Outsourcing helps you save money and get your project delivered on time, especially when you can’t find talented developers. You might ask yourself, well, aren’t there are some risks associated with IT outsourcing? Yes, you are correct, but there are ways to combat them.
Here are the most common concerns regarding outsourcing software development and what you can do to overcome them.
#1: Poor Quality of the Product
One of the biggest fears about outsourcing is that you’ll receive a poor quality product that won’t meet your expectations. This usually happens because a vendor has no prior skills and outsourcing experience.
It’s always good to look into review sites to gather information about a certain vendor. Also, verify the development skills of their team members and the technologies they use, to ensure that they can achieve your goals. Discuss the project thoroughly before starting the cooperation, and if possible, visit their office and validate their compatibility with your project. Do your due diligence!
Set clear goals before signing the contract and stay in touch with the remote team on a weekly or daily basis, to keep the project on track. I recommend asking software houses whether they provide extra services, such as product design. This additional service will provide support in building a functional, digital product that fits real customer needs.
#2: Cultural Differences
Even small cultural differences can cause gaps in understanding the project. It’s natural to want responses as quickly as possible to issues when they arise, but time-zones and language barriers can cause problems to communication.
This is where so-called nearshoring may be the best solution. Outsource to neighbouring countries where time difference wouldn’t be a problem. For instance, if you run a business in Europe, you can outsource to Poland (ranked 3rd in the world for quality developers).
#3: Losing Control Over the Project
Before you start working with an outsourcing team, set communication standards and reporting methods. It’s good to have a delivery manager on board. They will be responsible for delivering the project using Agile methods and prioritizing the work that needs to be done. Their role is to maintain strong client relationships, keep the team on the right track, and integrate various efforts to meet the business requirements.
What also can help is using project management tools, such as Asana, Jira, Redmine, etc. to track the progress and maximize efficiency.
#4: Hidden or Extra Costs
It’s not surprising that you are afraid to overpay. The final price depends on many factors, so think thoroughly before you sign the contract and choose the right pricing model.
You can choose between the Time and Materials (T&M) or Fixed Price billing models. T&M gives you more control over the project and provides flexibility to make changes during the process, so you pay for the visible effects. The Fixed price model is better for smaller projects, when it’s easier to predict the scope of work and budget, however it might compromise quality.
What about the unproductive time during working hours — how can you be sure that the remote team doesn’t waste time? Creating a project specification helps evaluate the time needed to get the project delivered without any hidden costs and unexpected surprises on the way.
#5: Data Security Risk
Bad outsourcing decisions can cause major data breaches and, according to Opus & Ponemon Institute, 59% of companies experienced data breach linked to their third-party vendors. This is why finding a reliable partner is so important, especially for public institutions, banks, or big data companies.
Make sure that the vendor you want to work with has strong security procedures in place. Ask for a proven track record of previous projects, their references and experience in similar projects. It’s also good to sign a non-disclosure agreement to protect your know-how and digital assets.
Wrapping Up
Finding a reliable service provider doesn’t have to be difficult when you follow the things mentioned in this article. Do proper research, weigh all the pros and cons, and choose well to improve your time to market.
Believe us, when done properly, outsourcing may come with reduced costs and having your projects delivered on time without this “fear factor”.
Daniel Terek
Business Development Manager
Daniel Terek is an Account & New Business Manager at Scalo. He supports companies’ grow their business by understanding their problems, and connecting them to the right engineers for their project. He is here to support your development.
