Growing market competition today requires businesses to invent product ideas quickly. As technology continues to evolve, technological products need speedy development and deployment. But what if your organization lacks the technical expertise to develop the product?
This is where software development as a service or SDaaS, can turn out to be useful. SDaaS is an approach where a software development project is assigned to an external agency. But then again, not everyone is comfortable with the decision of outsourcing software development work offshore. Outsourcing software development projects require sharing of critical information about the organization and product with an external agency. Companies are also deterred from opting for SDaaS due to their lack of knowledge related to the whole outsourcing process.
In this blog, we will address all the issues related to outsourcing software development projects and help you understand how outsourcing must be approached, its benefit, and what should be considered before hiring a software development service provider.
Why do companies outsource software development services?
Outsourcing is becoming popular in the IT sector. It helps a company to speed up the delivery of technological products without the hassle of setting up infrastructure and offices for an IT team. It is best suited for small businesses but is equally effective for large enterprises that need multiple software development teams for the project. Let us discuss the benefits of outsourcing software development with this software development guide.
Say you have a new product idea that is ready to kick start, but your team is already overwhelmed with the ongoing in-house activities. Hiring an external agency saves you the time needed in the search and requirement of talents in the market.
2. Project-specific specialization
Your in-house team may lack the skill needed to develop the product. Having a full-stack development team may not be cost-effective either. Outsourcing a project to a software development company can easily bridge the talent gap. An external agency can acquire project-specific infrastructure, specialization, and tools easily.
3. Cost saving
There are additional costs associated with hiring a full-time professional, especially for short-term projects. The benefits and permanent salary can make a company incur huge expenditures. Software Development as a Service is a cost-effective option for projects where a company does not wish to incur expenses on management or training.
4. Team scalability
Imagine a situation where your company requires two very different softwares, but your current team can work only on one project at a time. By outsourcing software development, you can help assemble a team of highly skilled professionals and receive a unique perspective from the hired talent.
5. Reduced market time
Once you outsource the task of development to the external agency you can fast-track activities such as scouting the right talent for the project, onboarding them, training them, or managing them. The software development service provider can exclusively work on the project. This allows focused collaboration and faster development.
6. Access to a diverse skill pool
Over the years the demand for highly skilled software engineers has grown exponentially. In situations, where a project needs specialists, manpower hiring takes a lot of time due to the shortage of skilled professionals in the market. SDaaS allows a company to outsource talent globally through the remote-based approach.
What to consider before outsourcing software development services?
The technology market is ever-expanding and so is the competition between the service agencies. The promises that are made by outsourcing companies can be bigger than what they can deliver. In the cacophony of false promises and mediocre work, it is important to pick a company that can deliver you quality work within your decided project timeline.
1. Decide goals and objectives of the project before outsourcing
Before you go on to select a company for business software development, you must make a list of goals, objectives, and priorities for your project.
What kind of talent you will need onboard, what will be the project management process, which software development model suits your requirement, what tasks will have to be completed in priority, is there scope of scalability in the project, or whether there is a budget or time constraint? Answering these queries can help you chalk out key objectives of the project which should be established in the beginning. Clearly outline goals and objectives which are well documented and will help the SDaaS partner to deliver a product more efficiently.
2. Evaluate the pros and cons of the agency
Outsourcing your work to an agency may bring a new set of challenges. The corporate culture of the company may vary from yours and this may lead to some jitters on the way. Similarly, their work timing and leave calendar may not be as per your work schedule. Further, software development service providers mostly rely on freelance talents who may not continue in your project after a certain period. Added to that, your project may need a pool of diversely skilled professionals. To cater to these issues an agency must have the agility and flexibility to accommodate a client’s requirements.
This is why it is advisable to evaluate an agency and check its review before finalizing a contract. Weighing the pros and cons of multiple agencies, learning more about the outsourcing partner’s company culture, interviewing the workers from the team, and testing the developer’s skills are recommended steps before outsourcing the project.
3. Effective Communication with the team
Most offshore outsourcing companies work in different time zones. Cultural and language barriers can be major deal-breaker once you start your work with them. The distance can affect the timeline of the project if a good communication channel is not created. Establishing a swift feedback and review mechanism, creating an efficient ticketing system, and using applications that allow real-time workspace collaboration can be a great help in getting your work done within the project deadline.
4. Non-disclosure agreement
A non-disclosure agreement is something that cannot be overlooked while hiring an outsourcing agency. You will be sharing sensitive data about your product and company with the agency. This data needs to be protected from duplicity or any other form of violation not only during the project phase but also post that. As such it is always advisable that a non-disclosure agreement is signed with a software development services provider at the beginning of the project.
5. Finalizing the right operating Model
Depending on your budget, specific software prerequisite, and skill requirements you can choose one of the three outsourcing models that companies opt for. The selection of the right outsourcing model allows better resource allocation and cost-effectiveness.
Types of Outsourcing Models to choose from:
The research findings from Genpact, which were previously discussed in this blog, also highlight some difficulties entrepreneurs find while trying to manage in-house digital transformation. Let's have a look at those problems:
1. Project-based model
In this model, entire development and management of a project is outsourced. This is a good model for projects which have well-defined scopes and objectives. It allows a company to focus all its attention on business and operations while the onus of complete software development is taken up by the outsourcing agency. While a company gets access to skilled professionals, a downside to this model is that the company may not retain too much control over the project. It is always desirable to create a roadmap for the completion of the project with well-defined targets.
2. Dedicated team model
In this model, a dedicated team is hired that caters exclusively to the project’s needs. This way an organization can keep full control over project management and team activities. The team may be placed on-site or work remotely. This model works best for long-term projects where objectives and scope are refined over a period. It allows the company to add revisions and changes to the project on regular basis.
The dedicated team model allows you to onboard experts within your budget. It also helps the company to achieve faster development due to collaboration between the in-house team and the outsourcing team. However, this model is not cost-effective for short-term projects.
3. Staff augmentation model
This model is used by companies who wish to add skilled professionals to their in-house team. In this model, the hiring company gets to keep complete control over the project and management of the team. The organization can induct specialists who can complement the existing in-house talent pool of the company.
This model offers a lot of flexibility as the company can acquire talent who can work remotely. It also does not require heavy investment in infrastructure. The downside to this model is that the company needs to focus time and energy on managing and training the staff.
Who can benefit from SDaaS?
1. Startups and small businesses that need a wide range of skilled professionals but do not have time or capital to create an IT department.
2. Companies that need insightful feedback and contributions from subject matter experts.
3. Companies who need more hands to offload some of the work pressure from the in-house IT team.
4. Companies who wish to focus their attention on growing the business while they want the development to be handled by another team.
5. Large companies that need a dedicated team for their short-term projects.
Software development as a service can benefit any company. However, it is important that before a company outsources business software development, it should do the necessary research on the outsourcing agency that it wishes to hire. Streamlining goals and objectives can help you find the most efficient approach to SDaaS.
With experienced team, Owebest has a proven track record of developing high-quality software solutions that meet the needs of clients. Our team have the necessary skills and expertise to handle complex development projects, and are able to provide customized SaaS application development services that meet the unique requirements of each client. We have robust quality assurance processes in place to ensure that the software we develop is of the highest quality. This includes comprehensive testing at every stage of development, and the use of automated testing tools to minimize the risk of errors and bugs. In other words, Owebest Technologies is the ideal choice you have got for all kinds of SDaaS needs.