5 Things To Consider While Outsourcing Software Development

Software outsourcing is a common practice nowadays. However, if you proceed with the correct diligence, the process isn’t easy! Also, if the decision is made based on cost only, you might be missing so many important things.

There are plenty of other crucial factors to consider, as well. So, it is wise to take your time, research the company thoroughly, and consider all the aspects related to the project.

5 Key Things To Do Before Outsourcing

1. Figure Out What Type Of Outsourcing Is Best For Your Project

You can outsource your software projects in three ways: local, nearshore, and offshore. Each type of outsourcing has its advantages. So, it is worth considering each type in detail before you choose an outsourcing partner.

  • Local Outsourcing

It allows you to work with software developers in the same city. However, you might be restricted to talent based on geographical location.

  • Nearshore Outsourcing

When you choose a development partner in a neighbouring country, it is called nearshore outsourcing. It is more affordable than the local and offers you a larger pool of talent.

  • Offshore Outsourcing

It involves hiring an external development team in a different region. It is the most popular methodology as it provides access to worldwide talent.

2. Get Clear On What Do You Want

Before you start searching for a software development outsourcing partner, it is imperative to know your company’s needs.

According to project management statistics 2019, 39% of the projects fail due to change in the organization’s priorities. Other causes are:

  • Change in project objectives
  • Unrealistic expectations
  • Poor communication
  • Inaccurate requirements

Therefore, make sure to present the essential elements and decisions to the outsourcing team you hire. Further, having a detailed specification explaining how the software should function would help avoid delays or mistakes in the project.

3. Consider the Protection of Your Intellectual Property

You might be aware that 90% of the software in China and Vietnam is pirated. So, it is essential to ensure confidentiality, especially if it is a brand-new product.

Before you proceed with the outsourced project, meet with a legal team to create an NDA (non-disclosure agreement). Ensure that the NDA provides a complete detail about those who have access, who is responsible for specific tasks, where the source code is stored, etc.

4. Construct Realistic Milestones And Growth Strategy

Don’t underestimate the time a software development project takes. Therefore, it is worth having a rough idea about the milestones in advance. By doing so, you can allow extra time for testing and adjustments. Further, keep in mind that the objectives should be realistic, measurable, and achievable.

Also, it is good to have a solid growth strategy that can assist you in creating a roadmap for development. It will also help to identify the functionality software might require in the future. Also, it helps to refine the scope of the project.

With this knowledge, your team can plan to create a product fit for the company’s exponential growth.

5. Check Whether Outsourcing Is Cost-Efficient

While entrusting a project to an outsourced, independent company, the cost is a significant factor to consider. Outsourcing is implemented to increase the profit margin or meet challenging deadlines. It should decrease the labour expenses while boosting the quality of results.

If you consider all the other factors, it will become easier to determine the right amount of money to spend. After thinking about all the factors, ask yourself if this solution is fit for the job.


Now that you see that outsourcing a software development project is quite a delicate task. There are so many aspects to consider to get the desired results. We hope that these tips will help you to achieve your endeavours.

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