According to Statista, In 2018, the global outsourcing market amounted to 85.6 billion U.S. dollars.
Software outsourcing is still in trend, but the approach has changed. While cost savings was the most widespread reason for outsourcing software development, now, access to global talent is one of the main reasons why outsourcing software development.
Some additional benefits of outsourced projects are enabling focus on core business, solving capacity issues, and enhancing service quality.
Benefits of outsourcing
In today’s global economy, software outsourcing is about exposure to talent, faster time to market, driving up profitability, improving market competitiveness, and improving customer experience.
Outsourcing software development can offer companies an increased return on investment as well as a competitive edge thanks to an articulated team.
Downfalls of Outsourcing
One of the main challenges to overcome when outsourcing is the misunderstanding of organizational structure. It can take time for software developers to understand a company's working methodologies. In other cases, productivity levels can be affected due to a difference in time zones, or.
Tips for Successfully Outsourcing Software Development
Before entrusting your software project to your new partner, here are some tips to contemplate.
Define your product
Outsourcing can only be successful if both the client and the software company have a complete idea of the end-to-end flow of the software application, so a healthy first step is putting your ideas into writing.
If you have a clear vision of your product, it will be easier to correctly assess the technologies and requirements aspects that you’ll need for a software service provider. Keeping a clear document that includes all the features will give you clarity, and help your potential partner to get an overall picture of the software at one glance.
Set clear expectations
Successful outsourcing requires clear communication between a customer and a provider. Both parties need to agree on priorities and information requirements.
Choose an outsourcing partner with a clear and transparent approach, and set a clear line of communication from the beginning of the project. You’ll need to keep communicating with the team and be involved in the process from start to end.
Implement Agile Methodologies
Agile methodologies allow firms to keep a check on production and swiftly work during a project's life cycle. Through agile, a product owner and the software development team members can fully understand the nature of the project, the target assigned and the goals to be achieved.
The need to use it in general management has been recognized by Harvard Business Review and McKinsey & Company. Agile helps corporations adapt to the ever-changing business environment because it promotes rapid delivery with a predictable cost and schedule because of the fixed sprint duration. But most importantly, it is flexible to changing circumstances.
Focus on UX Design
User experience (UX) design can play a key role in the process of outsourcing software development. UX design is not only about making a product look good but its functionality.
People care about efficiency, especially when it comes to the products they use. If the experience is bad, they will simply abandon it. By adopting a user-first approach you’ll be more successful at delivering the right solutions while meeting users’ needs.
Conclusion - Outsourcing Software Development
While outsourcing can allow your company to save money and give you access to technological capabilities you don't have in-house, there are also some challenges such as communication barriers to consider.
When selecting a software developer to outsource a project to, ask about how they handle such challenges. Keep in mind that no matter how efficient and experienced your software vendor is, your product will need your personal involvement. By establishing communication, mutual understanding, and constant feedback both you and your software provider have a better chance at succeeding and forming lasting business relationships.
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