How to Outsource Software Development toa BPO Service

How to Outsource Software Development to a BPO Service

Software development outsourcing to a business process outsourcing service helps you achieve greater economies of scale and focus more on core competencies

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The world has become highly advanced and it has become imperative for businesses to have a digital presence. This has led to the rising demand for software development in business.

Software development is the process of creating and maintaining applications and frameworks which help to increase your business’s productivity. However, businesses often lack the in-house capabilities that a software development firm can offer and developing a complete software application in-house demands money as well as time. In such situations, businesses can choose to outsource software development to business process outsourcing services.

According to the Information Services Group, when focusing on contracts with a total value of

more

than

25

million

U.S.

dollars,

the

annual

global

revenue

from

information technology outsourcing is estimated to amount to between 60 and 70 billion U.S. dollars.

According to a study by Computer Economics, large organizations have increased the percentage of their IT budgets spent on outsourcing from 6.3% to 8.7% this year. Mediumsized companies too increased their budgets from 4.7% to 6.5%. The use of software development outsourcing helps companies cut down costs and get their product to market faster. The Global Software Outsourcing Market Report shows that the market provides a comprehensive analysis for every factor related to global Software Outsourcing Market. The report presents a valuable forecast for market size, share, growth, sales volume and revenue. The top vendors in the software outsourcing market are Accenture, HCL Technologies, HPE, IBM, TCS, Oracle, Infosys, and Cognizant. This research study provides a summary of general data such as segments, subsegments, information graphics, tables and diagrams and so on. It also includes a substantial study of software outsourcing market strategies, challenges, prospects for progress and a detailed introspection of the factors that affect the market.

The above study shows that outsourcing software development is on the rise as it helps enterprises improve economies of scale. So, here are 5 key tips for businesses on how to outsource software development. 

Choose the best outsourcing model: The first and foremost step in outsourcing software development is to identify which type of outsourcing model your organization needs. For this, conduct an internal assessment by checking on your inhouse development team’s capabilities and weaknesses. Once your internal assessment is over, figure out which software outsourcing model is useful. Staff

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augmentation is one of the most widely-used partnerships. This outsourcing arrangement involves filling key weaknesses in your in-house staff by incorporating skilled software engineers on a requirement basis. Outsourcing to a team of project manager, software engineers, and testers who can take an idea and create a piece of custom software with little supervision is also a good option for businesses that do not have time or staff to develop in-house software. 

Have clear expectations: Outsourcing to a third party without any clear idea can lead to loss of money and a final product that does not meet your expectations. So, to avoid this scenario, make sure that you have clear expectations and set goals, before outsourcing your software development. Make sure that several assessment points are built into the process so that you can quickly identify progress and offer suggestions before too many resources are invested.



Open communication is a must: Setting up a clear line of communication from the very beginning of the project is essential to ensure the success of the project.

Professional software development outsourcing providers will have a set of processes to ensure that their client and their team stay connected and be updated about the success of the project. Before outsourcing, speak with your service provider to know about their communication style and make sure to verify exactly what time of day your outsourced team is expected to be working if they are located in a different part of the world.



Choose the right vendor: Choosing the right vendor is one of the most important parts of software development outsourcing. If you decide to outsource software development, then begin the search by looking at some of the most crucial elements such as the firm’s reputation, their past work, recruitment process and knowledge in the field. A thorough assessment of all these elements will ensure that you are on the right track.

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Post development strategy: After outsourcing to the service provider, ensure that there is a strategy to phase out your augmented staff and redirect your in-house team’s attention once coding and testing are complete. Make sure that any potential outsourcing partners have a blueprint in mind on how to slowly phase out contractors, train in-house staff on key responsibilities, and ensure that a regular software maintenance schedule is in place.

Software development outsourcing is an arrangement where a business hires a third-party software development service that delivers high-quality customized software packages that suit the specific needs of the clients. Software development outsourcing to a reliable

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business process outsourcing company helps businesses achieve greater economies of scale, valuable cost savings, and an increased level of production. Moreover, businesses can focus on their core competencies and work towards betterment of business and improved customer service.

www.managedoutsource.com

(800) 670 2809