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How to Choose Software Outsourcing Company [2024]

How to Choose Software Outsourcing Company

November 9, 2023
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8 min read

The tech talent shortage and lack of domain expertise drive the demand for IT development outsourcing. Cost efficiency and faster time-to-market are other benefits for businesses outsourcing their software development.If those sound appealing, you may have already considered outsourcing your IT affairs.

So, how do you choose the right vendor company? Here, we want to help you make a decision you won't regret later.The Freshcode team has compiled these ABCs of software outsourcing to help you better understand how to choose an offshore software development vendor to bring your ideas to life.

Setting your goals and expectations

Imagine hiring a contractor to build your dream house without precise blueprints or communication. The results might be… interesting. The same goes for a software product. Just like any significant project, it hinges on clear expectations. Here's how to set yourself up for smooth sailing (and avoid code-fueled shipwrecks).

Envision your app: its primary purpose, goals, and value proposition

By taking the time to envision your app beforehand, you empower yourself to make informed decisions, attract the right partner, and ultimately, pave the way for a successful and rewarding app development journey. By answering critical questions about your app's core purpose and target audience, you move from a fuzzy dream to a concrete roadmap. This clarity fuels your excitement and allows you to communicate your vision to potential partners effectively.

  • Who is your ideal user? (Demographics, behaviors, pain points)
  • What is the one problem your app must solve?
  • What are the most significant risks and challenges you anticipate?
  • What are the must-have features for the initial launch?
  • If there are any integrations required?

As you see, you don’t have to be an IT expert to answer those questions, and answers to them help you shape your desired outcome. As you start your cooperation with an IT provider, you’ll deepen your understanding of the topic during the discovery phase.

List the technologies, frameworks, and platforms in which the team should be proficient

While specific needs will vary, consider these critical areas of technical proficiency for your software development outsourcing partner:

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At which stage is your product?

You have the outline of where your project is heading. Now, let’s inspect its current state and needs. Using our experience in cooperation with businesses of various sizes, we prepared this handy table to translate business goals into specific IT services to help achieve them:

Software outsourcing development

Identify your budget and timeline

Budgeting is not an easy task. Luckily, you’ve made huge steps towards setting its frames, so there are fewer chances for it to bloat.

Remember, transparency is key in software development outsourcing. Be realistic about what you can afford and your working timeframe. A well-defined budget and timeline attract the right partners, help avoid surprises, and set your project up for success.

Choosing a cooperation model

Choosing the right cooperation model depends on your specific project requirements and preferences. Here's a quick overview of the three main models:

Outsourcing types

Fantastic Developers and Where to Find Them

So where to look for the best team and how not to be mistaken?

The key searching channels are:

Pre-screening criteria

While researching, pay attention to

  • Hour rates;
  • Is their portfolio fresh and relevant?
  • Do they have testimonials from previous clients?
  • Company size to tech stack ratio - Jack-of-all-trades is a master of none.
  • What security practices do they implement?
  • Are they clear about their communication and development processes?

Making a final choice

When the shortlist of 10-15 companies is ready, select the right software product outsourcing partner.

At this point, you have specifications and other documents defining your business needs. This will help save time during messaging and meetings.

Pay attention to the time taken by the company representatives to respond. How prompt and thoughtful are these responses? Is this team proactive enough? (not to be confused with annoying 🙂)

In good communication we trust. Firstly, it's about:

  • mutual understanding
  • active listening and feedback
  • client data safety and security
  • regular updates and reporting
  • clarity and transparency
  • and risk analysis and mitigation.

So far, so good, but how do you assess these requirements? We believe the answers to the following questions will show you your future partners.

Checklist for a software outsourcing company

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Takeaway

We believe a professional outsourcing company should be a versatile, multifunctional, and reliable partner offering services from business consulting to turnkey software development. Such IT providers have the tools and efficient approaches to foster clients' product growth.

Are you looking to explore more digital solutions for your business? Let's discuss all possible opportunities at a free consultation.

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