The ultimate GUIDE: Outsourcing software development

2020 has probably turned every area of our lives upside down. We have to get used to it, right?

The global economy will change business models because following the COVID-19 crisis, almost a third (28 %) of UK businesses are looking to outsource at least one business sector. The fields of the industry most likely to be outsourced are IT (37 %) and marketing, according to analysis from Opinium and LiveArea (32 %).

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Outsourcing software development is getting better, more precise, and competitive!

This is a sign that entrepreneurs have increased their trust in software providers who deliver great code while taking care of communication and constantly ensuring savings. What is the result of this?

First of all, high competition has developed in the software house industry, which has greatly increased the quality of services offered. Today outsourcing is not that complicated - it is just a few simple steps.

Many entrepreneurs have moved their businesses to the Internet, which is another factor that caused such a huge explosion in the popularity of outsourcing and remote building of development teams. Does all this mean that running a business will become more difficult, less convenient and costs will increase?

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Yes!

But only for those entrepreneurs who will not apply ready-made solutions to their businesses and will remain faithful to the somewhat outdated business models

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Will my business fit in with outsourcing for sure?

Are you a shoemaker who had to move to the Internet due to the current situation? This is fantastic news, a huge number of new customers are waiting for you who have not heard of you before. Use software development outsourcing as leverage and create an application that will allow you to expand your business activity to a completely new level.

Or maybe you are a large financial solution provider to the largest banks in the world and you are looking for cost optimization? This is also great, because delegating even a small project to an external software provider diversifies the risk, creates savings, and allows you to create business leverage. The size of the firm is also irrelevant here, because thanks to the flexibility of outsourcing, you can increase or decrease your external development team. It all happens over the course of a week or two.

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Growing + Saving = Outsourcing

In both cases, hiring in-house developers for business generates high costs that are simply not needed in 2020. Finding and technically validating one developer costs about $ 30,000 (Payscale), in the case of a technological partnership - this cost disappears entirely from you.

In addition, there are the costs of courses, the purchase of computer equipment for the developer or even taking care of space in the office, buying a desk or additional amenities. By trusting an outsourcing company, there are huge opportunities.

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For example:

1. Access to the knowledge of developers, great designers, project managers, and testers. This is a valuable asset!
2. Improving performance - professional organizations also promise a high degree of service efficiency due to the standardization of operations.
3. Full focus on core business activities. Your company does not have to focus on building processes.

Is there any catch in creating a software development project outside of my company?

The custom software development industry is vast, competitive, and thus - it is difficult to make the obvious choice. There are huge players, boutique software houses, and mid-sized companies. This is probably the only catch, you need to know exactly what you need from a given software house and communicate with it regularly to get answers to any doubts and questions.

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List of things that you should pay attention to when choosing a software house:

Does the software house have experience in building software in your industry?

Did the software house respond quickly to your inquiry?

Did you receive relevant information during the first call and did you find out about the whole process of establishing cooperation?

Is the software provider’s website professional, clear, and easy to use?

Did the software house send you relevant information, e-mail, and materials after the initial call?