Nowadays, hiring IT outsourcing services has become a widespread practice across a lot of industries. That’s because many companies have discovered the numerous benefits that come with using such an alternative: saving time and money, enhancing the quality of the final product, increasing the development efficiency, and getting to market quicker.
The growth of IT offshore outsourcing is astounding—its market size amounted to $62 billion in 2018 alone. Naturally, as more and more businesses are considering the outsourcing of IT, the more IT outsourcing companies there are out there. On one hand, such a phenomenon is beneficial, as anyone looking to outsource will have multiple options to pick from. On the other hand, it makes it a little harder to make that choice, since finding the right provider requires more effort.
Choosing the perfect IT software outsourcing company is key for the success of any development project, thus it’s extremely important to know how to do so. Which aspects should be considered? Which things should businesses look for? Here’s a brief step-by-step guide that can help companies in making that choice.
1 – Defining the skills needed for the project
Any successful development project starts with a list of requirements. Knowing what’s being built, with its features and functions, the associated risks, and an estimated timeline is an essential roadmap from where any project should take its first step. Thus, it’s very important for businesses to analyze what they want out of a specific development.
Of the various things that this analysis should include, there’s a particular one that helps in the outsourcing decision: evaluating the IT staff’s skills. By taking a look into the in-house team, a company can detect any skill gap that has to be bridged for the project to be successful. These gaps often imply a lack of experience with a particular language or technology or the inability to perform certain tasks (such as testing, UX design, or software maintenance).
Once these gaps are identified, it’ll be easier for the company to discard the outsourcing companies that can’t fill them and focus on the ones that specialize in them. It’s the first filter of the process and an important one at that.
2 – Choosing the software development model
The initial analysis mentioned above should also consider which software development method is the best fit for a particular project. Determining that first-hand will allow companies to pick the right candidate, which will be the one that has the most experience in that specific method. Traditionally, development companies provide full-cycle software development services that will have experience in a wider range of methodologies and are more likely to adapt their approach to the project’s requirements.
Those companies typically use one or more of the following models:
- Agile: a method based on collaboration, communication, flexibility, and adaptability. It breaks the whole project into stages known as “sprints”, which makes the whole development more manageable and dynamic. Features and updates can be added at any given time, which makes the perfect choice for projects that might change requirements in the future.
- Scrum: focused on providing a Minimum Viable Product (MVP), this method is well-suited for smaller projects where continuous development is essential. It’s a flexible method that uses constant feedback to adjust the product as the development goes on.
- Lean: this method takes existing projects and revamps them by focusing on essential elements that add value. Developers that use Lean take the time they need to develop each feature as thoroughly as needed, which is why the approach is used when time isn’t of the essence.
- DevOps: this method is all about collaboration, which is why it is the perfect alternative for companies seeking efficient workflows in projects that are open for all developers involved. Its highest standard is efficiency, which is why its ultimate goal is to keep errors and disruptions to a minimum.
- Prototype: as its name implies, this method only cares about developing software mockups. As such, it’s only intended for support, as they can provide clarity about a product’s design and functionality. The prototypes built with this approach are used for feedback in projects with high risks, as they can help reduce the issues through working sketches.
- Extreme programming (XP): this approach follows the principle of simplicity, communication, courage, respect, and feedback. It’s best suited for dynamic projects that change a lot and that have developers working quickly. As such, it’s based on a “test-first” mentality, where everything that’s coded is quickly tested to check for performance and errors.
- Rapid Application Development (RAD): this is a low-cost approach that only focuses on a fast pace of development. User feedback is key in this method, as everything that’s gathered through the product’s use is included in the software development, which is why its products are constantly being improved.
Knowing the method needed for a project can help further reduce the pool of outsourcing candidates, as not every IT outsourcing company out there has experience in all of these methods.
3 – Considering the budget
Like it or not, the financial aspect often rules business decisions—and choosing an outsourcing partner isn’t an exception. Though it’s advisable not to think of pricing as the only defining factor for choosing a collaborator, ignoring it would be worse. That’s why is important to weigh the budget into the list as one of several deciding aspects for making a choice.
It’s also important to know that there’s a cost-quality ratio that has to be considered. Though it isn’t a linear equation, the less you pay, the more the quality of the software suffers. That’s why is important to get quotes from all the outsourcing candidates to see what they can bring to the table. Many times, companies find out that the highest quote doesn’t necessarily mean the best option in terms of quality or expertise needed for a particular project.
The important thing, then, is to consider the value a potential collaborator can add to a project. The ideal candidate will offer a balance between cost and quality that will fit the needs of the project like a glove.
4 – Checking the outsourcing company’s workflow
Understanding how the outsourcing partner works is a must before trusting it with your project. That’s why is highly important to learn about the company’s workflow in advance. An experienced provider will surely have a documented workflow with defined responsibilities and tasks as well as estimated times for different stages.
Additionally, IT outsourcing companies often use project management software like Jira and Asana to track and report their progress. This allows them to easily follow everything that happens with a particular project, easily detect issues and obstacles in development, and understand what can be done to overcome the challenges that may appear during work.
An outsourcing company that uses these things is far more likely to deliver a project on time and in accordance with the required specifications. That’s why is paramount to learn the workflow of any potential collaboration before hiring any of them. Seeing the work’s organization and the tools these companies use allows for a deeper look into the outsourcing company’s experience, values, and potential. Only those that take this part seriously are able to consistently provide high-quality work, which is why this should be considered as another filter.
5 – Reviewing the outsourcing company’s reputation
The final step to finding the right outsourcing partner is seeing how well the candidates have done with past clients and projects. The most serious companies in the market usually can provide case studies and well-developed portfolios for everyone to see. This makes it possible for anyone looking for a development collaborator to see the outcomes of those projects firsthand.
There’s also the possibility of watching testimonials that, if present, are a positive sign that the company can deliver what it promises. There are also certain portals like Clutch where it’s possible to look up real reviews from previous clients to hear from their experiences and see if what companies are offering is the real deal.
Businesses looking for a more direct way of finding out about the IT outsourcing services of a particular company can always ask around. Contacting previous clients and asking them about their experience will certainly provide a more insightful account.
To sum it all up
This brief step-by-step guide should get any company interested in the IT outsourcing phenomenon to get a partner capable of delivering what’s expected of them. Identifying staff’s gaps in their skills, considering development methods, evaluating the price-quality ratio, checking the providers’ workflow and analyzing their experience are measures any company should take before committing to a software development relationship.
Considering these five factors will surely take some time and effort but since the amount of outsourcing companies out there is so great, it’s important to do so. The reason is obvious. No one wants to be stuck with a company that doesn’t know what it’s doing or that is constantly running into issues that could be foreseen with the proper process.