Benefits and challenges of outsourcing software development: what you need to know

With outsourcing in software development we find ourselves facing an increasingly widespread reality that is not new. Their permanence allows us to assess their immediate impact on administrative management and long-term business performance. Today, the business view assumes outsourcing as a valuable resource, and that is what we will talk about in this article.

Benefits of outsourcing in software development

The first idea that outsourcing usually evokes is the impact on cost reduction. However, there are other positive and much more relevant effects when we choose to delegate responsibilities on a third party.

Outsourcing allows you to outsource both personnel and software development as well as managed IT services. We are talking about monitoring, network management, backup services, cloud and database administration, and the advantages are undoubted:

Optimise time and resources

Creating products in-house can be time-consuming. By having an external company, it is possible to improve the ability to focus on targets that deliver value. In this way we are able to deploy better strategies and obtain better results than expected in a shorter period of time.

Organise expenditure according to the desired result

An outsourcing software development team, focused exclusively on coding, is capable of producing several minimum viable products, or MVPs, in a few months. What we get is a basis for a immediate and simultaneous analysis on several projects and know to what degree they are accepted.

It will be easier and more agile to define how the adjustments or enhancements to include. This is much cheaper than keeping an in-house programmer on staff, as it eliminates labour liabilities and administrative costs.

Streamlining recruitment

The sourcing and recruiting the right talent is a task that is difficult and sometimes takes months. Consequently, there is a subsequent delay in the implementation of projects and in the realisation of profits.

On the other hand, external companies have broad human resources in which we can make a selection. Staff who are highly specialised in a particular niche and who are immediately available is a solution that can be achieved within a few weeks.

Latest technology and tools

Companies dedicated to outsourcing software development are constantly innovating, which is why they manage very efficient resources and the most advanced technology. This is undoubtedly a huge advantage over other competitors in the market. On the other hand, it opens up the possibility of modernising and optimising internal processes, as well as training permanent staff.

A flexible team

Flexibility is one of the benefits of outsourcing most important when organising a team, and a must-have quality when the business is evolving. The ideal is to achieve cost savings while scaling the business.

Outsourcing software development helps eliminate staff downtime that would otherwise be borne by the company. It also allows you to make the most of peaks in activity without hiring or firing staff, simply by requesting a new specialist.

Challenges of outsourcing in software development

Combining teams with different styles and responsibilities represents a challenge for those in charge of carrying out software projects. In the necessary adaptation period there are some hurdles to overcome.

Coordination

Achieving proper alignment in the work of the internal and external team and maintaining it over time is one of the biggest challenges in outsourcing. Harmony must be governed by the objectives of each project, or else conflict and poor results will arise.

Communication

An outsourcing group can be very diverse in terms of vision, methods and cultures, among themselves and with the contracting company. Additionally, this human resource is unfamiliar with organisational values, lives in different time zones and uses different sociolects, which leads to delivery delays and misunderstandings.

Confidentiality

The leak of data to the competition and the reduction in security is perhaps the greatest danger we face when hiring external personnel. Despite confidentiality agreements, is a latent risk that can damage both brand image and sales.

How to address the challenges of outsourcing in software development

Moving traditionally in-house functions to equipment provided by an outsourcing company requires detailed planning to make the transition as smooth and efficient as possible. Precautions need to be taken to ensure operational continuity and not affect ongoing projects.

The management

A small group of people from both companies facilitates the coordination of tasks. It also helps to resolve conflicts constructively in a collaborative environment.

Define roles and responsibilities.

Clearly identifying the roles and the responsibilities that arise from them is essential. The idea is that each area has one person in charge and that do not duplicate tasks, in order to avoid interference. In addition, each employee must understand what his or her contribution is and how it complements that of the rest of the team.

Clear and constant communication

An open communication channel is indispensable for sharing difficulties encountered along the way, expectations and achievements. Regular meetings and tools on line are very useful to clarify doubts and maintain the spirit of collaboration.

Sharing objectives

The alignment of goals between the two teams is indispensable for the joint work to deliver the desired results. In this sense, the outsourcing group must know the KPIs (key performance indicators), both primary and secondary. This makes it possible measure performance, as well as its impact on the business outcome and focus everyone on the same goals.

Outsourcing in software development can be the solution to many obstacles in the productivity and operation of the company. However, this resource needs to be properly harmonized to obtain maximum benefit.