Lab651’s Ultimate Guide to Software Development Outsourcing

Lab651’s Ultimate Guide to Software Development Outsourcing

As technology improves and innovation develops better solutions to everyday challenges, the need for new and improved software only increases. With that increase in demand for software comes an increase in economic value. 

As a result, it's becoming increasingly vital for companies to use and maintain the latest software to stay competitive and relevant. More and more companies are facing the question of whether or not to develop their software, and if they do, should it be done in-house or with software development outsourcing?

 

This guide will help you understand the benefits and nuances of outsourcing your next software development outsourcing project and teach you some of the best practices you should follow.

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Quick Lesson on Software Development Outsourcing

 

Before we start, let's draw an analogy about outsourcing from an everyday perspective. 

 

Would you hire an in-house construction team to build your house and then keep them on site after it's finished? Of course, the answer is clearly "no," and the reason is simple; the construction team is no longer needed. From a software development outsourcing perspective, many projects are the same, even though they may not appear to be.

 

Like building a house, you may anticipate a future need for repairs, maintenance, and expansion. A real estate development company that builds and maintains multiple properties benefits from having the best construction workers and engineers in-house. It’s their bread and butter and the primary way to make money daily.

 

However, even for the occasional real estate buyer or developer, hiring a contractor as needed is much more cost-effective than having a team in-house. The same is generally true for software development outsourcing. 

 

Furthermore, not all contractors are the same. Their expertise changes depending on the type of land, materials used, and designs intended. For example, some have a proven track record with bricklaying, others with concrete, others with wood, etc. Likewise, with software, each development team is slightly better experienced with different industry standards. 

However, software programming is much more diverse and different than real estate, which limits this analogy. So let's dive in deeper and discuss the criteria and details to consider when developing your next software program.

What is Software Development Outsourcing?

 

Software development outsourcing is creating a software program that does a task. In its most basic form, a program is a calculation tool and, at its most complex, an ecosystem of information transactions working together to produce a system of results. 

 

Software development outsourcing defines hiring and contracting an external company to build and supply a fully functional software program. 

 

When Is Software Development Outsourcing Right for You?

 

If some companies are tech-based and have developers within their ranks, why would they hire an external company when they could do it in-house? Well, there are a plethora of reasons why; including the following: 

 

  • Specialized technical skills are not available in your region
  • The latest technology is not available in your region
  • Your team is at full capacity
  • You can save considerable amounts of time
  • Your current team needs to focus on the quality of other in-house services
  • Specific important details are outside the scope of in-house competence
  • When you have a sporadic need for software development projects 

 

There are many reasons software development outsourcing would be better than hiring an in-house team. However, to know if outsourcing is right for you, it's best first to assess the following:

  • Your team’s needs
  • Skills and abilities of your team
  • Skills available in the local job market
  • Hardware and technology needed
  • Number of management resources required to develop the software in-house

 

In most cases, if the software is not the bread and butter of the company, it would be highly beneficial to hire an external company.

  

In today's software development market, there is an increasing number of suppliers available. In this guide, we will discuss some of the steps you should consider before hiring one of them.

 

First, let’s take a brief look at some of the latest trends in this growing segment to better understand the scope of technologies and the diversity of companies available for you to choose from.

Software Development Outsourcing Trends for 2022

 

Innovative technologies and new opportunities in business go hand in hand. As engineers and scientists find new ways to solve issues, the demand for new solutions increases, pushing the market to change how we do business and, ultimately, how we live and work. 

 

These changes create interesting trends in the software development market, resulting in many new software solutions once thought impossible. As more and more companies begin to adopt newer technologies, the cutting-edge standard of being competitive quickly changes, putting a heavy onus on every company to play catch up with industry leaders to remain viable and relevant in the market. 

 

For many non-tech industries, companies face an ever-increasing need to leverage software development outsourcing to stay ahead. 

 

Here are some trends currently driving the market and will set a precedent for future software development projects, so if you want to stay ahead, it's best to keep an eye on them from now on and stay ahead actively.   

 

Artificial Intelligence

 

Artificial Intelligence (A.I.) has taken the tech industry by storm. Some analyses say that A.I. could be the driving force of the next Industrial revolution. A.I. programs have quickly found their way into every industry, including healthcare, security, finance, automobile, and research. The exponentially greater computing power that comes with A.I. allows companies to leverage massive quantities of data to increase productivity, service capacity, and research analysis. As a result, many industry leaders have added A.I. to their toolkits, and others are set to follow.  

 

Machine Learning 

 

Self-driving cars, self-adjusting systems, sentient A.I., and many other cutting-edge program ideas are based on the concept of machine learning. Machine learning technology can improve without having to be directly recorded. Machine learning programs are already coded to consume feedback and adapt automatically to their environment. The revolutionary power of machine learning programs will change how we, as businesses and individuals interact with technology forever. 

 

Remote Work

 

The economic value and demographic demand for remote work are increasing the demand for software programs that companies can use internally to manage their remote teams. 

 

Some companies are opting to develop their own remote-work management programs, whether for data security reasons or better optimization. With the threat of carbon tax laws and rising energy costs looming, the benefit of at-home remote work in reducing commuting costs is growing, and so are the software demands. 

 

Data Science

 

Today, data has become the fuel of marketing. If you have data, you can effectively sell anything. 

 

However, as the internet of things quickly grows and data sources become more detailed, managing and understanding that data is quickly becoming more challenging. The power of and demand for data science processing is increasing the need for dedicated software to visualize, organize and automate data changes as they happen during live marketing campaigns. 

 

Automated marketing software, content creation, and trend-watching are taking over the market at lightning speeds, sometimes in just a few weeks. We can see this in the stock market trading and cryptocurrency price jumps/drops just at the trend of a hashtag or telegram post. 

 

Cloud-Based Services

 

Dedicated and secure data servers are always upgrading their technology. With that comes massive infrastructure costs as well as incredible competitive advantages. As companies reduce their need for server hardware and instead lease data servers, cloud-based services are quickly becoming normalized. The need to download programs or data to access or use them is becoming a thing of the past.

 

Security and Privacy 

 

As technology becomes more integrated into our daily lives, our vulnerability to online crime and threats increases. 

 

Cybersecurity and personal data collection are among the fastest-growing and most lucrative industries. 

 

Sweeping changes to data laws are passing at the national and international government levels. As a result, companies that once operated across the border are becoming limited in how they can share or use data.

 

These changes are making way for new and improved local options to thrive. An example of this was Instagram and Tik Tok’s reels application. Tons of spin-off applications have quickly been mimicked and implemented worldwide. Those new creators make more money than new creators in once-lucrative geographies like the U.S. and Europe. 

 

Blockchain 

 

Only ten years ago, Bitcoin was associated with the dark web and international crime operations. Today, every second person on the street has their own opinion about crypto and maybe even an investment strategy. Although this finance tech has yet to make its way into mainstream business, it has become a household name. 

 

It's only a matter of time before governments implement and regulate blockchain currencies. So, the looming demand for new fin-tech transaction software is coming in hot, and it's about to make many people very wealthy. 

 

More Everyday E-commerce

 

Just two years ago, we considered shopping online a niche for social media fans. Since the lockdown, having a strong online presence has become significantly more important and challenging.

 

Along with the improved ability to shop online, the use of online platforms to buy food, medicine, collectibles, vacations, and experiences has increased the size of many niche markets. With that new opportunity comes a lot of competition as well. The demand for a better online shopping experience is driving the need for better software and services from businesses around the globe.

Benefits of Software Development Outsourcing

 

There are many benefits to software development outsourcing. The benefits vary from project to project, but there is a general scope of advantages that come with outsourcing. 

 

Other nuanced benefits are project and company-specific. This section will dive deep into these advantages so that you can leverage them in your next software development outsourcing project. 

 

General Benefits

 

When hiring an external team to develop your software program, you can profit from these benefits. 

 

  • Cost-to-value optimization
  • Reduction in office space  
  • Scalability: i.e., not limited to current office space
  • Cash flow optimization
  • Focused project management
  • Improved program quality 
  • Time-saving, including hiring the team in a hot employment market
  • Better ability to upgrade current code and functionality
  • Better perspective on the final product
  • Access to higher levels of expertise 
  • Better problem solving
  • Access to better technology

 

Depending on the size of your company, there will be additional benefits of software development outsourcing. For example, some small companies will be able to undertake large projects, while other large companies can execute small projects without having to micromanage them unnecessarily.

 

Benefits of Software Development Outsourcing Based on a Company’s Size

 

Here are some specific software development outsourcing benefits based on the company's relative size. 

 

Small Companies

 

  • Access to resources outside their purchasing ability
  • Better risk management
  • On-demand access to prohibitively costly I.T. hardware

 

Medium Companies

 

  • Flexible team needs
  • Ability to manage changing demand for talent 
  • Ability to take on projects needed to grow without overworking in-house teams
  • Ability to address market trends faster
  • Ability to build software infrastructure without the unaffordable in-house hardware cost required to code or host them 

 

Large Companies

 

  • Ability to avoid unnecessary micromanagement
  • Better flexibility in delegating micro jobs
  • Improved supply-demand resilience 
  • Better protection and flexibility to remain relevant in a volatile market 
  • Better ability to adjust company roles to avoid lay-offs during a recession
  • Better protection against setbacks caused by lack of talent
  • Opportunity to take on profitable short-term development projects without committing to an unprofitable long-term budget

 

Disadvantages Can Be Handled In-House at a Better Cost to Value Ratio

 

Software development outsourcing has some disadvantages, and only considering the cons will surely make outsourcing seem like a terrible idea. But, if you weigh the abstract and unmeasured pros and cons based on a rudimentary 1-to-1 ratio, you will end up with a neutral perspective, which begs the question, why bother? 

 

Considering all the benefits mentioned, we know in our gut that the benefits of outsourcing nine times out of ten outweigh the cons.

 

Why?

 

In-house teams can reduce many of the cons more effectively than they can produce the pros.  Fully leveraging the benefits of software development outsourcing while minimizing the cons in-house can be very worthwhile. 

 

Here are some cons of software development outsourcing and how they can be mediated in-house.  

 

Investing in Better In-House Communication

 

One of the disadvantages of software development outsourcing is the communication challenges between your team and the outsourced team. 

 

However, the benefits of improving your employee's communication skills go much further than the software development project, translating into many other aspects of the business. 

 

Thus, the cost-to-value ratio of investing in communication training, culture, and quality has a much better short and long-term return. 

 

Investing in Management Training Rather Than Technical Training 

 

It's great to invest in your employees' technical skills. Not only do they benefit, but they work better as well. 

 

However, it's easy to overdo it and end up with an overqualified team. The value of all that training quickly loses relevance once the company's core services change or adapt to the market and the training competencies no longer match market demand. As a result, that investment suddenly ceases to bring a return. 

 

That is the problem with having an in-house team to develop software. The employees may need training that will not be worth the company's anticipated long-term direction. By outsourcing the project to an external team, the in-house project manager can benefit from various management training to help improve their project management competencies, translating to every other project.

  

Time Differences Could Be Exploited to Improve Feedback and Cooperation

 

A software development outsourcing company could be based locally, nationally, or internationally. Depending on the project, you could exploit time zone differences for your benefit. For example, the time difference between you and the outsourcing team could allow your team to complete their daily work in time to communicate all the new updates to the outsourcing team as they start their day. This schedule facilitates a smoother feedback process.

 

It's a global world today, and there are likely competitive teams located and working in every time zone. This variable could be easily controlled and chosen at your discretion while shopping.

 

Reduced Critical Feedback Turning Into Departmental Drama

 

When in-house teams work on a stressful project, emotions can quickly get out of control. Humans are emotional and critical feedback is sometimes taken personally. 

 

These shortcomings get significantly exacerbated when employees are given tasks or responsibilities outside their scope of expertise or skill. Hiring a software development outsourcing team to take on those responsibilities is better. 

 

Know how much your team is ready to take on. Based on that, you can calculate and consider the potentially high cost of failure that would come from the overburdening. An employee could easily snap and quit, and your software development project would halt. If a tight time frame is something you are already starting with, in addition to an overburdened in-house team, that's just the perfect recipe for disaster.

 

It's better to outsource the project and have your team test the program and give feedback to the software development outsourcing team.

 

Ability to Focus on Market Research vs. Managing Software Development

 

Your team can focus on the tasks most important to your company's core competencies while allowing the software development outsourcing company to focus on producing the highest quality software possible. Each team focuses on making their company successful, which is a win-win for everyone. 

In-House vs. Software Development Outsourcing

 

Three types of software development outsourcing contracts are usually agreed upon. Depending on the outsourcing company's offer and your project needs, they would fall into the following three categories.

 

Types of Outsourcing Models

 

  • Time and Resource
  • Fixed Price 
  • Dedicated Team 

 

Here are some differences between software development outsourcing and doing it in-house.

 

Development Costs and Cash Flow 

 

The development cost and its effect on your company's cash flow differ for an in-house and outsourced team. 

 

The outsourced team would have a more accurate price estimate and could easily create and follow a budget. If it seems like software development outsourcing has a higher upfront cost than in-house development, double-check what in-house costs you could be failing to estimate. 

 

If your company's technological infrastructure is not already up to date and your team's skills are irrelevant to the project they intend to undertake, it is likely better to outsource.

 

The initial cost can quickly rack up a considerable sum for companies that need to invest in new hardware, infrastructure, office space, and new hires. In addition, a dedicated manager needs to work on that project. On the other hand, if you choose to outsource instead, the upfront costs can be consolidated into a dedicated project manager and a dedicated software development outsourcing team with the hardware, training, and technology already included. 

 

How you negotiate the contract may also help with cash flow, as an easy monthly installment could be arranged for some projects, depending on the outsourcing model you agreed to. On the other hand, if your cash flow is limited during the development project, opting for a fixed rate or dedicated team model might be best for you. 

 

Scalability 

 

One remarkable benefit of software development outsourcing is the flexibility to scale the project. When executing a project in-house, you are stuck with limitations based on your company's hiring ability, office space, and other factors related to the in-house team. 

 

The outsourcing company usually has a large roster of developers ready to jump in on a project. Should an investment opportunity come or a market opportunity arises that justifies scaling the project's scope, an outsourcing team would be ready to accommodate that demand increase.

 

Risk Management Differences 

 

Depending on the software development outsourcing model, the level of risk management is very different. For example, a Dedicated Team or a Time & Resource model would provide the most flexibility and, thus, better risk aversion and correction.

 

In-house model hosts positive risk management benefits, especially for confidential data protection, content rights, intellectual property, patent secrets, and copyright protection. 

 

If your software intends to be the bread and butter of your company's service, take famous examples like Uber, Facebook, and Airbnb; investing and developing in-house might be in the company's best interest. 

 

That is not to say that you can't trust software development outsourcing companies. There are many ways to adequately protect your intellectual property from being stolen, such as patents, non-disclosure agreements, and other legal precautions. The main idea is to know how much control and daily micromanagement of the development project would be crucial for your company's success. 

 

There are limits on how far you can outsource sensitive projects, especially if you are working on software that will handle sensitive data like governmental contracts, healthcare, policing / military, and sensitive legal information. 

 

Nonetheless, it's important to note that even government institutions outsource their projects within the country to local businesses, which you can and should feel confident in doing. 

 

When shopping, it is important to consider the geographical types of software development outsourcing teams. 

 

Geographic Types of Outsourcing Teams

 

There are three main geographic categories of software development outsourcing teams:

 

Off-shore

 

These teams are in other countries all around the world. Every country has its specific benefit: cheaper labor rates, better company work culture, better hosting, higher security, cutting-edge technology, or a cocktail of advantages. It's best to consider your project's priorities and go from there. It's also important to note that you can easily spend the money on travel costs if you need to make a site visit.    

 

On-shore

 

These companies are in your country. They may not have the same cheap labor cost as their off-shore counterparts, but they may have other benefits. On-shore companies operate within the same legal framework as you, so working with them will be more secure and provide a reduced risk of theft or being able to pass unexpected hidden fee clauses. You can also likely claim more tax deductible costs and avoid international transfer fees and other financial hassles that come with doing business overseas.  

 

Near-shore 

 

Near-shore teams are usually within the same time zones as you and within short travel distances. Many near-shore teams' countries of residence may also have bilateral trade agreements, which provide better payment processes, tax rates, and other cross-border benefits not found in other places further across the globe. 

 

It's best to research what software development outsourcing companies are available in the local and global markets and consider their strengths regarding your project's priorities.  

 

Resource Accessibility

 

One major benefit of software development outsourcing is resource accessibility. 

 

Software development companies are designed to be equipped with the best and latest technologies and hardware. Some software, like artificial intelligence, blockchain, or machine learning, requires special hardware to create and host. The infrastructure cost that comes with the hardware can extend to dedicated cooling systems, more office space, other 24/7 security services, and more. 

 

Opting to outsource reduces the micromanagement of all these resources and their costs during development. Likewise, you also mitigate the upfront investment needed to purchase, install, and operate these resources. 

 

Make sure to discuss these resources and their availability with the software development outsourcing company to clarify whether they have them and if they are included within their quote. 

 

Improved Technology Debt Management, AKA Code Debt

 

Another benefit to software development outsourcing is that high-quality finished software will have better "code debt." 

What is code debt? 

 

Code debt is a very interesting phenomenon in software development. 

 

A coder will prioritize creating specific code over another to build a functional program faster. Contrary to monetary debt, code debt does not increase costs but reduces them. When an experienced and expert coder writes a program, they create sections of uncoded functionalities to avoid re-coding and editing a code section to make it fit with the rest of the program's final integrations. 

 

When hiring a software development outsourcing company with experience writing code for similar programs, those experts can avoid those sticking points, which usually take more time than expected or are worth it.   

 

Access to Cutting-Edge Competitive Advantages

 

A software development outsourcing team would likely have additional resources that an in-house team would not. 

 

  • Process automation expertise 
  • Artificial Intelligence
  • Faster servers
  • Green hosting
  • Blockchain
  • Data security 
  • Internet of Things infrastructure 
  • Virtual Reality 
  • General tech maturity 

Software Development Outsourcing Strategies to Implement

 

When searching for the right company to hire for your software development needs, it's good to start with a few things in mind. Consider these points when evaluating each potential supplier.

 

Project Vs. Product Management (Think House vs. Shopping Mall)

 

Consider the difference between a software product vs. a software project. 

 

Most software development ideas may seem to be a project that becomes a product, but that is not necessarily the case. For example, you often develop a product for external or internal clients to use as a tool. However, in some specific circumstances, the finished software you are developing could be considered a project rather than a product.

 

So what is the difference?

 

A product is a software program that functions as a tool to help your company or your company's clients to do something. The program serves as a tool to make a task more manageable. These programs are usually relevant as long as the technology it functions best is still relevant. On the other hand, a project is a program that is constantly evolving. Even as technology changes, this software continues to grow. 

 

A software development project will require higher maintenance and continuous development over a long period. Examples of software projects vs. software products are social media platforms vs. automatic posting programs, immersive virtual reality games vs. simple two-dimensional arcade mobile games, or online marketplaces vs. an individual website store. 

 

Software development outsourcing is a great option if you are developing a program that fits the criteria of a product. If you are creating a program that fits the criteria of a project, then the software will likely be the main service provider running your company. In this case, it's better to invest in an in-house team of developers. 

 

That does not mean you cannot outsource part of the development to specialized development companies. A software development project often includes a web of specialized programs that help the finished ecosystem of programs function. Those programs are likely great candidates for software development outsourcing. 

 

Take Uber; their app platform is a great example of a long-term project. However, along with Uber's main app, they developed other products that helped grow their app's software ecosystem, like request API, Uber Eats, Uber feed, and Uber Cash. Another great example is Shopify and the many related programs that help shop owners automate many processes in their stores. 

 

Will the Software Eventually Lose Relevance, or Is It Evergreen and Can Continue to Evolve?

 

The key difference is how long your software will remain relevant to the market and future technological trends. Hard question to answer, but if you think of where your software sits in its ecosystem, the distinction is a bit clearer.

 

Are You Developing a Specialized Internal Product?

 

Not all software is destined for customer use. Sometimes a company needs to develop a particular program for its internal procedures. These include programs that organize data or automation processes specific to the company's day-to-day operation. 

 

For example, a company that manages agricultural storage units needs a system that can automatically control temperature, humidity, and light. This system is presumably outside the in-house team’s expertise, so software development outsourcing the project is a good idea.

 

Are You Developing a Specialized External Product?

 

Most software development projects we first think of fall into this category. 

 

Many companies want to gain a competitive edge by offering their clients the best level of service. This service may include automated tasks, order fulfillment tools, programs that improve user online experience, after-hour A.I. customer support, organization programs, etc. Whether your company is in a brick-and-mortar industry or tech, some programs fall outside the scope of your team's expertise. These software projects may be a great fit for software development outsourcing.

 

Software Development Project Management

 

Depending on what your company needs, the software management needs differ. Startups will require different software development services than an established company's research and development department. 

 

Startups

 

As a startup, you may use costly software that may not provide you with the tools your team needs. Developing similar customizable software for your team may be worthwhile. This software could be a specialized customer relationship management system, a website management system, or a mobile app. 

 

Having a clear idea of what is on the market and the characteristics your team is having issues with is a great place to start considering whether to invest in developing your software. 

 

Research and Development

 

Many businesses rely on research and development to grow and acquire or strengthen market share. With that research comes data storage and analysis. 

 

Sometimes, the amount of data is impossible for a team of humans to micromanage. Having the program tools to help organize, visualize and watch trends can improve the speed and accuracy of your company's research and development projects. This is increasingly important as the number of devices supplying data from the internet of things is increasing exponentially. 

 

Maybe you are a cosmetic company wanting to track keywords in your customers' social media posts; you are face the question of investing in your data mining program or paying for a service provider. 

 

Or, maybe you are a logistics company and want to measure the energy spent delivering client products using various routes and times. Developing a program synced with your vehicle's fuel gauges and a GPS could help you analyze discrepancies between actual energy consumption and estimated energy consumption based on distances traveled. 

 

The internet of things is quickly becoming a more prominent area of innovation and growth. Companies that leverage data and programs to efficiently and effectively manage their ecosystem of programs with their ecosystem of the internet of things will have a much better position to compete in the market and stay relevant. 

 

Infrastructure Upgrade

 

Is your company well established, but your operating costs are increasing because your technology is old? 

 

Like mechanical machines, even technology starts to decay, for lack of words. The programs we used 20 years ago are no longer fast enough to manage the technological needs of today. Whether they be security systems, operation systems, data management, document storage, inventory systems, etc., as the hardware changes, so does the programming used to run them. 

 

You may be due for a complete overhaul and upgrade of your tech hardware and its programs.

 

Consider if you want to develop your software or purchase something already on the market. In some cases, software development outsourcing may be worth it. 

 

Have a Clear Project Outline

 

Now that you have a better idea of what you need and what role the finished software will have in your company, it's important to create a clear outline to present to potential developers. 

 

You may realize that similar software already exists on the market. This allows you to try what is already available and see how it works for the company. 

 

Sometimes, the software seems like it would be relevant on paper, but when put to use, many unexpected drawbacks or flaws emerge. Experimenting with ready software will help highlight the gaps in your expectations. Carefully note them in your design outline and adjust the needs and expectations accordingly. 

 

Once you have a clear idea of the priority level of each functionality needed in your software, you can create a hierarchy of characteristics and begin estimating the cost of including each in your finished product. This process will clarify the shopping process and help differentiate the offers between various developers.  

 

Due Diligence 

 

Doing your due diligence is one of the most important steps when embarking on a new project, especially when hiring a software development outsourcing team. 

 

It's important not only to research their quality of work and reliability but also their industry of expertise. For example, a software company that usually worked on A.I. projects would have better insight and talent in developing software to work with A.I. compared to another company that worked mostly with data analysis programs. Similarly, companies that worked heavily with automotive clients would be great for projects related to that industry compared to companies that serviced accounting firms. 

 

Researching the projects they previously worked on and seeing the longevity, success, and relevance to your industry can help you better negotiate, communicate, and find the most relevant developer.

 

Reviewing the Software Development Outsourcing Company Portfolio

 

A software development outsourcing company's portfolio is likely the most important source of information that will dictate your final decision after running a trial project with them. An in-depth look at their previous work will give you a good idea of what to expect from working with them. 

 

Compare the functionality and usage of their finished products to those you need. Based on your priority list of features, is the most important functionality something they always develop? Find a company whose expertise matches your needs the best. 

 

As you go through a list of development companies, you can begin ranking them from strongest to weakest based on your outline.  

 

Company Checklist 

 

Now that you have a good idea of which companies you want to work with, it's time to narrow them down. There are a couple of things you want to consider as well. 

 

  1. Response times. 
  2. Management maturity
  3. Size and skill level of their teams
  4. How up-to-date their technologies are

 

Response Times

 

Note the company’s response time and availability before ordering with them. A well-organized and managed development team will be able to respond to you in a timely fashion. 

 

Try requesting detailed information or a service package and see how adequate they provide those details and answers to your questions. If you sense a lack of communication or slow responses, it may also be safe to assume they will have similar troubles during the project. 

 

Management Maturity 

 

A major part of the success of software development outsourcing a team is its management. The more experienced the managers are, the better they handle unforeseen setbacks. 

 

The more experienced their management is with developing software similar to yours, the better expertise and quality of work they will likely bring to the table. Include the team's manager in your due diligence, as their track record and expertise will be a major factor in the quality of the final software and the success of your software development outsourcing partnership with them. 

 

Size and Skill Level of Their Teams

 

You may be looking to do software development outsourcing because your in-house team is working at full capacity. You do not want to recreate that problem with another outsourcing team that decides to overwork its programmers. 

 

The team's size, expertise, and scope of the projects in their portfolio will give you a good idea of their everyday work. You will likely have to infer their capacity based on the number of people on the team, the company's work culture, management style, response time, and the general size of their projects. 

 

You should also look at the skill sets of their developers, what courses they have taken, training certificates they have, in-house training the company provides them with, and how long most developers stay at that company. 

 

A team that can be dedicated and focused on your project will produce a higher quality product than a team working on multiple clients simultaneously. This is especially important when the workload increases and setbacks begin. Overburdened teams start rushing, working poorly, and missing deadlines, resulting in higher costs and lower-quality work.

 

How Up-To-Date Are Their Technologies?

 

You need to know how well-trained their programmers are on the latest programming codes, frameworks, and technologies. 

 

Are they able to supply the latest and most up-to-date software capabilities? Do they have cutting-edge hardware infrastructure to build the best software version? 

 

These questions are important to ask and have answered, especially if your software is intended for something within the cutting-edge limit of today’s technological trends. 

 

For example, any software built based on A.I. will need powerful computing hardware to run. Other programs designed to manage incoming data from 5G networks connecting thousands of sensors via the internet of things will need very efficient and stress-tested code. Ensure the development company has the hardware to adequately develop your software, making it the most technologically up-to-date available on the market.