Top Strategies for Outsourcing Software Development
Outsourcing has continued to play an increasingly important role in business growth today. Not only because it allows companies to cut down on labor costs, but also grants access to a highly-skilled labor pool and getting projects completed faster.
One recent study uncovered large organizations have increased the percentage of their IT budgets spent on outsourcing from 6.3 percent to 8.7 percent in 2019 and medium-sized companies have also increased their budgets from 4.7 percent to 6.5 percent.
While the benefits of outsourcing are many, there are key ways that a business should go about the process, which lead to a successful project outcome. We’ve laid those out for you in detail in this article.
Here is our list of top strategies for outsourcing software development.
1. Know What to Outsource & What to Keep In-house
Not every function should be outsourced. However, there is a lot that a company can trust another provider to handle with more expertise for them from the outside. These functions can include the development of new applications, software or platforms, and other IT functions. The key is to understand what your business needs and which of those requirements would benefit from being handled by offshore talent.
2. Identify & Mitigate Any Possible Risks
Before taking on any new project (both internally and externally) it’s important to understand any possible risks and steps to correct them before they can become a problem. With offshore outsourcing, it’s critical that these potential hiccups are discovered in advance to keep the project running smoothly once it’s in motion.
3. Conduct a Careful Evaluation and Selection Process
Choosing just any provider for your outsourced projects is the wrong move. You want to meet with a few providers, conduct interviews and understand the scope of their talent’s capabilities so that you know it will be a good match for your project. Be sure to ask the right questions and understand the type of outsourcing model that’s going to work for your needs.
4. Getting Management Buy-in Beforehand
Buy-in from management is a critical step in any project’s long term success. Since they are likely going to oversee and monitor the success of the project, it’s important that they understand and are fully on board with any plans to outsource needs to an offshore company. Once they understand the benefits that can be gained by working with these highly-skilled teams, they will be more likely to appreciate how the timeline moves along and the final outcome.
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