A step-by-step guide to outsourcing a software project
You have a great product idea and you can’t wait to move forward on your journey. It’s a very exciting place to be - though also a bit intimidating.
You want to build your software right, and you want to build it with the right people. But what if you don’t already have the right people on your team?
It might be within your means to invest the time, effort, and expense to hire and train the human resources you need in-house… or it might not. Either way, there is a faster and more flexible option for getting your product to market: outsourcing.
What is outsourcing and why should you consider doing it?
Outsourcing means partnering with a third-party provider on a business project instead of handling it in-house. There are several reasons that you might want to outsource your software project. For one, Deloitte’s 2020 Global Outsourcing Survey found that 70% of respondents cited cost reduction as their primary reason for outsourcing.
Outsourcing can make a lot of sense if you have plenty of domain expertise but lack the in-house talent and infrastructure to develop the software you need. The high investment cost of recruiting, training, and compensating an in-house development team - plus purchasing all of the hardware and software resources they need to operate - might not fit with your budget or your timeline.
Or perhaps you already have a pretty solid in-house team but they lack either the specific technical expertise or the extra capacity to take on your new project. Outsourcing can be a great way to supplement your existing resources. It also makes scaling products much more efficient as it can be done on an as-needed basis.
What steps should you take when you’re ready to outsource?
1. Get clear on your vision
What goals are you trying to achieve? What requirements do you have for the final product? It’s best to get as much clarity as possible on these baseline elements before beginning discussions with a potential outsourcing partner.
2. Do your research
Research the software firms you’re considering working with. What sort of expertise do they have? What’s in their portfolio? Do they know how to create and implement a solid strategy? Look for a partner that has relevant experience, positive recommendations, and a successful track record of getting products to market.
3. Understand the technology landscape
Are you familiar with the best tools and technologies relevant to your product? Will you need a mobile product, a cloud product, AI or some other advanced functionality? One of the top benefits of outsourcing is gaining access to the right people, tools, processes, and technologies when you need them. But make sure you understand what you need.
4. Consider your timeline
How flexible is your project timeline? Do you need to get your product to market quickly? If time is a major consideration, be sure to thoroughly understand your partner’s processes and expected timelines. Some firms will be more agile than others.
5. Consider your budget
Get clear on your budget, and consider not only the total cost you’re quoted for the project but also the supplier’s payment structure. Will you be paying a fixed price or will you be charged an hourly or daily rate? How much potential is there for scope creep and other cost overruns?
6. Evaluate the risks
There are certain risks inherent to both outsourcing and not outsourcing. On the one hand, completing a software project in-house when you lack the proper resources or are forced to make a huge upfront investment to obtain them has a high degree of risk. On the other hand, if you decide to outsource be sure to consider any relevant confidentiality issues as well as what you’ll do if the project somehow gets off track.
7. Find the right culture fit
A successful outsourced software project requires good communication and a good culture fit. Find a partner who onboards well, sets up a good communications structure, and values transparency. Plan to stay actively involved in the project, seek regular status updates, and provide valuable feedback.
8. Begin with a solid strategy
Once you’ve found a software firm you’re interested in partnering with, work together to get a solid strategy in place before moving forward with the rest of your project. The strategy phase should include a thorough evaluation of your market and business use case, validation of your value proposition, and laying the groundwork for a clear and successful path forward.
Interested in outsourcing a project?
At Basecode we care about helping you build a great product that provides real value for real customers - and successfully take it to market. Contact us to learn more about how our expert team can help bring your vision to life.