How to Select Great Software Outsourcing Companies
Elina Nazarova, Chief Marketing Officer of Powercode

How to Select Great Software Outsourcing Companies

Choosing a good outsourcing company can be a challenge for all customers. Competition in the outsourcing market is growing, and the emergence of new teams does not make the search easier. This phenomenon exists because more business owners understand digital technologies' importance, increasing the demand for outsourced development. Statista predicts that in 2025, the number of mobile users worldwide is projected to reach?7.49 billion . Entrepreneurs want to get as many customers as possible, so they need a development team to lead their software to success, make it competitive, and meet the audience's needs, making a profit.

Why Outsourcing Companies Are in Demand

Successful business owners and budding startups choose outsourcing companies for several reasons:

  • reduction of development time;
  • growth opportunity;
  • flexibility;
  • professional consulting;
  • access to talent;
  • reduction in internal costs.

According to Grand View Research, outsourcing growth will increase by 7.7% per year to?$938 billion ?by 2027. Outsourcing is in demand because it allows businesses to delegate resource-intensive processes to a third-party technology provider. Entrepreneurs can hire a few developers to improve their software or hire a whole team of project managers, programmers, business analysts, and designers to create an application or website from scratch. Outsourcing gives you an advantage over competitors: you will always be the first to implement trends, thanks to effective interaction with experienced contractors.

Outsourcing companies provide their customers with quality services that turn their idea into profitable software that helps people solve their problems. The main thing that a business owner should be aware of is the factors for choosing the best outsourcing team.

Signs of a Good Outsourcing Company

To choose the right outsourcing company and get software that will attract an audience, you need to pay attention to the factors and build a contractor's image.

Experience in Your Area

It is important for the company that each employee in the team knows and understands the market they work with. This is an essential component of successful task closure applicable to the outsourcing company you are hiring for a project. Professionals in your field will advise you and find the best solution to bring progressive software to the market. Experienced developers know exactly what a particular audience wants and what problems they may face.

They will advise you on the features that need to be implemented and save you unnecessary expenses on tools that will not be useful to users. Suppose you choose an outsourcing team that works with the customer's niche. In that case, the business owner will not need to control every step of the contractors and worry that they will not understand the client's needs.

Customer Feedback

One of the most important criteria for choosing contractors for any work is the feedback from customers who have already collaborated with them and gotten results. Most outsourcing companies post testimonials on their website, but it's a good idea for an entrepreneur to check them for authenticity. Be sure to ask the IT team to provide links to past clients (if they are not under NDA) and contact them for clarification.

You can also always ask the company itself how it copes with the tasks of the client and how they get out of unpleasant situations and misunderstandings. You can think about further cooperation if you are delighted with the answers.

Fast Communication

You can form your opinion about the company from the first minutes you think about cooperation. The first stage of communication will show the outsourcing company's professionalism level. If the team does not respond to your messages for a long time, constantly postpones the date of the meeting, or even ignores you for several days, this means that they are not ready to work with clients, and the final result of the development will be much worse than you expected and not on time.

A good IT team should respond quickly and clearly to your requests and not try to evade the answer. Such contractors already know your doubts in advance and are ready to dispel them. They always have a strategy for working with the customer and a clear plan that will bring cooperation to a new level of trust. In this case, the business owner does not have to worry about the timing and quality of the application because they are regularly and on time sent reports and answers to questions that have arisen in the work process.

Data Security

Every business needs secure data storage. When choosing an outsourcing company, the customer needs to find out how they will manage and store important information about the project. Do not share confidential information with a team that does not use the latest security technologies to ensure quality cooperation with the client.

Cost Compliance

An important rule of successful software is not to skimp on the people who develop it. An experienced entrepreneur understands that the cheaper the rates of outsourcing developers are, the more complex the work process will be.

Don't forget to talk to the IT team not only about the time frame but also about the budget. Make a document that will spell out each step and the amount you are willing to spend. It will save you from hidden costs the company can attribute to you at any time. The more points you agree on initially, the less disagreement you will end up with.


How to Find the Best Outsourcing Company

For entrepreneurs who are faced with outsourcing for the first time, it is essential to understand how to choose the right IT company. Since, in the end, you need to sign a contract with only one candidate, a prescribed selection plan can help with the choice:


  1. Market research. Searching for contractors on B2B websites of technology companies (Clutch ?or?Good Firms ) is best. On these resources, you can see each team's reviews, ratings, and portfolios. Such a step will help narrow the search for companies and select only leaders in this field.
  2. RFP and RFQ. At the stage when there is a list of candidates, you can start getting to know them personally. Send RFP(Request for proposal) or RFQ (Request for Quotation) to companies you like to learn more about their proposal and compare communication methods.
  3. Meeting planning. After careful selection, you can schedule a meeting where the outsourcing company will demonstrate its vision for your project, and you can put forward requirements for the contractor and discuss the details.
  4. Contract negotiation. After carefully selecting candidates, only one reaches the finish line, with whom you can sign a contract. Do not forget at this stage to say all the subtleties and requirements, as well as calculate the cost of all work.

Each company chooses its own algorithm for finding the best contractors, but these four points will make the search easier and lead to an outsourcing team that will create successful software.

Outsourcing Perspectives

An outsourcing company is not only about saving money and time for developing high-quality software. This collaboration paves the way for innovation and significant changes in the industry that can take your business to the top of the leaderboard.

An outsourcing company always brings innovations to the customer's business and shares essential tips for promoting products. The main thing that is needed from the client is the budget for the work of developers and the advancement of their requirements at the time of discussing the project.

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