What Is The Best Way To Outsource Software Development?
Tags: javascript, web, webdev, devops
Published: 2022-08-25 11:49:00

[Outsourcing custom software development](https://staggeringroi.com/custom-software-development-services/) is a big business nowadays because it provides a terrific return on investment when done correctly. 

According to Accelerance’s report, organizations are anticipated to invest $133.3 billion in outsourced software development by 2025. 
Many will consider it an excellent investment, while some will regret their verdict. The naked truth about outsourcing is that some projects will not succeed. 
The core causes of these failures can be a weak plan, selecting an unreliable outsourcing vendor, unclear expectations and goals, and lack of communication. 
Success in outsourcing software development requires comprehending the complexity of the process from beginning to end. 
This guide will discuss how to successfully outsource development projects and increase your probability of success.  

**Steps For Outsourcing Software Development Projects**
The following procedure will maximize your chances of success when outsourcing custom software development---whether you employ developers on the other corner of the world or near your office.  
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- Describe Your Development Objectives:**
Every project has several shareholders, and you can't anticipate all of them to be taking part in every project detail. 
When we say shareholders, it means the company’s top management, customers, end users, etc. 
Outsourced development projects can be different in nature, so you can anticipate shareholders outside companies or even folks that will utilize or be directly impacted by the end product. 
You will most likely also want to share your ideas with other team members and even other individuals in the business so that you know your project has clear-cut objectives.
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- Prepare A Scope Statement For Your Project:
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Before picking an outsourcing agency, you will want to dig deeper, fleshing out queries like budgets, goals, scope, deliverables, etc. 
This will become the groundwork for your project roadmap. A project scope template will answer these things: 

- What are your project’s high-level goals, who are you serving, and what issues are you trying to solve?

- How does the software align with your company objectives?

- Why are you developing software? Do you want to solve the company’s internal issues, earn a profit, or revolutionize legacy software?

- What outcomes are you anticipating at each sprint cycle’s end? Identify the results you want to accomplish at the development process’s end.

- What the project won’t cover, and when will you begin working on it?

- What is the estimated time frame for releasing the developed product?

- What are the budget limitations, and what are the project’s key milestones?

**- Decide If You Want To Outsource Or Not:**
It is time to choose between internal development and outsourcing. Making a knowledgeable decision will require you to consider various factors. 
Outsourcing is one of the best approaches to staying competitive. An effective outsourcing plan will decrease time to market, save costs for your company, and provide access to top-notch technology. 
However, an unfocused outsourcing company can waste resources or cause harm to your business.

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- Decide Between Nearshore, Onshore, And Offshore Outsourcing:
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When selecting an outsourcing agency, each company’s location is a vital factor that can influence the communication, price, efficiency, and end product’s overall quality. 
There are three categories of outsourcing: nearshore, onshore, and offshore. Onshore means choosing a company established in your country. 
Nearshore means choosing a company based in a neighboring country. Offshore means choosing an agency located in a distant country.

**- Research The Top Countries For Outsourcing:**
Now, you have to research countries that have an outstanding outsourcing culture. Some of the best countries include China, Hungary, South Korea, Pakistan, and Ukraine. 
Know how much software developers charge per hour in these countries and the time difference between your country and their country to guarantee smooth communication.

**- Choose Your Future Outsourcing Partner:**
Once you have discovered a company that matches your budget and objectives, the next step is to assess them. 
You should check their portfolio and read reviews about their work. Also, inquire about specific team members. 
Are they junior or senior developers, or a mix? Additionally, do they have analysts, designers, etc.? Essentially, how experienced the agency is.

**- Sign The Paperwork:**
After picking an [outsourcing custom software development ](https://staggeringroi.com/services/custom-software-development-services/)partner, you have to draft agreements: NDA, SOW, and SLA. 
NDA is a contract between two organizations that acts as a promise that none of the companies will share important data with a third party. 
SLA is a contract for software quality assurance. The SOW agreement sets anticipations regarding deliverables.
**Frequently Asked Questions**

1. Why Should You Outsource Software Development?
There are countless advantages linked with outsourcing development. Here are the major perks:
Reduced time to market
Access to new skills and experience
Lower costs
Reduced risk
Access to top engineers
Improved quality
Increased flexibility
Access to the latest technology
Complementing existing teams
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- How Much Does Outsourcing Software Development Cost?
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There is no method to say with 100% surety how much outsourcing development costs because multiple factors impact the price.   
**The Outsourcing Model**
Offshoring is the most cost-effective model, while onshore and nearshore models are very expensive, especially if the development agency is located in the USA or EU.
**Developers’ Location**
The countries with lower living costs would be cheaper than the countries with higher living costs.
**Project Complexity**
This factor combines two different elements: time and skills. You will have to pay more if the project is lengthy and intricate. However, you will have to pay less if the project is small and easy.
**The Number Of Folks On The Team**
Outsourcing is notorious for its scalability, and the number of people that work on your project certainly can affect the price.
**Conclusion**
So, are you prepared to outsource? It is easier to learn the best way to outsource development, but bear in mind that outsourcing is not a shortcut in any fashion. 
It still demands efficacy and carefulness that apply to development in general. It also demands a healthy relationship between both companies. 
However, outsourcing can increase your business growth. You will work less, earn more, and contribute more to the globe with your distinctive talents and gifts.