10 Costly Mistakes to Avoid in Software Development Outsourcing

Software development outsourcing is one of the most significant industries worldwide. The IT outsourcing market is expected to reach around $930 billion by the year 2027. Custom software development services are becoming a need of the hour, and companies are hiring partners who can fulfill this requirement. 

Software development outsourcing companies are popular for a good reason - they offer significant benefits that in-house teams cannot. From reducing development costs to providing a wonderful pool of talent, outsourcing helps companies achieve IT success without the additional time, money, and effort.

Software development outsourcing is a prime service that companies utilize to build digital products and solutions. In-house development can cost on the higher end - owing to the fixed costs involved. 

However, outsourcing application development services reduce such costs. Once the project is over, companies can let the outsourcing partner go. They don’t have to pay regular compensation to the team like they have to when they hire full-time, in-house development.

However, outsourcing software development services is not foolproof. There are several challenges that lie at the core of hiring an offshore partner. Let us discuss this in detail.

10 Mistakes to Avoid in Outsourcing Software Development 

Many companies only go for the cost-cutting benefits of outsourcing. However, they fail to see the bigger picture and face several difficulties that throw them off track. Offshore app software developers are not that easy to work with, and many companies underestimate that, which could cost them millions.

Here are the 10 most costly mistakes that stakeholders should avoid while hiring an offshore custom software development company: 

Poor market research

This is the first step - even before hiring an outsourcing partner. Many companies hire developers without doing complete research about the product or solution they intend to develop. It leads to hurdles in the long run when the team is unable to build a product that matches your research expectations.

Enterprises must first understand whether the product is feasible to build or not. They should look at their competitors, the market, and analyze whether there is even a market for the solution or not. 

Improper selection process

Many companies focus on just one aspect while outsourcing the process to custom application developers to an offshore location - cost. Their selection criteria is highly limited, which doesn’t provide them an overall comprehensive picture of the partner.

Enterprises must look at different aspects like the experience, portfolio, location, knowledge of the industry, technical expertise and compare the different software solutions companies. Only after that, they should make a decision about which one best suits their requirements. 

Mistrusting the partner
Once the enterprise hires a company for software development outsourcing, it is normal to mistrust the provider. Will the developers work properly? What will be the impact, positive or negative? Is the team skilled enough to work on the project?

The company must encourage trust and collaboration from day one. They should let the team do what it does best - build a software product. The enterprise must enable developers to be open and follow a transparent process. 

Impractical deadlines
Another major mistake that many companies make is giving impossible and impractical timeframes to complete the project. This often happens when the initial details are not given properly, which throws the professionals in outsourcing custom app development services off track, and they don’t deliver on time.

The solution is to give a time estimate in phases - i.e., each stage of development may have a different time requirement. It will help the developers stay on track and deliver products within the deadline.

Developer replacement 
One of the most overlooked mistakes in hiring offshore app software developers is their replacement. When a new developer is introduced to an existing project, it takes time to get acquainted and deliver the desired results. 

It is important to ensure that the dedicated team or developer remains the same throughout the product life cycle. It will make things smoother and faster with each release because they know what they are doing since day one.

Disconnected communication
When companies outsource custom app development services, they expect the partner to communicate constantly. However, teams often disconnect with the stakeholders until a phase is complete. They only deliver the progress report and demo when a release is imminent.

The solution is to constantly communicate with the client. The offshore team must regularly send reports and progress of the project. Even when there are issues, they should let the stakeholders know about them.

Cultural barriers
More often than not, teams face cultural barriers that hinder the development process. Custom web application development requires everyone to be on the same page. However, teams may get confused by cultural differences, which could lead to negative outcomes.

Both the outsourcing company and the hiring enterprise must accustom each other with the different cultures. The shared attitudes, values, and beliefs will help find common ground and improve team collaboration.

Ambiguous contracts
Now, software development outsourcing companies and enterprises close a contract and never look at it again. However, problems arise later, and both find out that the terms of the contract are unclear. This leads to disputes and court cases.

It is important to have a clear contract with the software development outsourcing company. From the project timeline to the payment cycle, everything must be mentioned in the contract to ensure that no dispute arises in the future.

Team discrimination
Many companies consider the dedicated development teams as separate from their company. They do not share their knowledge with the developers, which leads to improper development and unmatched expectations. 

The important thing is to take care of the outsourcing team just like the company’s own team. They must be updated regularly, and all the ideas and information must be shared to achieve the desired results.

Short-term engagement
Finally, a major problem in outsourcing is looking at it as a short-term engagement. Companies hire offshore app software developers for a specific project without engaging them in the team. When they need developers again, the team might not be willing to join.
The focus should be on building a long-term partnership. Offshore companies can contribute a lot by bringing a pool of talent to the table at an affordable price. It also provides a better experience and assists in the proper maintenance of the solution.

Wrapping Up

Hiring an offshore custom software development company can be challenging. By overcoming these 10 mistakes, companies can achieve the desired results without any hassle. For a smoother experience with an outsourcing partner, it is important to avoid these mistakes early on and become a part of the development process.