Avoid Mistakes When Hiring an Outsourcing Software Development Company

Calendar icon March 27, 2024
outsourcing software development company

For small businesses, the key achievement of their business can be choosing the proper outsourcing collaborator. As superior partners, outsourcing software development company can decrease staff expenses and workload. Despite the benefits, there are main blunders that organizations regularly make during outsourcing. 

Below is a list of top mistakes and related aspects that Wiicamp proposes when outsourcing software development to an offshore company.

1. What Does An Outsourcing Software Development Company Mean?

Businesses no longer need to recruit workers on-site to do a variety of tasks. They can now locate talent in many different places, including those outsides of their own nation. A corporation may locate high-caliber labor and specialized skill sets anywhere in the world, according to the theory. The outsourcing software development company is one example of this.

When a corporation contracts with a partner in a location with a different time zone than the company’s headquarters, offshore software development takes place. An organization in the United States collaborating with a software development company in Vietnam or a company in Australia collaborating with a software development team in Vietnam are two examples of this.

The model of nearshore software development and the model of offshore software development are often seen as relatively similar.  In this instance, a company collaborates with a team of software developers in a nearby nation to finish a software project. 

offshore outsourcing software development company
Figure 1. Outsourcing is a type of outsourcing where the hired company has a different time zone than the hiring company

For instance, a corporation in Southeast Asia would collaborate with a Vietnamese development company, whereas a company in Indonesia might team up with a Filipino outsourcing software development company.

In either scenario, collaborating with a software developer or a team in another nation is involved. It entails assembling a remote and off-site workforce to work on a software development project. 

This can be used for a wide range of jobs, from simple coding to product design, custom software development, web, and mobile application development, as well as software support and maintenance.

2. When to Hire an outsourcing software development company?

2.1. Lack of Tech Talent

The scarcity of top-tier talented engineers is happening globally. Because of this, it is difficult to find local engineers who are eager to join an internal team. Businesses may have difficulty finding a full-time developer with the necessary skills in the area, so they turn to offshore software development companies instead.

2.2. Complicated Projects

A lot of technical knowledge and experience are needed to handle a complicated project. Without them, it’s easy to hit roadblocks and build up downtime. Outsourcing software development company has the capability to access complex development workflows and specialized tech stacks.

2.3. Time Limit

Success or failure may depend on getting the appropriate results at the right moment. You may swiftly implement your idea using offshore developers and extend your capabilities as necessary. 

time of the offshore outsourcing software development company
Figure 2. Outsourcing software development company will be your solution for the time limit

You can also continue to be in control of the project management process, utilizing your own project manager to instruct the software developers, or you can hand your project off to a software development company, which will finish it from beginning to end, cutting down on time and improving efficiency.

3. Advantages of Outsourcing Software Development Company

3.1 Reduce Cost

As a result, you can pay less with an outsourcing software development company than you would in your own country. To put it another way, choosing offshore software development will allow you to save money without compromising the caliber or level of competence of your project.

3.2 Flexibility

Startups couldn’t afford to have a huge staff of developers, who are paid monthly with extremely high salaries, especially if they were idle. In contrast, with an outsourcing software development company, you can choose the level of competence, the number of developers, and the duration of the partnership. Depending on the needs of your business, you may scale up or down.

offshore outsourcing software development company
Figure 3. One of the reasons for you to use offshore outsourcing is flexibility

In addition, offshoring outsourcing eliminates the requirement for recurring monthly payments for social benefits, insurance, and other advantages for employees.

3.3 A Broad Talent Pool Available

Through offshore outsourcing, you have access to a large global talent pool for IT. The leading software development company will seek superlative developers and make use of their skills for your projects. 

The leading outsourcing software development company with years of industry experience will build offshore development teams with expertise in every technology, with a solid tech stack, and have years of industry experience.

3.4 Time Optimization

Nobody expects that the project will be late. The competitive market would be the primary factor. You lose more market share the longer your project takes. The second one might come as a result of budgetary concerns. The more money you have to spend, the longer the process takes.

It’s difficult to construct projects from scratch on your own. Personnel recruitment, development, and deployment require time. You might experience stress occasionally due to the pressure of time and a lack of resources.

4. Disadvantages of Outsourcing Software Development Company

4.1 Language and Cultural Barriers

You probably need to take into account miscommunication during the working procedure. It may cause your project to take longer to complete and increase your time and financial costs.

There are many other ways to communicate, including email, instant messaging, video calls, and online meetings. But occasionally, crucial guidelines and regulations are merely overlooked. Beyond that, there are instances where what you desire can be misunderstood as its meaning.

languages in the offshore outsourcing software development company
Figure 4. Miscommunication could severely affect the outcome of the project

As a result, you must take time and invest extra effort in creating a plan and process that will enable your development team to comprehend the related needs and documents.

4.2 Transparency Issues

You have little influence over how the external vendor is developing the software, in contrast to leading an in-house team. Furthermore, you have no control over how the vendor handles confidential data or how they keep their developers inspired to work toward a common goal.

Information leakage is a potential concern when using offshore development services, and it can seriously compromise security. To comprehend the complete system and run projects, developers need sensitive information such as customer data, code, and workflows. Companies must do a lot of effort to protect the confidentiality of information.

4.3 Time Zone Differences

When you want to work with an outsourcing software development company,  this is the very first thing you must realize. Typically, many American businesses choose to collaborate with foreign companies or freelancers who are located on the other side of the world. That implies that offshore developers are expected to sleep in bed while the host firm is at work.

Time zone is another issue when using offshore outsourcing
Figure 5. Time zone is another issue when using offshore outsourcing model

If your team does not agree to do night shifts to coincide with the working hours of the client, communication between the various departments will suffer greatly. Customers always want their products and services to be conducted right away. If you are unable to satisfy their expectations, your rivals may be able to steal some of your clients.

5. How To Manage An Offshore Development Team

5.1 Set Specific Goals

You must specify the services you require before contacting potential vendors.

  • Are you trying to find a team of developers who work remotely and can create an app from scratch?
  • Or are you looking for help to make an existing app’s UX better?

5.1 Select The Suitable Partner

Finding a possible partner who has the expertise, experience, and capability to handle such responsibilities is the next step. What’s equally crucial is that the outsourcing software development company needs to show that they have a sufficient grasp of your business. This will make it more likely that the software developer will adhere closely to your company’s goals.

5.2 Select the most effective model 

A few different models of cooperation choices are provided by the majority of offshore outsourcing software development companies: time and materials, fixed price, or dedicated team. Each approach has benefits and drawbacks of its own. The dedicated team model is best suited for long-term projects since it delivers stability and control.

While time and material provide flexibility for projects with ambiguous specifications, fixed pricing works well for short-term projects with well-defined requirements.

5.3 Choose the Form of Interaction

The secret to successful collaboration between an outsourcing software development company and its client is effective communication. There is an array of communication tools, such as Slack, Jira, Zoom, Figma, and Miro to work closely between the team of developers and the client. 

Together with the software development team that you hire, establishing an effective workflow will impact both how quickly your project moves forward and how effectively the final product turns out. Whatever means of communication you choose to use to work (be it email, phone, video calls, or web platforms)

5.4 Give Feedback 

Update the status frequently to see if the outsourced developers have strayed from the project’s original progress. You must carefully consider whether the developers are moving in the right path and offer useful suggestions in response.

5.5 Be Partners

From my experience working with a wide variety of clients, the key to successful outsourcing is the incredible collaboration between the vendor and the client. In other words, you must collaborate with the external developers as if they were members of your team.

6. Mistakes to Avoid When Hiring an Outsourcing Software Development Company

6.1. Shortage of Research

Choosing an outsourcing software development company without carrying out the whole research is a popular error that organizations make. Other startups base their decisions, particularly on cost efficiency. Even though the expense element plays a crucial role in the decision-making procedure, it is not the only one. 

offshore outsourcing
Figure 6. Lack of research is the top mistake at this time

A wide range of things can be focused on such as expertise and portfolio, and the solution your supplier functions in this market. There are double fields you might research to ensure that you join the tech outsourcing project. 

6.2. Keeping Ambiguity in Miscommunication

Small organization owners can outsource their software development campaigns without a whole insight into what wants to be completed. In reality, if you get a vague initiative about the campaign, it is super tough to make good requirements for the outsourcing collaborator and to assess whether the application development outsourcing process is run in the right way or not. 

6.3. Outsourcing to Plans That are Not in Sync With Top Trends

Outsourcing to old companies which are not updated with the top trends might lead to key issues. Even though it can seem that your selected web development plant might code greater than anybody else, they can be taking workflows and interfaces particular to their local zone. That might lead to a considerable break in how end-users might experience the software.

6.4. Shortage of Fundamental Technical Know-how for Your End

Even though outsourcing plants get engineering expertise, it can not mean that you suppose again that you might place the order and take the precise expected outcome on the project’s end. Frequent checks are vital as well. Thus, a shortage of engineering knowledge from your end can result in other key risks for the campaign.

So if you are not in a position to control the campaign every single day by yourself, you might get the internal person or the project lead to take care of you for that or choose a good collaborator who gets a consultative method ahead of you for the campaign.

6.5. Underestimating Quality Assurance

Testing the project when it is underway is essential for boosting trust that your last project is strong or functions the solution it might. In reality, the tester might relate to the development from the start, otherwise, you tend to come into a lot of bugs at the end. Thus, you have to make sure that your software is tested carefully.

Whatever you want to build, testing might be a crucial part of software development from the start. Quality assurance might be completed rapidly by a similar company that collaborates with you for the projects. 

7. Standard Factors Need Considering Before Choosing an Outsourcing Software Development Company.

7.1 Client Reviews

Reading customer reviews can give you insight into a company’s capabilities by allowing you to see how other clients have responded. In this scenario, you can check how other customers have responded to the business’s official profile on B2B directories. Additionally, you can view their portfolio on a business website and other channels like Clunch.

offshore outsourcing
Figure 7. Previous client reviews help you have a better insight into the capacities of an outsourcing software development company

You can tell if a company’s work fulfills the requirements of its customers by looking at its customer reviews. You can pick companies that have received a lot of favorable consumer feedback and loyal clients.

7.2 Service Quality

The top outsourcing software development company must have an excellent cost-to-quality ratio. In order to choose the best software outsourcing company, you must realize that good prices don’t necessarily come with good services. On the other hand, we are aware that one of the advantages of offshore software development is that the majority of people outsource their software development projects in order to cut expenses.

Hence, you should pick companies that focus on quality services while providing affordable outsourcing prices. We also recognize that some companies may charge more and fall short of expectations, while others may charge less and provide outcomes that are three times as good.

7.3 Companies’ Certification

Numerous businesses assert that they are the best at offering high-quality services. However, a few credentials are required for any top business. Therefore, you should examine their qualifications before listing any companies in a given industry to see if they are worth considering. Businesses’ services and products are guaranteed to be of the highest caliber, efficiency, and safety thanks to certifications from organizations like the International Standards Organization.

Hence, company certification raises the authenticity, prestige, and general effectiveness of any business. Additionally, it improves service delivery consistency, ensuring that consumers always receive high-quality services from an outsourcing software development company.

8. Why is a Vietnamese outsourcing software development company your choice?

8.1 A Large Pool of Educated Young Talents

Vietnam has an indisputably excellent talent pool due to its young population and high thirst for education. Vietnam has a huge demographic force with a population of about 100 million people, 70% of whom are under the age of 35 (and a median age of 32.5 years), which can easily support its burgeoning IT industry. Its unemployment rate is likewise among the lowest in the world. 

Vietnam trains almost 400,000 IT engineers annually with one of the 153 universities listed in the nation, according to the TopDev report.

8.2 Competitive Cost

Vietnam is ranked fifth among the “Best countries to outsource to in the World in 2019,” according to Markets Insider.

Despite very significant economic growth, the cost of infrastructure and labor in this country is still fairly low when compared to the rest of the globe, with a GDP per capita that has not yet reached 3,000 USD.

offshore outsourcing software development company in Vietnam
Figure 8. its services at incredibly low prices

Outsourcing software development company is, therefore, able to offer its services at incredibly low prices.

Indeed, a developer’s hourly wage in Vietnam is negotiated to be between 20 and 40 USD. Compared to their peers in USA and Europe, the typical monthly salary of Vietnamese developers is only from $132 to $190.

8.3 A Stable Environment

Contrary to many of its neighbors, like India, Thailand, Myanmar, and the Philippines, which may be prone to uprisings, regional conflicts, or societal unrest, Vietnam’s political landscape is known to be relatively stable, with an acceptable legal framework and a very resilient economy.

According to Minority Rights, The majority of Vietnamese people—more than 80%—do not identify as belonging to any particular religion. Besides that, 95% of Vietnam’s population is ethnically Vietnamese. Hence, there are no major ethnic or religious conflicts in Vietnam. 

8.4 Low Cultural Barriers

Vietnamese developers know that communication and cultural understanding are also important for a successful relationship so they have continuously improved their English level. The majority of developers are now adept at using English for business and communication as a result of the country’s determination to make English its second language.

The Vietnamese make up for their insufficient English with a strong work ethic. Young, enthusiastic, diligent, and willing to engage in projects and gain experience, Vietnamese software engineers bring these traits to the workplace culture of software providers.

Final Thoughts

We come to the end of the article about questions you might ask when you work with an outsourcing software development company. Especially all the basic mistakes that you should avoid when outsourcing software development in the future. Finally, if you need our support related to outsourcing software development, please leave your feedback below. Thank you!

Sources: Internet