5 Mistakes Companies Make When Outsourcing Software Development

Written by delaPlex
April 02,2014

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You’re the idea person, the manager, the visionary. You’ve got a great concept for your company’s next product, but you don’t have the skills to create it with your own two hands or an in-house team that can do it. Or – maybe your in-house team is already swamped with supporting your existing products.

Outsourcing can seem like an attractive option, and when done right, it can be – but it’s important to toss back a dose of reality with your fantasies about launch day.

In order to have a successful outsourcing experience, get your head in the game by avoiding these 5 errors in judgment:

1. Thinking you are going to save time on project management

It can be tempting to think that you can email a spec to your outsourced team of developers and then move on with your life, with occasional status checks until the final product pops out on the other side.

Nothing could be further from the truth.

Your outsourced development team will need you to answer questions about detailed requirements, review and test their progress, set tasks for the next stage of development, and so on. Lather, rinse, repeat. This could take a few hours each day.

If you’re working with a team that’s larger than just a few members, it’s important to consider assigning another person to managing the project – whether they are already on staff or need to be hired. This person can serve as a liaison between you and the development team – they need to be remote and local to you, with authority to make decisions without consulting you about every detail.

2. Thinking a fixed-price contract is going to save you money

When budgeting for product development, it can be scary to sign on for time-based billing – by the hour, the week, or the month. It seems that if you can get your outsourcer to commit to a fixed price, then you save money and avoid open-ended projects that drag out and run over budget.

The tradeoff for this, however, is that you cannot change your requirements after starting the project – since they are the ones the fixed bid are based on. This shuts down the possibility of iterating and improving as the development process goes along based on feedback from potential customers, changes in the market, and ideas the development team brings to the table.

If you’re paying the team a fixed amount, they’ll be focused on just getting the job done – rather than partnering with you to create the best end product possible.

Therefore, if your project is small and the requirements are discrete, you can save money with a fixed bid – but if your project has any scale and needs to be a “living” organism, choose engagement-based contracts.

3. Thinking “genius” is better than “competent”

While any company is going to feature its star players when securing a contract, it’s important to keep in mind that the Dream Team can’t work on everyone’s project.

What you want is a team of competent, dedicated developers whose only job is YOUR project. Geniuses are notoriously bad at communication and difficult to reach when you need them – whereas a competent developer focused on getting your job done to the best of his/her ability can be a more valuable asset over the life of the engagement.

4. Thinking you can get version 1.0 done by an outside team and then maintain and move it forward with your in-house team.

Have you given serious thought to what happens after the initial version of your product is launched into the wild? One year, three years, five years down the road?

It’s very easy to say, “I’ll save money by getting the product made by an outsourced team, and then once it’s a success, I’ll hire my own team to take it over.”

You may find that it’s a better choice for continuity and cost management to keep your outsourced team, who is already intimately familiar with the product, working on maintenance and enhancements over the long term. Keep this in mind when choosing a company – do they have the longevity and stability to support you?

5. Getting fixated on a particular technology without good reason

Sometimes the technology you know and want to use really is the best choice. However, we all get busy doing our thing and it’s possible there’s a different method that would yield more elegant, robust, and efficient results.

Unless you are a coder yourself, it’s important to remain flexible regarding the technology used to achieve a specific goal. Sometimes, what might cost one price to code under one paradigm might cost half as much if you use a different one. Be open to suggestions from the developers in the trenches.

To Learn More about Outsourcing

The right outsourcing partner can help you enhance your ability to grow your business. With its headquarters in the United States and its development team in India, delaPlex is uniquely positioned to provide you with all of your outsourced software development needs. We create a team of developers for you that become an extension of your organization and are devoted to helping you achieve your vision. 

We base our success on helping our clients become more successful, and we are always focused on ways to give our clients the most value. Our dedicated, talented team members will take the time to understand your business and your specific needs. Contact us today to learn more about how we work and how we can help you achieve your goals.