How to Pick the Right Product Development Partner
Tags: webdev, startup, discuss, management
Published: 2023-07-04 15:33:18

Developing a product that relies a lot on software can be quite challenging. As the business landscape keeps changing, organizations seek adaptable methods of management. Among them, outsourcing has proved itself to be a strategic tool that drives change and boosts operational efficiency.

For many, outsourcing is not only a business development tactic. It's also the path for expanding into new markets without having to build or nurture the necessary skills from scratch. Besides, in the big picture, outsourcing acts as a reliable way of creating products and services that are innovative.

But product development consulting goes way beyond the development phase. It should include the broader concept of product management, which guides every stage of the product lifecycle - from development to positioning and pricing. Product management involves not only the technical aspects of developing a product, but also the strategic and customer-centric aspects that dictate the success and market-fit of a product. Therefore, this role combines knowledge from business, technology, and UX that helps make informed decisions. To do this, a product manager employs various techniques and tools to put the product's vision and strategy in place, analyze user needs, manage data, and oversee the team.

So by outsourcing [product development services](https://railsware.com/services/) to a trusted product partner, you can tap into their expertise in product management. Choosing the right one is definitely crucial for the success of your product. With their expertise, you'll be able to turn your product vision into reality, ensuring that the output not only meets your expectations and needs, but also solves your users’ problems.

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## The Outsourcing Dilemma
When you want to introduce a new product to the market, several development options come to play, like building an in-house team, collaborating with another company, or outsourcing the process to third-party experts. While each choice has its pros and cons, outsourcing product development often emerges as the most efficient one. This is most often done by smaller startups since, in the early stages, it’s not profitable to create separate workstations for each production stage.

Outsourcing product development means hiring a team of experts to handle the process's entirety, which becomes a significant advantage if your business lacks the in-house resources or expertise to do the job. But there are many reasons why choosing this option can be wiser, for instance:

1.  **Cost and time efficiency**: Great product development teams have the tools and resources for quick and efficient execution. With their sole focus on your project, they can be more productive than an in-house team that's juggling many projects that often might seem equally urgent.
    
2.  **Delegated management**: Outsourcing frees you from managing the development process, allowing you to tune in on other sides of your business. By involving experienced specialists with relevant experience, you can avoid potential [hiring mistakes that many startups make](https://railsware.com/blog/startup-hiring-mistakes/).
    
3.  **Reduced overhead costs**: Outsourcing also gets rid of the expenses related to managing the development process in-house, allowing you to allocate resources more efficiently. And, again, not worry about these details at all.
    
4.  **Access to expertise**: Since you have access to pros that might not be available otherwise, you'll be closer to the highest quality result. Simply put, don’t forget to stay realistic by trying to understand what’s lacking in your team, and how you can most efficiently make up for it.


On the other hand, outsourcing means transferring control of a vital part of your business to an external group of people. Don’t forget that this is still your product and resources. You must carefully consider all the options available to you and voice your concerns to avoid risks, such as:
1. **Quality control issues**: There's always the risk that the company will cut corners to save money or meet deadlines, which could result in an inferior product, damaging your reputation, and costing you in the long run - the so-called [technical debt](https://railsware.com/blog/reduce-technical-debt/#What_is_technical_debt).
    
2. **Communication challenges**: You may find the perfect team to collaborate with in a different country than yours. Naturally, different time zones, language barriers and cultural nuances can cause misunderstandings. A structured and clear communication system can be very helpful if established from the beginning.
    
3.  **Intellectual property issues**: These concerns arise because the outsourced company will likely have access to your company's confidential information. If not properly safeguarded, it could fall into the hands of competitors or be used against your interests. In this case, it's good to have contracts, non-disclosure agreements, etc. in place to protect yourself and your business.
    
4.  **Being dependent on one team**: After picking your partner, you'll possibly be dependent on them for ongoing support, updates, and maintenance. If the relationship deteriorates or fails to meet expectations, it can impact your product's continuity and future development. Be sure to establish contingency plans, do your research in advance, and communicate your concerns and goals from the get go.

While there are downsides, the benefits of outsourcing can far outweigh the risks. If executed correctly. An experienced and reputable product team can help you bring your vision and new product to market without breaking the bank.

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## When Outsourcing, Don’t Leave These Out

Finally decided to outsource? You’ve carefully considered its pros and cons but it’s time to choose a trustworthy company. A suitable product development partner should have a clear understanding of your vision and goals, proven track record of success, a commitment to quality, focus on customer service, and offer competitive pricing. Let's see what this means.

**Start with a clear vision and goals.** This is the first thing to look for. Find a team that not only understands your product and your business but also has the ability to translate that into a successful development process. Spend time explaining your vision and goals in detail. Ask as many questions as you need to ensure the team understands your expectations and is capable enough to challenge your ideas. That’s how you'll know they’re committed to delivering the best possible results.

**Establish a proven track record.** When entrusting your product development to an external team, you need assurance that they have a good portfolio. Request case studies from previous clients and look at the company's experience and reputation. As mentioned above, ask questions. Ask about their development process, timings, communication style, approaches, and so on. Don’t worry, you don’t need to get technical. But this is your business, so it’s your responsibility to make sure it lands in the right hands.

**Focus on quality.** You need a team that commits to developing high-quality products and can back that up. Enquire about their quality control and how they manage any problems that arise during the development process. Or even how they approach any, say, speed bumps. What’s the plan when faced with a time crunch? Would they opt for small iterations or sacrifice quality, for instance?

**Focus on customer service.** Look for a team that is responsive, easy to work with, and willing to go the extra mile for your and your product's benefit. This goes back to your communication system. Don’t neglect the importance of a well established one, especially in case you end up facing changes or problems along the way.

**Make a stake in competitive pricing.** A good partner knows their worth, yes, but they understand your needs - your resources included. If they believe in your project and trust their abilities, they'll be open to either negotiate or at least communicate their reasoning clearly. Nevertheless, get quotes from several companies before making your final decision. Do your research both to stay realistic and to back up your arguments. When the time comes to hire the super-team, ask about payment terms, schedules, and the company's policies.

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## Wrapping Up

The process of finding the right product development partner might seem overwhelming. But hiring an expert team to make your product come to life is definitely a rising strategic move that stops many businesses from failing. And help many customers have what they needed all along.

Most of what you need to do is invest time and effort in research - not only on the available companies but also on your own requirements. Like you're doing right now. By knowing what you need, what your business will gain from this and how to avoid any risks, you're halfway to success.

In the end, this is a partnership. All sides win while working for the same goal. Both parties must feel comfortable in this collaboration, so feel free to communicate your concerns, requirements and expectations objectively.

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_Thanks for reading! Feel free to share your own tips or experience ✌️_