{"id":442,"date":"2020-01-07T14:14:43","date_gmt":"2020-01-07T14:14:43","guid":{"rendered":"https:\/\/www.acropolisinfotech.com\/blog\/?p=442"},"modified":"2020-06-18T08:07:43","modified_gmt":"2020-06-18T08:07:43","slug":"how-to-successfully-outsource-your-software-development-work","status":"publish","type":"post","link":"https:\/\/www.acropolisinfotech.com\/blog\/how-to-successfully-outsource-your-software-development-work\/","title":{"rendered":"How to successfully outsource your software development work"},"content":{"rendered":"\n<p>The new year has arrived and it promises to be a great one for software development companies. According to a research carried out a few years ago by UK\u2019s National Outsourcing Association, <a href=\"https:\/\/www.gsa-uk.com\/uploads\/attachments\/cjx39ouso02xgnjh72mait6yh-outsourcing-in-2020-research-report.pdf?\" target=\"_blank\" rel=\"noreferrer noopener\">70% of surveyed companies said they will increase outsourcing work by 2020<\/a>. There is increased emphasis on custom software development activities to maximise the value of software while ensuring reduction of cost and zero compromise on quality.<\/p>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Major drivers behind increased outsourcing<\/strong><\/h2>\n\n\n\n<p>Companies look to outsource activities on the basis of the\nfollowing factors:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Cost: <\/strong>Outsourced software development is\ncheaper than in-house development. Especially when the development activity is\ndone in countries having high availability of tech talent at lower wages, like\nIndia.<\/li><li><strong>Skills: <\/strong>A major obstacle to innovation in\ncompanies is the lack of experts in technology. This can be overcome by\noutsourcing to companies who focus solely on technology and hence, have many\npeople with significant experience in technology.<\/li><li><strong>Operational efficiency: <\/strong>For companies in\nmost sectors, software development is not a core revenue generating business\nactivity. Take for instance a company like Pepsi. Their core business is in\nfood\/beverages. While software can enable them conduct business in a better\nway, for example, by speeding up manufacturing activity, developing the\nsoftware is not their main activity. Outsourcing that to companies for whom it\nis a main activity will ensure Pepsi can continue focusing more on manufacturing\nfood\/beverages instead of management of software development projects.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Outsourcing engagement models<\/strong><\/h2>\n\n\n\n<p>Companies usually select one of the following 3 outsourcing\nengagement models:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Out-staffing: <\/strong>Hiring additional members\nfor helping with development. This can be in the form of hiring a dedicated\nteam or a complete development centre.<\/li><li><strong>Product development: <\/strong>The complete\ndevelopment process is outsourced. The client has a particular set of\nrequirements and the vendor delivers a custom software developed as per the\nspecific requirements.<\/li><li><strong>R&amp;D outsourcing: <\/strong>In this model, the\nvendor is asked to evaluate the technical feasibility of investing in emerging\ntechnologies and prepare a proof of concept.<\/li><\/ul>\n\n\n\n<p>Choosing a suitable engagement model is important for\ncompanies.<\/p>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>5 things to keep in mind before outsourcing<\/strong><\/h2>\n\n\n\n<p>Before you begin outsourcing, there are 5 things to keep in\nmind:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Clarity about the reasons behind outsourcing and\nthe objective you wish to achieve from the outsourcing endeavour.<\/li><li>Possible need for expertise other than software\ndevelopment, like business analysis, market research etc.<\/li><li>Evaluate whether the software development need\nis one-time or ongoing.<\/li><li>Outsourcing involves various degrees of loss in\nownership and control depending on the engagement model chosen. Companies\nshould think about how much loss of control is acceptable to them.<\/li><li>Evaluate the budget you can allocate to the\ndevelopment process and select the engagement model accordingly.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Outsourcing risk management<\/strong><\/h2>\n\n\n\n<p>Despite the advantages of outsourcing, there are certain\nrisks involved. Let us analyse the risks and see how they can be managed.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Care must be taken to ensure a comprehensive\nvendor selection process. Keep in mind that there must be a reasonable\ntrade-off between price, expertise and terms of cooperation. This will help in\nmaking decision about which vendor to choose. Selecting the wrong vendor can\nlead to loss of time and money.<\/li><li>Lack of a proper objective and roadmap for the\nproject can lead to development of a product that nobody wants. It is necessary\nto do proper research for identifying the product need before the development\nstarts.<\/li><li>Miscommunication and chaos can happen between\nthe client and vendor if there is no proper communication channel and defined\nguidelines about ownership. There must be a communication plan before the\ndevelopment starts, defining when meetings will take place and the reports the\nvendor should send to the client. Also, the responsibilities and\naccountabilities of the vendors and the clients need to be established in\nadvance.<\/li><li>Leak of confidential and personal information is\na huge problem today. The client must ensure the vendors have a proper system\nin place to minimise cybersecurity risk.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Conclusion<\/strong><\/h2>\n\n\n\n<p>Now that you have an overall picture of outsourcing, it is\ntime to get a clearer picture by reading more articles on this topic before\njumping into outsourcing:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><a href=\"https:\/\/www.acropolisinfotech.com\/blog\/app-software-development-outsourcing-vs-in-house-development-a-detailed-comparison\/\" target=\"_blank\" rel=\"noreferrer noopener\">App\/Software Development: Outsourcing vs In-House Development \u2013 A Detailed Comparison<\/a><\/li><li><a href=\"https:\/\/www.acropolisinfotech.com\/blog\/benefits-of-a-dedicated-team-model-in-software-development\/\" target=\"_blank\" rel=\"noreferrer noopener\">Benefits of a Dedicated Team Model in Software Development<\/a><\/li><li><a href=\"https:\/\/www.acropolisinfotech.com\/blog\/guide-to-hire-mobile-app-development-company\/\" target=\"_blank\" rel=\"noreferrer noopener\">Guide To Hire Mobile App Development Company<\/a><\/li><li><a href=\"https:\/\/www.acropolisinfotech.com\/blog\/why-should-you-hire-remote-team-for-software-development\/\" target=\"_blank\" rel=\"noreferrer noopener\">Why should you hire remote team for software development?<\/a><\/li><\/ul>\n\n\n\n<p> Once you are ready to outsource, bring on board a trusted vendor to help you meet your business needs with technology. We at Acropolis can be your trusted advisors and take care of the complete development, testing, integration, implementation and maintenance of the custom software that you need. Contact us right now to have our technology experts at your service! All you need to do is have a detailed discussion with us about your needs, and upon your approval of our recommended solutions, we will deliver quality software that will help you achieve your business goals! And at affordable rates too! Even better, our services are available to businesses anywhere in the world! We cater to clients from US, UK, Australia, Germany, France and many more countries!<\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The new year has arrived and it promises to be a great one for software development companies. According to a research carried out a few years ago by UK\u2019s National Outsourcing Association, 70% of surveyed companies said they will increase outsourcing work by 2020. There is increased emphasis on custom software development activities to maximise [&hellip;]<\/p>\n","protected":false},"author":9,"featured_media":445,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3,15,2,14],"tags":[27,125,5,73,25,114,6,22,97,21],"class_list":["post-442","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-acropolis","category-mobile-development","category-software","category-web-development","tag-app-development","tag-app-development-company","tag-custom-software","tag-custom-software-development","tag-mobile-app-development","tag-outsourcing","tag-software","tag-software-development","tag-technology","tag-web-development"],"_links":{"self":[{"href":"https:\/\/www.acropolisinfotech.com\/blog\/wp-json\/wp\/v2\/posts\/442"}],"collection":[{"href":"https:\/\/www.acropolisinfotech.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.acropolisinfotech.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.acropolisinfotech.com\/blog\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/www.acropolisinfotech.com\/blog\/wp-json\/wp\/v2\/comments?post=442"}],"version-history":[{"count":3,"href":"https:\/\/www.acropolisinfotech.com\/blog\/wp-json\/wp\/v2\/posts\/442\/revisions"}],"predecessor-version":[{"id":949,"href":"https:\/\/www.acropolisinfotech.com\/blog\/wp-json\/wp\/v2\/posts\/442\/revisions\/949"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.acropolisinfotech.com\/blog\/wp-json\/wp\/v2\/media\/445"}],"wp:attachment":[{"href":"https:\/\/www.acropolisinfotech.com\/blog\/wp-json\/wp\/v2\/media?parent=442"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.acropolisinfotech.com\/blog\/wp-json\/wp\/v2\/categories?post=442"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.acropolisinfotech.com\/blog\/wp-json\/wp\/v2\/tags?post=442"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}