10 Top Software Outsourcing Mistakes You Should Avoid

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Are you into the dynamic and growing IT industry? If yes, then you must have an idea about its evolving and competitive nature. It is quite hard to successfully establish your software company in the contemporary IT world.

A huge amount of investment is being done in this industry every year. A research report by Statista estimated that 1,079 billion U.S. dollars will be invested in IT services by 2020. Here is a graphical representation of their findings:

To outshine competitors in this industry, it is vital to produce outstanding software products. This is why many smart enterprises outsource their software projects to expert professionals. There is an abundance of developers all over the world.

It is estimated by Evans Data Corporation that the population of software developers will reach 27.7 million by 2023. This huge number also means an ocean of expertise in various software technologies.

It is a mindful decision to outsource software development projects because it gives you access to talent and expertise spread across the globe although some face problems in making the decision to select the best outsourcing company.

We have enlisted 10 mistakes in this blog that you should avoid committing while hiring a software outsourcing company:

1. Unclear vision about the project

Whenever you are planning to involve someone in your business processes, the first thing to do is to get a clear idea about your own goals. Once you know your requirements, only then should you communicate them to a software outsourcing company.

Sit with your team and analyze the business objectives that you are aiming to achieve through a particular software project. It will help you in your search for an ideal outsourcing company. 

2. Not giving enough time to research

There are a plethora of software development companies from which you can choose. Choosing one based on a few reviews is never recommended. You should consider many factors before selecting your partner.

In-depth research about the portfolio, case studies, costs, and market reputation is extremely important to judge them correctly. Take time to evaluate them thoroughly before selecting your outsourcing company.

3. Prioritizing low price too much

As a business person, expenditures may be foremost in your mind. Saving costs is smart, but compromising quality can impact your business severely in the long run.

Low cost does not necessarily mean optimum software solutions. This is why it is advisable to check other factors before cost when selecting a software company. 

4. Not focussing on technologies

Software development is a wide sector that involves a lot of subsets which are evolving continuously. New technologies are introduced constantly in this sector.  

Software development is a hectic task in itself, but when you add other technologies like blockchain, machine learning, IoT, etc. to a project then it becomes challenging. Accordingly, you must search for an IT outsourcing company which is well known for its expertise in different software technologies, especially in the one you are planning to invest. 

5. Not communicating continuously

Communication is a vital aspect of every outsourcing activity. Things become clearer only when you communicate at every stage of the software development project.

Moreover, the team executing your software project plan should be efficient enough to understand your specific needs. While selecting software developers, you must ensure that they are good listeners and explain the execution process to them flawlessly. 

6. Not asking for coding certifications

Coding certifications indicate the skills and qualifications of developers. They provide a glimpse into their experience and expertise in particular software technology. Moreover, such affiliations speak volumes about the outsourcing company’s knowledge about coding standards.

Inquiring about coding certifications and credentials is an important step in selecting a software development firm. 

7. Settle without dedicated teams

The teams that work solely on your projects are known as dedicated teams. Not all software development firms delegate projects to their dedicated teams. Such teams are extremely beneficial because they have expertise in that particular arena.

This should be discussed in your first meeting to avoid future repercussions.  Make sure they provide a team which contains dexterous developers, quality analysts, testers, etc. 

8. No technical assistant from your end

Is it easy for a person with no technical background to understand software programming? Without a knowledge of IT, how can mistakes be found during project development? 

It’s crucial to have a person with technical knowledge in your company who can communicate efficiently with your outsourcing partner.

9. Not judging the skills in a specific business niche

Every industry in software development demands the expertise of developers. For instance, if you need to get blockchain software developed, then you need to search for an outsourcing company that has experience in this technology.

Moreover, they should have clients in the same business sector as you. You can also go for a software outsourcing firm who has not developed software in your business niche. But make sure the software outsourcing company does not have too narrow a niche because it clearly means less experience. 

10. Forgetting to reward good work

Can someone work with the same enthusiasm if they are not appreciated? Sustained effort without reward is not possible. So, what makes you think that outsourcing teams do not need your appreciation? 

They might not be your in-house developers, but when they work for you, they deserve your timely appreciation for their good work. Software outsourcing services are not easy to deliver, so constant morale building will bring optimum outcomes.  

Wrapping up:

Always keep in mind that outsourcing is a long term decision which will affect your long-term growt. In the dynamic software industry market, you need to update your software constantly to achieve optimum results. 

Choosing the best software outsourcing company is never easy. Avoid the mistakes mentioned in this blog to avoid future issues. It takes deep analysis, time and effort to select the most suitable company for your requirements.


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Varun Bhagat is a technology geek and works with PixelCrayons which is a renowned web & software development company in India as Sr. Technology Consultant. He possesses in-depth knowledge of different web development technology and helps the clients of his company to choose the best technology as per their needs. 

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