How to successfully outsource a software development project

Recognising potential benefits, including accessing global talent, cost-efficiency, and the ability to prioritise core business functions, CEOs, CTOs, Development Team Leads, and startup owners are increasingly looking to outsource software development. Hiring and firing is a tough gig! Leave that to us.

By implementing effective strategies and partnering with the right IT outsourcing company, successful outsourcing can become a cornerstone for growth and allow you to focus on your core business and do what you do best.

Outsourcing software development offers numerous advantages. Here are a few:

You’ve got to get your ducks in a row here and avoid a lot of the common mistakes. Think about the long-term benefits rather than just an initial ‘feel good’ from a cheap price tag.

Identify your outsourcing objectives, whether it's cost reduction, leveraging specialised skills, or increasing development pace, based on your unique circumstances and requirements.

Choose between onshore, nearshore, or offshore outsourcing based on factors like cost-effectiveness, cultural compatibility, and timezone considerations.

Investigate potential outsourcing destinations based on factors such as technology infrastructure, political stability, talent availability, and proficiency in international business languages.

Stay abreast of emerging trends like cloud computing and robotic process automation (RPA), which are reshaping outsourcing dynamics.

Evaluate potential outsourcing vendors based on their reputation, past projects, client testimonials, and technical expertise.

There are always risks and like I said - everyone has heard of the horror stories. The reality is that developing software is hard. Particularly if you are non-technical.

So if you have never managed a project before, please do consider someone who can advise and guide you through the process. Just choose someone who just says ‘yes sir’ to every request. You need a partner who can add value and challenge you to ensure what you are building is what you need and fit for purposes.

The million-dollar question. Sadly there is no straight answer for this. Several factors can impact the overall cost. However as discussed above, the decision on your partner should never be just based on the cost.

It’s important to measure the ‘true cost’. For instance, if a business can deliver the project within 4 months (albeit for more money) than a lower cost provider delivering in 6 months then how much is 2 months worth to your business?

If there is a partner offering something cheaper and faster, then alarm bells should be ringing!

A typical project for an MVP with Loginet can range from £30,000-£50,000 for a functioning app or web app with designs, market research and thorough user profiling and segmenting. It’s custom code that will allow you to scale without rebuilding.

Below I break down other factors that can impact the cost.

Outsourcing software development is a good choice for companies and startups to leverage global talent, achieve cost efficiencies, and focus on core competencies. However, it’s super important to go in with your eyes wide open and don’t just race to the bottom. Remember - you get what you pay for. And if you don’t have the budget for your preferred partner, consider reducing your scope slightly. Better to launch something lean and quality than try to launch a huge product and risk not delivering at all.