6 Mistakes to Avoid When Outsourcing Software Development, According to Software Agencies [DesignRush QuickSights]
Cutting costs is a big reason for outsourcing projects, but are companies doing it right? DesignRush reached out to experts to uncover some of the biggest software development outsourcing mistakes.
MIAMI, September 1, 2022 /PRNewswire-PRWeb/ — A Deloitte survey suggests that the top reasons companies outsource projects are cost reduction, flexibility and speed to market. This trend is not expected to slow down and, in fact, spending on IT services is expected to reach $1.3 trillion in the world in 2022, as reported by Statista.
DesignRush, a B2B marketplace connecting companies to agencies, has leveraged its network of 16,000 agencies to gain quick insights – or “QuickSights” – on the mistakes companies should avoid when outsourcing design development. software.
1) DRAG PRODUCT VERSION
Founder and CTO of Softkit Vitalii Samofa actions that companies should not miss the product launch or it may lead to cost increase and value decrease.
“Develop an MVP for more than six months and don’t publish the project,” Samofa said. “In my experience working at an outsourcing company, I’ve seen five projects with three years of average development time that didn’t go into production. You need to target a release to market as soon as possible, otherwise the delay may increase costs and reduce the scope and quality of product launch activities.”
2) WORK ON A FIXED PRICE BASIS
Nicolas BonnefoyCTO at Web3 venture studio ERA2140, says being “financially” involved in customer projects is the best way to develop successful software and achieve both parties’ goals.
“Before, our customers wanted to work on a fixed price basis, but working in Web3 and in blockchain requires a lot of innovation and R&D time which is not measurable at the start”, specifies Bonnefoy. “Projects constantly evolved over time and we were forced to reduce functionality to adapt to the budget. Then we moved to the Venture Studio model. Being incentivized in the project guarantees quality and investment for the client and for us , a win-win model.”
3) NOT SAVING ENOUGH TIME DOCUMENTING DELIVERABLES
According Ritesh Agarwaldirector and lead developer at Appycodes, not spending enough time on key details such as documentation and deliverable details can lead to disputes.
“When it comes to software development outsourcing, companies often lack the time to document and itemize deliverables and clearly indicate scope of work inclusions and exclusions,” Agarwal said. “This leads to an expectation gap and is the most common reason for conflict.”
Surabh SuranaBusiness Development Manager at Techforce, agrees on this and also emphasizes the importance of keeping requirements and budget up to date.
“When outsourcing, keep the list of requirements, the detailed questionnaire and a budget ready, so that the company can help you accordingly to estimate the project and provide the perfect estimate for the specified requirement,” said said Surana.
4) DELEGATION OF ALL WORK TO OUTSOURCING PARTNER
As Romana Levytska, Business Development Manager at Lionwood.software, stated, companies should never delegate all the work to their outsourcing agency because they know their business best.
“The common mistake a company makes when outsourcing software development is to delegate the entire job,” Levytska said. “You know your business better than anyone. Proper product development can be achieved by both parties involved. Clear expectations and a well-defined scope will help your [outsourced] team to deliver the product you envision on time.”
5) INCONSISTENT PLANNING AND RESEARCH
In the opinion of Sana AnsariAVP of Marketing at Binmile Technologies, inconsistent planning and research is at the root of technical breakdowns and cost increases.
“70% of companies outsource to save costs, but due to lack of a consistent plan and research, they end up paying more,” Ansari said. “This inconsistent planning erodes trust, leading to technical failures and increasing project cost and TAT by 50%. Move to an engagement model with clear pricing and a detailed project plan that includes all possible scenarios.”
6) DECIDE WHO TO HIRING BASED ON REDUCED COSTS
CEO of Empat Nazar Gulyk suggests that companies should not consider price as a deciding factor.
“If you put that [criterion] first, you will have a high chance of starting your project with a poor quality supplier focused on quick profits,” Gulyk said. “The price must be reasonable, and it may be the decisive factor, but not the main one. We’ve seen a lot of badly done projects after such vendors that simply can’t be sustained for future development.”
DesignRush released September’s list of the best software development companies to help companies save valuable time finding and hiring the talent they need to develop specific software solutions.
1. Softkit – softkit.dev
Expertise: software re-engineering services, custom software development, BI and Big Data management, etc.
2. ERA2140 – era2140.com
Expertise: consulting, blockchain development, web and app development, etc.
3. Above Creative Events – blog.creativemalaysia.com
Expertise: web development, microsite development, registration system services and more
4. Appycodes – appycodes.dev
Expertise: game development, web development, application development, etc.
5. Iriartec – iriartec.co
Expertise: custom software development, web design, consulting and more
6. Lionwood.software – lionwood.software
Expertise: web application development, custom software development, UX design, etc.
7. BrancoSoft Private Limited – brancosoft.com
Expertise: software development, software testing and quality assurance, IT strategy and software consulting, etc.
8. Binmile Technologies – binmile.com
Expertise: digital engineering, quality assurance, product engineering and more
9. Rubyroid Labs – rubyroidlabs.com
Expertise: Ruby on Rails development, application development, custom web development, etc.
10. Techforce – techforceglobal.com
Expertise: e-commerce development, custom software development, web development and more
11. Timbergrove – timbergrove.com
Expertise: IoT, software development, UI/UX design and more
12. CrawlApps – crawlapps.com
Expertise: desktop software development, web development, application development, etc.
13. Serious Web – seriousweb.org
Expertise: web development, software development, business automation and CRM development, etc.
14. PocketDevs – pocketdevs.ph
Expertise: application development, web development, custom system solutions, etc.
15. Mocha – wearemoka.com
Expertise: web and app development, UX design, branding and more
16. Empat – empat.tech
Expertise: custom software development, application development, web development, etc.
17. Superior AI – aisuperior.com
Expertise: business intelligence, AI research and development, AI consulting, etc.
Brands can explore top software development companies by location, size, average hourly rate, and portfolio on DesignRush.
DesignRush.com is a B2B marketplace connecting businesses and agencies through expert reviews and agency rankings, awards, knowledge resources, and personalized agency recommendations for approved projects.
Maja Dukadinovska, DesignRush, 8008565417, [email protected]