Home Making your Software Development Outsourcing Strategy a Success

Making your Software Development Outsourcing Strategy a Success

If your business belongs to the tech industry, then one of the most effective ways of doing business is to outsource your software development needs. Small business owners and entrepreneurs often look for creative ways so that they can accomplish their business goals without spending huge chunks of money.

Large businesses are grabbing this situation as an opportunity by providing them with the best possible solutions. That said, software development outsourcing is increasingly becoming one of the most common practices of all times.

If you are a software development company, you can choose to enhance your business rapidly by taking up outsourced projects.

It has become significant for businesses to optimize their operational efficiency, bring new products and services to the market, and enhance their customer service. When businesses will focus on such areas, they will have a minimal time left to look after the software development department.

Software development experts come to the rescue for such needs of enterprises, and they need to look for the right team. An experienced team of software developers will assure quality services by working on the quality of the product.

Additionally, they will also work on enhancing the UX of the product developed, along with concentrating on the objectives and goals of the business. Outsourcing partners help business enterprises overcome several challenges that they face in the normal course of operations.

Reduction in Operating Costs

Software development outsourcing enables a reduction in operating costs, leveraging external skills, scaling up operations, easy access to a pool of talents, etc. Moreover, it provides smooth scaling of business operations so that a small business owner can concentrate on other aspects that require more attention.

Even tech giants owe their success to their strategy of outsourcing software development. A few examples include Slack, Whatsapp, Google, and many more. This concept has picked up great momentum in recent years and is expected to rise more since several companies are undertaking it as an opportunity. There are a plethora of reasons why companies are outsourcing their software development needs more and more.

Outsourcing mitigates many risks involved in the operations of their business, and also they easily find make-up for the skills their in-house members lack. Outsourcing companies care for quality in the products and they ensure on-time delivery.

There are a few things that you should be transparent about so that businesses are also aware of the critical details. I have covered a few key tips that will enable success for your software development outsourcing strategy. Find them below and employ them to obtain benefits beyond expectations.

Here are 10 top tips to consider software development outsourcing to make a success.

1. Decide your Budget

When you are planning to outsource your project, budget is the key factor that requires consideration. It is after deciding your budget, that you can pick a company to outsource your software development project. Based on your budget, you will determine which development agency would suit your preferences best.

However, development agencies differ from the perspective of how they charge their client. Some charge based on the hour, while some charge based on the efforts and project complexity. Defining your budget is crucial so that you can pick a company to outsource your development needs.

We have discerned that several people make the wrong decision by choosing a company offering services at cheap costs for financial reasons. They realize it afterward that it was the wrong choice. Don’t make the same mistake. An economical solution is not that you pick a low-quality company due to the high costs of others.

Rather, look for a company that offers a great level of quality and you get what you pay for. Although the price is a crucial factor, it is not the only factor in decision making. You will have to come up with a choice so that the right balance between quality and cost is found.

2. Define Objectives and Goals

There are plenty of software development companies that work on outsourced projects, and there is no denying the fact that not everyone can work on your project. Most importantly, you should know first what you are looking for or what are your desires. After defining the goals, it becomes effortless for you to decide, which company will be able to handle your project, and will work according to your requirements. You can rapidly shortlist a few choices to go with.

Additionally, you can also clearly communicate your goals to the outsourcing company so that they can handily work on your project. By stating your goals, you stay rest assured that the company will work to meet your goals.

When you communicate expectations, it eases the entire situation for a company, and they act accordingly. Moreover, if you are unclear of the objective, it may end up being total havoc. You can make the wrong choice in selecting a company.

3. Research on the software development outsourcing company

All companies are different, they differ on a lot of perspectives. Hence, it is crucial to do thorough research on a company before finalising them. Just as different people are robust in varied skills, different software development companies may also have a good grab on distinct aspects.

A company may excel in one area by having a strong forte, whereas it may not have a decent grab on some other aspect. A company doesn’t need to excel in all areas. After shortlisting a few picks, it is significant to know about the area of expertise of the companies so that you don’t end up making a wrong decision.

Know more about a company by checking a few parameters that include Past Projects of a Company, Track Record, Client Testimonials and Mix, Profile of the Team of Developers, etc. By checking these things, you will have an idea of the company you are planning to work with.

Once you know that the outsourcing company is competent, then only decide on to hand them your project. Checking reviews is critical, then only that you will know about the past experiences of other people with the company. Go with a company that has a high-reliability score.

4. Ensure Availability of Quality Assurance

The process of Software Development Outsourcing is not easy. You need to come up with a choice that assures quality above all. A good development company has strong testing and QA support and follows all the protocols to make sure that development motives are met.

Testing is a crucial part of software development. It ensures that whatever developed is completely error-free. It is a mandatory part of the process of code-writing.

Several companies while outsourcing their software development needs, sideline QA, since they pay more attention to financial convenience. If codes are not QAed properly, they may have errors. Hence, it is significant to go with a company that has quality testing procedures in place and is consistent in checking performance issues and other bugs.

5. Documentation is the Key

A professional company will always have everything documented and they will never undertake a project without proper documentation. Hence, it is significant for you as well to never get started without proper documents. It often happens that the procedure of software development is lost midway when it doesn’t have adequate documentation in place.

Focus and ambition of a project are also lost, as a result. Technical processes like software development require clear guidelines concerning how and what you want to achieve.

Verbal communication gets lost and often skips through the mind, but proper paperwork will not go anywhere. The entire process will get streamlined with documentation.

6. Set Realistic Milestones

Businesses often make a mistake with setting milestones. They either don’t set one at all, or they have unrealistic ones that go beyond expectations. Lack of a milestone makes it hard to track what is accomplished.

In the same way, when you have unrealistic expectations, they are most likely to get miss. It causes stress for you and the development team as well. Hence, it is critical to set milestones after considering the limitations and challenges.

Choose a team that sets realistic milestones that are achieved comfortably. If a company agrees to provide over ambitious deadlines, they will more likely put you in trouble. Look for a company that has realistic milestones, and furnishes you with them, even if it is at the cost of losing business.

7. Reliability Concerns? Consider starting with a small project

If you have not outsourced any of your software development projects before, and are not able to trust a company with their work, you can choose to first outsource a small project to them. Pay close attention to their workflow.

As you carefully watch the workflow — you will know how they treat a project, and what is the procedure they follow. You will stay rest assured that if you handover a major project to them, they will not give you headaches.

You can handily detect if a company is worth outsourcing your project or not. By outsourcing a small project, you can feasibly decide, whether or not you can entrust them with a considerable project. This would lay down a path to a successful software development outsourcing.

8. Overcome Cultural and Language Barriers

Working with a company situated in another country, or offshoring your projects can be challenging. It has a few major concerns of cultural and language hurdles. You should choose to communicate in a mutual language so that while communicating, you don’t have to translate.

It often happens that the meaning gets lost in translation. Plan to select a development company from a country that uses a language you know.

9. Try Considering a Second Opinion

You can consider taking an opinion from your in-house team of developers on the work. Varied developers look at a project from different perspectives. While taking a second opinion, they may suggest ways in which you can improve the project. Development also requires creativity, and because of the creative elements, views of different people are diverse.

You can achieve the same thing in several ways, and a few of them may turn out more efficient and effective than others. No matter what task you are working on, a second opinion about something is not bad. When you consult a project with an experienced developer, you may come to know about a few perspectives that someone may have missed.

10. An Agency that works with Latest Tools

The industry of technology is ever-evolving. New tools keep coming up for the ease of developers. However, some may need training so that the team can work efficiently.

Choose a company that keeps providing frequent trainings to their team so that they are up-to-date with using the latest tools. You can ensure this while researching for a company with which you can work.

Carry out thorough research to find out a company that uses the latest tools and resources.

Go through your service vendor’s past projects to gauge the type of projects they’ve done. Wonder why? Custom software companies who have worked on diverse and multiple projects have a track record of completing the projects on time.

On the other hand, a new and relatively inexperienced software development company will still develop its methodologies. Hence, they might not be well-versed with the challenges that can occur during the software development lifecycle.

For finding the right software development company (weblineindiadotcom), vet the size of your project. Most vendors check the size of the project before pitching for the project.

  • Check different types of software systems

See whether your vendor knows different technologies. Depending on the technologies they know, you can decide with the service vendor to discuss the custom application. Check the type of development they’re in. This is especially needed when you want to build software on a specific technology.

  • Focus on Delivery Time

Partner with a vendor that has a proven track record of delivering projects on time. This will help keep your team members and the service vendor in sync and give your team members ample time to learn using the app. Whenever you partner, decide the time frame for the end of the end process to develop the app.

  • Emphasize upon Good Communication Skills

Choose a team that is adept in communicating as well as coding. Teams having good coding skills but lack communication often create contingencies in updating the status of the project. After all, you want an outsourcing company that shares regular updates with you and initiates discussions.


Outsourcing is one of the most suitable and affordable options to get tasks completed as per requirements. However, it is a strategic decision, and a company must succeed in its software development outsourcing strategy. Due to numerous reasons, several companies are nowadays outsourcing their project requirements to other companies.

No matter which part of the world a business is located, they outsource their projects overseas to get their projects completed at reduced costs. By doing so, they also get the convenience of focusing on other core functions of the business, and at the same time attain better quality work.

Image Credit: cottonbro; pexels

About ReadWrite’s Editorial Process

The ReadWrite Editorial policy involves closely monitoring the tech industry for major developments, new product launches, AI breakthroughs, video game releases and other newsworthy events. Editors assign relevant stories to staff writers or freelance contributors with expertise in each particular topic area. Before publication, articles go through a rigorous round of editing for accuracy, clarity, and to ensure adherence to ReadWrite's style guidelines.

Vikrant Bhalodia
People Ops & Marketing Strategist: Leader with 15+ years of experience

An Avid Writer by nature. Having passion towards technology and with multi-functional experience at WeblineIndia, a leading Software Development Company in USA & India, Vikrant loves sharing insights on optimizing the success and internet visibility of the customers’ businesses.

Get the biggest tech headlines of the day delivered to your inbox

    By signing up, you agree to our Terms and Privacy Policy. Unsubscribe anytime.

    Tech News

    Explore the latest in tech with our Tech News. We cut through the noise for concise, relevant updates, keeping you informed about the rapidly evolving tech landscape with curated content that separates signal from noise.

    In-Depth Tech Stories

    Explore tech impact in In-Depth Stories. Narrative data journalism offers comprehensive analyses, revealing stories behind data. Understand industry trends for a deeper perspective on tech's intricate relationships with society.

    Expert Reviews

    Empower decisions with Expert Reviews, merging industry expertise and insightful analysis. Delve into tech intricacies, get the best deals, and stay ahead with our trustworthy guide to navigating the ever-changing tech market.