How to save your budget in IT outsourcing

Web and software development outsourcing have become an overwhelmingly popular trend over the years. But how do you manage to establish a successful outsourced development process to save your budgets in the most effective way? Our today’s post breaks down the most useful advice on budget-saving IT outsourcing establishment.

Whether you are a Founder, CEO or CTO of your company, we believe that the following information could be a one of a solution for your particular business, and should be definitely kept in mind. If you are looking forward to optimizing the processes for outsourced web or software development in your company, here are the top tips which we have evaluated based on our experience.

1. Define a company with the best quality-rate ratio

It may sound obvious for you, however, some of the entrepreneurs do not know where exactly to seek those aspects when choosing an outsourced IT services provider. If you are currently looking for outsourced software development contractor we recommend you check some of the software development listings on the web. Most of the listing provides you with a lot of flexibility and an ability to seek the most experienced development services providers in your particular industry, whether it is an eCommerce or Medtech.

However, if you are not sure what you are seeking and cost reduction is the main criterion for you, but you still want to get a high-quality experience out of the outsourcing, here is a short guide on how to find the best company.

The most important is that you should not look for the developers with the lowest rates. Define your optimal budget and find a partner who will fit it. The most popular outsourcing destinations for 2020 are Ukraine, Poland, and Bulgaria based on the general country’s quality-rate ratios. However, if those countries do not fit your time-zone and you don’t want to have a large difference in time for communication purposes, seek the best outsourcing destinations around you and then look for the optimal contractor.

2. Define the best cooperation model for your business

In general, most of the outsourcing software development companies are used to work within different cooperation models. Still, you need to determine the best one that will suit your business perfectly.  The most popular ones are Fixed Price, Time & Material and Dedicated Team. If you are unsure whether one or another will be more suitable for your particular business, here is how to choose the right model for offshore development.

In general, to define the most suitable model for offshore development, you must clearly understand the requirements of your project. You should make your final decision depending on how much flexibility and the quality of the relationships with the contractor are needed for your project. We believe that these two key appointments will help you to sort everything out and make a final decision on choosing the right engagement model for outsourced software development.

3. Ensure the quality of the communication

The issue of poor communication is one of the most popular among those entrepreneurs who had a bad experience out of IT outsourcing services. Many offshore remote developers do not simply understand the business needs of their clients due to the lack of experience or poor expertise in a particular industry. That is why it is a must to carefully determine the quality of communication with your potential contractor right at the very beginning of your business agreements. To assure the quality of future communication, seek experienced offshore development providers who can provide you with a clear understanding of your business goals and needs.

4. Carefully analyze the contract

Not all of the outsourcing services providers can provide you with a greatly assembled contract. That is why it is important to agree on the contract terms that perfectly satisfying both parties. Before signing a contract with the potential offshore contractor you need to examine such issues as notice periods, payment terms, data protection, and confidentiality.

5. Look for a vendor with the best management

You need to be sure in what hands you are putting your projects. That is why for the measurement of successful cooperation you need to assure that the quality of the project and delivery management are at the highest point. We do not recommend to seek for the teams without in-house management, cause it may negatively affect your project. The close cooperation with the in-house project management of your IT outsourcing partner will ensure the most efficient remote communication and cooperation.

6. Don’t go for multiple short-term outsourced vendors

The frequent change of an outsourcing partner is considered to be unprofitable. When you are looking for the right software development provider you need you to be sure that you will stick to this vendor for at least one year. The main reason for that is that your software development contractor will perfectly understand all of the processes and aims of your business, despite the perfect understanding of the technical base of the project.

Key aspects of saving a budget in IT services outsourcing

The budget for your software development project must depend on such aspects as the quality-rate ratio, convenient time zone, acceptable contract terms and the quality of contractor’s communication and management.
The list of aspects that could affect the budget-saving for your business can be longer than that. Still, we believe that this article covers the most common aspects that you should rely on.

If you are wondering to learn more about the outsourced IT services industry or want to get a free quote – connect with our experts to find out more.