Today, practically every business owner sooner or later opts for or at least considers outsourcing options. To outsource web development means to entrust the thing to profiled professionals - nothing more, nothing less. We'll tell you if hiring a remote team is justified in your particular case as well as how to avoid common risks, establish effective interaction, and prepare everything to get the maximum benefit from the outsourced project.
Benefits of Outsourced Corporate Development
Businesses of any scale and purpose have long recognized the definite advantages of software development outsourcing. According to Avasant research from 2019, more than half of companies turn to outsourcing services in the course of their market operation.
According to Deloitte, there are 3 main reasons why companies prefer a remote team of experts:
- Cost-efficiency (59% of companies);
- Focus on profiled tasks and redirecting all the “dirty work” to hired third parties (57% of companies);
- In-house performance boost (47% of companies).
Generally, you are looking at some extensive prospects when you decide to outsource web development. You can hire the best developers without recruiting any staff specialists. Web product development is a great challenge for your remote team. And once they’re done with their part of the project, you can hand it over to your in-house specialists with peace of mind. What are the key benefits of outsourcing web development?
Significant cost savings come from the fact that you don’t have to pay for the office, hire HR managers, and recruit in-house staff. As a rule, an outsourcing team consists of professionals who have to constantly prove their own skills. They have already managed to get their hands on many niche projects. You don't have to train anyone, which is already an undeniable advantage!
Involving true niche talents
You can flexibly hire exactly those experts who will best cope with the task at hand. A wide pool of available outsourcing specialists is a great advantage of its own.
An easy way to scale
Expand your project without expanding your staff. Even with the smallest in-house team at hand, you can easily complete a full-cycle large-scale project while avoiding tons of regular extra expenses.
With a remote software development outsourcing team, a contract is drawn up, the budget is taken into account, deadlines are set, or a penalty in case of non-compliance. A responsible project manager will help you minimize lots of the underlying risks.
Getting rid of excessive work
Outsourcing is a great chance to focus on the essential business processes while all the small or niche-specific stuff is handled by dedicated specialists. Software development outsourcing can ultimately help you distribute tasks in the most proper way possible.
Outsourcing often serves as a great project cycle shortcut to speed things up. You should outsource web development if you want to accelerate organizational and development processes since outsourcing teams usually work in accordance with a time-tested development methodology.
How to Make Outsourcing Successful
How to make your cooperation with the outsourcing team for the development of a web project successful? We give 7 topical tips to help you avoid mistakes.
|☝️ When to chose|
|Small, short-term project, that need to be completed as soon as possible|
|Requirements of the project are all set in stone|
|No opportunity to monitor the project progress too closely|
|✅ Pros||⛔ Cons|
|Full cycle project Development||Different business philosophy and morale|
|Control over costs and time||Non-absolute control over an outsourced priject|
|Focused strategy on what matters||The difference in time-zones|
|Access to talented IT professionals|
High quality costs money
If you are looking to outsource a complex, narrow-profiled part of the project or an extensive scope of cumbersome work, be prepared to pay accordingly. Especially, if you are turning to a specialized outsourcing agency. The reasonable payment for services, however, usually guarantees a high-quality result.
Keep in mind that freelancers always set cheaper rates, but not every individual worker by far copes with tasks reliably and efficiently - at the level required by the company. A team of web developers who have extensive experience and have already worked with companies in a field similar to yours, though, is a completely different case.
Setting clear goals
Clearly defined goals and needs in terms of a particular project set the groundwork for successful results. Make sure to keep this moment well-managed if you want a hired outsourced team to meet your expectations in the long run.
Try to check which companies your intended outsourcing team has dealt with - analyze what results they have achieved. Do you like the style of the developed web projects, do you consider them successful? Do you want to cooperate with such an agency? You should have a wide range of choices and never make hasty decisions.
When it comes to outsourced business development, the major nuance is setting up interaction with the hired third party. Work scheduling, time zones, accessibility for communication are the key factors that are important to consider and establish a convenient interaction for everyone. A couple of tools that would help you successfully organize the process: InVision, Moqups, GitHub (where people share design assets and code pieces), Slack, Toggl.
Speaking your mind
Constant feedback is vital to managing an outsourcing team. And you probably don't need any project cycle surprises. Ask questions, explain tasks additionally, and try to establish regular personal involvement in work.
Assigning a Project Manager
Only a qualified Project Manager should be the one to oversee the process of developing a web product by an outsourcing company. A dedicated specialist from your side should monitor and adjust work processes, communicate with the team to clarify all the nuances, and translate the necessary information to the upper management in time. A reliable specialist from your staff will also make sure to properly line up the expertise an outsourced team has been building outside your company so that everything matches your needs.
If possible, don’t entrust large-scale, business-defining projects to a new outsourcing team at once. Start small - let the contractor handle some extra tasks you don’t have time for, adjust communication, and see whether you like to work with them or not. It’s always best to lay the proper foundation for further cooperation.
|Pros and Cons of IT outsourcing|
|✅ Pros||⛔ Cons|
|Keeping developers is not your concern||Risks connected to sharing the company's data|
|Large talent pool, high quality and lower rates||Code ownership issues|
|Reduced risks connected to unexpected quits||Expertise built outside your company|
Making a deal
The contract sealed beforehand will help you better define all the project details and monitor its progress. The deal should include and outline the main goals, project requirements, optimal budget analysis, and deadlines. A timely discussed contract should help you protect the in-house data you have to share with the contractor and you can also avoid code ownership issues by outlining your specific rights and requiring to upload the project code to your server.
Top 10 Mistakes
And now for the main mistakes that you need to avoid when working with a remote team.
#1: Superficial selection
Never make business cooperation decisions without thoroughly researching the market and studying the contractor - their experience, reputation, and past projects. You can find out the opinion of companies for whom the team has already developed projects. Choose at least 5 prospective teams for remote work. And don’t hesitate to request a developer portfolio and CV of some sort.
#2: Underestimating the cost
You should know the scope of your possible payments beforehand. Calculate everything down to the cost of potential rework. You should be careful about investing in outsourced work on a web project. And if saving costs is your only motive for recruiting a team remotely, it's best to ditch the idea.
#3: Unclear expectations
Forget about vague requirements and ambiguous expectations. Try to write everything down in the deal as clearly and specifically as possible, and don’t forget to delve into the process of outsourced corporate development personally and control your contractors.
#4: Fixed payment choice
The fixed price looks safe, but it's not always the best choice. Software development is a creative process that may fluctuate during an ongoing project. On top of that, the price for fixed projects is initially higher. It is difficult to calculate every detail in advance, although the closest approximation is a must.
Note also that with a fixed rate, you will have few opportunities to refine the project, improve it, you are limited in variability. All in all, you may well settle for a fixed price if we are talking about a small project. For a large-scale project, however, this is not the best option.
#5: Priority - short-term partnership
A long-term perspective is certainly more reliable and profitable when it comes to software project outsourcing. By establishing long-term business relationships with the team, you will be able to achieve various results together and stay one hundred percent confident in your contractor. Only with time teams form a good idea about the nuances of your company's work, about the prospects and features of development, about all the pitfalls.
#6: Underestimating the communicative role
It is essential to build a structured communication pyramid, establish close interaction, even despite possibly different time zones and language barriers. Make it as easy as possible for all project participants to interact.
#7: Not hiring professional managers
You surely need a qualified, experienced project manager who will work on your behalf, timely adjust the development process, delve into the workflows, and effectively interact with the team for the benefit of your business. In case you don’t have your own in-house specialist who would be available to fit the outsourced manager’s shoes, you can turn to a company that provides dedicated project managers to help you out.
#8: Lacking a technical specialist in the company
You need a tech-savvy person on your team who will delve into the technical documentation and control the process.
#9: Underestimating product quality assurance
Testing the finished software is paramount in any project. That is a sure way to boost product quality and reduce business undermining risks.
#10: Lacking attention to cultural differences
Consider the cultural background and mentality of your outsourcing team. It's great if your specialist spends a month with remote employees in order to maximize the situation and establish effective interaction.
We recommend you outsource web development if you want to scale your project, unload your staff for more relevant specialized tasks, hire the best specialists without spending money on office rent, or straining your HR team.
It is important that the outsourcing team consists of professionals in their field who have proven their advantages. You need to keep your finger on the pulse, interact with the contractor so that the team hears your wishes in time, and make proper adjustments.
At Axisbits, we employ seasoned professionals that fully developed tons of web projects. We will carefully analyze your business situation, take into account all your wishes, and implement a successful web project that will boost your profits. Contact us right now.