For the past decade, outsourcing offshore software development is one of the latest trends worldwide. With the advancement of information and communication technologies, remote software development managed by offshore dedicated development companies has transformed several IT global strategies.
As software product development has shifted offshore, this contributes to the reduction of many businesses’ operational costs. Initially, this led to additional expenses during the selection of dedicated development vendor and other expenses during the transition of IT tasks to the outsourced offshore software development company. In recent years, many IT firms take advantage of several benefits of reduced costs and higher flexibility in offshore software development. This trend is expected to increase in the future.
Minimizing offshore software development risks
IT firms that are decided to go offshoring their software development need to take essential initiatives at the different project stages to reduce offshore software development risks. Here are some of the basic tips to remember.
Select the best offshore software development destination for your business needs. Outsourcing software development services is not limited by geography. If you have the means and budget, there are many available service providers and offshore options worldwide.
Oftentimes, many firms prefer the most affordable location that houses many skilled developers. However, there are many factors to consider when avoiding getting trapped in the wrong offshore teams.
First, when hiring an offshore software development team overseas, consider cultural differences when collaborating with a specific vendor. This may appear as a minor issue, but culture may put a toll on the working approach between parties. Find a partner who is culturally compatible with your corporate values. Get to know well about your vendor’s traditions, work habits, and personal beliefs. For instance, both North American and European firms outsource the services of IT experts from Eastern Europe. These countries share a similar culture and make things easy when establishing a long-lasting relationship.
Second, consider your vendor’s existing laws and whether it follows international standards. It is vital to evaluate all the legalities and contracts which can impact your business operations and requirements.
Third, take note of the time difference and travel infrastructure when finding an offshore software development provider. With a substantial time difference, this can be a barrier to effective interaction between teams. Everything depends on your operational needs.
Company size matters in outsourcing an offshore IT service provider. Consider the IT vendor’s size. In general, this affects your outsourcing needs so select the IT company that is the best fit for your business needs. Outsourcing to big IT offshore service providers has many benefits like professional management, improved resources, greater capabilities, in-depth expertise, and a wide range of portfolios. However, it does not necessarily mean that settling for a bigger scale can perfectly provide the needs of each company. It all depends on the offshore company’s skilled personnel.
Choose an offshore dedicated development team with the right expertise for your project. One best advantage of offshore software development is getting access to a great pool of skilled IT personnel worldwide. Finding the right partner can satisfy your full project’s technological needs. Initially, you may shortlist the potential vendors based on their technical expertise. Then, evaluate related case studies and portfolios of each potential partner. Identify the company’s ability to overcome challenges and whether they have previous experience related to your existing projects. By doing so, this boosts the chances of delivering effective solutions to meet your project needs.
Work with the vendor with established project management systems.
Despite hiring the best offshore IT team, your project may still fail brought by poor management. In general, it can be challenging to manage offshore and distributed teams. So, ensure that the firm you select has a reliable management process that facilitates standard management processes.
Build strong rapport with your offshore team. Offshore software development is quite risky caused by the distance between teams and the absence of face-to-face interaction. Ensure you are dealing with a vendor with reputable business ethics and can always keep effective communication with the teams.
Several collaborative measures can be employed to stay in touch with your team and ensure the continuous sharing of knowledge. Make use of emails, phone/video calls, messengers, online conferences, project management software, and other channels for working together.
As a means of mitigating offshore software development risks, poor communication should be eliminated. Establish a reliable and well-defined system that can be used by both parties. The effective system involves constant collaboration, proper reporting, regular progress tracking, and ad hoc tasks or calls when unexpected issues arise and conducting regular meetings to discuss issues or disagreements.
Adopt the best model for your dedicated development team. In the selection of an offshore software development provider, focus on employing a cooperation model that suits best your company’s needs. Based on the most popular market options, you can have fixed material, price, time, and dedicated team.
Fixed price model is best used for pre-defined requirements such as deadlines, budget, and scope. This cannot be changed easily, and modifications cannot be done instantly in the process.
Meanwhile, the time and material model is more flexible to changes compared to the previous. Its higher flexibility enables changing the scope and executing new features all throughout the process. As a result, the final budget may be adjusted from the initial estimate. This model applies to specific projects with varying needs.
Always consider security measures during outsourcing offshore software development.
Unsecured data brings a significant risk when offshoring software development. Intellectual property needs to be well-protected. Most firms spend more on IT security measures annually to safeguard the company’s confidential information.
It is vital to be aware of the basics of keeping company information secured when outsourcing offshore software development. The most critical approach in minimizing offshore software development risks is to select the best vendor with clear security measures. Ensure that your offshore provider has strict security regulations with certifications to back them up.