Top 5 Fears While Outsourcing Software Development

Published: October 23, 2020Updated: April 26, 2022
5 min to read
Top 5 Fears While Outsourcing Software Development

Outsourcing of software development with its multiple benefits has certain fears, challenges & risks. And digging into the fears of outsourcing software development seems to have no end. Hence, in this article, we will talk about the top 5 fears while outsourcing software development & how to overcome them.

Do you feel hesitant while delegating the task to someone who is not known to you? Especially when it comes right down to your crucial business milestones — Software Development. I know your answer, it must be yes. Every company thinks twice before making an essential decision of outsourcing software development. Always remember software is the secret ingredient of on which the success of a business depends upon.

But let me break the ice for you, we are living in a world where we’re surrounded by technological innovations & advancements. The markets are developing every day making outsourcing of software development a popular trend. As the world is emerging, companies look for technical experts & talent outside their firms. Usually, companies do not have such talents inside their firm. Not just this, software development is a technical work which requires proper attention. If it is not done properly, it results in a business failure. Hence, the only way to achieve success is to hire an expert or outsource the project.

Outsourcing of software development with its multiple benefits has certain fears, challenges & risks.Below we will talk about the top 5 fears while outsourcing software development & how to overcome them.

Let’s get started…

1. Software Development Cost

The first & the most common problem companies face is the increased cost for the successful completion of the project. The main reason companies opt for outsourcing software development is the low cost. However, due to negligence & wrong calculations, sometimes the companies go over the budget. Not just this, sometimes the companies do not calculate the other cost factors which may increase the budget. As a result of this the firm pay amount with exhaust their budget.

In order to avoid troubles, it is suggested to include all the additional expenses that may occur during outsourcing software development (travel, management, etc.). Moreover, it’s important for companies to choose the right software model that best fit their needs & requirements. It also helps in reducing the overall development budget. Additionally, evaluating the project & outsourcing company helps in understanding the best software model. Also, it makes sure the project is successfully completed without any extra expenses.

2. Quality of Software

The quality of the developed software is the bottom-line. Most of the companies before outsourcing shows there concerns regarding the quality of the software. Even if you hire a vendor that develops the software within your budget, still it is important that the final product works properly without any errors. If the quality is poor & not meeting the standards, then there are high chances of software malfunctions. This affects the performance & profits of your business. We strongly believe that the concerns of the companies are correct to some extent. Even minor issues in the development process have impacts and may cause your business to suffer a huge loss.

Hence, before outsourcing your software development task carefully choose software development outsourcing company having a complete set of skills. Another way to overcome this fear is to opt for the company which is known for their quality work in the market. Besides this, make sure to gather the complete information about the outsourcing partner including their past projects. Further, check whether they have worked on similar projects or in your industry. Trust me this technique will work in your favor and the project quality you are looking for will not be compromised.

3. Data Security & Intellectual Property

Another fear companies came across while outsourcing software development is data security issues. Image the risk of handing over your sensitive data to an offshore software development company you hardly know. They may replicate the idea or business model you are trying to set up. Therefore, it is necessary to evaluate the company on a multiple bases. Data security & privacy risks are the most common issues that companies face when outsourcing. It causes more trouble when the unknown vendors can steal all your personal data (identity, contact information, IP address & credit card details).

Don’t worry, we have a few tips for you to overcome this fear. Hence, it is important to protect your personal & professional data by signing a contract known as a non-disclosure agreement. This should be done before starting your project. Additionally, prepare a well-written contract covering all the aspects of the project to avoid the theft & misuse of your idea & information.

4. Communication Gap

Another fear companies may be concerned about is the communication gap. If you hire a vendor to develop a software, due to communication gap you may not be able to track the progress of your project whenever you want to. Obviously, this is risky, you and the offshore company might not be on the same page and it may cause a delay in the project delivery. This is uncertain but don’t worry keep on reading we have a few advices for you which can help in avoiding unnecessary tension & stress.

Before opting for the outsourcing company, try to understand the complete process & plan they have for your software. Verify whether the chosen company is compatible & have successfully running software in the market. Most importantly you should know what you are looking for & what is your role in it.

5. Objectives & Timelines

For many companies, the timely delivery of the project plays an important role. Usually, startups & newly established companies gain a competitive edge by quickly launching their products in the market while capturing the larger share. As a consequence, it is necessary to for the company to clearly communicate your deadlines & objectives to the offshore firm. Not just this, you must work closely with the vendor to get all the specific business requirements right the first time around. In addition to this, before receiving the final product make sure you are aware of all the ins & outs of the software. Most importantly check whether it is user-friendly or not. A well structure software development plan with a PRD (product requirement document) with clear objectives will help in meeting the final goals.

The growth of software development outsourcing is increasing rapidly. Surprisingly it is providing a lot of cost-saving opportunities for companies without sacrificing on the quality. If you have read the article & are familiar with all the risks involved in outsourcing software development & tips to avoid; it can be a true game-changer for your business.

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