5 Mistakes to Avoid When Choosing a Software Outsourcing Partner

Last updated on April 17th, 2023 at 12:58 am

Insufficient research, vague requirements, unclear communication, etc., can lead businesses to make the wrong choice.

Though there are definitely pros and cons to IT outsourcing, it can greatly reduce costs and save a significant amount of time if done properly. However, choosing the wrong development partner could also result in subpar software quality, delayed releases, and other issues. As such, it is crucial to pay close attention when picking a service provider to hire a development team from. 

This article outlines some common mistakes companies make when choosing an outsourcing partner, as well as recommendations on how to avoid them.

Mistake #1: Lack of research

Skimming through a couple of Google search results can be a good starting point for picking a software outsourcing partner, but this isn’t the due diligence the task requires. Once you have a short list of companies that offer the services you need, take a close look at their portfolio, as it can be a solid indicator of the expertise a provider has in your field. You can also get an idea of the organization’s effectiveness by looking at the customer reviews. 

In addition to the steps above, it is highly recommended to bring your own technical experts to look over the company’s work and confirm that it adheres to your quality standards. Finally, you need to ensure that the provider offers comprehensive quality assurance services. Thorough testing is the only way to reliably catch bugs before they affect end users, so skimping on it is not a good idea.

Mistake #2: Not having a plan

With any outsourcing project, a detailed plan of action is absolutely vital. To make the most out of the partnership, you need clearly defined requirements, e.g., performance targets, implementation of core features, etc.

If there is only a vague idea of what the goals should be, look for a provider that can help you to deliver a roadmap. In this case, it is better to prioritize established companies that offer consulting in addition to development services.

Mistake #3: Choosing price over quality

It may be tempting to pick the cheapest option, but doing so could cost you more in the long run. Hiring engineers with less relevant experience or working with a company that uses outdated technologies can decrease the quality and reliability of your software. This leads to higher maintenance costs and a compromised user experience. 

Unexpected issues can also introduce delays, further driving up your expenses. If you are working on a limited budget, consider reviewing the scope of the project, prioritizing features that bring maximum business value, or hiring a smaller team.

Mistake #4: Unclear communication

Clarity and transparency is essential when negotiating with an outsourcing company. To avoid any ambiguity down the line, you might want to ask:

• How familiar the organization is with your industry.
• If the engineers’ time will be split between multiple projects.
• How you can track the progress and communicate with the development team.
• What happens if you are not satisfied with the results.
• What your intellectual property rights are (i.e., who will own the source code).
• What support you can expect after the initial release.

By clearing these up at the beginning, you can understand if the company is a good fit and prevent unexpected issues throughout the software development process.

Mistake #5: Inflexible culture

In all likelihood, the internal processes of outsourcing providers will differ from your own. However, some external developers may be reluctant to adopt your processes or even use your technology stack. This can make the project difficult to manage, promote inconsistencies across the codebase, and decrease the overall quality of the product.

To avoid such issues, find a service provider that is ready to seamlessly integrate into your ecosystem and work as part of the in-house team. Additionally, you might want to conduct interviews with the dedicated engineers to ensure that they will fit into your corporate culture.

Finding the right outsourcing partner requires decision-makers to thoroughly analyze several providers to determine which one has the right expertise for the project. By conducting preliminary research and asking important questions from the start, businesses can prevent unexpected issues down the line. If you are looking for high-quality software development services, consider working with a company that is trusted by 50+ Global 2000 enterprises.