The majority of software development outsourcing risks can be mitigated by employing the proper strategy and making well-informed decisions from the start. In this article, we’ll go over some of the most common software development outsourcing risks and offer you some simple but effective solutions.

Poor communication between parties

Any discussion of the most frequent dangers associated with outsourcing a development project should begin with communication because it is the root of so many others. Working across time zones, overcoming language obstacles, and even minor cultural differences all result in real misunderstandings between the parties.

Make sure you’ve created a clear point person with the company to whom you’re outsourcing work so that messages can flow freely between the two entities. Besides, hold regular meetings. If you’re outsourcing development to a company with a huge workforce overseas, having at least one on-shore office with project managers who are good at problem-solving and collaboration is beneficial.

Make sure to understand where complicated aspects are likely to cause miscommunications and establish techniques for speaking correctly in these situations. As a general rule, it’s preferable to overcommunicate at the start of a project and then scale it back when both parties get to know one another, rather than boosting communication as challenges occur.

Going for the lowest outsourcing offer

If cost is your primary consideration, it will be tempting to accept the lowest proposal. The mentioned cost in a proposal, however, isn’t usually the whole cost to your company. You should think about the impact of a partner who hasn’t completed a similar engagement before, as well as one who isn’t “right-sized” for your company and hence can’t provide you the dedication and participation you require.

Newbies to a service or industry may not fully comprehend what is required, resulting in cheap bids.
It is your responsibility to read the contract to ensure that it includes all of the services you require. If you need the outsourcer to handle the project, be sure it’s included in the timeframe and that the costs are covered. Clearly state why you want to outsource a project to your chosen partner. Determine that everyone is on the same page about the goals and that the contract specifies them. Finally, choose the partner most suited to complete the project, which may or may not be the lowest bidder.

Issues with software quality

The quality of your software is the most important factor. The software quality is everything you’ve worked so hard for. If your software has bugs, it can have a big impact on your business, starting with delaying the launch of your project since engineers will have to go back and address the bugs. If the flaws are revealed after the launch, it could be a big damage to your brand, and your product may not last long in the market.

Test thoroughly and as soon as possible. This will help in the early detection of bugs, making them easier to deal with. Testing near the end of the process and finding bugs implies having to redo a significant part of your work, as well as any downstream processes that rely on it. Bugs can appear at any time, but continuous testing makes it more cost-effective to resolve them early rather than later.

Conduct a comprehensive code review to ensure that it contains high-quality code. The code must be easy to read and understand.

Unclear delivery expectations

The next step is to have both parties on the same page in terms of deliverables once the objectives of the project have been properly defined. Delays and change orders can drive up expenses, stretch project schedules, and transform a good relationship into a poor one if there isn’t a clear understanding.

Be open and honest about your delivery expectations, not just in terms of a closing date, but also in terms of major milestones and checkpoints along the way. In any outsourced project, you and your team will have a major role, so be honest about how you can influence the on-time execution of deliverables. Also, be upfront about your quality standards from the start, and make sure you’ve chosen a trustworthy partner.

Transitioning to outsourcing in a hurry

Any business that delegates any aspect of its business to a partner organization is taking a major step. People, processes, and systems are all affected, and you should assess each of these areas to better understand, plan for, and address them.

Perform a technological, infrastructure, and management structure audit before handing off a project to guarantee a smooth transfer. Treat it in the same way you would if you were buying a new business. Have a clear image of what you’re outsourcing, how it’s done nowadays, who’s involved, how they operate, communicate, the tools they use, how problems are solved, and so on. Ensure that everyone on your internal team, no matter how insignificant, is able to fully understand the goals.

Ignoring the culture of the organization

Outsourcing is meant to improve your business, but if done incorrectly, it can cause stress within your company’s culture. It’s critical to pick a partner whose business practices match your own company’s basic principles.

Understand your own company’s value system, choose what’s important to you, and ask the outsourcer directly at first. And, of course, in light of the new connection, don’t forget to discuss essential topics with your teams, such as job security and job duties.

A lack of understanding of the bigger picture

A solid understanding of how an outsourced project fits into a company’s broader strategic interests is one of the most essential criteria in outsourcing development initiatives. This is because a poorly performed project or outsourced component of operations can have a domino impact on all other projects in a company’s portfolio. And a well-executed fantastic project can have a favorable impact on subsequent ventures. Work with your outsourced staff to ensure that they are familiar with your business, its goals, and how the project they’re working on fits into the bigger picture.

When briefing a firm to which you’re considering outsourcing a project, make sure to explain not only the project itself but also how it fits into your company’s goals. Show them how the project ties in with the other projects they’re working on, and make sure they understand the requirements. Finally, choose a partner who can interact with the big picture on a strategic level and has the knowledge and capabilities to do so.

Putting it all together

Software outsourcing might be a wise move for your company if you plan ahead, have clear business objectives, and communicate effectively.

When the processes involved are properly adopted and managed, outsourcing can be very effective for businesses. Outsourcing, when done correctly, can save money, speed up delivery, and allow your internal team to focus on more important tasks.

If you are aware of the major risks and know what you’re doing, outsourcing may be a true game-changer for the financial prosperity and overall success of your business.

The process can run successfully if you strive to prevent the causes of outsourcing risks, such as imprecise communication, hurrying the transition, or failing to adequately highlight the broader picture. Your next outsourced development collaboration should give exactly what you need! A well-skilled dedicated software development partner can guarantee faster, more affordable, and more effortless development of your project. Please contact us for further information.

More to read:

How to Strengthen Your Competitive Advantage through Outsourcing

Why IT Outsourcing is the Best Business Decision?

Outsourcing Custom Software Development – What Does 2022 Hold?