Nowadays, outsource software development is Normal. When your in-house development team has lots of work and the pressure of doing it in time, outsourcing is the best option to unload some tension from your development team.
In-home software development is always expensive and time-consuming. So, when the business is about to begin, and you focus on these things that are time taking, it won’t be good for your business. A startup has many things to do, and it cannot do everything independently. You have to get help from outside. It will help you focus on other important work necessary for your business. That is why one should adopt magnificent software development methodologies like outsourcing tasks.
Around 40% of the tasks at present are being outsourced from top-notch IT companies. Moreover, outsourcing an actual MVP model costs around $40,000. It includes everything from development to deployment. Thus, one can easily estimate the freedom it provides from other tasks and lets developers focus on the core development opportunities. However, tech companies have many questions regarding outsourcing. Let’s answer some questions regarding outsourcing software development projects.
What is Software Development Outsourcing?
Software development outsourcing is when a business hires a software development company or team of skilled developers to let them handle software development tasks. It helps companies avoid building in-house teams of developers and partner with a third party to get the job done from outside. This helps save money and access skilled talent without the hassle of managing everything internally.
Software Development Outsourcing Models
Here are three main software development outsourcing models:
Project-based Model
In this model, you can hire a software development company. And give them a project to handle entirely. The outsourcing team will work on the project and complete it as per the requirements, budget and deadlines.
Dedicated Team Model
This model lets you hire an entire team of professionals. Who work exclusively on your project for a certain period until it is done. Unlike the project-based model, the team closely works with you to define the project’s scope and handle ongoing tasks. It is best for long-term projects or when the details evolve.
Out staff Model
With the outstaff model, you hire individual professionals with specific skills to join your existing team. These experts work as part of your team and focus on your assigned tasks. And filling in expertise or workload capacity gaps.
Signs That Show It Is Time to Outsource Software Development
These are some significant signs that show when your business needs to outsource software development:
- Lack of in-house expertise
- Limited resources
- Hiring complexity
- Budget concern
- Failing to meet deadlines
- Required faster time to market
- Need for flexibility
- Risk mitigation
Why There is a Need to Outsource Software Development Projects?
Outsourcing a software development project is always better than putting the burden on the head. Firstly, software development needs complete concentration, and putting a burden won’t allow the engineer to think creatively and smartly. It is the first reason why we should outsource software development. Other important reasons are indicated ahead:
1. Cost efficient
There is no need to tell you that it is the main reason to outsource software development projects to Startups. Outsourcing software development is cost-effective and helps in operating the business more efficiently. Most startups cannot afford in-home software development.
If you hire a full-time developer, the developer becomes an employee of your organization, and you have to pay the developer like other employees. It includes basic pay, but you also have to pay dearness allowance, other allowances, reimbursements, annual bonuses, perquisites, and many more benefits with a basic salary.
It will cost too much to hire a developer in comparison to outsourcing. In other words, in outsourcing, the Startups have to pay only service charges to developers. There will be no dearness allowance, bonus, commission, reimbursements, etc.
Startups save much money by outsourcing software development. The saved money can be used in other areas of business where it is required. As a result, It will produce less expensive finished products and attract many customers towards them. It also shows that you are good with money management.
You use the investors’ money very effectively. The investors will be impressed by you after seeing how you produce products with less money using highly experienced overseas developers. Simultaneously, you can also do custom software development by outsourcing which is again a time & money-saving activity.
2. Save Time
Startups have to wear many hats in the beginning. They have multiple tasks on their plates where the focus is required. Doing everything independently will decrease the efficiency towards work and finishing the product. Simultaneously, it will expand the software development life cycle.
Hiring professionals will also make them trapped in unnecessary activities. They have to go through many stages to employ the expert firstly, they have to advertise the vacancies and requirements, select resumes, call for interviews, and discuss CTC with them. After selection, train them, introduce them to teams, and discuss their role and what you expect from them. This whole process will take lots of time. As a result, it will delay matching up with your deadlines. You will produce products inefficiently.
On the other hand, if you hire from outside, you don’t have to waste your precious time on these things. They have experience in their work. Only you have to select the right one, give them the project, and discuss your requirements and development cost. This process will save lots of time, unlike hiring in-home developers. Moreover, it will streamline the entire software development services.
They don’t need to meet with your teammates, set coordinates, or adapt your work culture, environment, and technology. They are professionals and know how to do their work. They will give your project on time. As a result, you will be relaxed and divert your precious time to other vital areas of your organization. It will increase the efficiency of your organization and never miss your deadlines.
3. Software Developed by Skilled Developers
For startups, it isn’t easy to employ experienced and skilled ones to do their development work. There are many reasons behind it. Some of them are given below:-
- Startups can’t afford to employ them.
- Give special facilities
- Adjust to your company’s environment
- Limited resources
So, the better option is to choose to outsource software development. It allows you to work with experienced and skilled developers. You can develop your products with a skilled hand. It not only gives you an efficient product but also impresses your investors & renders the most acceptable software development solution. The trust of investors will increase towards you. It will help your startups to be famous and popular amongst users. The users will trust your organization and your process.
Not only startups, but many other big tech companies like Google, WhatsApp, Skype, and Slack, take advantage of outsourcing. Yes, you heard it right. Many companies outsource a significant portion of their software. A company like Google outsources to India.
If big companies are outsourcing their software development, why don’t the tiny tech startups do so?
4. Faster Availability in the Market
In the competitive tech world, everything is about timing. Which organization deploys its product first in the market? The one who did in time wins this battle and will survive in the long run. It will give you special recognition in the market.
With in-house development, sometimes it will be impossible. As a startup, you will have to do many things, from product announcements to its release in the market. Between these two stages, many processes will follow to make it possible. You have to look after everything. There are some problems startups have to face during the custom software development process–
- Coordination between teams
- Favorable environment
- Limited resources
- Lack of experience
- Time optimization
- Meet deadlines
- Money issue
If any step goes wrong, it will delay your product’s release in the market. It will decrease your reputation in the market. The investors will also try to pull out their investments from your company.
So it’s better to choose to outsource for relaxing from these above issues. You will get your products on time and finish your work before the deadline. Get more time for testing before releasing.
5. Scalability
Scalability is one of the main reasons behind outsourcing software development projects. You can scale up or down according to your project’s requirements. This level of flexibility is not easy to find with in-house development. You cannot quickly fire any developer from the development team. It will create many issues-
- The project will stop.
- Recruit new developers in a short period
- New developers require time to adjust
- Start projects from the beginning
- Recruit the wrong person
- Hurt company reputation
Outsourcing will help with the above issues and decrease the burden on the CTO and project manager. Outsourcing not only has the advantage of the low cost but also decreases the pressure on in-house developers. You can hire any outside developer according to your needs. You can hire them on an hourly basis. As a result, it will save you many resources.
6. Reduce the Risk of Recruiting the Wrong Developer
It is not always possible for you to recruit the right developer. A recruiting process goes through several steps. These are a time-consuming process. With these several steps, the risk of recruitment is high. If anything goes wrong, the whole process goes in vain. It will also cost the company and misuse resources.
It’s better to choose the option of outsourcing. You can hire expert and experienced developers in no time and at a low cost. It will also save many resources for your organization compared to in-house development.
7. No Need for Micromanagement
If you go for the outsourcing option for your software development project, the project manager will look after your project. In case of any issues with the software, the project manager is the first point of contact.
You can sign a contract with the outsourcing software development company. After that, they are bound by all the conditions of the contract. They can’t copy or re-sell your projects elsewhere. They also provide you services after the sale if there is any issue regarding developed software.
8. Help in Focusing On Core Competencies
It is necessary to focus on the core competencies of startups. Startups should not divide their focus into different areas. They should focus on their strength and outsource all other things.
You can’t deny that outsourcing is a good option for startups. With outsourcing, a startup not only gives strength to its core area but also optimizes its process.
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9. Easy Availability
In the past, it was not easy to outsource software development projects. Outsourcing was not readily available. But now, the scenario has changed. Everyone is outsourcing. Outsourcing is available in no time. Just open the internet and search as per requirement.
The best part is that you can hire developers hourly and avoid long-term commitments. Giving them a fixed salary and other benefits will not be wise.
You can hire developers by outsourcing the project hourly from a reputed software development company.
Factors to Consider When Choosing a Software Development Partner
Here are some key factors to consider to choosing the right software development partner:
1. Experience and Expertise: Startups should choose a software development company with experience and expertise in building custom software to meet each business’s needs.
2. Portfolio: You must check their portfolio to see their past work, work quality, and capabilities. By reviewing the portfolio, you can evaluate whether they will deliver a quality project.
3. Clear Communication: One of the common risks of outsourcing is unexpected results, and a significant reason is wrong communication. So, you need to consider a company with clear communication channels and prefers client preferences first to ensure the results meet the client’s requirements.
4. Client Reviews and Ratings: A company with so many happy clients’ reviews and testimonials will tell how best projects they have delivered. You can check each company’s reviews and evaluate which company has good reviews and how easy they are to work with.
5. Flexibility: Always pick a partner that offers flexibility and adapts changes in the project whenever needed as per the client’s needs. It ensures long-term success.
6. Post-Development Support and Maintenance: Startups hire and develop companies without post-development support and fail later. That is why they need to hire a company that offers post-development support and maintenance to ensure software runs smoothly without any issues.
Challenges of Outsourcing Software Development
Here are some challenges associated with outsourcing software development:
- Misalignment: Some development companies try to push extra features or hide extra charges that lead to high costs later. So it is essential to hire a company that offers transparency and only offers that genuinely benefit the business.
- Dependency: Pick an agency that follows the best coding practices and ensures you follow the industry standards.
- Communication Barriers: Sometimes, language becomes a barrier, leading to misunderstandings during development. So, hire a company with a comfortable language, time zone, and communication channel to avoid misunderstandings.
- Tricky Agreements: Read the contracts carefully before using them. Make sure you own the code or get a license to use it freely in the future so you are not stuck with one agency.
- Quality Control Issues: Outsourcing software development to a third party means you lose quality control. So hire an agency that offers high-quality services and fulfills the standard expectations.
Why is DreamSoft4u Best For Software Development Outsourcing?
DreamSoft4U is a leading custom software development company with over 20 years of experience and a team of skilled developers. Our team will work with clients, understand their requirements and deliver a tailored solution under budget and timeline. Connect with our experts today!
Conclusion
Outsourcing software development is a smart option. It is suitable for those startups who are looking for ways to save money, access talent and want to focus on their core business operations. However, outsourcing is a complex task and requires several steps to consider. We hope this guide helps you understand everything about outsourcing, its challenges, benefits and factors to find a reliable software development company. Now, it is your turn to find a reliable software development company and turn your ideas into reality.
FAQs
1. What are the advantages of outsourcing for project development?
Outsourcing can potentially expedite project timelines, reduce costs, and bring in specialized expertise.
2. Do you charge hourly or upfront on projects?
We have hourly, monthly, and project-wise engagement models. So you can choose as per your needs.
3. How do I choose the right engagement model for my startup?
Consider factors such as project complexity, budget, and desired level of control. DreamSoft4u can provide guidance based on your specific needs.
4. What’s the typical team size startups hire from you?
We provide flexible team scaling for startups. Whether you’re starting small or expanding for a larger project, our approach is customized to meet your specific goals.
5. Do you collaborate with in-house teams too?
Yes, we collaborate seamlessly with both in-house and remote teams to meet your project needs.
