Outsourcing Software Development

whiteboard schema : outsourcing benefits cs5

The simple fact is that there are times when every business needs outside expertise and advice. Let’s say you’re looking to meet a deadline, but simply don’t have the internal resources to pull it off. Or perhaps an opportunity has arisen, and if you don’t have the development done, you will lose out to a competitor. In such a situation, the only way to benefit and prosper is to seek outside assistance. That means outsourcing. Not seeking out that external talent when you need it can lead to substantial and unnecessary problems.

No matter whether this is your first software program, an addition to an existing application or you just need to add to your internal team, outsourcing is an excellent solution. Plus, when you go this route, you can save your current team from being distracted from their existing workload. You can also circumvent having to worry about disrupting the delicate interpersonal communication relationships that your current team may enjoy.

It is now possible to quickly hire skilled people just for a certain limited time period and for a designated job. The benefits of this approach can be substantial. Ultimately, outsourcing can provide you with an invaluable set of extra skilled hands and even bring a new perspective to dealing with issues and problems.

Impressive Money Saving Benefits

One of the big advantages of outsourcing is, of course, financial savings for your company. Adding new permanent staff isn’t just about the salary and benefits you’ll have to allot for in your budget, but also about the time involved in the hiring process. And as the old saying goes, “Time is Money.” Additionally, opting to outsource also means that you don’t have to worry about making infrastructural improvements or accommodations. You’ll add an element of fluidity to the entire process.

One major cost that many managers forget about is health insurance. Even aside from the salaries, there are more bills to pay. All too often companies and managers fixate on the cost of health insurance itself and don’t factor in related costs, such as administering that health care.

Then there is the issue of your buying power. If you outsource to someplace where the dollar has more power, you can pay your developer a lower hourly rate and provide a new job where one is needed. In the end, you’ll have more money to apply to your project.

Even aside from those advantages, the benefits of outsourcing continue to pile up. For example, when you hire an outsourced team to work on your behalf, you don’t have to make any long-term commitments. This means you can save costs and perhaps apply them towards hiring a future expert who would be around long-term. You can quickly and easily change to other professionals without dealing with headaches of letting go of current staff members. If you want flexibility, it is pretty tough to top what outsourcing has to offer.

Strategize Properly and Avoid Headaches

Often the money saving benefits of outsourcing is referred to as “labor arbitrage,” which means using the price difference between various countries to your advantage. This practice can have profound implications. While you’ll have to account for differences between these individuals and your local staff, sometimes elements like productivity and culture can negatively impact outcomes. Outsourcing can often cost firms more than they anticipated.

However, this factor alone is not a substantial reason to throw in the towel on outsourcing your software development. There are ways to effectively tackle this issue and ensure that your development runs smoothly.

Yes, cultural issues and related factors can present negative issues, but it doesn’t have to be that way. With the right planning and information it is possible to ensure that outsourcing works smoothly and that desired results are achieved. Let’s look at some of the strategies that you can manage outsourcing so that everyone benefits and the process runs smoothly.

The Benefits of Scrum

Strongly consider selecting a company that uses Scrum. This approach ensures that software is delivered and developed in a savvy way that reduces the possibility of epic mistakes. Phrased another way, Scrum is your friend!

10 Big Reasons Why Scrum Is a Prudent Move

  • Short iterations
  • Sporadic delivery at strategic intervals
  • Thoughtful prioritization
  • The customer is involved in every stage
  • Scrum encourages communication
  • Everyone involved follows a designated process
  • There is great transparency in the work
  • Workflow stays open to unexpected twist and developments
  • You stay informed
  • Experts agree that Scrum works

Opting for scrum means that you stay informed. One key benefit of staying informed means that work you don’t approve of or that is headed in the wrong direction doesn’t pile up. You’ll save money, time, effort and a good deal of aggravation.

Scrum can overcome boundaries and ensure that you are getting the same results that you would enjoy if the workers were sitting beside you in the office. It reduces the opportunity of problems arising due to people not being in the same location.

Steve Denning at Forbes has gone so far as to say that Scrum founders should receive a Nobel Prize in management. Perhaps he’s right.

 Think Through Projects Ahead of Time

There are more ways to avoid inconsistencies and wasted time and money when you are outsourcing your software development. For example, you can go a long way by designing first and then coding.

Before handing the project over to your new outsourced developer, try to decide on the visuals and functionality of the software. When you just provide text, the end results are likely to deviate from what you anticipated.

Do everyone a huge favor and try to offer as much detail as possible! While it may seem time-consuming to provide intricate detail about how you’d like the software to perform, you may save yourself a great deal of not only time, but also hassles down the road.

Consider Adding a Project Manager

What if you are concerned that you will never speak to your team because they are in bed when you are in the office and visa versa? This is a very reasonable concern. One of the more cited issues that people have with outsourcing is in fact the time difference and related issues, but it is important to note that there are ways to remedy this situation.Business man looking at the time with a world map

For example, you could choose to only work with developers who are in countries with time zones that are less “night and day.” Or you could consider hiring a project manager in another time zone-one that syncs up better with your outsourced team’s schedule. You could even hire a manager to work with you who is based in that country. Just remember that you must vet this manager very carefully.

 Why Not Select a U.S. Developer?

If you are concerned about cultural issues like language and time zone, you can consider hiring a freelancer to help you who is based in the U.S. While you may not get the bump on the dollar, these individuals will still help you avoid costs involved in hiring internal staff developers.

Many talented U.S developers have cut their costs in exchange for the benefits associated with freelancing. Further, they may be very excited about collaborating on your project and adding your company to their resume. As a result, an American software developer may offer a reduction in his or her typical rate.

In the end, a U.S. based freelancer can be an extremely attractive option on many levels ranging from culture to language to time zone and beyond. Oftentimes, it is difficult to replace the benefits of smooth and fluid communication. When you select an outsourced developer in your own country, the extra money you spend will likely be returned to you with greater overall efficiency.

Ensuring Quality

Businesses often worry that perhaps the company they hire will fail to live up to expectations. There is no doubt that this can be a tricky situation, for example, in a company’s portfolio may include work that is not being done by another developer and not the actual developer attached to your project. Obviously this is a frustrating prospect. But by opting for a test project, you can mitigate much of this risk.

You can also divide the project into your own milestones to boost your chances of keeping your project on track. This tactic allows you to get a taste of working with your outsourced team without getting too deeply involved.

Clearly, every employee and team member can’t be a freelancer or handled via outsourcing, but there are countless situations where outsourcing is an optimal fit. The key to being successful is to realize that it is a process. Like any process, you can refine your approach as you gain more experience and information. Outsourcing often has too many benefits to ignore. Most of the potential pitfalls of outsourcing can be greatly reduced with the right strategy and approach.

If you would like help getting your projects done just contact us.