7 Things to Consider Before Outsourcing Software Development




Emerging technologies such as artificial intelligence and robotics are gaining traction, giving tech-savvy businesses an advantage over their competitors. As a result, in today’s digital world, software development plays a critical role in assisting businesses in streamlining their operations as technological advancements take over corporate tasks.

Software is essential in almost all industries, regardless of the type of business. Software development, on the other hand, is not a skill that most people have. It’s a technical ability that some business owners lack. The good news is that you can keep your competitive edge by outsourcing software development. You’re not alone; 64% of IT executives outsource their entire development process.

However, outsourcing in the Philippines entails more than simply locating a third-party provider and entrusting them with the development or management of software-related tasks. There are a few things to think about first because outsourcing isn’t solely based on cost, so it’s important to take your time when looking for a software development provider.

Ways To Outsource Software Development 


Before we go any further, let’s take a look at three common software development outsourcing models, according to Time Doctor. These models allow you to outsource based on your requirements.


The end-to-end management of a software project is handed over to an outsourcing agency in the project-based outsourcing model, which will work on the project from start to finish. You and the outsourcing company must agree on the project’s cost and deadline before it can begin.

It is important to note, however, that the project cost is not determined by the number of working hours or the resources used. The developer has complete control over the project’s planning and execution. When the following conditions are met, outsource using the project-based model:

  • Detailed project specifications
  • The project’s scope is set
  • The deadline has been agreed upon by both parties.

Dedicated team 

If you need to delegate multiple projects to a third-party provider, hiring a dedicated team to act as an extension of your main team is the best option. A team of professionals, including software engineers, designers, and UX specialists, will collaborate in this model to ensure that your project runs smoothly and effectively.

The cost of a dedicated team is determined by the number of working hours and team members hired. When should you enlist the help of a dedicated team?

  • If you want to work with an outsourcing company for a long time
  • If the software is scalable on a large scale
  • If your software needs to be updated and maintained on a regular basis

Staff augmentation 

The outsourcing company builds the software development team, but you manage the core processes in staff augmentation. Furthermore, you are the one in charge of delegating the group’s tasks. The provider, on the other hand, monitors productivity as well as employee-related issues such as vacations and compensation.

If you want to do the following, the staff augmentation model is ideal:

  • Participation in the development process should be increased
  • Having more creative control over the project

Factors to Consider When Outsourcing 

Business meeting top view

There are a few things you should think about before outsourcing:

1. Identify your requirements

“What exactly does my organization require?” you might wonder. Prior to anything else, you must have a clear outsourcing goal. According to the 2017 Global Software Services Report, a lack of clear goals causes 12 percent of software development projects to fail.

Having a thorough project definition and understanding of what the software performs will assist you in determining whether or not you need to hire a third party. What abilities will the outsourced staff be expected to possess? Examine your present team’s skills to discover what gaps need to be filled in order to finish a project.

2. Research for a provider 

Choosing the correct provider can go a long way toward assuring your software development project’s success. When it comes to outsourcing, there is no one-size-fits-all solution. Consider the following factors while looking for a partner company

  • Experience. How long has the service provider been in operation? What types of projects have they worked on? This is a crucial consideration because you want to ensure that they can handle the demands of your project.
  • Customers. You can get an indication of the provider’s quality of work by looking at their customers. You can read testimonials and reviews from former customers. Remember that you want to work with a reputable company, therefore what other people have to say is really important.
  • Scalability. The provider’s flexibility to adapt to changing circumstances will also be important in your decision. What if the project’s specifications change? Will they be able to meet your project’s deadlines quickly? Otherwise, your entire project may be jeopardized. What is their plan for dealing with unexpected changes? When choosing a supplier to outsource your project to, keep this in mind.

3. Establish your budget 

One of the most common reasons for companies to consider outsourcing to the Philippines is to save money. This is one of the key reasons for outsourcing in 59 percent of organizations, according to the 2016 Global Outsourcing Survey.
Whatever your motivation for outsourcing software development, you must first establish a budget. Above all, don’t skimp on the quality of your work to save money. After all, the most important aspect of your project should not be the cost, but rather choosing a professional with the necessary abilities and experience.

4. Understanding company culture 

You’ll want to collaborate with an outsourcing firm with whom you feel at ease. Understanding the company culture of the provider is one approach to discover this. You can look around their office and talk to one of the staff to get a sense of their working environment. You can also look at their social media pages to get a sense of their corporate culture and ideals through their posts.

The culture of the organization can have a significant impact on the collaboration and the project. Because of how your outsourcing partner operates, it can have an impact on how the project progresses. It will have an effect on how team members engage with one another because some may take a different approach than others. If a certain aspect of the project goes against company culture, it can lead to animosity and conflicts, as well as a loss of motivation or willingness to work on it.

5. Assess their processes and tools

You can tell if a provider is a good fit for your outsourcing needs by looking at how they conduct things in the office. You might wish to keep your method in some circumstances. Similarly, you could want to use parts of the outsourced BPO’s processes. Take the time to assess your processes and tools while analyzing the potential partner.

Providers are sometimes overly anxious to begin development even before they have complete knowledge of the project, which can be devastating. The scope of software projects must be well understood by all parties involved in order for them to be successful. Having a clear scope will help you understand the product better and improve its functionality.

6. Communication and collaboration process 

Communication is essential for outsourcing to be successful. Do they communicate via Skype, Slack, Trello, or some other tool? You must identify the most appropriate approach for collaboration while selecting a service. How will they keep you informed about the project’s progress, challenges, and plans? Both you and your potential partner should be comfortable with the procedure.

If the service you’re considering works in a different time zone, collaboration and communication can be difficult. It has the potential to obstruct good scheduling and feedback. Problems like this might sabotage your project for a long period. Worse, it could cause project delays or deadlines to be missed. Make sure you work with a provider who is available 24 hours a day, 7 days a week.

7. Check for security policies 

When it comes to outsourcing software development, one of the most important considerations is security. You’d be passing up sensitive information, which might be dangerous not only for your company but also for the customer. After passing over the data to the provider, there is a chance that it will be hacked.

When outsourcing, make sure the company you’re considering has security requirements in place. The focus should be on securing the premises and safeguarding IP and source code. Check for security and protection measures before signing any contracts.

It’s not easy to pick a software development outsourcing company. It entails dangers that could be harmful to your company. When looking for a service for your software development needs, keep these items in mind.

Partnering with the right outsourcing company is not a one-size-fits-all. You need to put in efforts in knowing the providers’ background, matching your goals with their solutions, or getting around how to communicate your desires effectively.

We, at StratAccess, can do all these strict qualifying processes on your behalf. StratAccess has positioned itself as a leader in delivering BPO referrals to clients. Thus, we will give you suitable options and match you with the right outsourcing company for your requirements.

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