Do you want to outsource software development due to the potential additional expenses involved? Continue reading to discover ways to reduce this risk and explore Trustify’s software development outsourcing offer that ensures affordable collaboration.
Trustify recommends outsourcing services for Agile projects to keep up with early deployment and rapid software evolution. However, some businesses need more time to outsource Agile development due to the time and material pricing model, which can lead to a vague total cost and hidden fees.
Stay energized; this article uncovers the sources of hidden costs and provides solutions based on Trustify’s experience. We also suggest examining the pros and cons of offshore software outsourcing to maximize the information’s usefulness.
How do you manage hidden costs when outsourcing software?
There are some different outsourcing models in software development, but we can often see these two typical types on the market:
- Resource-level: Resource-level outsourcing involves adding team members or hiring a managed team. Although this option may appear cheaper, it often comes with hidden costs due to the team’s limited expertise.
- Process level: Process-level outsourcing in software involves assigning tasks to external vendors for specialized processes like QA testing, UI design, or database management, optimizing efficiency and leveraging external expertise.
We have already listed the reasons for these hidden costs, including resource-based outsourcing, and process level-based to help you manage hidden costs when outsourcing software development. Process-level outsourcing involves self-managed teams that can overcome the downsides of resource-level outsourcing.
Some reasons that make hidden costs
Underperformance of an outsourced team
Poor performance can be identified by several issues, such as incomplete communication, uncontrolled project expansion, and increased technical obligations. Additionally, managing small projects may only sometimes be practical. One solution to this problem is to integrate a vendor’s project manager with the outsourced team, as this will provide a better understanding of the team’s progress.
Overwhelming modification demands
There will be a disconnect in understanding on both sides if the request is often changed for the Agile project. To resolve this issue, a supplier with business analysts (BAs) and user experience (UX) designers as part of their team can predict your requirements and offer a superior selection and ranking of features.
Bug-ridden software
When resources are outsourced at the project level, proactive testing activities are often left out to make it seem more cost-effective. However, this strategy can lead to roadblocks in the form of bug fixes that can delay the entire project. To avoid this issue, it is advisable to seek vendors prioritizing quality assurance throughout the development process. This includes incorporating QA from the needs analysis and requirements gathering phase through unit testing during development and ongoing regular regression testing and test automation during the testing phase.
Poorly designed architecture
Inexperienced developers working as a team, often in outsourcing with limited resources, may make hasty and ill-considered decisions regarding the software’s architecture. This can lead to significant rework later on in the development cycle. To prevent this, engaging a vendor’s team of experienced software architects who can design and improve the architecture effectively is advisable. To minimize the risks associated with resource-level outsourcing, it is recommended to opt for Trustify’s offshore process-level outsourcing services, which leverage mature processes and practices.
Don’t discuss your development needs clearly
Before choosing an outsourcing software development team, you must determine the hidden costs of process-level outsourcing. An organized, ineffective, ineffective process-level outsourcing can also cost more hidden fees. That is why you need to verify the vendor’s competency. Certain companies provide an attractive offer but fail to live up to expectations once actual work commences. Start with a Proof of Concept to ensure your needs can be transformed into software. This will allow you to assess the vendor’s work style and see if it aligns with your outsourcing model for software development.
Moreover, if you need to switch to another outsourcing provider, which can be expensive, it’s always better to prepare carefully. To safeguard your interests, consider drafting a contract (including the required details, description, tests, architecture, code…) that requires the vendor to keep all project artifacts updated and stored in your repository.
Cost-effective methods
In the long-term objective, the best way to save cost is prioritize considering relevant expertise and service delivery approaches rather than focusing solely on price when selecting a provider.
Trustify can manage all aspects of your project pipeline using our efficient work processes to maximize investment returns and increase turnover.
Conclusion
As you can see, outsourcing software development has its potential risks and hidden costs, but there are some ways to mitigate these expenses. Trustify’s software development outsourcing company in Vietnam offers ensured affordable collaboration with a process-level outsourcing approach and experienced teams that prioritize quality assurance and software architecture design. By prioritizing relevant expertise and service delivery over price, businesses can save costs in the long term and put lasting value together. It is important to carefully assess vendor competency before beginning work and consider drafting a contract to safeguard interests. Trustify technology can help you manage your entire project pipeline with efficient work processes designed to optimize return on investment and increased turnover.