Outsourcing is cost-efficient and saves a lot of time; the two most fundamental resources of any business or organization for a successful establishment. The decision to outsource or hire an in-house team depends on the nature of the project and the financial resources of the organization. The effectiveness of the choice doesn’t depend on just one factor. In fact, the results may change the second time depending on the investment and the resources spent on software development. All that matters is the software development strategy.
The success of the project is not inherently dependent on either of these methods. It depends on various factors and metrics. It just boils down to the advantages one has over another. But it’s like comparing apples and oranges- all subjective!
Inhouse vs Outsourcing – Advantages:
|Spend on infrastructure||No spending on infrastructure|
|Talent acquisition and maintenance||Relatively less leg-work|
|Confined skillsets||Diverse skillsets|
|Relatively longer process||Can work on confined setup|
|Great outcome if maintained appropriately||With the right collaboration, a great product is inevitable.|
As we said earlier, this is a personal preference but for most startups and organizations, outsourcing seems to be preferable. Nearly 78% of the businesses across the globe are “pro-outsourcing”.
If you are in the starting stages of a business, outsourcing is your best bet to get a head-start on your competitors. The initial focus has to be on the idea and vision of the product and fine-tuning it. The problem is that outsourcing has a lot of myths around it. B2B sectors are at an all-time high. The scope for the service sector is also expanding at a fast pace.
So what matters is the strategy. if you have a solid work plan for your venture, everything else will fall in its place. Software strategy also helps you decide if you want to hire an in-house team or go for outsourcing. If your product/service is primarily in the digital space and the majority of your daily operations depend on regular software maintenance and updates, it is better to hire an in-house team or outsourcing is your best option.
The process looks something like this,
- Design & architecture
A Roadmap to Outsourcing: Avoiding the major pitfalls for a better Experience!
Do not go in with half a strategy!
This may seem obvious, but most of the clients tend to be half-prepared yet jump into the action only to be overwhelmed by the process. Envisioning an idea is tough, but it is even tougher to lay the groundwork for the implementation of that idea. Your software development strategy must be airtight and aligned with the vision of your organization. any contrast here may lead to poor brand experience which affects customer retainment.
Introspect! That is the only way to manoeuvre through this. Think from the customer perspective and chart out a solution accordingly. Defining what an end-user should expect from your application/software can give you some valuable insights into the process.
Do not be too flexible on your budget!
Being too flexible will only break you, eventually. The thing is, it is really hard to work through software development with a highly rigid financial plan. The plan needs to be realistic, and most importantly, the budget for your project affects the quality of the outcome. Moreover, complex software requires specialized skills, so the budget needs to accommodate these costs.
Create a stop-loss system! Once you set this threshold, do not cross it. to set up a realistic stop-loss system, you have to collaborate with industry experts who have an idea about the needs and wants of your project.
Not following through with the project!
No one likes a client who follows us like a shadow, but do it in moderation! Outsourcing a project has its advantages, but they are not magicians who are going to pull a pigeon out of thin air. Follow through with the progress and ensure that their timeline for your project and your deadline for the project coincides. Most of the Software development companies follow a strict reporting schedule, so it wouldn’t be a tough task but you should ensure that you follow through with the progress.
Divide the entire project into important fragments. Follow through with your project at the beginning and the end of each fragment. This should give you a fair idea of how your project will turn out and there is also a space for corrections or alterations.
Poor communication channel
Slacking in communication is a big NO while outsourcing for software development. In recent times, software development has become a crucial part across industries and domains. Developers will only focus on the construction part. They construct based on the plan that you have provided. There may be few minor changes along the way but a major portion depends upon your vision. You must communicate your vision to the developers and designers. If you are outsourcing and they are not big listeners, you may have to reconsider the criteria!
Focus on effective communication. You and developers don’t have to be the best buds but if you all stay on the same page, the development process will be smoother and the result will be more desirable.
Poor market research
It is important to understand the market size of the B2B sector at the present. B2B sectors are evolving at a rapid pace. Most importantly, IT outsourcing and software development companies are growing more than many other industries. This has increased the competition in the market and if you are planning to opt for outsourcing for your software development, then you should be aware of this competition. This competition is healthy which improves the client’s awareness about the operation and process.
Take your own time and do not be shy to explore new options. Instead of focusing on the branding part of the company, try to understand more about the quality of the services they provide. Evaluate the customer support and focus on ROI. Choose what works for you!
These are some of the major mistakes to avoid while outsourcing. There are no ready-made rules for selecting an outsourcing partner. The expansion of the B2B sector has helped to reduce the high costs for development and has regulated the market more than ever. this opens up a lot of opportunities for many IT consulting companies to provide quality and affordable solutions for aspiring businesses. Technology is all about change and collaboration can further enhance this process.