20 Dos and Don’ts of Software Outsourcing Every Business Should Know

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It’s expected that global IT and software outsourcing spending will amount to $395 billion by the end of 2022.

With many benefits, top-notch software quality, and access to a wider talent pool, outsourcing allows businesses to maximize their development potential. For many non-tech businesses, in particular, custom software development by Vates has opened new doors in recent years to streamline processes or cater to clients’ demands.

Amid all the upsides of software development outsourcing, caution remains an integral part of the processes. For businesses that are trying out outsourcing development for the first time, keeping these 20 dos and don’ts in mind can may make all the difference!

Dos of Software Development Outsourcing

Here are the ten most important dos of software outsourcing.

Do Consider Nearshore Outsourcing

Nearshore software development outsourcing has emerged as a popular option in recent years. Unlike traditional offshoring, nearshore development offers more convenience, better collaboration, and faster results. For these benefits and many more, all businesses outsourcing development should consider nearshore software development firms such as Vates.

Developers in an office


Do Establish Goals

Many businesses and those of non-IT backgrounds, in particular, head into a project without clear goals and expectations. Most of the time, these businesses are unable to convey clear directives to the outsourcing vendor and eventually find the product contrary to their expectations. So to successfully tap the market with a software product, have clear goals in place and establish them with your outsourcing vendor.

Do Set Timelines

Nearshore software development is surely faster and more rewarding. However, technical delays and hiccups are a part of every Software Development Life Cycle. Be ready for those delays and set realistic timelines. You can also distribute your project phase-wise and ask for an update from your vendor at the end of every phase.

Do Prioritize Communication

Communication is the key to a successful software outsourcing project. It’s essential that both the client and the software development company that has outsourced the project keep in touch throughout the project. Transparent communication will save costs, hassles, and many more issues down the road.

Do Have Protocols

Whenever outsourcing software development projects, set standard operating protocols in your organization and establish them with your vendor. This means that there must be individuals with authority, a set of instructions to follow, and plans for backup and disaster recovery.

Close up shot of a screen with programming language

Do Designate Roles

In order to successfully implement protocols, you must designate roles within your organization. A point of contact, a supervisor, and someone who will visit your nearshore development firm in person are some of the most crucial people on the team. Before hiring a vendor, vet your team to see who fits the job and can successfully complete the project.

Do Keep a Check

Outsourcing software development is surely great and offers convenience. But you can’t just throw the ball and expect it to magically reappear. Therefore, keeping a check on the project is essential, and as mentioned, someone from the organization should be visiting the developing team personally. Fortunately, visiting and collaborating with nearshore developers is fairly easier due to the close geography.

Do Sign NDA

Outsourcing software development requires transparency and trust. However, when partnering with a vendor for the first time, caution doesn’t harm. Sign a Non-Disclosure Agreement (NDA) with your software development firm, such as Vates, to protect your intellectual property rights and data.

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Do Consider Data Security

Data security and compliance are one of the most important aspects of modern-day software development. Companies that wish to gain customers’ trust stay away from penalties and offer superior quality products pay attention to data security. While working with an outsourced vendor, inquire about data security practices in place.

Do Make a Partnership

You may be handing over the first project to your nearshore development firm, but it may not be the last one. Whenever hiring a software development service, think about long-term partnerships. Hire a company that has similar business ideologies as yours and will prove to be a reliable asset in the long run.

Don’ts of Software Development Outsourcing

Now let’s talk about the ten most important don’ts of outsourcing development.

Don’t Hire Randomly

You may have tight deadlines, a competitive industry, or an enormous project that your in-house team is unable to handle. The pressure is real, but so are the chances of you hiring an incompetent outsourcing company in haste. Whenever outsourcing software development, take time to find a nearshore development service that matches your budget, goals, and is worth a long-term partnership.

Person working on a PC

Don’t Forget to Research

Naturally, if you want to hire the best software development company for your outsourcing project, you can’t undermine market research. Survey the industry leaders, learn about outsourcing vendors such as Vates that have a vast clientele, and pick a company that best caters to your needs.

Don’t Decide Solely on Price

Many businesses prefer software outsourcing owing to the cost-effectiveness of the model. However, price should not be the only deciding factor when choosing a nearshore development company. Instead, look for the company’s reputation, clientele, agile practices, and range of IT services offered.

Don’t Micromanage

Once you have hired a software development company, don’t try to micromanage them. While it’s true that you can’t simply vanish till the delivery date, you can’t be hindering your outsourcing team’s creativity by nitpicking at every stage. Give creative freedom, trust your outsourcing development team, and only check at the end of every phase of SDLC.

Don’t Ignore Post-Development

Software development is not a one-time job. It takes time to develop a project and then more time to maintain and expand it. When hiring a software development company, don’t ignore the post-development phase where you will need an agile software development companysuch as Vatesto look after your product, maintain it, and update it when required.

Computer screen showing program codes

Don’t Overlook Software Testing

Software testing and quality assurance is another crucial aspect of a successful software project. You may be tempted to skip third-party software testing services such as Vates, but it’s not a good idea at all! In fact, software testing will help you save money in the long run by identifying the issues with a code in the early stages. So if you want a top-notch product and save costs, don’t overlook software testing.

Don’t Be Unrealistic

Yes, please! Many businesses who are hiring software development companies for the first time become unrealistic with their expectations and timelines. If you think that you will provide vague directions, zero input, and less than a month to your outsourcing vendor, you will have a big fat disappointment in the name of a software project. Be realistic in terms of pricing, timelines, and project goals.

Don’t Forget Accountability

Accountability of both the software development company and the hiring partner is a must. As a vendor, your software development service is accountable to you. Whereas, as the hiring party, you’re accountable to your government, clients, and company stakeholders. Therefore, don’t take shortcuts to save money when hiring a software development service; always go with reputable companies with a clean record.

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Don’t Hesitate to Ask Questions

Whether you are a development company, a retail store, a restaurant owner, or an apparel brand, it’s okay not to know things. Therefore, don’t hesitate to ask questions when working with a software development company.

Moreover, you must also ask about additional services your software development company offers and take benefit of it if it’s an end-to-end IoT solutions company such as Vates.

Don’t Undermine User Experience

One grave mistake many companies make while developing software is undermining the user experience and current development trends. This is because, at the back of the mind, most companies want to make a product that satisfies the investors who are not the product’s end-user. Don’t do this mistake!

In fact, focusing on UX and UI, end-users input, and prioritizing customers over investors will always yield better success for your development project.

Ready to Outsource Software Development? Choose Vates

If you are looking for a remarkably successful software development project that gets you your desired results, then get in touch with Vates. The South American software development company offers custom software development, IoT consulting services, big data analytics and consulting, and a wide range of IT-related services.

You can also consult Vates if you are looking to access the world’s top ten percent IT talent and hire through IT staff augmentation services. Moreover, Vates is also a leading IoT consulting company that provides IoT solutions to its clients all over the world. The Argentina-based company is a trusted software development partner with its nearshore development services.

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