6–Step Easy Process How to Outsource Custom Software Development (2024)
Custom software development is essential for businesses to stay competitive.
Outsourcing can provide you with the expertise and skills that an organization may take years to build.
But without the right approach, your project could face delays, excess costs, or fail to meet your needs.
It is a huge decision to put your trust in an external company to deliver the outcomes you require, especially when the success of your business is at stake.
So, how do you choose the right partner for software outsourcing?
This guide will help you through the process of outsourcing software development, breaking down each step to keep you in control and focused on your goals.
Let's get started.
What is Custom Software Development Outsourcing?
Custom software development outsourcing is a business strategy that involves hiring an external team or company to design, build, and maintain software according to your business needs.
Instead of managing the entire development process yourself, you bring in experts to handle it.
This is often done when a business lacks the necessary in-house skills or resources to develop the software it needs.
How Is It Different from Off-the-Shelf Software?
Unlike buying off-the-shelf software, custom software is made specifically for you.
Think of it like tailoring a suit instead of buying one from a store.
Off-the-shelf software is generic and designed to fit many businesses but might not perfectly fit yours.
On the other hand, custom software is built to match your business's exact requirements.
By outsourcing this process, you are letting experienced developers focus on creating a solution that fits your specific needs while you concentrate on running your business.
For Example:
Imagine an online shopping app that lets customers browse items, compare features, and make purchases.
Off-the-shelf apps may not have advanced features like unique suggestions based on search or purchase history or capabilities for tracking inventory, pricing, and orders.
By outsourcing, you can hire a team of experts that builds these specific features for you.
They handle the technical details, and you get an app that meets your business needs perfectly without worrying about the coding.
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Benefits of Software Development Outsourcing
Software development outsourcing service providers are valuable partners who can play a major role in business growth and success.
Here are some benefits of outsourcing software development:
Cost Effective
An in-house development team means hiring developers, project managers, and other specialists, which can be expensive.
Outsourcing allows you to access the expertise you need without the long-term commitment and overhead costs.
You can focus on core business tasks while allocating time and resources to scale your business.
For example, a small business that needs a personalized e-commerce app can hire an outsourced team instead of full-time developers for cost-effective development.
Global Expertise
When you outsource, you gain access to a team that is already experienced in building software across different industries.
You can also hire the most talented software development team with a diverse skill set worldwide.
This shortens the software development life cycle and results in a high-quality product.
For example, if your small business needs a mobile app, an outsourced team that has created several similar apps will already know what works and what to avoid.
Think of all the time and money you can save this way.
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Scalability
With access to global talent and skills, your business can upgrade products and build new solutions faster.
Working with experienced developers who understand your project's requirements can help you get your product to market faster.
You can scale your business without compromising speed and quality.
For example, if you own a delivery company, you might need a software application to track deliveries in real time.
By outsourcing its development, you can focus on your main business objectives instead of managing an in-house team.
Flexibility
Another advantage of outsourcing software development is the flexibility of growing your team's capacity.
When you outsource a software project, you only pay for the skills you require in the short term.
You can scale up or down according to changing needs and focus your time and resources on the day-to-day business operations.
Competitive Advantage
Software outsourcing services provide the competitive edge you need to stand out in the industry.
You are hiring niche experts who can help you understand the market from a technical perspective and deliver customized solutions to support your specific business procedures.
Risk Management
Outsourcing allows you to avoid the risks associated with depending entirely on an in-house team for all your software requirements.
An offshore software development team consists of experts who will be able to anticipate potential flaws and identify issues through comprehensive quality assurance (QA) testing.
Faster Time to Market
Outsourcing accelerates development cycles, resulting in a faster product or service launch.
You can get valuable feedback from a dedicated team of experts and make quick adjustments to stay productive and competitive.
Software Development Outsourcing Models
You can choose different models based on your project's needs, budget, and desired level of control.
Here are the main types of software outsourcing models you can choose from:
Project-Based Model
In the project-based model, the outsourcing company takes full responsibility of the entire project from start to finish.
You provide your specifications, and the outsourcing partner manages everything, including development, testing, and deployment.
Best For: Businesses with well-defined project timelines and goals but lacking the resources to complete them.
For Example:
An outsourcing company will develop the website of an online shopping platform, including a payment gateway and inventory management.
Dedicated Team Model
In this model, an outsourcing provider supplies a team of developers who work exclusively on your project.
Best For Long-term development projects where requirements might change over time.
For Example:
A software company may need to develop a new feature for its existing product, such as integrating AI-based analytics into a customer relationship management (CRM) system.
They may hire a dedicated team to work on this feature, leaving their internal team to focus on maintaining the core product.
Staff Augmentation
This involves adding developers to your in-house team for a specific time or project.
The external staff works under your direct supervision to fill skill gaps without making long-term commitments.
Best For: Companies that need specific expertise for a short-term project.
For Example:
Consider a financial services company that needs to integrate blockchain into its platform for secure transactions.
Their internal development team needs to gain this skill, so they hire a few external talents to work alongside their in-house team until the project is complete.
Time and Material Model
This model charges clients based on the actual time and resources spent on the project.
It is flexible and allows project scope, design, and feature changes during development.
Best For: Projects with undefined requirements that might evolve in the future.
For Example:
A startup business can hire an outsourcing team based on this model and adjust its app's features based on user feedback and market demand.
Managed Services Model
In this model, the client and the outsourcing partner share the responsibility.
Best For: Businesses looking to outsource ongoing maintenance and support.
For Example:
An online learning platform might hire an outsourcing company to manage its cloud infrastructure and server maintenance.
This allows the internal staff to concentrate on creating new courses and enhancing user experience, while the outsourced partner ensures the servers run smoothly.
Steps to Outsource Software Development Project
Here's a step-by-step guide to help you through the process:
Define Your Project Requirements
- Clearly define your project requirements before looking for an outsourced development service.
- Document what functions the software will perform, the problems it will solve, and who will use it.
- List the features you need to prioritize what is most important.
- Create a budget to decide how much you can spend. This will help you choose the right outsourcing partner and the type of model that fits your budget.
Research Potential Partners
- Search for companies with experience in your industry.
- Check their portfolios to see if they have done work like yours.
- Ask for client references to learn what other clients say about them.
- Check third-party review sites and social media to confirm their reliability.
- Share your project requirements with the shortlisted companies. This document should include your goals, required features, budget, and timeline.
- Consider agencies like JetCoders that specialize in customized web development.
Check Technical Expertise
- A good outsourcing partner should have a strong grasp of the technologies required for your project.
- This involves proficiency in the specific programming language, frameworks, or integration capabilities.
- Ask for examples of similar projects they have completed or the problems they have solved.
- Evaluate their communication style, responsiveness, and their ability to understand your requirements.
- Make sure they are consistent with your company's work culture.
Understand Their Process
- Get an idea about their project management and product development process.
- This involves project planning, coding, testing, and deployment.
- Assess how they handle deadlines, track progress, and deliver results.
- Before committing to a large project, please give them a smaller task, like designing a part of the user interface.
- This helps you see how they work and if their style matches your expectations.
Set Up Communication Channels
- Have regular meetings or video calls to discuss progress.
- Review and make adjustments if needed to keep the project on track.
- Use project management tools like Trello, Asana, Jira, or Slack to improve communication and task management.
- Be available to answer questions and provide feedback quickly to avoid delays.
Plan for Regular Support and Maintenance
- Discuss with the outsourcing team how they will manage the product after launch.
- Set up a support plan for future updates, bug fixes, and maintenance.
- Use user feedback to plan future updates and keep your software relevant.
- Consider building a long-term partnership for future projects if the results are satisfactory.
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Conclusion
Outsourcing software development helps you bring in the specialized expertise, quality, and dedication you need to move your project forward.
By following these steps, you can get a smoother outsourcing experience and end up with software solutions that meet your needs.
