Offshoring your software projects: all you need to know

 min read
24 January 2022
Adam Gontarz
Adam Gontarz
CEO
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Contents

  • Intro

Offshoring your software projects can seem like a challenge – and it indeed is if you are not prepared. You may be wondering what you need to do to make sure the process goes as smoothly as possible and make a good decision while choosing your business partner. In this blog post, we will discuss everything you need to know about offshoring your software projects. We’ll cover topics such as choosing a provider, what to look for in a contract, and how to manage the project once it’s underway. So simply – don’t go into offshoring your software project without reading this blog post!

What is offshoring and why would you do it?

Offshoring is the process of contracting out work to a third-party provider located in foreign countries (not necessarily the poorest countries). Offshoring can be an extremely cost-effective way to get your project completed when it comes to software projects. By working with a provider who is based in a lower-cost country, you can save a significant amount of money on your project. An important aspect is the quality of work performed by potential team members. Reports show that programmers from Poland, Ukraine, Russia, and Romania are the best programmers globally. Collaboration can take your product to a higher level.

The benefits of offshoring your software projects

There are several reasons you might want to consider before offshoring your software project, as the effects of offshoring by multinational companies to overseas countries can be helpful for the production process of your software.

Offshoring can save your company money

As mentioned above, offshoring to a provider in a lower-cost country can save you a lot of money on your project. When you operate in a Western European country, Mid Europe could be a good choice for you. The rates are growing every year but still, there is a significant difference between Western and Mid Europe. We’ll introduce a few benefits in terms of quality, but in general, the cost to quality ratio is currently the highest in Middle Europe.

Offshoring can also help you get your project completed more quickly. By working with a provider close to where your team is based, you can minimize the amount of time it takes for them to communicate with the provider. This can be a massive benefit if your team is short on time.

Offshoring can improve your project quality

When you work with an offshore provider, you are not just getting someone to do the work for you – you are getting access to their entire team of experts. You will have access to a group of skilled people in various areas, from software development to QA. Such cooperation can be a huge benefit, as it will help ensure that your project is completed with the highest quality possible.

That said when you look for an external provider as an extension of your team, and if you think seriously about the quality, freelancers might not be the best option. Typically, they provide services after hours, and you lose access to your potential partner’s employees. Even though you might work with only one or two people from a given software development company, you can count on experience, know-how, and implementation of suitable processes of the whole company or particular key team member of the company.

Offshore teams are often more motivated to succeed

Offshore teams are often more motivated to succeed than their in-house counterparts. This is because they know that the success of their project, e.g., multinational corporations or western countries, can significantly impact their company’s reputation. As a result, they are often willing to go the extra mile to ensure your project succeeds. Likewise, most software development companies care about good references, case studies, or recommendations. That is why they are highly motivated to do the best for you, sometimes investing additional time in improving things you haven’t asked for to make you even more satisfied and be a long-term partner. Thanks to the above, the cooperation is a clear win-win for both sides.

You don’t have to worry about managing the project yourself

When you work with an offshore provider, you don’t have to worry about managing the project yourself. This is because the provider will handle all of the day-to-day management tasks for you. This can be a huge relief if you are already stretched thin on time.

Of course, you can have a Project Manager on your side, but when it comes to the offshored team, the more responsibility you put on the team as a whole, the better results in terms of quality and efficiency you could expect.

The offshore team will be familiar with your company’s culture and processes

When you work with an offshore provider, the team working on your project will be familiar with your company’s culture and processes. This is because they will have been trained in-house by the provider. As a result, there will be a minimal learning curve for them when it comes to working on your project and production facilities.

You get access to better talent pool

Offshore providers have access to a much better talent pool than most in-house teams. This is because they typically have robust and tested recruitment processes access to their local talent pool. They know what the team is the most important value and can count on internal and external recommendations. To sum up, they can hire more quickly, in a cheaper way, and more effectively when it comes to the quality of talent. As a result, you will be able to find the best possible talent for your complex tasks by working with an offshore provider.

How to choose the right offshoring development partner

When it comes time to choose a provider for your software project, there are a few things you’ll want to keep in mind for the central task.

Define your project requirements

The first step is to define your project requirements. It would be best to enumerate things such as the features you want your software to have, the technology stack, the timeframe for completion, environmental regulations, and the budget you are willing to spend. Without this step, finding a provider who is a good fit for your project will be challenging. What’s more, you may not be aware of all of the options available to you.

Research software development companies

Once you have defined your project requirements, it’s time to do some research on potential providers. First, you have to validate things such as their portfolio, the countries they are based in, firm sizes, and the services they offer. Furthermore, it would be best to read reviews from past clients to get a sense of what it is like to work with them. Doing so will allow you to quickly eliminate companies that are not a good match straight away.

Interview prospective providers

When you have narrowed down your list of potential providers, you should start interviewing them. This should include things such as asking for references and having a technical assessment done. By doing this, you will be able to get a sense of whether or not they are the right fit for your project at this point, but also whether they have the potential to grow with you as your business expands.

Check the provider’s experience in your industry

It’s important to choose a provider who has experience in your industry. This is because they will be familiar with the specific challenges and requirements that come with your industry. As a result, they will be better equipped to handle them. However, it’s important to note that not all providers have experience in every industry, so you may need to expand your search beyond your original list.

Make sure the offshoring provider has a good reputation

It’s also essential to make sure the provider you choose is reputable and acclaimed for quality work. Again, this is because you will be entrusting them with your company’s reputation, so you want to make sure they are up to the task.

This is because you don’t want to risk the success of your project by working with a company that has a poor track record. You can do this by reading reviews from past clients, as well as checking their ratings on sites like Clutch or GoodFirms.

Ask about their development and quality processes

When interviewing providers, you should also ask about their development and quality verification processes. Understanding processes will give you a sense of how they work and whether or not it is a good fit for your project. Ensure the company understands your business and what you’re looking to achieve with the project. This will give you a good idea of the level of quality they can deliver. It will also help you get a sense of their team’s skillset and experience.

Narrow down the list of offshoring IT candidates

Once you have interviewed a few providers, it’s time to narrow down your list of candidates. This should include things such as considering the cost, timeline, and quality of the proposals you received. By doing this, you will be able to find the best provider for your project, but also quickly you’ll be able to eliminate those who are not a good fit.

Request proposals and pricing information

If you’re ready to get started, the next step is to request proposals and pricing information from your shortlisted providers. This will give you a better understanding of what each provider is offering and how much it will cost.

Evaluate proposals and select a partner

Now, it’s time to evaluate the proposals you received and select a provider. This should include things such as comparing the cost, timeline, and quality of the proposals. By doing this, you will be able to find the best provider for your project, no matter if you run it in the manufacturing sector or for smart companies. 

Sign an offshoring contract and get started!

Once you have selected a software provider from overseas countries, it’s time to sign a contract and get started! This will include things such as defining the project scope and timeline, but also intellectual property issues, policy implication, technology licensing, and other causal effects. By doing this, you will be able to ensure that both parties are on the same page and that the project is proceeding smoothly. You should make sure that the contract includes a clause that allows for changes, as software projects often go over budget and time.

Tips for successfully launching an offshoring software project

In order to ensure a successful offshoring experience, there are a few key things you need to keep in mind.

Define the project goals and objectives early on

One of the most important things to do when launching an offshore software project is to define the project goals and objectives early on. This will help ensure that both parties are on the same page and that there is a clear understanding of what needs to be accomplished.

Make sure all stakeholders are on board with the project plan

Another important thing to do is make sure all stakeholders are on board with the project plan. This will help ensure that everyone is aware of what’s happening and there is no confusion or miscommunication. Without this, likely, the project will not be successful.

Regular communication is key

Another thing to keep in mind is that regular communication is key. This means communicating with your provider regularly and ensuring everyone is on track. By doing this, you will be able to avoid any potential problems down the road.

Outline the project timeline and milestones

In addition, you should also outline the project timeline and milestones. This will help keep everyone on track and ensure that the project proceeds smoothly. Additionally, it will help you track the project’s progress and ensure that it is on schedule.

Manage expectations

Finally, it’s essential to manage expectations. This means setting realistic expectations for both the project and the provider. This will help you avoid any future difficulties, but also disappointments. For example, suppose American corporations decide to tackle the offshoring phenomenon and outsource the work to low-wage countries. In that case, they should make sure they are aware of challenges and core processes. 

Choose an appropriate software development methodology

When it comes to software development, there are a few different methodologies you can choose from. This includes things such as Waterfall, Agile, and Scrum. By choosing the right methodology, you will be able to ensure that the core processes of the project are proceeding smoothly and on schedule.

Common offshoring problems and how to overcome them

Cultural differences can lead to misunderstandings and conflict

One of the biggest challenges when offshoring a software project is cultural differences. This can lead to misunderstandings and conflict, which can delay the project and increase costs. By taking into account the culture of both parties, you will be able to avoid these problems. Furthermore, you should make sure that there is a clear communication plan in place.

The provider may not be able to meet the offshoring project deadlines

Another common challenge is when the provider cannot meet the project deadlines. This can often be due to unforeseen circumstances, such as changes in the market or problems with the team. By having a backup plan in place, you will be able to mitigate the impact of these delays.

Communication challenges can impede progress and cause delays

Another common challenge is a lack of communication. This can lead to missed deadlines and increased costs, as well as misunderstandings and conflict. By establishing a regular communication schedule, you will be able to avoid these problems. It may take a lot of effort to overcome these challenges, but it’s well worth it in the end.

Offshoring provider is not meeting project requirements

If the provider is not meeting project requirements, it’s important to take action. This could include things such as renegotiating the contract or finding a new provider. By taking action, you will be able to ensure that the project is proceeding smoothly and on schedule.

Project is going over budget or time

It’s important to keep in mind that the project may go over budget. This is often due to changes in requirements or unforeseen problems. By having a contingency fund in place, you will be able to cover any additional costs that may arise.

Similarly, the project may also go over time. This is often due to delays caused by cultural differences, communication problems, or provider issues. By having a timeline in place, you will be able to track the project’s progress and ensure that it does not exceed the allotted time frame.

If the project is going over budget or time and it really cannot stretch more, it’s important to take action. This could include things such as renegotiating the contract or finding a new provider in some cases.

Time zone differences can make offshoring difficult to coordinate work schedules

Another common challenge is time zone differences. This can make it difficult to coordinate work schedules and can often lead to delays. By using online tools, such as Slack or Zoom, you will be able to overcome this problem. Also, try to schedule regular video chats to keep everyone on the same page. Nowadays, things can be done flexibly so that both the client and the provider are comfortable.

Geographical distance can create logistical problems

Another common challenge is geographical distance. This can create logistical problems, such as delays in shipping necessary materials or difficulty coordinating meetings. It may not be possible to overcome this challenge, but you can take steps to mitigate its impact.

Language barriers can limit understanding and lead to mistakes

Language barriers can limit understanding and lead to mistakes. By using translation tools or having a translator present, you will be able to overcome this challenge. Or, simply choose an offshoring software provider that stands out for its ability to work with clients from around the globe and with its language skills.

Differences in business practices can cause confusion and frustration

Finally, differences in business practices can cause confusion and frustration. By understanding the cultural norms of the provider country, you will be able to avoid these problems. Also, make sure that your contract outlines the expectations for both parties so that there are no surprises down the road.

In order to make sure your software project is a success, it’s important to take into account all of these potential challenges. By doing so, you will be able to mitigate any problems that may arise. And, in the end, you’ll have a product that you’re proud of.

Final thoughts

Offshoring your software project can be a great way to get it done on time and within budget. By following these steps, you will be able to find the best provider for your project and ensure that the project goes smoothly from start to finish. If you’re looking for the right offshoring IT service providers, we’re here to help, too!

Start cooperation with us in the offshoring model right away!

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