BlogBusinessSoftware Outsourcing Company: What Is It?

Software Outsourcing Company: What Is It?

With technology taking over the world, more and more companies are developing digital products. But what happens when you cannot create your product in-house? Here’s where software outsourcing companies are a perfect fit. Let’s take a closer look at them.

A software outsourcing company is a third-party agency that develops digital products on demand. With qualifications to handle projects, software outsourcing companies have expert developers, designers, project managers, and other relevant professionals for software development.

The purpose of this article is to shed light on the most common questions surrounding software outsourcing and help you understand why it can be a plus for your company.

What is a software outsourcing company?

A software outsourcing company is an agency with skilled developers, designers, and project managers who can create digital products on demand. These agencies can handle projects as third-party vendors. When a company needs software development but lacks the in-house resources or expertise, a software outsourcing company comes in handy.

Software outsourcing companies bring together talented resources and create teams to handle software projects. Some companies can also help with the ideation and validation of the product. From ideation to launch, software outsourcing companies can implement a project and make it a reality.

Why do companies need outsourcing software?

Developing software effectively can be a difficult task, and some companies are not equipped with all the resources needed for it. Hiring designers, developers, testers, and managers can be a hassle from an administrative standpoint. Outsourcing software development is a cost-effective solution.

When you outsource software development, you are paying for a service. In contrast, when you hire an in-house team, you have to take on charges such as sick days, hardware, training, insurance, and all the other perks employees usually expect.

Software outsourcing companies have already taken care of this for you, and you can just go ahead and concentrate on expressing your requirements for the digital product to be created. This process can help save money and time to continue building your business.

Moreover, a software outsourcing company will most likely have more expertise in building and managing products. Not because you and your team are not capable, but because software outsourcing companies are devoted to creating, managing, and improving products.

Having experts take care of the development of your digital products can leave you with enough bandwidth to concentrate on other relevant aspects of your business. 

What are the benefits of outsourcing software development?

There are several benefits of outsourcing software development. Here you have some of the most relevant:

  • Lower costs
  • Easy access to talented experts
  • Improved efficiency
  • Agile software development at your fingertips
  • Better communication

Let’s dive deeper into all of them to give you a better understanding.

Lower costs

Software outsourcing companies can help you save money. Being third-party vendors, these companies charge for the service they are providing, freeing you from having to add perks and other administrative costs to your budget.

These companies tend to be a better investment due to the practicality of the service. Instead of creating a whole internal infrastructure to create a digital product, you can profit from the already existing infrastructure of an outsourcing partner.

Plus, you can hire nearshore or offshore companies which tend to be less expensive than onshore companies. Yet, be careful not to compromise the quality of the work to save some bucks. In the long run, it will cost you more to right the wrong.

Easy access to talented experts

Hiring in today’s world can be a pain. Finding the right people for the right positions is more troublesome than ever. So why even go through it? Software outsourcing companies have already done the work for you. You can access an efficient team of experts without breaking a sweat.

Software outsourcing companies bring together the best talents in the industry to provide high-quality services. And even better: those talented experts can come from everywhere. Why settle for assets in your own area when you can tap into an unlimited source of experts worldwide?

Improved efficiency

Software development is the bread and butter of outsourcing companies. This commitment to digital products can improve efficiency in your project. You would be working with professionals who are fully devoted to your products and have undivided attention.

When you outsource software, the sole purpose of the team you hire is to create, develop, and maintain the software you requested. Your project is in the hands of professionals who breathe software and will tend to it.

Agile software development at your fingertips

Software outsourcing companies are experts in development methodologies. Not every professional will have the knowledge and applicable skills to develop using the agile methodology.

An agile team means having better results, quicker turnaround times, and more extensive attention to detail. Want to know more about why you should develop using the agile methodology? Take a look at this piece from Quality Logic.

Outsourcing software development means having a well-integrated team working together as they always have! Instead of finding talents who can have a good work environment, why not get yourself a group of professionals who already know how to work as a team?

Apart from the top-notch communication within the team, your communication with the company can also be improved. You would have constant updates coming from your outsource team. You will always stay in the know without having to micromanage them.

Although software outsourcing companies have a lot to offer, there are also some risks to be attentive to. Check out this article from CIO about mistakes to avoid when outsourcing software development.

When should you outsource software development?

Several conditions could turn outsourcing software development into an attractive solution for your project. Here are some of them.

  • Not having the expertise
  • Not having the time to take on the project
  • Need of an unbiased approach
  • Shortage of talent

Not having the expertise

Even if you have an in-house team, your devs might not have the expertise required to develop the project your business needs at the moment. Imagine you have a web app, and you want to create a mobile version.

What can you do if your team doesn’t have the necessary expertise to take that project to completion? One of the best ways to go at it is to hire a software outsourcing company that can work with your in-house team to create the mobile version of your app.

In this case, even if you have a team of developers and creatives, outsourcing development can offer better results without having to reconvert your team.

Not having the time to take on the project

Sometimes, your company will have other needs and other priorities. Tackling everything at the same time is not a possibility. Your team is already running on fumes to deliver on everything you have asked. But you have a side project you would like to implement.

This is a perfect scenario to outsource software development. Your in-house team can continue working on their projects without interruption, and your new initiatives don’t have to fall into the backlog for another time. 

If you are willing to invest in a software outsourcing company, you can have several projects running at the same time. 

Need of an unbiased approach

Your own biases can cause problems for your business. And biased software can be more harmful than you think. Imagine you have a team of creatives and developers who have created an app, but their creation is underperforming. 

Having a third-party vendor work with the in-house team can help find improvements to be made or things that went overlooked in the original process. Efficient software outsourcing companies can integrate with other teams to improve results and reach the set goals.

Shortage of talent

If you are having trouble finding talented professionals, you might want to consider outsourcing software development. These companies already have the talent for you, and they are ready to offer their services to help you take your project to completion. 

Hiring creatives and developers has become a difficult task due to the competitive nature of the industry in a time when technology is taking over the world. Software outsourcing companies can help you find talent for your project effortlessly.

It might be obvious to you, but when you don’t currently have the talents to develop an app, it is wiser to look for a seasoned team to take on the project. Outsourcing development can help you start sooner without having to go through lengthy screening processes and administrative hassle.

How do you outsource software development?

Outsourcing software development can be a practical solution for your project. Here are some steps to do before partnering with a software outsourcing company.

  • Define the project that is being created
  • Define the budget
  • Conduct research on the different partners
  • Understand contracts and project ownership

Define the project that is being created

Defining your project may seem routine. Yet, it can help you save money and time by finding the correct partner faster. You need to define whether the project is a web app or a mobile app. The technologies you want to use. The features you want to include. And the approach you want to pursue.

When you create a digital product from scratch, you will want to go for a partner with experience in validation and product ideation. You will also need a team of UX/UI designers to lay the foundations of the app to be created.

Check out this insightful article we wrote about product validation.

Define the budget

The rate of a software outsourcing company can vary depending on expertise, location, and turnaround time. It is key to define the budget to better find the partners that correlate with your expectations.

Nowadays, cheap development can be easy to find. Although it might poise itself as a good alternative, saving money on development could result in more expenses further down the road to fix problems created by lack of quality. Moreover, cheap development tends to be done offshore, implying a substantial time difference. 

Conduct research on partners

Once the type of project and the budget are defined, you can start researching the different partners that you can find on the market. You can hire onshore, nearshore, and offshore partners.

Each one of them can have its advantages and disadvantages, and you will be able to weigh the options in concordance with your plans and budget. 

As a rule of thumb, you should be able to check the expertise and background of the projects that the software outsourcing company has taken on. Even if they have a flashy portfolio, you need to be able to understand how they work and how they can help you accomplish your goals. The partner should be able to walk you through the development process without a problem.

Understand contracts and project ownership

Contracts and project ownership are something to be careful of. When you hire a software outsourcing company, you need several agreements to protect your project and company. For starters, you would need a Master Service Agreement (MSA), a Non-Disclosure Agreement (NDA), and a Statement Of Work (SOW).

You should also include a non-compete clause and intellectual property clause. Once the project is finished, you need to ensure you have total ownership of the product and every element.

If you want to deepen your knowledge about this subject, read our full article of 7 things to consider before hiring a software development company.

Wrapping up

When in need of software development, a software outsourcing company comes in handy for you and your project! Leverage the benefits of outsourcing development to boost your business and tackle your projects without problems. 

Why Bixlabs?

Bixlabs is a software outsourcing company with over 100 projects and +7 years of experience. We have broken the location to bring together the best talents of a continent, not a country. Thanks to our product, design, development, and QA departments, we bring your project to life from ideation to launch, caring for your success since day one.

The agile methodology is at the core of our processes, and our communication skills are one of the best assets we offer to our partners, accompanying them throughout the whole project and being crystal clear about the processes.

Click here to know more about how we work at Bixlabs.

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