Software Outsourcing: A Comprehensive Overview for Businesses

When we think about outsourcing, we usually think of some distance and distance in terms of both geographical and human personality, culture, and numerous other aspects linked to laws and taxes. However, it is no accident that the trend of software outsourcing has grown so popular. Significantly, 70% of companies currently have digitization initiatives in place. This small piece of information is enough to confirm the critical position and role of software development, facilitated by outsourcing, in driving the business’s growth and evolution over time.

And luckily, software firms may aid with this. Saigon Technology, a major software firm in Vietnam, is pleased to share this comprehensive article about the industry with you! 

This article will outline the whole process, including the ultimate information category. You’ll discover suggestions and checklists to assist you in assembling the best team possible for your development project.

Definition

A concrete testament to the worldwide popularity of software development – specifically mobile apps – Google Play Industry alone receives over 3,700 applications per day, while the Apple App Store holds 1,96 million apps in total! Fortunately, there is a huge app market. Owners are well aware that the current offering falls short of exactly meeting their company’s requirements. To assist with this, software companies are available.

When a corporation adopts a technological strategy of hiring a software outsourcing company, it entrusts a specific task, process, function, or component to an external third-party provider. There are several ways to find a supplier, depending on the kind of operation. In today’s world, the IT industry is where it is most often used. To dig deeper into the definition, let’s first understand it as follows. In a clear and specific way, it may be characterized as hiring a third-party organization or person to do a certain set of tasks on behalf of the client, which is the underlying idea. 

In recent years, it has been a popular topic in software development. Non-tech companies often go beyond their walls for specialized knowledge, but 60 percent or more of software development companies outsource at least some of their work. Specifically, the QA/testing stage is when most of the specialists in this field are allocated. Project management and planning are also common.

A Good Idea for the 5 Reasons Listed Below

Here are the 5 biggest advantages when taking advantage of it for your business.

Cost-effective

When a firm needs to minimize expenses, regardless of the quality of its services, the prevalent expectation is that it would first consider building software that can be outsourced. For instance, to get started, a new employee should get familiar with the company’s internal policies and procedures as well as project information. The onboarding process might be simplified by hiring a specific organization or person for a specific task. It is also a good option since it doesn’t need as much time to grasp the subtleties of a new member of the team.

Well-versed in the subject matter 

It is vital to examine the industrial approach and experience of software services. It is possible for the staff to identify the production line’s missing components or to bring new ideas from previous experience to the table. In reality, these experts may be able to provide much more than just one assignment’s worth of advantages. 

A strategy for finding new talents

In many countries, it helps corporations evade the difficulties of long-term contracts and hefty taxes. Assigning a certain amount of work for a given length of time and a fixed fee is a great way to test the market and build a pool of potential full-time employees. It is all about avoiding the expense and inconvenience of hiring new employees permanently.

Effort reduction 

Many business owners worry about “time” when they begin to establish a digital platform for their company. If the project is on time, you’ve won a piece of it. “Ensuring the project is on time” is another critical clause in any contract with this particular sort of external technology service provider. You no longer have to worry about running out of time with the help of software companies.

Service of the utmost quality 

Everyday existence and human progress are closely linked to technology. A team comes into play when the enterprise’s resources are insufficient to satisfy a project’s demanding needs. External technology vendors are guaranteed to deliver you a wide range of innovative and cost-effective solutions if they have an objective perspective, a wide range of ideas, and excellent professional abilities. And this is one of the greatest benefits.

Several Drawbacks That We Should be Aware of

In addition to the glittering benefits, drawbacks also exist as vivid reflections that we should consider before embarking on a project. Along with those potential drawbacks will be useful solutions that we can apply to relieve anxiety.

Controlling the working process is complicated

It’s inevitable that when company owners and software teams are located in separate locations, there will be issues with the process of completing work and the outcomes delivered at each specified stage of the project. Then, you may not have total control over how those chores are carried out, but rather be observed. 

• If you’ve picked a trustworthy service provider, you may relax and focus on other aspects of the project instead of micromanaging every stage of the process. As long as the professionals were involved, they’d know exactly what to do.

Differences between time zones

As a result of geographical separation, different time zones will exist. In the case of an American company working with a software team in Asia, for example, the evening is the period when the American company goes to sleep while the team works or the other way around. 

• It doesn’t matter if our schedules conflict, we’ll find a time to talk. Alternatively, utilizing a messaging app for online conversation is a viable option. On the other side, time zone variations might work in your favor. At the end of the day, you may, for example, assign a job to a software team. The staff is hard at work while you’re asleep, and you’ll see results at the start of the following working day.

Your project will not be given the attention it deserves

Many small or freshly founded software firms will have a wide range of tasks for a variety of different organizations. Due to the lack of human resources from the software team, your project may be delayed, finished later than the deadline, or completed extremely rapidly since they merely “get it done” and then go on to another project. 

• Because the team’s professionalism can be evaluated objectively using the metric of “quality.” It’s especially important if your technological service provider is located in a foreign nation, with a different time zone, to make daily reports public to keep tabs on the project’s progress and synchronize information.

Which Models Are There? 

There are several styles and types available on the internet. This variety serves as the basis for the factor employed in the classification. Those who are more concerned with how the hired help will interact with their clients, divide models into increasing the number of staff members, and expert teams, and externalize the project. Contract types, such as fixed-price or time/material-based agreements, may also serve as a foundation for distinction. 

Staff Augmentation 

Internal productivity is increased while full control is maintained over the development process under this model. As a temporary measure, the customer “bids” the seller’s development team or his piece of the vendor. As a part of your process, staff will only do the responsibilities assigned to them. As a result, the customer bears all of the accountability and control for the project’s success.

•  When should you consider staff augmentation? 
•  It’s best to get help from your team when you need it most. 
•  All members of the team at all locations may be closely monitored if a competent project manager is in place. 
•  If a certain task requires a unique skill set, but it isn’t essential to your long-term success, consider hiring a freelancer.  
•  While the recruitment process cannot be finished, an instant need for help arises. 

Dedicated team

When it comes to product development, this strategy falls somewhere in between increasing the number of staff and entirely delegating the work. An independent project is being worked on by a team of external professionals who aren’t involved in any of the company’s internal processes. 

• When is it appropriate to have a team of specialists? 
• If you have a competent management team to make decisions in conjunction with an external PM (it can be a Product Owner, a CTO, and even a CEO for startups). 
• If you’re looking for a specialist in a certain area of expertise. 
• If, on the other hand, you lack the time or personnel to create your software, you’d still want to play a significant role in its creation and final edition. 

Project-based model

When a company has a purpose and software needs, but no team is participating in the project, a project-based IT development approach is ideal. Third parties are hired by clients to handle the complete development process in this case. After that, the seller controls and manages the process to ensure that the finished product is delivered on schedule. The company is in charge of all aspects of the development process, including the methodology used. 

• Project-based: when is it appropriate? 
• As long as the main products of a company are in place, a support tool, a database update, or another little side project may be built. 
• External engineers may take over the whole development process if the internal team’s activity is constrained. 
• Many alterations are simple to make if all of the project’s specifications are met, but this isn’t always the case. 
• If you need software or an application but don’t have the time to supervise and manage their development.

Guidelines for Developing Software Applications 

Only if the procedure is carried out correctly may provide a company with several benefits and deliver a broad variety of favorable outcomes. Every new configuration comes with its own set of risks, but those risks are ones that you are already familiar with. Managing your externalization might be difficult, so here are our guidelines to help. 

Select the most appropriate assignment

Let go of the things you don’t want to attain. As a result, without the fundamentals of development, you run the danger of losing the component entirely. Examine your current processes and goals, and decide which parts of the project should be outsourced based on this information. 

Decide on a model that appeals to you 

It’s easy to understand. Everything influences the scope of your checks and the amount of time you’re willing to devote to monitoring your personnel. Please continue reading to learn more about the various types and our suggestions. 

Attend as many meetings as possible

Even if you delegate the whole project to a third party, you should monitor the progress of the project and be aware of any difficulties, mistakes, and roadblocks. 

Keep a calm head and an objective mind at all times

Even if your company has failed to provide a feature on a single occasion, this does not mean it is unreliable or unqualified. Avoid being excessively emotional in your professional interaction. High-spirited chats that produce little more than aftertaste are a waste of time when emotions are involved. 

Establish a progress visualization 

It is considerably easier to monitor and oversee software development if you can always view the process. Using Kanban boards, you can see which tasks have been completed, as well as those that are still in process or yet to begin. 

Testing in the same way twice 

After three months, 95% of newly enrolled users would abandon a request. A lack of testing results in a slew of issues that only increase the number of people who are unable to use the product. Always thoroughly test your application or software before releasing it to the public. 

What Makes Saigon Technology a Great Partner? 

Saigon Technology is a top leading software company in VietNam. We use cutting-edge technology and a proven Agile development process to provide software services to customers all over the globe. To avoid making claims that cannot be backed up, please be aware that we: 

• Was ranked among Vietnam’s top 50 software development firms. 
• Won an award for being the best 15 Vietnamese Agile software firm. 
• Acquired the ISO-certified software company (BSI UK Certification).
• Time zone variations won’t be a problem if our team’s schedule is continually tailored to meet the demands of our clients. 

To address the needs of both our long-standing customers and those we want to add in the future, we plan to hire 160+ people by 2020. Today, we have expertise in Java, ASP.NET; PHP; AngularJS; NodeJS; React; iOS; and Android/React. But if you can’t find what you’re looking for on the lists, we’ll be happy to put you in touch with more specialists in your field. 

Many multinational companies have picked Saigon Technology as their software partner because of the firm’s excellent credit rating. We have a lot to gain if we can grow and raise the quality of technology products across Asia and the rest of the globe. 

If you’d like a free quote and consultation, please don’t hesitate to get in touch with us as soon as possible.

• As a leading Vietnam software development company, at Saigon Technology, we dedicate ourselves to your success by following our philosophy: Your success is our mission.