Today’s globally digitized business landscape has leveraged companies to access the world’s best software developers or enterprise software development solution providers. Whether a startup or large organization prefers to outsource their product development to the most proficient yet cost-effective source. In this article, we will take a look at software outsourcing, steps to outsourcing, and the benefits of outsourcing software or app development.
As per the statistics, outsourcing mobile app development can cut costs up to 75%. When you observe, almost 59% of businesses have outsourced their development needs due to cost-cutting features.
Deloitte also says that IT outsourcing services have considerably increased by 31% in the past year and are continuously expected to evolve. Another survey by Deloitte explained that around 78% of the respondents were positive about their outsourcing relationships.
Clutch also surveyed and observed that 37% of small businesses outsource a minimum of one of their businesses while 66% of mid-size (50 employees) businesses are more inclined towards outsourcing their business processes.
To be precise, the companies have different objectives to outsource. The reasons are –
- Cost-cutting, which 59% of companies agreed to.
- Put the complete focus on business objectives, to which 57% of companies agreed.
- Solving capacity-related issues, to which 47% of companies agreed.
- Enhance service quality, to which 31% of companies agreed.
- Critical business needs were also among the 28% of companies’ reasons for outsourcing.
- Business environments and to drive broader transformational changes, around 17% of companies look forward to outsourcing.
Software or app development outsourcing has become an advantage for the companies to improve efficiency, mitigate risks, enhance security and reduce cost. With time it is evolving as a global strategy.
With new programming languages & new methodologies, it is difficult for every company to keep pace with the ever-changing environment. The fastest-growing companies that strive to drive software development forward provide high-quality outsourcing services for the companies who want to compete with the changing market. These extensive companies help in filling the skill gap in other organizations, with the help of a proficient development team, to set them for digital acceleration in the long term.
Outsourcing service providers play a vital role in business scalability. Due to the special mobile app development like cloud computing, the Internet of Things, and blockchain is no longer a challenge for small and mid-sized companies.
Large companies can seamlessly adopt this global strategy for specific advanced technology and continue to focus on their other operations. In order to outsource, you must understand the main models of software outsourcing.
3 Models of Outsourcing
There are 3 models from which a company can choose for outsourcing. However, the model explains the level of complexity, budget, timescale, and level of involvement in the project.
Project-based Model – This model allows the outsourcing company to oversee the entire software development process of the company ranging from defining the specification to allocating workflow, setting timescales, and quality testing.
Dedicated Team Model – This model means the company renders complete responsibility of the project on the outsource providers thus managing structure, allocating specific tasks, and monitoring the workflow. This way, the company can benefit from the highly-skilled developers and ensure 100% results.
Staff Augmentation Model – This is the simplest model of all, where the outsourced providers work side by side with the in-house development team to develop the software. The augmented team typically manages with the existing staff and works from the same office until the project is complete.
How to Find the Perfect Outsourcing Partner?
The following guide will help you better select an outsourcing partner for the perfect development of your requirement.
There are multiple listing websites such as Clutch, Appfutura, GoodFirms, and more that provide outsourcing services. With the help of these websites, you can check and decide the geography of the company to outsource. You can personally contact the outsourcing companies from these listing sites and get a better idea of their process of app development, hourly rates, and the level of expertise for better decision making. You can pen down three to four companies to select the best one.
Before you make the final choice of picking an outsource company, look for their quality work. By asking for portfolios, you can easily judge their quality of work and the time invested in developing them.
A portfolio is a great way to underline the level of complexity the outsourcing agency has dealt with, which also assures their good experience in developing versatile apps.
Check the Range of Service
This aspect helps you in better planning for future incorporation in your application. A rough scope of work can be asked by the outsourcing agency to gain better clarity of your vision & their understanding. The scope of work also helps you to walk through a process of development and options to add or remove the specifications or features as per the needs, giving a better clarity of the project.
Ask About Post-Launch Services
Another important aspect to check when finalizing an outsourcing partner is post-launch services. An intricate and complex mobile app will require timely maintenance and bug fixing to make it flawless. It is crucial to share the post-launch services in the scope of work for continuous support and exceptional performance.
The constant upgradation solutions will help businesses to constantly match with the industry standards and stay competitive in the market.
One of the factors to make the project successful is communication management. Since the projects connect with a wider audience, it becomes more difficult to manage them. Similarly, for better development, regular and transparent communications through meetings and discussions to keep the project track on every stage or level.
Checklist to Outsource you App Development
Make An Outline
A clear vision of the app is essential to portray your project. Answer these questions to clearer the vision –
- What do you want to accomplish with your app?
- What problems will your app solve?
- Which preferred platform do you want to build your application?
- What features do you want to incorporate into the app?
- What factors will make your app better than others?
Before looking for a reliable outsourcing partner, you will have to sit and decide on the budget you can spend on your idea. When you have your budget, you can shortlist agencies that match your budget perfectly.
Conduct Market Research
Before you find and pick an outsource partner for your requirement, it is important to make an in-depth market analysis. Understand the ins and outs of the industry so that you don’t go blindly to an outsourcing agency.
Understand which programming language is the most used, reliable, and scalable for app development.
Screen The Team
Discuss the time zone that they will work on. Does that match yours? Will you be able to sync despite the different time zones?
Regardless of the time zones, the communications and development process can be seamless with the help of communications tools, project management tools, and more. Ensure that your outsourcing agency is well-versed with the latest technology and tools to develop the most intuitive feature-rich mobile app.
Inquire About the Development Cost
Every company offers different development costs depending on various factors. For instance, geographical location, feature complexity, and resources needed may vary the cost of the development of an app. The cost of app development may range from $25,000 – $200,000. Application type and its development cost can be –
- On Demand Taxi Booking App – $25,000 – $100,00
- Banking/Payment App – $40,000 – $70,000
- Real Estate App – $12,000 – $15,000
- Networking(Social) App – $30,000+
- Dating App – $80,000 – $200,000
- Messaging App – $50,000 – $130,000
Attention To Meeting Deadlines
Delivery of the project on time will consider that you have made the right choice. One of the best ways is by checking the reviews, costs, time of delivery, and support offered by the outsourcing partner.
Failure in deadlines can lead to major breaches and additional costs, which you might not be prepared for. Hence you should understand the methods they practice to handle complex projects and how they manage the last-minute changes to identify their expertise.
How to Outsource Your App Development Without Risk
Follow these steps to ensure that you eliminate the possible risks attached to the outsourcing partner.
- Ensuring the Money Back Guarantee
- Set Account Management and Short Trial Phases
- Setting up Client-side Repository
- Breakdown The Cost to Avoid Money Loss
- Follow Escrow Method of Payment & Leverage the Benefit of Code
Why Are Outsourcing Partners A Better Choice?
These are the two choices that all companies have – either hire a team of dedicated developers or outsource the requirement. However, there is no right or wrong in choosing between the two, but for the quick development needs, outsourcing is more preferred. Why we are saying because –
- When you only have a one-time majority task,
- When you have a low budget and are unclear of your ROI plan,
- When you want quick market-time,
- When you want a technical upgrade in the app.
Outsourcing your requirements lets you stay ahead of the competition and stay competitive in the changing market. So, whether it is an app for your startup, or you want to take the business online, or want to optimize your everyday business activities, you can always look out for a reliable and mobile app development company for outsourcing.