Choosing the Best Custom Software Development Company
Table of contents
Software development outsourcing models:
How to choose the best software development company:
Selecting custom software development companies to collaborate with can be an arduous process. Making the correct decision is crucial as it can easily make or break a project. So how do you find the partners that meet your requirements and help your business excel? What are the main criteria, and how far do you search if in-house development has already proved to be high maintenance?
Here’s a list of the pros and cons of all the location-based outsourcing models and how they can help save money, drive results, and choose the best custom software development company for your business.
According to the data platform Statista, IT outsourcing is projected to generate revenue of almost 400 billion USD in 2022 or 9.5% more than 2021, and the share of service providers based overseas is rapidly growing. So, to bring our point home, we will start from the furthest.
Indeed, different time zones can be challenging as meetings are harder to organize, which might result in fragmented communication. However, the global pandemic and related remote work tendencies have refuted the concept that smooth business processes are inconceivable without the geographical proximity of teams. Furthermore, there is the crucial advantage of extended business coverage as the digitalization of everyday life makes round-the-clock customer support and real-time communication a necessity.
Access to a formidable talent pool to tap into is another reason to opt in favor of a remote software development company. The quality of tech education in areas such as Eastern Europe allows cherry-picking from a wide variety of software engineers, project managers, UI/UX analysts/designers, etc. And working with top professionals leads to greater agility and flexibility, which is imperative in today’s ever-changing business landscape.
Still, it comes as no surprise that cost reduction is by far the main objective, as 70 percent of the entrepreneurs who have participated in a recent Deloitte survey would confirm. It is crucial for any outsourcing project, and the lower cost of living in overseas territories means the upward trend for offshore software development is here to stay. Not to mention that lower prices also give the ability to scale up and down and maintain a truly effective business model.
Hiring in neighboring countries also has its advantages, and the similarity in time zones makes communication easier and business processes smoother. It is undoubtedly so in EU members like Bulgaria, Romania, and Croatia, where legislation and regulations are comparable to their western neighbors’, plus travel and transportation are visa-free. While not as cost-effective as offshore outsourcing, it still comes at a lower price than in the US, UK, or Western Europe.
Furthermore, the quality of delivery is very likely to be higher than in Asia, Africa, or Latin America, so nearshore outsourcing is an option worth exploring.
Customers save time, therefore money, because better quality execution minimizes the risk of finding mistakes later in the project and having to rewrite code or start from scratch. Temporarily recruiting a neutral third party with experience in the vendor market is also an option, as they can act as mediators, provide operational support from the start until the partnership has become fully functional.
Outsourcing within the same country would naturally go with shared time zones, language, culture, and work ethic. Familiarity with local legislation and tax policies is another factor that is hard to ignore, and physical colocation makes for a closer business-to-customer relationship. As with nearshore development, though, identical time zones mean extended business coverage comes at a higher price for round-the-clock support.
And, speaking of pricing, the high standard of living in developed countries makes this model the least cost-effective, which is also its critical disadvantage.
It is not uncommon for businesses to keep their management onshore and outsource the technical teams overseas. While not exactly the best of both worlds, the combination of smooth communication within your native country and the cost reduction an offshore development center would provide is a viable solution.
This business model might prove challenging, though, and its efficiency is highly dependent on the management team and their ability to remotely oversee and structure operations related to the entire Software Development Life Cycle.
Once you have chosen the best-suited outsourcing model for your enterprise, you will need to gain profound knowledge of the custom software development companies in the selected region.
- Invest resources in online research and get familiar with your potential partners’ work. Check for similarities with your own project and their expertise in your field.
- Contact their former and current clients and gather as much feedback as possible. Portfolios are helpful, but they tend to be a bit biased and one-sided, while testimonials by actual partners are more likely to tell the whole story, provide behind-the-scenes details and valuable insights.
- Check their ratings and reviews at clutch.co or other specialized websites. Contact local recruiters as their deeper understanding of the market might prove priceless and provide further criteria to base your decision on.
The technical aspects of collaboration with outsourced service providers are also pivotal for any project’s cost efficiency and agility. That is why your organization’s CTO needs to monitor the selection of a software development company, the technology stack at their disposal, and the whole negotiation process.
- Access to the latest coding languages and top-of-the-line development and project management tools is a must. It guarantees excellent product quality and accelerates time to market.
- Data, AI, ML, Custom software development, and Cloud transformation solutions should be instrumental to the outsourcing strategy and transaction processes in order to simplify the infrastructure and achieve better scalability.
- Cyber security remains paramount, so software prevention of cyberattacks and compromised data is a prerequisite for any new cooperation.
At the end of the selection process and before entering the negotiation phase, your company will have to define its objectives and priorities.
Are you scaling the development capacity in the short or long term, and what is being outsourced – a single app or a sizeable project?
A comprehensive strategy will clearly communicate your product vision statement to the development unit.
- Prepare accurate technical documentation to ensure all parties involved are on the same page at every step of the project.
- Define tasks volume and timeline for all deliverables within the Scope of Work. This will provide the development team with a detailed overview.
- Specify your budget and communicate it to your potential partners. Transparency and efficient communication are at the core of successful cooperation and help set everyone’s goals and prerogatives.
Choosing a custom software development company as a long-term service provider is a complex task, but finding the right fit will definitely take your projects to another level.
Cost-effective and agile customized solutions are only possible if you work with top professionals and state-of-the-art technology. They are also the main reason the Scalefocus remote development centers collaborate with numerous companies worldwide.
We are looking forward to hearing from you and helping your business, too, so do not hesitate to contact us!