Have you been sitting on an unfinished software project for weeks or even months simply because you know you need outside help but don’t know where to start? How long will you wait before you take the next step? Around 64% of companies have been where you are and have turned to software development outsourcing for their entire development process. Even more businesses have kept their own employees on a project while outsourcing only parts of their software development projects.
With over 20 years spent in software development outsourcing, we have the experience and knowledge to help you finally get the ball rolling. Together let’s dive into what outsourced software development is and how you can incorporate it into your own software project. With our help, you can finally get your software product off the ground and into your business’s or customers’ hands.
Have you ever hired someone to take care of a task you didn’t have the time, equipment, or skills to complete?
Perhaps you’ve hired someone to mow your lawn to allow you to spend more time with your family. Maybe you’ve called a plumber to fix your sink drain rather than purchasing the tools to do it yourself. These are both examples of outsourcing your work.
Outsourced software development works in the same way. If you don’t have the time, employees, technologies, or knowledge to complete a custom software project within your company, you may hire individuals to fill in the gaps of your own team or recruit a team of professionals to develop the entire product for you.
Outsourced software development companies do so much more than just write code for your project. Find out why you should hire a software consulting company to help bring your vision to life.
While outsourced software development involves hiring someone outside of your business to create your software product for you, in-house development is the opposite. With in-house software development, you hire a team of project managers, developers, analysts, and more to design, create, test, and deploy your software within your own company.
There will always be costs associated with any custom software development project, but those costs may differ depending on if you use an in-house or outsourced software development team. If you choose to keep the project solely within your business, your main outsourcing software development costs will come from:
Keep in mind that when it comes to hiring developers, this list isn’t exhaustive. You’ll also spend time and resources on recruiting, onboarding, and more. When it comes to in-house development, businesses often overlook the costs related to hiring developers and maintaining a project, even though they can add up to be much more than a business would have spent on a short-term outsourced software development team.
Outsourced software development has a different set of costs to consider. Each software development outsourcing team will itemize or list their costs differently, depending on the type of payment model and contract they prefer to work with. Ultimately, however, you’ll end up paying for the following aspects of a software development outsourcing project:
Depending on the software development outsourcing company you choose to partner with, you may pay for the time and resources differently. For example, if a software development company uses a Time and Material model, your total project cost will vary depending on how long the development process takes and how many resources they use throughout the project. With this model, your project scope can grow and shrink, and your total cost will reflect those changes.
A different software development company may choose to use a Fixed Price model instead, which means you determine a lump sum at the beginning of the project, and the outsourced software development team cannot spend more time or resources on the project than the determined budget allows.
Interested in learning more about software pricing models? Find more in our blog Budgeting for Software Development Costs.
Once you’ve decided to outsource your software development project, you’ll face another decision: onshore or offshore development.
Onshore software development refers to hiring a software development team within the same country your business is located in. Offshore software development, on the other hand, involves hiring software developers or a team of software developers from any country other than your own.
Both have their own pros and cons, and it’s up to you to determine which is best for your company and your software project.
Offshore software development rates are generally lower than average hourly rates from onshore software development companies in the United States. As a result, your business may be able to cut a considerable chunk off your project’s final price tag.
However, it’s important to consider if the lower offshore software development rates outweigh the challenges that come with offshore software development. Some of the disadvantages of hiring an offshore software development company include:
There is no right or wrong answer when it comes to onshore vs offshore software development companies. Consider your company’s priorities, your project’s needs, and the options available to you.
Determine if you can take advantage of offshore software development rates without sacrificing a high-quality finished product. Once you’ve done so, you can make a decision based on what’s best for you, your company, and your software project.
When budgeting for outsourced software development, there are a few areas that will greatly affect your software development costs. By understanding what those are, you can adjust your budget expectations to be realistic and attainable.
There are many types of software development projects, and the type of project will affect your overall budget. Are you wanting to create a new a software system from scratch? Do you need a team that can integrate your current system with a new system?
Or are you looking to update and modernize your current software system? Every project type requires a different set of skills, technologies, and team members to complete it. As a result, the price of the project will also vary.
As you can imagine, as the size of your project gets larger, so will your overall costs. But what determines the size of a software development project?
Each function or screen included in your software system will add to the overall size of your project. For example, a website that only involves a static home page, about us page, and a contact form will have a significantly smaller price tag than an ecommerce website that allows users to login, browse items, add products to their cart, and ultimately process their payments.
Your potential software development partner should discuss the size of the project with you, making you aware of how much each additional function or screen will add to your bottom line. If they don’t provide this type of consulting, it may be best to move on to the next software development company.
How many skilled professionals will you need to complete your software project? Will it only require the skills of one software developer and a quality assurance analyst? Or is the project large enough to require a project manager, many software developers, and multiple analysts?
In addition to the cost of the software product itself, you’ll also be paying for the time and talent of each team member. The larger the software development team, the bigger the project price tag.
In a sea of outsourcing software development companies, how can you find one that is reputable, professional, and a good fit for your business? Try following these four steps:
By following these four steps, you will hopefully be able to find an outsourcing software development company that fits your culture, understands your expectations, and can work within your budget.
If you’re ready to begin your search and outsource your software development today, reach out to Geneca for more information. We are ready for an open, honest conversation about your project goals and the budget you have allotted to meet them.
You’ll be able to speak with one of our leaders, who not only understands how software works but also understands how business and software must work together.
We love talking about project ideas and turning them into a reality, and we would love to use our 20 years of onshore software development experience to offer you the advice and tools you need to get your project up and running.