The rise in outsourcing is not surprising given the rapid pace of technological change. Businesses must regularly review and update their systems to keep pace with emerging tech trends.
Software outsourcing opens doors for companies to stay current, allowing them to digitize and optimize their operations. It also provides access to a global pool of talented individuals, offering opportunities to collaborate with tech experts from around the world.
Types of Outsourcing Services
Outsourcing in software development comes in three primary forms:
Nearshoring
This involves an outsourcing software company hiring a third-party service provider in a nearby country. For example, a Chinese company might partner with a software outsourcing firm in Vietnam. In this scenario, Vietnam becomes a nearshore outsourcing destination for China.
The key benefits of nearshoring include minimal time zone differences, cultural similarities, and easier communication. Additionally, it’s more convenient for clients to visit and interact directly with the outsourced team, which can be crucial for resolving any significant issues during the software development process.
Onshoring
In onshoring, a company hires a third-party service within its own country. For example, a U.S. company employing a local software outsourcing firm.
This approach eliminates language barriers, as both parties speak the same language, enhancing the effectiveness of the outsourcing process. However, onshoring typically incurs higher development costs compared to nearshoring and offshoring.
Offshoring
Offshoring refers to hiring a software outsourcing company from far-off countries. For instance, a U.S. company might collaborate with software providers in China, India, or Vietnam.
These countries are considered offshore software development hubs, with India and China being particularly well-known. Offshoring is often chosen for its cost-effectiveness due to lower labor costs and the availability of diverse resources.
How to choose a good outsourcing software company?
There are countless IT outsourcing companies globally, making the decision of choosing one a complex task. While a business owner or entrepreneur might be tempted to simply pick a company they like, this approach isn’t advisable.
Selecting a software outsourcing provider at random is straightforward, but ensuring that they will deliver high-quality products or achieve the best results is a completely different matter.
Clarify Your Goals
It’s crucial to have a clear understanding of your objectives. Knowing your destination is essential before embarking on any journey. Business owners should articulate their aims in concrete business terms before approaching a software development firm.
This could mean, for instance, developing an enhanced or new management system for the company, injecting fresh ideas into a software product to augment profits, leveraging IT/technology for superior service quality, or streamlining business processes.
Assess Internal Resources
Next, allocate time to collaborate with your business team or other relevant stakeholders for the upcoming project. Evaluate various factors, including budget, industry specifics, skill sets, technological advancements, and even competitors. This assessment helps in refining the choice of potential partners, ensuring a more informed selection.
Furthermore, evaluate the in-house development team’s experience, competencies, and technical capabilities. This review will clarify necessary technical skills, the team’s capability to undertake the project, and the number of software developers required.
Choose the Outsourcing Service Type
Selecting between onshore, nearshore, or offshore outsourcing involves weighing their respective pros and cons. Your decision should be grounded in an understanding of your internal resources and a thorough consideration of various factors like time zone differences, developer hourly rates, communication proficiency, project scale, and project duration (long-term or short-term).
Compile a List of Potential Partners
After deciding on the outsourcing model, start identifying potential partners. Aim to shortlist at least 5 to 7 prospective software development outsourcing companies. There are several approaches to this:
- Seek referrals or recommendations from friends or business associates who have previously collaborated with IT software outsourcing firms. Their firsthand experiences provide reliable insights into the proficiency and professionalism of these companies.
- Utilize social media platforms, particularly LinkedIn and Twitter, to gain insights into the companies’ culture and ethos. While not entirely conclusive, these platforms can offer valuable information and options.
Contact Potential Partners
Having completed your research, you can reach out to potential outsourcing partners and arrange meetings to discuss the project in more detail.
It’s beneficial to explain your project’s challenges and expectations. If feasible, request solutions, technology consulting, or developer resumes to ensure you’re engaging the most talented and skilled individuals.
If a company aligns with your expectations and needs, you’re on the right track. Once everything is set, look forward to the results and watch how it positively impacts your business growth.
Conclusion
Here you go, a comprehensive and enlightening software outsourcing guide. Simply follow the provided strategies and steps to make your developer selection process more efficient and speed up your project development.
Outsourcing a software project may appear daunting, especially if you lack the expertise to identify and choose the right developer for your requirements. At Saigon Technology, we grasp the difficulties associated with software outsourcing, including the time-consuming process of locating and selecting the ideal programmer.