How to Outsource Software Development [for Founders] | SpdLoad
What does it mean to outsource software development? How many people, so many opinions.
Yet, we have been building startups for 8 years and managed to form our own vision.
Outsourcing software development means collaborating a founder with an off-shore team. The goal is to build a successful on-market startup or business solution.
Instead, there is an entire science behind how to outsource your software development. Let us share insights about how to’s and how much does it cost to outsource software development.
The Manifold Benefits of Outsourcing
Software development outsourcing has many benefits apart from cost-efficiency.
Other benefits you should know before understanding how to outsource software development includes;
- Ability to focus on your business logic,
- One-stop solution (if you outsource to an agency),
- Post-development support,
- Access to the latest technologies at cost-effective prices.
Understanding the benefits will certify that outsourcing is indeed good for your business.
But when it comes to outsourcing app development, you should not work in haste.
It’s a step-by-step process, that includes a few significant stages.
In the end, you will completely understand how to outsource your software development project.
Plus, you will also get an answer to how much does it cost to outsource software development.
How to Outsource Software Development?
There are three main aspects of how to easily outsource software development;
You start by defining your requirements. This usually happens at the discovery stage.
This is followed by looking for the right agency.
Then you have to choose one out of the shortlisted organizations.
We will talk about these three aspects in some detail.
Define Your Needs For Outsourcing Software Development
You need to be ready to outsource your software development work.
Your product must have business goals and objectives to achieve.
Similarly, the outsourcing process must also be defined with goals and objectives.
These goals must be shared with the team, no matter internal or outsourced.
Setting goals helps in;
- Structuring and managing the outsourcing program,
- Identification of the functions and features that need to be outsourced,
- Selecting the right service provider,
- Contract management and implementation.
Setting the parameters for outsourcing is also preceded by understanding the type of outsourcing.
We will talk about three types of outsourcing criteria;
Basically, you hire a group of freelancers coming from online sources.
Freelancers work on their schedule and cost less than hiring an in-house team .
You can find freelancers according to the task from platforms like Upwork, Guru, etc.
Development agencies are akin to a one-stop solution.
You will get access to every type of professional under one ceiling.
Hiring, managing, and communicating with agencies is easier than freelancers.
However, vetting the agencies is a bit difficult because you may not be able to talk to the entire team.
Agencies have a single point of contact (project manager) who will share all the details.
The second type of distinction is based on the process.
Outsourcing to a Team
Here, you outsource the entire project to another team.
This type of agreement is based on a formal contract.
The working team agrees to the required project specifications at a fixed cost.
They ensure delivery at a specific time or in segmented milestones.
As a client, you will have limited say in the outsourcing web development process.
A dedicated team model is a hybrid project development outsourcing arrangement.
Here, you hire a team of experts. But they are also connected to the in-house team.
The outsourced team has a project manager that handles the tasks and deliverables.
In this model, you will have a limited say in product development.
The last type of distinction is led by the location of the development team.
In this segment of how to outsource software development, we have nearshore project delegation.
The hiring company outsources the work to a company in the neighboring country.
So, for a USA-based company, nearshore development will go to Mexico or Canada.
Offshoring is a practice of hiring developers in the country where that service is actually built or delivered.
Since software developers are present across the globe, you can outsource the software development work to any country.
However, the development prices will also be different in all the countries.
So, it is better to check the charges before hiring.
Moving on with how much does it cost to outsource your software development task, we have another important question.
This is about the places you need to look for selecting the outsourced.
Let’s take it up.
Where to Look for Outsourcing?
Selecting an agency to outsource software development is a different topic.
In this segment of how to outsource software development, we will list out the sources to look for your development partner .
Moving on with how much does it cost to outsource software development.
By following the four-step procedure above, you might have a small list of potential work partners.
The first step was all about gathering competent agencies.
In the next part of how to outsource your software development, we will define the entire process.
How to Choose an Outsourcing Agency?
This is the part where we will learn to choose the most competent outsourced.
In how to outsource software development projects, choosing the right one is pivotal to success.
Here again, we need to retrace a few things.
What are your expectations?
If you missed it earlier, here is your chance.
Set your expectations straight.
This will help in;
- Choosing the right agency,
- Identifying the critical parameters for selection,
- Negotiate the price of development,
- Set milestones,
- Measure the deliverables.
To outsource software development systematically will surely translate to success.
The second step is getting social proof and checking their expertise.
There are different methods to check an agency’s worth.
To outsource software development might look like an easy task.
But as you can see above, it is an integrated activity.
That is why we always says that the answer to how to easily outsource software development is never simple.
Based on the findings and selection by following the above procedure, you will have a few names.
Remember that there is no scope for a chance here.
Yes, you can listen to your gut feeling, but learn to strike off the agencies as you move ahead.
If they do not fulfill any of your criteria, take them off the list.
Because in the next part of outsourcing software development, things will get more streamlined.
But they will also take more time.
We are now past the preliminary testing.
The last step in choosing a team to outsource the software development is taking their interview.
How to Interview a Development Team
If you are moving ahead with freelancers, take individual interviews.
For teams and agencies, gather them together and take the discussion forward.
The purpose of taking the interview is to;
- Assess the agency’s ability to deliver the work,
- Understand their approach to building your product,
- Identify their key areas of expertise,
- Set the price,
- Set deadlines.
Where the non-technical aspects can be taken care of easily, we want to focus on the technical aspects.
Make a list of questions before starting your interaction.
These questions must make a list.
- Do you understand my business, purpose, and project goals?
- What are your developer’s expertise and skill set?
- Are your developers located in-house or work remotely?
- Do you know how to work with an agile development strategy?
- How do you figure we communicate with each other?
- What similar projects have you done in the past?
- Who will own the source code of the software after the development is complete?
Apart from this, take a thorough overview of their development and designing process.
You need to get as much clarity as you can in the process.
Ask your doubts, get to know the team, and make sure to set deliverables and deadlines.
That is how you can outsource software development.
After completing the interview, if you are satisfied, then move ahead.
If not, go back to the list and take another interview.
Yes, this may take some time.
But it is better to spend time now than asking the team to make edits later.
Which, most probably, won’t be easy to get.
The non-monetary elements of how to outsource software development are complete.
Now let’s talk about money.
How Much Does It Cost to Outsource Software Development?
We wish that the answer to this was simple.
We are moving ahead with a dedicated outsourcing team model.
This is the model where you combine your team’s efforts with that of the outsourced agency and build a project together.
The majority of the work is done by the outsourced.
Your in-house team is tasked with streamlining the entire process.
Moving on with how to outsource software creation or development and what it will cost.
Three things have an impact on the price.
- The complexity of the business logic,
- Designing complexity,
- Number and seniority of developers.
Let’s talk about these aspects briefly.
Consider two scenarios.
One, you want to build software for HR management. (as we did here.)
Two, you want to build software for hardware equipment that connects two people’s brains.
Which software do you think will be easy to make?
The first one, right?
The second software may sound like an incredible idea.
But the business logic behind this software is highly complex.
The developers first need to understand how the hardware will work.
And then they can build a platform.
For the other software, however, things are relatively easier to understand and build.
Consequently, the cost of the second software will also be higher.
This is the first aspect of how much does it cost to outsource your software development work.
Again, taking the previous example.
The design of the second type of software will also be relatively complex.
Because the designers will need to understand the user base.
And the users of the second software will not be the normal folk.
Most probably, scientists and neurologists will use that.
Hence, the design principles might be different for different customers.
More complex designs require highly specific research and more time. That’s why the budget-wise investment usually considers outsourcing web design.
Hence, the cost to design an app will also be higher.
Number and seniority of developers
More number of developers working on your project means faster delivery.
Plus, if the developers have more experience, they will charge a higher price. (Use our calculator to find out the difference.)
The cumulative impact of these aspects is simple to understand.
If you want to build high-performance software that has impeccable design, it will cost more.
We know that you are not satisfied with this as your answer for how much does it cost to outsource software creation or development.
Rest assured that we will also talk in numbers.
Before that, let’s take a look at the desired team you need to outsource software development.
In how to outsource your software development project, team composition is essential.
Not only does it have an impact on the cost, but also on the quality of work.
The standard team composition that we will move ahead with includes;
For figuring out how much does it really cost to outsource software development, this is our team.
But there are alternatives to this team too.
For instance, if you think that you manage the project yourself from your end, remove the project manager.
Also, testing is relatively easier than development.
If you can manage that too, a tester is not needed.
The same goes for design.
If you can take it up or use the native drag and drop elements, remove the designer too.
Lastly, a full stack developer can replace a backend and frontend developer.
This implies that you can go ahead with a one-person team to outsource software development.
But, in that case, you will have you put your best foot forward and partake in the development work.
But, getting back to our original team.
Let’s identify how much does it cost to outsource software development.
We have chosen four regions to help you compare the prices.
Before you get any ideas. Do not just look at the money.
Low cost or high cost does not always mean a quality product.
Things are not always black and white.
So, for understanding purposes, let’s consider that your software development project involves 800 hours of work.
So, that is it.
Now you know how much does it cost to outsource your software development.
Not just the cost.
You can also successfully outsource software development projects to a team of your choice.
We have talked about research, requirement settings, interview, and selection.
Are You Looking For a Reliable Partner?
As an experienced player in the market, SpdLoad can be your next development partner.
When you outsource your software development task to us, you are in for a surprise.
Not only do we take care of the development part.
But we also have business analysts, project managers, designers, testers, deployment experts, and marketing gurus in our team.
Our developers have extensive industry experience across different markets: from healthcare to FinTech products.
We use the latest development technologies, SDKs, and frameworks to build your software.
All these projects have helped our clients compete in the market and raise funds for future expansion.
Hiring us won’t make a difference in your communication.
We are available for a chat at any time and can communicate flawlessly.
Want the best answer to how to outsource software development? Check our portfolio to make sure we suit your needs the best.
Originally published at https://spdload.com.