Outsourcing Software Development: 5 Tactics for Project Management

In the world of software development, hiring an outsourcing software development company has become important for businesses. Outsourcing software development provides several benefits starting from cost savings and access to a global talent pool. The maintenance of quality projects requires huge control to let the success prosper.

However, there are various techniques to control the outsourcing software development project. This article will highlight five essential tips for effectively managing and controlling software outsourcing projects.

Before getting into the details let's first start with the basics by understanding what outsourcing software development is.

What is Outsourcing Software Development?

For example, Raj Goodman Anand and Nick Spiller want to hire developers to scale their team to the next level and instead of choosing to hire in-house on high salary, they hire from companies like Acquaint Softtech Private Limited on contractual terms and fair rates.

Outsourcing software development is the practice of hiring external outsourcing software development services or hiring external remote developers. The sole reason behind hiring outsourced developers is to enable businesses to meet their software development requirements.

By hiring a software outsourcing company the organization can ensure the fulfillment of various tasks starting from conceptualizing and designing software to coding, testing, and maintenance. One way of leveraging outsourcing services is to hire remote developers from across the globe. Apart from the one mentioned above, there are a few more ways to outsource software development.

The different ways of outsourcing are as follows:

1. Hiring freelance remote tech talents.
2. Expanding your existing software development team by hiring outsourced developers.
3. Hiring an external outsourcing software development team.
4. Hiring remote developers to meet the skill gaps present in your in-house team.

Now, let's understand some situations when an organization should opt for outsourcing software solutions/ software development.

When to Opt for Outsourcing Software Development?

After understanding outsourcing software development. Let's understand when a company should use outsourcing.

The six reasons that show why hiring an outsourcing partner is a beneficial idea, let's brainstorm all of them one by one.

1. Cost saving: When the organization wants to save costs incurred on buying a physical space or hiring expensive in-house teams.
2. Faster time to market: Hiring an organization with experience in working towards faster delivery of projects is important. In software development, the timely delivery of projects matters the most.
3. Access to a wider talent: When the company wants to hire remote developers with specialized skills from across the globe, they use outsourcing services. Any company that looks to integrate its existing team with specialized IT professionals would also leverage IT outsourcing.
4. Handle heavy workload: When it's difficult for a company to handle complex tasks they tend to hire an outsourcing software development company . By using IT outsourcing companies ensure the speedy deliverability of projects within the given work hours.
5. Focus on the core competency: By leveraging outsourcing, companies tend to focus on the core tasks after outsourcing the development work.
6. Flexibility: When organizations look to scale their team up and down by hiring developers temporarily they use IT outsourcing.

Now, let's understand the different types of outsourcing software development.

4 Major Types of Outsourcing Software Development

1. Onsite Outsourcing:

In this model, a software development company sends its team members to the client's location to get the work done. The work can be anything related to development i.e. either website or mobile app development. The time duration of this work model is limited as compared to the traditional in-house development.

This model may seem similar to IT staff augmentation , where companies send resources to other software development companies.

2. Onshore Outsourcing:

In this type of outsourcing, the organization hires an external vendor from the same country. There are a few pros and cons of this model.

Some of the benefits of this model are:

• The external outsourced software development would speak the same language
• They would also understand the working culture
• They would be following the same time zone.

The main drawback of onshore outsourcing is, it is more costly as compared to other outsourcing models. Hiring remote developers using an onshore model is costlier than other models.

3. Nearshore Outsourcing:

When a company hires software development outsourcing services from a company based out of a different country. This outsourced company would be from the same continent. The difference in the time zones of both countries would not vary much, but there would be a slight difference. The work culture would also have a little variation as compared to other outsourcing models.

The businesses can also negotiate the rates of the engagement period which is a plus compared to onshore outsourcing. But the cost-saving would not be as significant.

4. Offshore Outsourcing:

When a company hires outsourcing software development services from an external agency of another continent. While using offshore outsourcing, the company would either outsource the complete development project or some parts of the work. This outsourcing model is quite cost-effective and provides access to a larger pool of talent.

Businesses can have a dedicated team of remote developers at hourly rates. The organization does not need to follow a lengthy hiring process when opting to software development outsourcing services .

5. Multi-shore outsourcing:

Multi-shore outsourcing is used by large-scale organizations and enterprises. Companies hire offshore services from multiple organizations depending on their current locations. The outsourced services can be nearshore and offshore.

Now, let's understand the tips for effective project management through outsourcing services.

5 tips for effective project management using outsourcing

1. Clear communication:

Effective communication is important for project success. Before outsourcing a software development company, the organization needs to analyze the communication flow. A smooth communication flow will help in streamlining the communication flow.

The three essentials to focus on while building a smoother communication flow are as under:

Importance of Communication Plan: Creating a detailed plan that outlines how often meetings should occur, the preferred channels, etc. The company should also mention who will be the main points of contact.

Regular Updates and Check-Ins: Schedule regular updates and check-ins to monitor progress. This could be in the form of weekly status reports or bi-weekly calls. Regular communication not only helps in tracking progress but also in building a strong relationship with the outsourcing team.

Tools and Technologies: Use tools like Slack, Google Meet, or Zoom for streamlined communication.

2 Detailed Documentation & Clear Requirements:

Detailed documentation is crucial in software development outsourcing. It ensures that everyone involved has a clear understanding of the project requirements and expectations.

Requirement Specification Documents: Develop detailed requirement specifications before the project begins. This should include technical requirements, project scope, skill sets, and deliverables.

Change Management Process: Implement a change management process for handling any alterations in the project scope or requirements. It helps in maintaining project control and avoiding scope creep.

Quality Standards and Guidelines: For example, Nadir Zafar believes in providing a very high-quality of code when it comes to his product. To do that, here is what he would do:

Establish, Establish clear quality standards and guidelines. By providing all details related to quality standards the companies would minimize the scope for revisions.

3. Use the right Project Management Tools:

Choosing the right project management tool is essential for maintaining control in software outsourcing.

Choose the right tools: Based on the project requirements, your organization needs to choose the right tools for project management. It is essential to make a detailed list of different types of tools required for managing the project.

Choosing the alternatives: The company should ensure that are has proper alternative tools available for the project management.

4. Establishing a Quality Assurance Project

Quality assurance (QA) is non-negotiable in software development. Establishing a QA process is key to gaining control and ensuring the product meets the desired standards.

QA Plan & Testing Phases: Develop a QA plan detailing the testing phases, methods, and standards.

Regular Testing and Feedback: Implement regular testing cycles and feedback processes. This helps in identifying and fixing issues early in the development process.

Tools and Automation: Utilize QA tools and automation to enhance the efficiency and effectiveness of testing processes.

5. Build a Partnership approach

Considering outsourcing relationships as a partnership rather than a vendor-client transaction can significantly enhance project control.

Alignment of Goals and Values: Work towards aligning the goals and values of your company with the outsourcing team. This creates a shared vision for the project.

Incentives for Performance: Consider setting up incentives for meeting or exceeding project goals. This can motivate the outsourcing team to align more closely with your objectives.

Cultural Sensitivity and Relationship Building: Be culturally sensitive and invest in relationship building. Understanding the outsourcing team's work culture and ethos can lead to better cooperation and understanding.

Now, let's quickly wrap up the article.

Read more about

Why Outsourcing is A Smart Business Decision?

How to Find a Reliable Software Development Partner?

How can I help you with Outsourcing Software Development Services?

As the top IT outsourcing voice on LinkedIn and the owner of Acquaint Softtech Pvt Ltd, with over 10+ years of experience in this field, I lead a team of experts specializing in IT Staff Augmentation Services and custom software development. With 10+ years of industry experience, we're dedicated to helping organizations like yours build custom software and hire remote developers tailored to your needs.

Wrapping Up!

Successful project management is achievable by blending the five steps of software outsourcing mentioned in the above article. By using these tips businesses can effectively manage outsourced software projects, ensuring they are delivered on time. Choosing the right outsourcing method based on your requirements will help you manage the project effectively.

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