed price. But there would a contract stating what would be done within that budget and this leaves you very less scope to make any changes once the project has started. So, prioritize beforehand.
Development Cost: Fixed price. (You may have to pay extra for any new add-ons and also for the time and resources required to fulfil new requirements)
3. Dedicated Development Team Model
It is one of the most flexible development model and widely loved by companies. This is also most commonly practised offshore development models. This allows you to pay for the resources you pick out such as designers, developers, business analysts, project managers etc. You can even hire more developers if you feel the development work is going slow and pay for them. It is like making your own team of developers.
Development Cost: Cost per hour of the resource X number of hours X number of resources
Choosing the right country to outsource
Now you can outsource onshore, offshore and nearshore but how do you choose the right country. Well, the cost of development, expertise, resources, the currency differences are some of the leading factors to consider. One of the best voted countries of all time to outsource your project is India. At i2TECHS, we have handled more than 150+ outsourced software development projects from UK, US, Australia, Canada and other parts of the world. We have 99.9% client retention rate, and a very active customer support system placed in line. With one of the largest talent pool of developers with 5+ years of experience in leading software development technologies, find the right resources just at i2TECHS.