Thursday 27 August 2020

Key Checkpoints of Software Development Outsourcing

Today, businesses know the benefits of using software and its contribution to accelerating productivity and efficiency. About 64% of them opt for complete software outsourcing. It saves the company from the unnecessary expenses of developing state-of-the-art infrastructure and getting into the time-consuming and messy process of hiring expert individuals to build an in-house team.

Apart from the fact that Software Development Methodologies are very cost and time effective, it is also accused of some difficulties along the way. Large enterprises can, however, cope-up with the challenges but it is very tough for small and medium-sized industries.

So, to help all the businesses from startups to large enterprises, I have brought a piece of information to make you aware of what’s going on in the business world. Let us discuss it in detail.

Addressing the Issues

If you want to avoid the pitfall and complete the software outsourcing project then be cautious and check these enlisted aspects:

Be Specific about your Business Requirements

A study shows that 12% of software outsourcing projects fail only due to the lack of clear goals. Businesses need to be very precise about what they need and why they need it. Specifying the need helps in finding and hiring the right set of skills and expertise. A suitable software development company is selected based on it.

Clarity ensures dedication and those specified goals can help to outline a product or services that need to be rendered during the software outsourcing project.

Research and Analysis of the Software development company

To match the expertise with the required skill set is not enough to partner with a Software development company. A critical analysis is necessary for a successful collaboration. Research on a software development company, their previous portfolios, expertise, the methodologies with which they operate, the working culture, and all the other characteristics that matter.

The best place to look at is the testimonials, their websites may have it, apart from that you can get it from the reputed platforms that rank or rate the software development services based on the industry standards and customer satisfaction.

Also, knowing about the company’s mode of operating, like which tools and technologies are they using to complete the software outsourcing project may give you better insights to make a decision.

What is your Budget?

According to Deloitte’s global survey in 2016, 59% of businesses opt for software outsourcing just to cut the expenses while only 31% of businesses choose it to get a better quality product.

This indicates that in the Software outsourcing industry, cost is a driving factor. The sole purpose of the companies is to save on the costs. But what the businesses should also take into consideration are the expertise, skillset, experience, and the work culture of a software development company before hiring them.

Sticking to the budget is a good thing, no one wants to overpay for the service or product but we also need to understand that it will be our loss in paying for some cheap quality stuff. Always look out for the cost versus return of investment. It’ll help you make better decisions.

Quality Assessment of Digital Products and Security of the Data

It is the most important aspect of software development services. It should be addressed as a priority. Every function, feature, even a single line of code needs to be tested before its implementation. The software development companies conduct the Quality Assessment tests at the end of each stage of the development process and some other testings on the finished product to check its functionality.

Nowadays, when the government bodies are also no longer safe from the cyber-attacks, then the businesses need to be extra careful. The quality assessments and other customized tests are also conducted on the software products to ensure their safety from any possible cyber threat. Apart from the protection provided by the technological frameworks, the software development companies also offer additional security packages to strengthen the layers of cybersecurity.

Signing NDA and Intellectual Property Rights

After the security of a software product, the paramount concern is the security of data. The business collects the user data to enhance their experience, in the wrong hands, it will be harmful. So, a software development company needs to sign a Non-Disclosure Agreement that could cover the security and of all the business data shared with them.

It also acknowledges the type of data, where it will be stored, which kind of security will be enabled for it, what technologies will be used, who will be accountable for its protection, and so forth.

Any type of sensitive business data regarding the client company revealed or transacted during the software outsourcing project also gets covered within the NDA and Intellectual property rights.

But before signing any such agreements, businesses need to look out for the loopholes in the contract. Every component of the contract needs to be mentioned with minute details and other specifications, thinking of the worst of the scenarios and its possible consequences, all of it needs to get in writing. If something important gets left from the agreement, the software development company could have a field day. So, to save your time, energy, money, and most importantly your business, get it all in writing.

Barriers to Successful Collaboration

Successful collaboration is a basic necessity for the successful completion of a software outsourcing project. But there may be some barriers to it. So, while outsourcing to the software development company, a business may face barriers like:

Communication barriers: It is a lack of efficient communication tools or not using them effectively. Also not staying in the constant touch of the software development company can raise many problems. Miscommunication is another ubiquitous issue.

Cultural barriers: For a successful collaboration, both the companies must align their goals but that happens only when there is a similarity in the work culture or work approach in both the firms. If the thought process and approach towards the project vary, troubles will start to surface.

Time barrier: Most of the software outsourcing companies are located offshore which results in time difference between both company’s working hours. This gives room to the difficulties of communication like not able to follow up on the project and so forth.

Language barrier: As discussed, choosing offshore software development services will have diversity. Such another diversity is language. If both the companies can’t even speak or understand a common language, then on what basis will they get past the preliminary conversation for the software outsourcing project?

Technical barriers: Even if all the other issues are well-handled then also this technicality seems to be ruining the whole project. This is said to be the difference between the tools and technologies in use. If a software development company uses different coding languages and technology from a familiar one to their client, then the clients will face trouble during any occasional problem or required modifications in the future.

Businesses should look out for all these aspects while researching for any software development services and should opt for the one that checks out most of your specific business requirements.


The businesses must lookout for the right Software development Outsourcing partner amidst the crowded streets of competing software development service companies.

I have written this article to spread awareness among the industry about the factors that are influential and have the potential to save businesses from falling prey to any unexpected pitfalls. I have made my attempt to bring into your notice the key influential factors that need to be taken care of while outsourcing. Now that the ball is in your court, make sure you make a smart move.


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