Outsourcing Software Development: 5 Mistakes Businesses Should Avoid


Outsourcing is the key reason behind the rapid growth and success of numerous small businesses across the globe. Whether it is implemented onshore or offshore, outsourcing the development of software has become increasingly common in the past few decades.

However, without providing the required attention to detail businesses put themselves at a risk of facing great losses. This article summarizes the top five common mistakes that businesses make when outsourcing software development and their advised solutions.



Unclear goals


One of the top mistakes that businesses make is setting unclear goals. A firm may have an idea of what they need the software to do for them, but not the steps required to achieve it. Define your goals beforehand and make certain that they fit the S.M.A.R.T criteria. It will ensure that the outsourced team knows exactly what path to walk on to deliver the demanded results. Moreover, it will give you a reason to supervise the process and give insightful feedback wherever needed.


Lack of research


Firms do not always conduct thorough research when they are contacting external providers. This results in a lack of knowledge of who to hire, what to expect, and how to superintend the operation. Most firms reach out to the outsource teams that have a well-maintained profile exhibited. However, thorough research goes far beyond that.

Asking the right questions from the outsource team, going through their reviews and recommendations, and analyzing their competence are all a part of conducting meticulous research. Decisions made after detailed analysis are generally more fruitful. Furthermore, it also lets you weigh all the options at hand and choose the one that offers you the most utility.


Failure to assign a supervisor


Another mistake that companies make when outsourcing software development is not assigning a supervisor. Defining your goals and discussing the methodology with the outsourced team is a great practice; however, assigning someone to superintend the procedure will ensure that the delivered outcome turns out to be exactly like you had envisioned.

For this task, you may assign a CTO, a software engineer, or a project manager to regularly oversee the progress made with the assigned project and provide feedback whenever necessary. It will not only help the team prioritize tasks to finish timely, but will also build a civil relationship with the representative supervisor.


No financial plan


Budgeting costs help to set aside a certain amount dedicated to the outsourced project. Most firms believe that outsourcing software development will be quicker and cheaper; an idea that prevents them from ensuring to have a financial plan beforehand.

Although it is true that outsourcing for software development, in particular, comes at a relatively lower cost, it does not equate to being cheap. This is where your budgeted amount comes in. When you have an allocated budget, you will look for firms that will get the task done with finesse within the agreed budgeted amount. It will automatically short-list your options and determine the feasibility of a partnership with various vendors.


Undermining the role of quality-testing


Companies, today, still exercise the defective theory of reaching out to Software Quality Assurance (SQA) teams either halfway through the process or at the end. Trial of your project when it is a work-in-progress is crucial for your success, for the client’s hassle-free experience, and the third parties involved.

Trials allow your team to pinpoint the bugs that need to be sorted before it is launched. Therefore, involving an SQA team from the beginning of the project is an essential part of ensuring the project’s future success.




In conclusion, outsourcing software development is a superb way to achieve digital goals. The best method to ensure that the above-mentioned mistakes are not repeated is having clarity of every step. Firms need to clearly define their goals, methodology, and expectations from the very beginning of the project and involve a team for software quality assurance right away. Make certain to keep the responsibilities transparent between the parties involved. Assign a supervisor to make it easier to communicate with the firm and to build a civil rapport. Remember that hasty decisions will not be as fruitful as researched decisions will be.

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