6 myths about software outsourcing debunked

We live in a world ruled by technology where software is so ubiquitous that most businesses, big or small, will at some point need to use some form of it to grow their business. This can be anything from a simple landing website to a complex mobile app. Whatever the case is, most companies don’t actually have the resources to produce custom software themselves. Luckily, there are many workarounds for this, and a popular solution chosen by many businesses is outsourcing.

In short, outsourcing entails hiring a third party to develop or produce a product, in this case a piece of software, for you. It’s not a new concept, and it can be applied to almost any industry. In the case of the software industry, it’s an extremely popular approach, but that doesn’t mean it is favored by everyone.

In fact, there are many myths surrounding software outsourcing that make some companies and entrepreneurs doubt whether they should choose this path. In this article, we hope to debunk those myths and prove that, even though outsourcing may not be right for everybody, it is a great option that fits most.

1. Your project will go over budget

Budget is a big concern for almost any project. It is frequently one of the main factors driving decisions, so it is no wonder that some of the myths around software relate to this concern. As a matter of fact, it is often said that outsourcing, particularly in the world of software, can often lead to hidden costs that add up as a project grows.

This is, of course, something that can happen, but it’s not a problem endemic to outsourcing. In fact, hidden costs can pop up in most projects and, if done right, outsourcing can actually help you prevent them. The key here is to have a conversation with your provider before a project even starts and make sure that you set some clear ground rules.

One factor to consider is that not all outsourcing software companies work in the same way and, while some may charge on a per-hour basis, others may actually charge a set amount independent of how many hours workers put in. Both methods (and all the combinations you can find in between) have their pros and cons, and it’s important you analyze them carefully and find the one that best fits your project.

Once that’s done, make sure you put things in writing to ensure terms are clear and discuss them with your provider to check you are both on the same page. Do this, and hidden costs should not be something you need to worry about.

2. You won’t meet your deadlines

In the same way that budgets often dictate choices, in software projects, time can also be of the essence. Getting a product to your users as soon as possible is key, especially in an industry as competitive as this one, where innovation and being first is a crucial factor.

With that in mind, it makes sense that meeting deadlines is another concern that has given way to some more myths around outsourcing. As we will see in more detail below, outsourcing can seem particularly scary to those that are used to being on top of things 24/7. They may think that outsourcing is a risk and that factors such as dealing with different teams, having to deal with red-tape, and in some cases dealing with different time zones or even cultures, can delay production times.

The reality, however, is often the opposite. Outsourcing contracts can help you guarantee that your deadlines are met no matter what. And, on top of that, if you pick the right provider, you will probably find yourself working with a team that has dealt with similar projects before and is used to performing under pressure, which leads us to our next point.

3. Your product’s quality will suffer

Another common misconception is that outsourced projects are simply not as good quality as those carried out in-house. This mentality can be equated to a manager thinking that only they can get something done and having trouble delegating.

This myth, however, is far from what actually happens with most outsourced projects. In fact, outsourcing a project can be a way to obtain a higher quality product.

To start with, you’ll be able to pick from an endless pool of providers who specialize in all types of technologies and industries. This means accessing expertise and talent that would otherwise have been outside your reach.

Moreover, if you pick the right team and make sure your provider is on the same page as you, you are sure to obtain a product that is just as good quality as if it had been developed in-house.

Of course, this will also require good communication, and another common misconception about outsourcing is that it can make communication extremely difficult. However, as we will see, this isn’t entirely true.

4. Communication will be too difficult

There is no denying that working across teams has its set of pitfalls, most of which relate in some way to communication. Even if you are in similar time zones, or if you can get your outsourcing team on site, working with a new group of people –one that has their own rules and ways of doing things– can seem rather daunting.

That said, if the past year has taught us anything, it’s that remote collaboration can work and be just as productive as the type of work we were once used to. As long as you recognize that communication is worth making a conscious effort to work on, information should flow freely between you and your provider.

Once again, planning here will be key. Make sure you don’t start thinking about communication only once you start the process but, instead, keep it in mind from the very start, even during the provider selection process.

As you research and interview possible outsourcing companies, make it a point to inquire about their own communication practices, so you can find the right fit for you. This will make matters much easier and make sure communication mishaps are nothing but a myth in your book.

5. Your data or ideas will get stolen

Depending on what industry you work in or what your project entails, you might be worried about stolen data, or even ideas. After all, outsourcing your project implies handing over sensible data to a team you might not have worked with before, and that can be scary. Once more, this is where good planning and good contracts will come in handy.

To start with, make sure you research your providers thoroughly to guarantee they are trustworthy. Don’t hesitate to look up reviews or even contact clients in their portfolio to ensure you get as much information as you need.

Secondly, make sure you discuss your concerns with them and, once you’ve settled on a provider, ensure your contract protects your most sensible information. This way, you’ll be confident that all your data is in safe hands.

6. You’ll waive control of your project

Finally, it is common to think that just because you will be hiring a third party to develop your product, you will be handing over every last bit of control you had over your project. As you might imagine, this is rarely the case.

Of course, if you want to take a step back and let someone else handle the project for you, there are outsourcing companies that will provide a comprehensive service. However, most outsourcing companies will actually welcome a client’s involvement and will be more than willing to work together with you so that you can still control your project’s outcome, even if you are not developing it yourself.

It goes without saying that for this to go smoothly, you will once more have to put some effort into researching your providers so you can find one you are comfortable with. However, once you find the right fit, you’ll be able to maintain control of your project, while still enjoying all the perks of outsourcing.

To conclude: is outsourcing a good idea?

The answer to this question will, of course, depend on the particulars surrounding your company and project. As we mentioned at the beginning, outsourcing is just one way of solving your technology needs, but it is definitely one you should consider.

As we’ve gone over some of the most common myths and misconceptions that keep companies from outsourcing their products, we’ve identified planning, finding the right provider, and signing a good contract as three crucial steps to a successful outsourcing experience.

We are convinced that, if these steps are met, outsourcing can be a great solution for most projects, and we hope this article has convinced you to keep outsourcing as a possibility for your next software project.