A reminder of the evergreen perks of outsourcing software development

Software development outsourcing is no longer a novelty among boutique startups that are unafraid to take a more unconventional step, and work with a company halfway across the world for building their web or mobile application. Now software development outsourcing is a norm that even the biggest, most established organisations have embraced – including those that have been reserved about the idea of distributed work environments for the longest time.

The reasons behind this shift are pretty clear; the normalisation of distributed, virtual work environments and the ability to access the best talent without geographical boundaries being a constraint, make software outsourcing ultimately worthwhile. Irrespective of business model, business size or industry, your organisation can get onboard at any stage of the software development life cycle – and with minimal commitment if needed, that too.

As the business landscape continues to run at a fast pace, companies need to go above and beyond to stay relevant – else lose out to their competition. Whether it’s embracing customer centricity or a digital transformation with technologies such as AI, companies need to be cognizant of how to deliver the best in quality to their customers. Anything less and customer retention starts to suffer, as markets now deal with high saturation and customers can easily move on to the next option.

Partnering with a reliable software outsourcing agency can therefore help your business not only build equally reliable applications, but can also serve as the cornerstone for maintaining it as part of a DevOps (or even DevSecOps, if one wishes to take it further) workflow. From applying customer feedback to optimising applications for SEO, the right software outsourcing agency can serve to be a trustworthy partner for the long term.

Which is why, in this article, we reiterate the perks of software development outsourcing, how to choose the right agency (if you don’t have one) and collaborate effectively to make sure your software development efforts turn out to be a success. Before that, we’ll also elaborate on the different methods and models of software outsourcing, so you are familiar with what to expect, as well as which of these methods/models may be relevant for your business’s unique needs.

Interested in exploring software development outsourcing for your business? As one of the top software companies in Sri Lanka, EFutures can deliver on your business’s bespoke needs, thanks to a wide pool of dynamic and high quality talent. To know how we can help your business with its software development requirements, contact us today for an assessment!

What are the different ways to outsource software development?

Software outsourcing types can be broken down based on proximity and model. Here, we briefly elaborate on each.

Software outsourcing by proximity

Software offshoring: this refers to software outsourcing that is done at a geographically distant location, usually halfway across the world and in a different continent.
Software nearshoring: refers to outsourcing operations that are delegated to a company in a neighbouring province, or even a neighbouring country within the region your business operates in.

Software outsourcing by model

Project based: this is typically the most common software outsourcing model, where a development team is hired to serve a client’s project. However, it is important to keep in mind that team members hired for one project aren’t confined to that one project alone; they may be shared resources across other clients’ projects too.
Time and materials based: resources are dedicated towards a project based on the hour, or based on other infrastructure such as storage or compute.
Dedicated team: while following the same concept as that of a project based model, dedicated teams, as their name suggests, is exclusive to the client requiring it.
Staff augmentation: this may include the addition of subject matter experts to an existing software development team, to either scale up operations or fix a lingering issue that current team members are struggling to fix.

Ultimately, how far your software outsourcing partner is, or what model you choose isn’t as important as what goals need to be fulfilled for your business via quality software, as well as the budget you have at hand. For example, relying on a remote project based model with some staff augmentation may be the best course for the individual needs of your business, while another may find ad hoc, in-person meetings with a nearshoring provider more viable, whenever they need some reinforcement for their existing in-house team.

What are the perks of outsourcing software development?

Saving significantly on costs – without compromising on quality

Cost savings has long since been the biggest adoption factor for software outsourcing, without a doubt. So much so, that even B2B enterprise software companies rely on outsourcing providers halfway across the world to build, manage and fix all or some working parts of their digital infrastructure.

Software outsourcing helps with cost reduction in multiple ways. An immediate contributing factor is not having to account for physical office space, equipment and the administrative cost that’s associated with sourcing, screening and onboarding candidates. For a fee, your software outsourcing partner shall do all of this for you, while being responsible for all administrative tasks that come with managing a workforce.

The other avenue for cost reduction through software outsourcing has to do with favourable currency exchange rates across the region where your outsourcing partner is located. While overall manpower costs remain far more affordable than hiring the same calibre of resources from your home country, the same quality can be retained, thereby providing holistic value.

The ability to access a wide pool of talent – no matter how niche

Software outsourcing has become all the more versatile than before, going beyond simply offering a software development team to their clientele. Many leading software outsourcing companies are now hubs for finding highly skilled talent, even going as far as providing subject matter experts for non-IT roles, such as SEO and marketing.

As a result, talent pools across top software outsourcing companies now comprise experts for fields such as cyber security, AI and blockchain. In turn, this now makes software outsourcing companies the first source that many organisations consult for hiring exceptional talent.

The ability to integrate a variety of other important services, such as cyber security

Software outsourcing companies aren’t reserved for software and application development alone, anymore; they are now powerhouses that serve a variety of digital needs. Software outsourcing companies now also accommodate client requirements pertaining to cybersecurity and AI, so their clients have a sole partner to consult for all their digital transformation needs.

While AI and machine learning are two technologies that can be implemented via existing developer talent in software outsourcing companies, cyber security is certainly more advanced. As a result, not all software outsourcing companies may have the resources to directly undertake cyber security. However, they consult cyber security vendors on behalf of their clientele, and continue to be the first point of contact thanks to a long-standing partnership.

How to choose the right software outsourcing partner for your business - and collaborate effectively to succeed

Assess what your business needs first

Irrespective of whether or not you partner with a software outsourcing company, it is always imperative to assess what your business aims to achieve via the application that it endeavours to build. From building memorable customer experiences to improving revenue, many factors shall come into play, as well as any existing challenges that are being faced with your team.

Have your team discuss these challenges, share their feedback and use this assessment as a guiding compass for either selecting the right provider, or briefing your existing one of your new set of expectations.

Start small

Starting with a preliminary version, or a Minimum Viable Product (MVP) is always advisable, especially for brand new projects, or a new feature in an existing project. This can significantly reduce pressure on the part of your development team, and only channel time, money and effort towards the bare necessities – while additional features are only committed to based on actual and actionable user feedback.

Establish communication streams and other principles from the get-go

To ensure everyone is on the same page, establish how teams can communicate in order to make concerns heard, and deliver on deadlines. With your software outsourcing arrangement most likely being a remote and distributed work environment, having clear lines of communication becomes extra important, by way of chat/IM tools, and real-time task management solutions.

Nip any problems in the bud

Whether it’s a code smell or misunderstood expectations, project managers or other senior team members need to be observant of impending problems, and resolve them before they have the chance to compound into something more complicated. While this isn’t a rule that is exclusive to software development, it is wise to always have it top of mind.

Measure and evaluate – constantly

As the saying goes, ‘if you cannot measure, you cannot improve’. Likewise, have the right metrics and analytics tools in place to monitor KPIs pertaining to your software development project, including team member productivity. This can also help spot impending problems early on, so that team members can rectify issues to prevent costly problems in the future.

In conclusion…

Software development outsourcing is more than simply delegating software and application development over to a third-party agency, to save on the costs associated with hiring an in-house team. Now, software outsourcing companies are top sources for all things pertaining to digital transformation – from cyber security, to AI.

Whether you are looking to partner with a software outsourcing agency or are already in partnership with one, assessing business needs, establishing the right expectations, and constantly monitoring performance and other metrics is essential for maintaining a software development life cycle that is productive yet cost-efficient at the same time.

FAQs

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Q1: What is the difference between software outsourcing and software offshoring?

A: Software outsourcing refers to externally delegating software development operations anywhere, regardless of location. Software offshoring, on the other hand, refers to software development that is done in a far off location, usually across a different continent. In short, the difference between software outsourcing and offshoring lies in the variable of proximity.

Alternatively, software nearshoring is another term that has also gained much popularity. This refers to software outsourcing companies that are located in neighbouring countries. Many organisations are opting for nearshoring services if they prefer in-person meetings, as visiting an agency or having them come over for a visit instead becomes easier than conventional offshoring.

Q2: Do software companies in Sri Lanka also undertake allied services such as cyber security and cloud management?

A: Yes, leading software development outsourcing companies in Sri Lanka also undertake allied services such as cyber security, cloud management and even AI model training, thanks to a wide pool of dynamic and highly experienced talent that is already available.

With software development and these allied services being closely interconnected, both agencies and businesses have the advantage of continuing collaboration with one another, in the interest of maintaining good cohesion between all the different working parts of the application.

Q3: Can multiple software outsourcing companies be used for software development?

A: Yes, it is totally okay to partner with multiple software outsourcing agencies, as long as your business teams find this to be a viable approach to building quality and cost-effective software. For example, partnering with two agencies, one each for core software development and the other for AI bot training, and having them collaborate to integrate both parts may be a better option if your first agency lacks the skills to deliver AI-based services.

Likewise, any combination of factors can contribute towards the decision of partnering with multiple software outsourcing companies. It is advisable to assess what your needs are, what your current software outsourcing partner can offer, and where their gaps lie. This can help your team decide which new agency can be further partnered with, so your business has the right balance of skills and expectations in order to meet objectives.

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