Author Name: Mr. Harikrishna Kundariya
Biography:- Harikrishna Kundariya, a marketer, developer, IoT, Cloud & AWS savvy, co-founder, and Director of eSparkBiz Technologies. His 14+ years of experience enables him to provide digital solutions to new start-ups based on IoT and SaaS applications.
Hiring an external company to manage and strategize a business’s software development is a wise choice. Rather than developing in-house, when projects related to software development are delegated to an external vendor, it helps save time and improves the productivity of a business. Nowadays, most emerging and established software firms select this option and invoke strategic advantage. In the following article, you can learn about outsourcing and how it benefits businesses globally.
Software Development: The Concept
Going by the nomenclature, software development is quite literal in meaning and connotation. The main objective is to create reliable, effective, and user-friendly applications that help in the sales and growth of the business. Be it a start-up or a small and medium enterprise, there are quite a few applications that need to be developed.
- Every business needs full-stack development. In this approach, a software company develops the entire application, from front to back, for smooth operation and transaction.
- Other crucial and primary tasks are the design and development of company websites. Often, users equate a company website to its brand value, so it becomes important that it should be informative, engaging, and visually attractive.
- Every business needs a fully functional mobile app for shopping and transactions. Software development agencies have expertise in developing mobile applications for Android and iOS platforms.
- Outsourcing companies specialize in customizing software application requirements according to business specifics, not only generic formats.
- Companies that develop software also manage their maintenance, bug-fixing activities, and regular upgrades.
Advantages of Outsourcing Software Development
It may not be feasible for all businesses to deploy an in-house software development team. However, the goal is to create an online presence and digitize the brand. Hence, delegating the job to an external third-party company can be the wisest option. There are definite advantages to outsourcing software development. Some of them are listed here for complete understanding.
- Special Expertise
While outsourcing a project, businesses best use sector-specific talent pool domain experts. They also get the chance to communicate and connect with resources who have immense technical and industry-specific knowledge.
- Quick Development Turn-Around-Time (TAT)
Delegating a job to an external specialized team reduces the TAT of software development. A team of developers whose primary skill set is to design and develop software works super-fast yet effectively and delivers an application quickly.
- Cost Effective
Outsourcing software development work to a trained and specialized talent pool can be a cost-saving option for most software businesses. Onboarding and retaining an in-house team can increase a company’s operational expenditures manifold.
- Enhancement of Productivity
Outsourcing software development can help the internal team concentrate more on their core businesses. Conventionally, product development, research, sales, marketing, and revenue augmentation need the focus of all companies. Thus, outsourcing enhances the quality of a company’s deliverables and creates a strategic advantage for improved growth.
- Skill Development
When outsourcing is invoked, a company’s internal resources devote time to focusing on the main business and enhancing its core skills. The internal teams also get a chance to scale up their development and professional competencies.
- Upgrade in Software Quality
Reputable third-party software development companies often adhere to detailed quality check compliances, thereby strengthening the quality of software programs.
- Fast and Flexible for Changes
Outsourcing companies are flexible and very quick in responding to changes needed in software application programs.
- Reduced Risk
Third-party vendors can significantly reduce the risks involved with recruiting and maintaining large in-house development teams. They can also significantly reduce the risks related to technical faults and project deferments.
Steps of Outsourcing Software Development
Delegating and outsourcing a software development job is a step-by-step process. Here are the detailed steps that may be involved.
- Drafting Project Scope
A business should draft a detailed project scope for clarity and understanding. A scope document comprises questions and clarifications about the company’s nature, goals, budget, and deliverables. Clarity in these areas helps create the foundation for the best software project.
- Getting Clear Insights of the Business
A software development company that gets the delegated work connects with the business to understand its products, services, values, marketing principles, and sales growth. They try to gain a clear insight into the technology usage and all web applications accessed by the business.
- Budgeting
Businesses have a specific budget allotted for outsourced software development. Third-party vendors are finalized based on the budget and their expertise regarding the nature of the work.
- Planning the Nature of Outsourcing
When deciding on an outsourcing partner, each potential third-party location can be crucial as it can impact the efficiency, price, and communication TAT. Businesses usually choose between onshore, offshore, and nearshore outsourcing options.
Relationship-based outsourcing is available in three forms: staff augmentation, project-based, and managed teams. Companies should choose the best model that fits their business needs, budget, and long-term deliverables.
Choosing the Right Company for Outsourcing
Some criteria need to be considered when finalizing a third-party vendor. They are as follows.
- Checking the size of the company is a crucial factor. It decides the nature of the project that the vendor handles and the quality of its in-house team.
- Understanding business longevity is also a key point. Software development companies must have been in the domain for a minimum of 5 years and should have handled diverse projects.
- In-depth technological knowledge, nature of business, product development, and software development life cycle processes are also analyzed.
- Previously delivered projects are also crucial parameters. Companies that plan to outsource should look at the websites developed and the completed freelance portals by the third party.
- Checking and understanding their DevOps Maturity is also considered. It is crucial to know their experience in Continuous Integration/Continuous Delivery (CI/CD) pipelines.
The Bottom Line
Outsourcing software development tasks to a third-party company is a wise and strategic move for businesses. Professional experts with enough domain and industry-specific knowledge develop outsourced software applications. Thus, companies do not have to face the grind of managing internal teams; technical glitches and unforeseen project delivery delays can also be eliminated. If you run a business that needs digitization and software application development, solicit the services of a third-party development agency for the best project execution experience.