How To Outsource Software Development:
A step-by-step guide for getting the right team for your projects

You have to develop a new digital solution or update and extend an existing one (software, mobile app, etc.). Outsourcing or in-house? Which suits your interests best?

This article aims to guide you step-by-step for understanding how to outsource your projects’ development at the right time with the right team.

 

#1 How do you know you need to outsource your project?

The following situations describe the most common contexts when outsourcing is needed:

• the new (social and economic) context generates an unpredictable market dynamic. This dynamic directly influences your business evolution by:
  • forcing your company to operate in new ways;
  • determining you to re-prioritize your business with a digital focus;
  • generating urgency in developing a rapid response to the current disruptions;
  • managing the transition to new work models (work from home, hiring external teams, etc.).
• the competition became tougher – If you are working for a software development company, you are aware that every project counts. While all your competitors will try to attract new projects through persuasive arguments like costs and extended capabilities, you have to adapt fast to the clients’ specific needs and expectations and be ready to offer them a complete and competitive package of services.
• you need to rely on long-term profit – maintaining a good relationship with clients can guarantee you a long-term profit as long as you are able to respond fast to their contextual needs with a smart price-quality ratio.

 

#2 When is the right moment to outsource?

The need to outsource usually comes in two main situations: when a project development seems to be overwhelming or out of your knowledge field.

Here are 3 examples of key-challenges that led to outsourcing:

#1 Legacy code/Outdated solution: VMS 365

At the moment we’ve started working on this project, the client was involved in a rebranding process and was looking for software development services at high standards.

The previous provider’s lack of responsiveness in adapting the existing solution to the new requirements determined nGage to search for a new company to work with. See how we responded to our client’s challenges.

#2 Outdated and unflexible desktop solution – WHISE

The client needed to upgrade the application and have it built mobile-first in order to be able to access other markets outside of Belgium, particularly in Romania. At the same time, they needed to seamlessly migrate approximately 600 Belgian real estate companies in their existing user database into the new application. Read the full case study.

#3 Disparate data sources – Tourpaq

Tourpaq needed an up-to-date Tour Operator Management System that would enable the users to manage everything that has to do with their activity from a single dashboard. See the project.

 

#3 Preliminary steps until starting to look for an outsourcing company:

 

#4 Software development outsourcing models – which one is right for you?

Dedicated team

• the client-company pays a monthly salary to the hired specialists plus administrative costs;
• the model is suitable for long-term projects and complex project where the company needs additional expertise;
• the client has full control over the development process.

Time and material

• the company pays exclusively for the development time invested;
• the model can be used for completing the resources that are missing from a project;
• the model is suitable for less complex projects with predefined requirements.

Fixed-price

• suitable for small projects that allow accurate estimations (for costs, time, resources used, etc.)
• great control over the delivery time – the projects are delivered on a pre-agreed timeframe
• this model is useful for testing the impact of new products on specific audiences (software, apps, etc.)

 

#5 How to set up your outsourcing strategy?

 

#6 How and from where you should choose the right outsourcing company

There are some reliable sources from where you can pick potential development providers for your project. (preferable to find the same recommended providers in as many trustworthy places as possible)

• outsourcing companies recommended by your industry colleagues;
• dedicated platforms (GoodFirms, Clutch, The Manifest, etc.);
• valuable tech content (from blogs, news websites, etc.);
• professional networking platforms (e.g., LinkedIn)
• tech events (e.g., GITEX, MWC, etc.).

 

#7 Things you must consider while comparing offers from different outsourcing companies

• 10+ y of experience on the IT market – a guarantee that experienced teams will take over your project;
• various projects in the company’s portfolio – illustrative both for dedicated teams and for your industry;
• large and stable number of employees – the more employees a company has, the easier will be for it to provide you the team you need;
• team roles provided by the company – an extra-guarantee that you can count on a complete team for developing your project;
• disruption-free recruitment projects – recruitments processes based on modern and efficient technologies.

 

#8 How to manage an outsourced development team?

Once you agree to work with an outsourced team, you will be briefed on the Agile methodology it uses across the development process.

Is the team using a Kanban approach?

Kanban is suitable, especially for ongoing processes and projects. If you intend to hire a dedicated development team and your project relies on dynamic objectives, the Kanban system will be the right choice.

Is the team using a Scrum approach?

If you are about to develop a complex project with an external team, Scrum will be the right choice for you, being highly predictive (you’ll have great control over every project’s stages, deadlines, and deliverables).

Is it counting on a hybrid methodology (Scrumban)?

Scrumban uses the predictive nature of Scrum together with the improvements approach from Kanban.

The benefits brought by this hybrid system in a nutshell:

• high quality;
• high responsiveness rate to dynamic needs/objectives;
• high predictability and control over the deadlines and deliverables;
• continuous improvement;
• redundant tasks are eliminated;
• added values to the processes.

 

#9 The process of software development using dedicated teams

 

#10 What an outsourcing contract should include?

An outsourcing contract should include the following details:

• Services description;
• Agreement scope;
• Project time and cost;
• Parties obligations;
• Representation and warranties;
• Confidentiality agreements;
• Intellectual property rights.

 

#11 What happens with the project after it’s delivered?

It’s recommended to keep the outsourcing team close to the project for maintenance, optimizations, and extensions.

 

#12 Why choose Roweb for outsourcing