When an organization decides to outsource one or more than one operations of its business, it does so to make sure that they can operate efficiently and the operations are managed at minimum possible costs.
Outsourcing lets a business benefit from the core competencies of another business who might be having a competitive advantage in running a particular type of operations. The overall idea is to achieve efficiency and cut down on wastage while increasing the output. Since the whole idea of outsourcing is driven by tapping core competencies of other businesses and ensure cost cutting and better output results, outsourcing will only make sense when you are working with the right kind of people.
The same concept of outsourcing is also applicable when an organization needs to get a software developed for its company. Businesses prefer outsourcing their software development projects to another software development company because it saves them from investing time, energy and resources to run the project in-house and that too not as efficiently since software development might not be the company’s key area of expertise. This means that if you are going to outsource your software development project to a third party, it will only make sense to do so if the other company is competent enough to pull off the project efficiently.
Software development can be outsourced locally, regionally or even internationally which offers you a lot of options to choose from. Unfortunately, at the same time, it increases the risk of ending up with the wrong partners, which can result in loss of time and resources and at times even revenues and profits. This makes the overall process of hiring a third-party software development service very troublesome. If you are looking for outsourcing a software development project for your business to another professional service, and you are confused how to go about it, here are a few steps that will help you through the process.
Research It Right
When you are out in the market to look for software development services providers for the first time, it is important that you have your research right. Before you start your research, be clear about what do you want. If your software targets a localized demographics that will have a certain expectation from the software, it will make more sense to look for a local software development company. If the nature of your software allows remote operations and is more generic than you can benefit from other non-local or even international software development services. The biggest advantage of doing this beforehand is that it will help you to filter your search and restrict it to more relevant options, thereby saving your time.
Once you have decided your criteria, start off with the research process. If you are looking forward to hiring localized service providers, it will be a good idea to ask for referrals and recommendations in the local business circuits. The more reliable referrals and recommendations a software development company will have, the safer bet it will be since the company will have a proven track record of successfully developing software for other businesses.
For more regional and international options, the internet will be your best bet. Run a Google search on software development companies. You may also want to look for certain B2B platforms where you can connect to some service providers. LinkedIn can be a great option if you want to get recommendations for a remote software development company.
Shortlisting and Consultations
Once you have researched a few companies, it is better to shortlist your results to five or six software development companies that you feel have the best client portfolios and recommendations and is more relevant to the kind of work you are looking for. Once you have shortlisted the candidates, start contacting the company and set up consultations and meetings.
It would be a good idea to meet in person if your software development company is located locally. This will help you establish a more personalized relationship. For remotely located companies you can use video conferencing options such as Skype for consultations.
During the consultation process ask key questions about their prices, standard operating procedures and protocols related to ensuring quality, security data protection etc. Get an insight on to what extent the company is in line with the vision and values of your company.
Asking the right kind of questions is the key to success at this stage. After the consultation, follow up with the company and look out for any other reviews or red flags on the internet or social media. See if the company has any negative reviews and what type of criticism does it face. Finalize on the company that has the most promising outlook and best meets your requirements.
It’s Okay to Walk Away
It is possible that despite a rigorous research process, you might end up with someone who does not give a good vibe once the contract has been signed. At this stage, a lot of businesses ignore their gut and go ahead with the company because they do not want to lose their non-refundable deposit. What you need to understand here is that if you do not step back at this stage, you might be in for a much bigger loss if your gut is sending you the right signals. It is always wise to trust your gut and walk away in this rather than moving forward with a company that might not be suitable.
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