Why Do Company Outsource Software Development?

Why Do Companies Outsource Software Development

Software development is a complex subject, but you don't have to do it alone. Read our comprehensive guide on why and how companies both large and small have benefitted from software development outsourcing.

A few of the Companies We Have Built Solutions With . . .

What is Software Outsourcing

Software outsourcing is the process of hiring a company or individual to develop and manage software for you. It can be used to supplement your in-house team or as a way to completely outsource your software needs. There are many benefits to working with a software development outsourcing partner, including cost savings, access to expert resources, and increased flexibility. When done correctly, outsourcing can be a great way to improve your business.

At Azumo, we have always focused on ways to improve the software outsourcing process and not only deliver great engineers and people but deliver great outcomes for our customers. To do this well, we believe great software outsourcing comes from great processes both when we hire for our team, when we deliver for your business and how we communicate and align ourselves with you.

Why Outsourcing Software Development works for Software Engineering?

Software engineering at its core relies on the same principles as all other engineering based fields. There is a process that is repeatable and verifiable the ultimate produces at output that can be tested against known criteria.

This engineering process is drummed into all software engineers from their very first days of Computer Science and then emphasized throughout their careers. In short we believe that the nature of software development outsourcing services is well suited to the skills software engineers learn in school and practice in the real world.

Software Engineering is the engineering branch whose main focus is the development of software systems for different purposes. Developing software is a method of producing scalable, highly reliable and scalable software systems utilizing various techniques.

Although the definition of software engineering may seem synonymous to software development the fact of the matter is that both emphasize engineering aspects. It means that software engineers rely upon science to create software solutions and create products. Software engineering therefore provides precise procedures.

The Benefits of Software Development Outsourcing

There are many benefits of software outsourcing. When done correctly, it can save your business money, give you access to expert resources, and increase your flexibility. Let's take a closer look at each of these benefits:

Expert Resources:

A big benefit of outsourcing is that it gives you access to expert resources. When you partner with a software development outsourcing company, you get access to a team of experienced software developers who can help you build the right solution for your business. At Azumo, we review 1000s of applications globally every month for open roles. We choose the few that match our in-house success criteria.

Increased Flexibility:

Another benefit of outsourcing is that it increases your flexibility. When you outsource software development, you can scale your development team up or down as needed, which gives you the flexibility to respond to changes in demand. This can be a critical advantage for businesses that are growing quickly or facing unexpected challenges.

Speed Development Efforts:

Working with Azumo means that you can accelerate the software development projects. We have a large team of software developers who are experts in their field. We have seen a lot and can leverage our expertise to smash through development challenges quickly.

Improved Quality:

When you partner with a software outsourcing company, you can be confident that your software development project will be developed to the highest standards. At Azumo, all of our software developers are highly experienced and have a proven track record of delivering quality software solutions.

Process Win Championships:

An experienced outsourcing team will have robust workflow processes in place to ensure that progress is monitored, milestones are met and projects are completed on time. At Azumo we strong believe in the Agile Methodology. But we also can run Kanban, Waterfall and others.

Cost Savings:

One of the biggest benefits of software outsourcing is that it can save your business money. When you outsource software development, you don't have to invest in the infrastructure, tools, and training needed to do the work in-house. This can lead to significant cost savings for your business.

Azumo carries out feasibility studies as part of our outsourcing process to provide technological and budget validation. We always look to provide proof of concept, develop prototypes and implement quality assurance testing to minimize the risks early in the product development cycle.

By doing this, we can be sure that our clients' expectations are not only met but exceeded. Our clients can be confident that their project is in safe hands and that they will receive a high-quality end product.

The Future of Work is Remote and Outsourced

How has outsourcing evolved

The software development outsourcing landscape has evolved significantly over the past few years. Early on, software outsourcing was often seen as a way to simply cut costs. However, today it is widely recognized as a strategic business move that can bring many benefits. As the software outsourcing services industry has matured, so too have the services that are offered.

Today, there are many software outsourcing companies that can provide a wide range of services, from software development to software testing and more. This has made it easier than ever for businesses to find the right outsourcing partner to meet their specific needs.

Outsourcing software is a global strategy

Outsourcing software is a global strategy that is used by businesses of all sizes. In fact, software outsourcing is no longer just for large businesses. Increasingly, small and medium-sized businesses are turning to nearshore outsourcing as a way to improve their competitiveness. By partnering with a software outsourcing services company, businesses can access the latest technology, skilled resources, and cost-effective services.

The Outsourcing Company Profiles

From a big picture perspective there are many types of outsourcing models for a software development project. At Azumo we believe each has its attractive benefits when it comes to a development project. Here are the three outsourcing models:

Marketplaces:

These are websites that essentially act like buffets for software diners. Ultimately they attempt to pool as many resumes and profiles together as possible and present what they deem to be the best candidates for you to decide upon.

IT Staff Augmentation:

These are the developers who focus on "hiring the top-1%" of a given talent pool and presenting them for interviews. Almost all of these vendors have a sound hiring process but typically offer very limited resources to their internal teams once the software development project finishes or the customer leaves.

Project Outsourcing:

These companies, like Azumo leverage their business to find outstanding developers and then invest in them to improve their skills and their careers. Ultimately, we believe we get better software development outsourcing results.

Software Outsourcing May Stabilize Businesses

The pandemic made software development outsourcing easier

In the wake of the pandemic, more and more companies have turned to software outsourcing as not only a cost-effective solution for their development needs but also a logical extension of the world of work. With remote work becoming the new norm, geographical boundaries have become less important when it comes to finding talented developers.

Additionally, outsourcing software development has allowed companies to focus on their core competencies and delegate tasks to external experts. This frees up valuable time and resources that can be channeled towards maintaining business operations during uncertain times. And avoids growing uncertainties many companies have experienced during great resignation.

The pandemic has also made it easier to software development outsourcing, as many companies have moved to remote work arrangements. This has made it easier for software outsourcing services companies to connect with a global pool of talented resources.

In fact many of the challenges associated with software outsourcing and outsourcing in general were proven moot in the midst of the pandemic. The rise of outstanding collaboration tools gave companies, employees and contractors the ability to connect in real-time. As a result, businesses can now access the best software talent from around the world, regardless of location.

As a top rated nearshore software developer, Azumo allows you to benefit from close alignment through our nearshore software development process. We serve our customers from our global locations that share similar language, time zone, and culture.

1. Define and prioritize project goals and requirements

This step is essential for any business looking to achieve software development outsourcing success. Without a clear understanding of what is needed, it can be all too easy to get sidetracked or overlook vital aspects of the project. Once these goals have been established, it is then possible to start breaking them down into more manageable chunks and assigning priorities. By taking a systematic approach to goal-setting, it is possible to ensure that all bases are covered and that the project stays on track.

2. Conduct a comprehensive vendor search

After gathering project details, the next step is to research and create a shortlist of software outsourcing companies that have the necessary expertise and industry experience. This involves assessing their services, quality, reputation, and processes to ensure a successful project outcome. And importantly understanding your development team needs.

3. Decide on the best type of Software outsourcing for your project

Do you need a single person with a very specific sets of skills or do you need a team. These questions will help guide you toward the right vendor group for your outsourced software development need. For instance do you need to start the work with own developers and begin to hand off work to the outsourcing company. Or do you require a complete team from Product Management to Architect to DevOps and Release Manager. Understanding the depth of need will go a long way in understanding whether you need IT staffing help, a dedicated development team, or a single software developer with a set of very particular skills.

4. Create a detailed project plan and timeline together

Once you select you software development partner, you should create a project plan that aligns to the scope of work. This ensures that both parties have a clear understanding of what needs to be done, by when, and how. This also allows for regular checkpoints and revisions to be made along the way, which can help keep the project on track.

5. Manage the software development process effectively

Project management is key to the success of any software outsourcing engagement. By maintaining regular communication with the development agency and providing clear instructions, it is possible to avoid misunderstandings and keep the project on track. Additionally, setting up clear channels of communication between all parties involved can help to identify potential problems early on and prevent them from becoming bigger issues down the road.

6. Perform quality assurance testing

Before the software is released to the client, it is important to put it through rigorous quality assurance testing. This helps to ensure that the final product meets all of the project requirements and is free of any bugs or errors. By thoroughly testing the software before it is delivered, businesses can avoid potential problems and ensure a high-quality end product. Make sure there is a set level of test criteria and a strong definition of done. This will eliminate a lot of surprises. In all honesty this should be a necessary component of software development whether it be done by an in-house development team or a software outsourcing team.

How to successfully outsource your software needs

More and more companies are turning to outsourcing software engineering as an effective solution for their technology needs. While outsourcing can offer numerous benefits, it also presents unique challenges and requires careful planning and management.

At Azumo, we believe that finding the right partner and establishing a strong process can enable any organization to successfully outsource their software engineering projects and reap the rewards.

Which Location for Outsourcing Software Development is better

At Azumo we believe software development outsourcing is a decision every company should make with their own priorities and needs in place. Outsourcing software development can come in several different modalities.

Onshore, Nearshore, and offshore software outsourcing are all generally similar but have to do with the location of the software developers or outsourced team.

Globally, South Asia, Eastern Europe and Latin America have been the most active geographies for outsourcing. Historically speaking, the offshore software outsourcing industry in India is currently worth around $154 billion. Far and away the largest market for outsourcing.

But the issues with geography, time zone, language, and culture alignment has made Latin America a more attractive region for North American and some Western European companies to leverage South America for software outsourcing services.

Why Outsource to Latin America

There are many reasons companies have found software outsourcing to Latin America advantageous.

No language barrier:

English is the second most spoken language across South America in general. Most software engineers in Latin America speak English well enough for business and collaboration purposes.

Higher quality:

South America has a very strong university system funded through both public and private initiatives. Many of the engineers who graduate from Computer Science programs typically are older and have several years of real work experience which differentiates them from their U.S. counterparts.

Productive Cost Savings:

Yes there is a cost benefit. One of the main reasons some businesses choose to outsource software development is to save money. At Azumo, we typically target compensation levels that place our developers in the top-10% of the income threshold in their home markets as opposed to other software development companies.

Strong Collaborators

The number one concern we hear from companies looking to outsource software development for the first time is they don’t know how they will be able to effectively manage and collaborate with an outsourced team. We focus on getting our developers to be vocal and share ideas and when necessary push back so our clients can get the best outcome possible.

What should you look for when outsourcing software development

After delivering on 100s of projects, we know there are some clear objective criteria that every company should use when picking a good software development company. When outsourcing software development look for companies with these 5 demonstrated attributes:

PROVEN TRACK RECORD

Businesses should look for a company that has a proven track record of delivering quality software products.

ROBUST PROJECT MANAGEMENT

The company should also have a robust project management process in place

EXPERIENCED TEAM

Additionally, the outsourcing company should have a team with project managers, business analysts, skilled software developers with the technical expertise to deliver the software project using the most appropriate software development technologies available.

SCALE YOUR TEAM QUICKLY

The custom software development company should be able to scale quickly, with high quality individuals so you can hit project goals faster.

HIGH QUALITY

Finally, businesses should make sure that the outsourcing company has a strong quality assurance process in place to ensure that the final software product is free of bugs and errors.

By taking these factors into consideration, businesses can be confident that they are making the best possible decision for their software development needs.

Speak with a Top Rated Nearshore Software Developer

Where to Avoid the Pitfalls of Outsourcing

When done correctly, software outsourcing can be a great way to improve your business and accelerate growth. However, there are some potential pitfalls that you should be aware of before you begin the process.

1. Make sure you have a clear understanding of your needs

Before you start looking for a software outsourcing company, it is important to take the time to understand your specific needs and requirements. This will help you to narrow down your options and choose a company that is a good fit for your project.

2. Do your research

It is important to do your homework before you choose a software outsourcing company. Make sure to read reviews and check references in order to get a better understanding of the quality of their work.

3. Set clear expectations

When you are communicating with the software outsourcing company, it is important to set clear expectations from the start. This will help to avoid misunderstandings and ensure that everyone is on the same page.

4. Maintain regular communication

Maintaining regular communication is key to the success of any software outsourcing project. Be sure to establish clear channels of communication and touch base with the company frequently to ensure that the project is on track.

5. Monitor progress closely

Closely monitoring the progress of the project will help you to identify potential problems early on and prevent them from becoming bigger issues down the road.

Benefits of Software Development Outsourcing