Software development outsourcing has tremendous advantages, such as cost savings, access to tech talent, and better scalability, but there are drawbacks too. Outsourcing is popular with businesses looking to fill talent gaps and scale quickly. However, if it’s not well thought out with reasonable goals, communication, and an excellent-looking product quality, things can go awry.
This guide will help guide you through the potential pitfalls and give you the best answers so that you can start to avoid expensive mistakes. By knowing and anticipating these mistakes, you will be more equipped to select the ideal outsourcing partner and create a healthy and successful collaboration.
Here’s a table presenting the most critical and widespread challenges of software development outsourcing:
| CHALLENGE: | DESCRIPTION: |
|---|---|
| Faulty Vendor Evaluation and Selection | Poor vendor assessment results in poor partnerships. |
| Unclear Delivery Expectations | Vague or undefined project objectives and expectations. |
| Cost Underestimation | Failure to accurately predict the total costs involved in the project. |
| Risk Management | Ineffective strategies to identify and mitigate potential risks. |
| Quality Control Issues | Problems in maintaining consistent quality standards throughout the project. |
| Security Breaches and IP Risks | Unsecured entry points that result in unauthorized access and intellectual property exposure. |
| Loss of Control | It loses some degree of oversight and control with an outsourced project. |
| Time Zone Disparities | Coordination and communication problems across time zones. |
| Compliance Issues | Difficulties in adhering to regulatory and compliance requirements. |
The Seven Software Development Outsourcing Mistakes and Their Solution
Most businesses are not interested in outsourcing their software development projects because of potential risks. Despite the massive size of the outsourcing industry, there will be a number of challenges when outsourcing software development. But most of them can be taken into account, assessed, and avoided in future processes.
1. Outsourcing at the Wrong Time
Outsourcing is an excellent idea with many benefits, including efficiency, cost savings, and time back for your team. But there are occasions when the time is not correct.
You can have a team that can complete the project without the help of any external support. Or, you do not need support, and you have not researched the demand of the market. In this case, you must wait and take time to do your due diligence.
Additionally, you must analyze the resources and infrastructure to communicate with an external team.
2. Failing to Know the Goals and Requirements
If you have not established your goals and requirements for your project, you must do so now. These goals aid the outside crew to be successful on your project. Otherwise, you are not going to be happy with the results because you will not have a good sense of direction. At first, a software development project should have a purpose.
3. Choosing an Inexperienced Software Development Outsourcing Team
Always remember that you and your Software development outsourcing team are partners. You must be compatible across many factors. The external team must have the best expertise in building software products related to your industry. They must also have a history of meeting similar requirements.
To gauge fit and find the best outsourcing partner, you will have to conduct thorough research. Here, try to look for their portfolio, ask questions, and examine feedback and references. Try to discuss their approach and processes, along with how they will work to meet your requirements.
4. Ignoring Language and Cultural Barriers
When you are working with an external team from another country or region, there can be difficulties in communication. Partnering with a nearshore Software development outsourcing team can often avoid barriers of communication. Nearshore external teams are bilingual.
But no matter where you outsource your software development project, always make sure that you are able to communicate comfortably. The external team must understand what you are looking for. Establish a system of regular communication and discuss how you will deal with any time zone issues with the external team.
5. Not Hammering Out the Terms of Contract
If you have not laid down the service level contract agreements, then you can be looking for failure and disappointment to meet your project expectations down the road. Never trade without a signed contract.
6. Choosing Price Over Quality
When you are in the pursuit of finding an outsourcing team, it is only human to pick the cheapest one. But by doing so, you may get low-quality results and expertise. If the cost you have been quoted is too low, then you must have your guard up.
Moreover, if some providers are quoting you too good to be accurate estimates, then they are not considering hidden costs and other fees.
At the end of the day, you must outsource according to your business needs and not just to save some money. It is not good to sacrifice quality for a low price, as it will cost you more in the end.
7. Not Taking Security Into Account
You must be aware of how risky it is to work with a Software development outsourcing partner when ignoring security measures. IT security threats, including data breaches, are real and can end your business in an instant.
Protect your project and business information. Ask your outsourcing partner how they follow security protocols and protect your sensitive data. Only share limited and essential information, and be sure to lay out the terms in the contract regarding how they will use your information. There is always a risk when you do business with a third party, but that risk can be minimized by picking the right one.
