Software Outsourcing: 6 Essential Steps for Becoming Ready

Developments in Outsourcing Software Development

With the growing prevalence of outsourcing in software development, businesses across all scales, particularly those in the mid-market segment, have upped their expenses on IT outsourcing in the current year. Additionally, about 37% of firms outsourcing app creation expect to expand their outsourcing ventures in the coming year. As organizations conclude their budget and project strategies for the year 2019, software outsourcing features prominently in their objectives.

For an efficient beginning, companies can refer to these six actions to prepare for outsourcing software development.

Firstly, evaluate the skills of your in-house team and be prepared to outsource any deficient areas.

Identifying the existing internal expertise within your organization is the first step to consider. The subsequent and pivotal stage involves identifying specific areas of inadequacy and lack of knowledge. For instance, you may have ample backend engineers but fall short of efficient quality assurance testers. The primary goal is to determine the necessary skill set required to accomplish future tasks, available resources, and the deficiencies that need to be addressed.

Before making a final decision, it is crucial to grasp the concept of outsourcing. To gain an insight into the intricacies of outsourcing and eradicate any misconceptions, we suggest delving into our blog post on the most prevalent misinterpretations surrounding the process. This will enable you to have a clear perspective of what to anticipate.

Establish a software for project management (and provide training if necessary)

Select a mechanism for exchanging financial records and documents

After deciding on which tasks or projects to outsource, it is vital to establish an orderly system within your organization. To ensure effective project management, it is crucial to choose appropriate project management software and ensure that all users, including internal and external workforce, are trained adequately on how to utilize it. Numerous project management tools such as Basecamp, Trello and Asana are available to facilitate progress tracking and to ensure that everyone involved comprehends the objectives and progress of the project.

When your team has made significant progress on a project, it is not preferable to dwell on the minutiae. To prevent confusion and ensure triumph, it is essential to initiate your preferred accounting software (Xero, Wave etc.) before the start of the project. It is also advised to maintain regular communication with your outsourcing team regarding invoicing, be it monthly, weekly or otherwise. This will avoid any misunderstandings and improve the likelihood of success.

Searching for files in multiple locations can be a cumbersome task for all team members and lead to unnecessary irritation. To evade such situations, it is crucial to decide on the platforms to be utilized beforehand. A Dropbox or Google Drive folder can be employed to share documents and images among internal and external teams, but it is imperative to ensure that all relevant members have access to the shared space, and are utilizing it appropriately.

Drafting and Editing Contracts and Non-Disclosure Agreements (NDA)

Keeping all contracts and Non-Disclosure Agreements (NDAs) between your company and external suppliers up-to-date is of utmost importance. Depending on the nature of the software outsourcing firm, multiple contracts may need to be employed to ensure smooth functioning of your business operations. It is crucial to review the contracts to identify any necessary modifications for it to be suitable for your requirements. In addition, all NDAs should be periodically assessed and updated to ensure that new employees receive the appropriate documents and can initiate work without any delay.

Select a mechanism for tracking time and expenses.

During the progression of the project, managers should have a swift way of calculating the time spent on each phase. Several management solutions such as Toggl and HubStaff are available in the market, hence it is imperative to select the most suitable one for the team. Once an appropriate solution is identified, the necessary personnel should familiarize themselves with the system and undergo relevant training courses.

Assign positions, particularly administrative roles.

To make it easier for your external team, it is crucial to allocate responsibilities at the beginning. Having an individual from the team sending a company-wide email to someone who might have the answer to the question could end up being counterproductive. All team members, whether internal or external, should be aware of whom to report to and who necessitates updates on the progress of the project. Transparency, a consistent workflow and clear assignment of managerial positions need to be maintained. Once done, selecting a messaging platform like Slack for private conversations among employees is essential.

It is fortunate that your organization can accomplish most of these objectives well in advance. As 2023 draws near, the opportune time to take charge of these objectives is now so that your company can begin the new year with a head start.

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