According to Deloitte, 78% of businesses all over the world feel positive about their relationship with the software development outsourcing company.
What is Software Outsourcing?
Global businesses started befriending the idea of ‘outsourcing’ between the end of 20th century & early 21st, because of its milder pocket pinch and the significant time it freed for the businesses to focus on the core tasks. Software outsourcing was quick to become a common type of outsourcing with the industry pros including ‘outsourcing’ as a recurring part of their business processes and needless to say, it was the overwhelming results of outsourcing, which convinced more businesses to give software outsourcing a shot. However, the full potential of software outsourcing is yet not explored to the deserving extent and the reason lies in the thin line that differentiates smart outsourcing from ‘cheap’ outsourcing. Too many people make ‘cost’ the protagonist of their outsourcing plot and thus, often end up compromising with the effectiveness - you can put the blame on the crowd of software outsourcing companies, all claiming to be number 1! To avoid being misled, rule 101 is to know what software outsourcing actually is!
In simple words, software outsourcing is a globally acclaimed strategy to get the software requirements worked on by an (or a team of) expert(s) (read, a third party) to hold on to competitive advantage without compromising with the software development quality.
Models Of Software Outsourcing
Stressing on what I just mentioned, software outsourcing isn’t a single fixed process - it’s a strategy and given that, there are several ways how it’s put to use, depending on what type of relationship the clients want to establish with their chosen outsourcing partners.
Let’s quickly glance through the models of software outsourcing :
Staff Augmentation
What is the staff augmentation model?
Remember in school, how we used to “borrow” that orange sketch pen from our bench partner to complete our rainbow? That’s the concept of “staff augmentation” put in the software outsourcing context. Basically, this outsourcing model aims to fill up one / a few positions with particular skills or expertise that the in-house team lacks, to enhance its overall outcome. Here the client party “borrows” either the entire development team or a part of it from the chosen outsourcing partner for a fixed time frame. Thus, the control and responsibility for project coordination and execution (read, its success) remains in the hands of the client.
Staff augmentation works best when..
You have a nearly complete in-house team which can be completed with just a couple of more skills / expertise, which are not a constant requirement (implying, having those permanently onboard isn’t profitable) and a project manager in place who can guarantee smooth coordination.
Dedicated Team
What is the dedicated team model?
As the name clearly suggests, in this model, the client entirely hires a development team from a software outsourcing company and hands over the end-to-end responsibility starting from project planning to final execution. Throughout the process, the project manager from the development partner’s end discusses each milestone in detail with the client & ensures each feedback is worked upon. That way, the development partner can add value through their specific experience and expertise & the client can keep a track of the happenings, too.
Dedicated team works best when..
There’s an experienced project manager in your team who would be able to communicate & verify your view crystal-clearly to the outsourced team.
Project-Based
What is the project-based outsourcing model?
This model works in a way where the client specifies the project requirements in great detail and chooses a tech partner to get the exact same developed & delivered.
Project-based outsourcing works best when
You know EXACTLY when & what you want i.e. you are looking for a timely & predictable outcome. The ideal scenario is when your company size is too big/ too small & there's an overwhelming amount of core product work keeping your in-house team engaged, while the development need is non-core yet urgent.
The three W’s - When to outsource software development, Why to outsource software development and What to keep in mind when hiring software developers?
It's easier than ever to outsource software development nowadays because of the incredible advance in communication technology which can create a virtual office environment even between two teams sitting across different continents.
But, lets first understand whether you need to outsource software development or not? Ask yourself these questions to find out if you should hire offshore software developers to help you with your software development requirements!
When to outsource software development?
[1] The software that you are looking to develop solves some real business problem for your company. Is it all set to offer your company some competitive advantage?
[2] You don’t have an IT team or your internal IT team is swamped with other important projects. Also, do you have the technical skill that is required to develop custom software solutions?
[3] Is outsourcing the software solution cheaper and less time consuming than developing it in-house? Or you have a limited budget and want to do more with less?
If the answer to all or any of these questions is yes, brace yourself - You need to outsource your software development!
Why outsource software development?
Streamlines business processes
Outsourcing development helps increasing focus on streamlining processes so that you can concentrate on the core business activities. Outsourcing keeps your mind off from worrying and stressing about the tasks that are not your business’ expertise.
It helps companies focus on their strengths and what the company does the best!
No employee hiring hassles
In case the software solution development doesn’t fall under your business’ core expertise, you need to hire someone to do that for you. Hiring is time-consuming and hiring an in-house developer means a lot of money. Also, it will take you some time to get a return on your investment.
Do you know - On an average, it takes 43 days to find a new developer?
Cost reduction
Outsourcing software development to an offshore company reduces development costs. Also, cost savings in the form of no fixed employee salary, onboarding and incentives also prove to be a huge saving for the firm. Just make sure these lower rates don’t translate into a worse price-quality ratio.
Access to skills that are unavailable locally
Software IT outsourcing exposes you to a global pool of talent. It’s not possible for your IT people to have expertise on every technology stack. But, when you outsource to the huge pool of skilled professional workforce, you immediately gain a competitive advantage in the form of efficiency and time to market.
Flexibility
The outsourcing software development company you hire generally will be flexible for all your requirements. The difference in time because of the different time zones will help your business get the benefit of round-the-clock business operations. If you need to scale up or down your development, that is also possible at any time.
What to keep in mind when hiring offshore software developers? How to outsource software development?
The usual, the usual!
[1] Make sure you know what you want. Get an overall idea of all your software requirements and document them.
[2] Make a list of the potential software outsourcing companies - Conduct a quick search on Google or take a look at the directory sites like Clutch or Goodfirms. Take a look at why India is the leading software outsourcing hub?
[3] Do your due diligence and lastly, ask them for their past experiences and references.
Offshore software outsourcing works when done right! Take a look at the complete process of hiring a software development outsourcing company.
Software outsourcing - Teams vs Freelancers
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Team
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VS
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Freelancer
Hire a developer or a team of developers who can manage projects end-to-end. If you have basic and temporary software development requirements, it makes sense to hire a freelancer or one dedicated developer.
But, a large scale software development requires a team of developers, designers, project managers, and testers - A full-fledged software development firm.
The inherent benefit of hiring a software development team is that they can upscale or downscale the people required in successfully completing your project according to the project needs. Being a team member, it would be beneficial for the developer that he can consult with other developers if he stumbles upon anything, Which in turn shortens the time required for solving any problem in the development phase.
Why outsource software development to BinaryFolks?
Due diligence
What differentiates BinaryFolks from other offshore software outsourcing companies is that we do our due diligence before committing to any project and only when we are 100% sure that we have the required technical expertise as well as management skills, we do proceed.
End-to-end management
When you sign up with us, we make sure that we become a part of your team and not just an Offshore software development vendor. Right from requirement gathering to development to testing and then deployment, we partner with you throughout the lifecycle of your project.
Quality
Because we do our due diligence before the start of our project, there is no compromise when it comes to project quality. We are not cheapest but the superior quality that we deliver in a reasonable price is quite unmatched.
Transparency
The approach we follow includes spending a good amount of time to meet outsourcing clients via video or audio and understand the requirements in details. We then put down the complete project flow in a Business Requirement Document.
We break the document into milestones and you only pay for each milestone after it has been successfully delivered to you. This ensures trust and transparency.
Direct communication with the C-level executives
The first meeting is always carried out by a C-level executive. You can always reach out to any of them as their email IDs are provided in the first meeting itself.
IP protection
We have the utmost respect for the client’s IP rights and we execute NDA to protect your interests and trade secrets.
Communication
When outsourcing software development, communication still is the number one challenge. Outsourcing to BinaryFolks means dissolving the language barrier to communication on its own. Our developers and project managers are fluent in English. Some of our staff include professionals who have spent a significant amount of time in the USA and Europe working for the greatest companies like Google, Amazon, and Salesforce.
Software outsourcing services
We can keep bragging about what we can do, but how about we walk the walk instead of talking the talk? Startups and Enterprises globally consider us a reliable software outsourcing company. Software products that we developed helped both enterprise customers and ambitious startups transform their businesses, increase their revenues and at the same time, save time and operating costs. And as far as our historical stats go:
94% OF CLIENTS WHO TRIED OUR SOFTWARE OUTSOURCING SERVICES IN THE FIRST PLACE, MADE US THEIR PERMANENT DEVELOPMENT PARTNER.
According to Deloitte, 78% of businesses all over the world feel positive about their relationship with the software development outsourcing company.
Featured Projects
FAQs
There are times when you are not able to go for inhouse software development tasks due to issues like skills, cost, time, proximity etc., you should search for companies that can do the job for you.
So, now that you have outsourced your software development task to a 3rd party service provider, your in-house team can focus on core competencies like growth, innovation and management.
Read More: The Ultimate Guide to Software Development Outsourcing
Software development outsourcing helps you with:
- Cost reduction
- Access to latest technologies
- Ample time to focus on internal activities
- Better product quality
- Lesser time consumption
Read more: In - House vs Outsourcing - What to Choose?
For example, the software development cost in the USA is much higher than what India based software development companies charge. It’s not always possible for smaller companies to afford such a huge price for their software development task, but they have a pool of options to choose from.
Software development outsourcing cost in Asia, Africa, Eastern Europe, Latin America is much lesser, so if you are low on budget then you can hire a company from these regions to save money.
Also read: How Much Does it Cost to Make an App?
There are times when inhouse software development can be time consuming and expensive as well. Also, every business might not have a team of developers skilled with latest technologies.
Hiring an experienced software development outsourcing company will help businesses reduce overall cost incurred in software development, achieve quality product and improve user experience.
Read More: 7 Software Outsourcing Success Stories from Biggies
The next step is to search for a software development outsourcing company that can help you with the software development task. You can also ask for referral from someone you know. This will help you get an idea of what the company is all about, their charges, their expertise, their communication skills etc.
Once you are done with the search, you can discuss your requirements with them to start your dream project. This will help both the parties get an overall flow of what the software should behave and look like.
After the development is done, go for rigorous testing to report bugs and issues at the initial stage. Don’t leave the testing for the last day. Once the application is tested thoroughly then only move forward with the deployment part.
Read More: How to Successfully Outsource Software Development?
- Controlled cost: Outsourcing has helped businesses and enterprises lower their overall budget making it cost effective
- Improved efficiency: Choosing a software development outsourcing company that is specialized in their field will undoubtedly provide a quality product that can help your business increase productivity and efficiency.
- Increased focus on core business: Since you hire a third party for the software development task, your team can focus on strategies and development for better growth and reach of the company.
- Switch to latest technologies: Since you handed the project to skilled developers, they leverage the latest and best-fitting technology for your application and deliver quality products.
Read More: Why Outsource Software Development? 8 Reasons it Works!
For example, someone staying in the USA hiring India based software development outsourcing company.
Read More: List of Offshore Software Development Rates for IT Outsourcing