Software Outsourcing: 6 Essential Steps for Becoming Ready

Trends in Software Development Outsourcing

As software development outsourcing continues to become more widespread, organizations of all sizes, but especially those in the mid-market, have increased their expenditure in IT outsourcing during the current year. Moreover, 37% of companies that outsource application development anticipate further expansion of their outsourcing activities in the next year. As businesses finalize their budget and project plans for 2019, some of the plans include software outsourcing.

To get off to a fast start, businesses may follow these six steps to be ready for software outsourcing.

First, assess the capabilities of the in-house staff and be ready to outsource any areas of weakness.

Identifying the internal expertise which your business currently holds is the initial stage to consider. The following and perhaps most important step is to pinpoint any precise areas of deficiency and absent knowledge. For instance, you might have an appropriate amount of back-end engineers but be lacking a quality assurance tester. The starting point is to decide what expertise is required to complete forthcoming tasks, what resources are already available and what isn’t.

It is essential to comprehend the concept of outsourcing before settling on a final decision. To gain an understanding of what is entailed in outsourcing and to dispel any misunderstandings, we recommend reading our blog post on the most common misconceptions about the process. This will provide you with clarity on what to expect.

Set up software for managing projects (and training, if necessary)

Decide on a system for exchanging documents and financial records

Once you have decided which tasks or projects to outsource, it is essential to ensure that your business is well-organized. To ensure successful project management, it is important to select suitable project management software and to ensure that all users (both internal and external) are adequately trained in its use. There are a range of project management tools available, such as Basecamp, Trello and Asana, which can help ensure all users are aware of the progress and expectations of the project.

It is not advisable to have to worry about the small details when your team has made significant progress on a project. To avoid confusion and ensure success, it is important to get your chosen accounting software (Xero, Wave, etc.) set up and running before commencing work on the project. Additionally, it is recommended to maintain regular communication with your outsourced team regarding invoicing, whether that be monthly, weekly, or otherwise. This will help to avoid any misunderstandings, and improve the chances of success.

It is not only inconvenient for all members of the team to have to search for files in multiple locations, but it can also be very irritating. To avoid such issues, it is important to decide on the platforms to be used in advance. A Dropbox or Google Drive folder can be used to share documents and images between internal and external teams, but it is essential to ensure that all relevant people have access to the shared space, and are using it correctly.

Contracts and non-disclosure agreements, including writing and editing (NDA)

It is essential to ensure that all contracts and Non-Disclosure Agreements (NDAs) between your organization and external suppliers are kept up-to-date. Depending on the type of software outsourcing firm, you may need to use multiple contracts in order to ensure that your business is able to operate effectively. It is important to take the time to identify any changes that may be required to ensure that the contracts are suitable for your needs. Furthermore, all NDAs should be regularly reviewed and updated to ensure that any new employees can be presented with the correct documents and can start work without delay.

Decide on a method of keeping track of time and money spent.

As the project progresses, managers need to be able to quickly assess the amount of time being dedicated to each phase. There are many management solutions available on the market, including Toggl and HubStaff, so it is important to find the best one to suit the team’s needs. Once the right solution has been identified, those who require it should take the time to familiarize themselves with the system and complete any relevant training courses.

Positions, especially administrative ones, should be assigned.

In order to make life easier for your external staff, it is essential to apportion tasks at the outset. It is counterproductive to have an individual from the team sending a company-wide email to someone who may have the answer to the query. All team members, both internal and external, should be knowledgeable of who they should report to and who requires updates on the project’s evolution. Consequently, it is imperative to uphold transparency, keep up a steady work rate and clearly designate managerial positions. The next stage is to select a messaging platform such as Slack, where employees can have private conversations.

It is fortunate that many of these objectives can be achieved ahead of schedule by your organization. As we approach 2023, now is the ideal time to take control of these objectives so that your company can start the new year with a head start.

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