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7 Things to Consider Before Hiring an Outsourcing Provider

Published October 23, 2020

Written by: Bentley Raynot
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Bentley Raynot

Bentley Raynot works as a digital transformation and business strategist at TatvaSoft UK. He has helped many businesses with his change-oriented mindset and collaborative skills. Besides his profession, Bentley likes to share some new and trending technical aspects. Please visit here to know more about his company.

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For various reasons, software development outsourcing is a smart choice for well-established organizations. It’s a proven option for businesses to achieve their digital transformation goals while minimizing risks and maintaining a cost-savings approach. Today, to outsource software requirements means helping the business gain greater economies of scale as well as focus on its core competencies without spending significant time and money.

For digital transformation and growth via innovation, outsourcing is a terrific option that simultaneously minimizes risk and boosts profits. Nevertheless, before hiring a software development company and to realize the full suite of benefits, there are several factors to take into account before you make a final decision. Overlooking these could result in loss of time, additional costs and failures.

What to Consider Before Partnering With an Outsourcing Service Provider

1. Define a Clear Work Reach

Write and define a clear work document reach or scope. As a business owner, you should decide what your business goals are, what your brand needs and what the best possible solution is to achieve the outcome you desire. If writing your work document scope is too technical at the start, opt to answer simple questions such as your exact need and what success looks like.

Through answering those two simple questions, you will identify the main issue you would resolve. Prepare a clear roadmap to address the particular concern and, in general, identify your business goals.

2. Vendor Market Reputation Is Just as Important

No business, no matter its size, can risk jeopardizing quality. But most of all, no business could afford to work with a software development company outsourcer who constantly misses deadlines or is not collaborative. Thus, checking the market reputation of the outsourcing partner before signing an agreement is equally important.

In today’s interconnected world, researching the reputation and history of the outsourcing provider is not difficult. You could certainly always connect with some of the vendor’s previous clients and inquire about their experience in working with them.

3. Make Expertise a Critical Criterion

After writing your work scope, reach out to prospective outsourcing software development services providers. As soon as you make a shortlist of at least three to four vendors, evaluate them on:

  • Passion for the project
  • Set of skills
  • Technical expertise
  • Experience in resolving complicated issues
  • Access to the latest technologies

Often overlooked, technical expertise is vital for the success of any outsourcing goal. You should not select a service provider with limited expertise in technologies, regardless if they’re best in these few techs. Generally, the rule is the more technologies the vendor has expertise in, the better the quality of your project will be.

4. Transparent Communication on the Budget

The project budget is one of the most underrated factors. It could ruin your project and relationship with your IT vendor. If you want exceptional services from your software development services partner, then you should know these services cost a premium most of the time. Before you approach your prospective outsourcing partner, determine and finalize the amount you are willing to invest and clearly communicate your budget with the outsourcer.

5. Using Agile Methodologies in the Process of Development

In today’s markets, the only way to survive is through accommodating the ever-changing requirements of customers. To be responsive to  fluctuating needs,  use the Agile methodologies. Agile methods offer an extremely collaborative environment and provide fast results.

If you wish to become an industry leader, opt for an outsourcing vendor that adheres with the Agile methods so they can easily adapt to the customer requirements.

6. Choosing a Flexible Partner

Flexibility is equally important when choosing an outsourcing vendor for your project. The outsourcing partner of your choice should be able to serve any problem that arises or any urgent need.

When you and your outsourcing vendor are in different time zones, flexibility is particularly important, especially when it comes to supporting and urgency before you make finalizations.

7. Protecting Intellectual Property and Data

Data security and privacy are two major concerns in our highly digital era. When you outsource a project, most often you would find yourself sharing sensitive information and data with your outsourcing partner. If this sensitive information is not properly managed, data could be mishandled.

Signing a nondisclosure agreement with the chosen partner is highly recommended before you provide access to sensitive information. Aside from this, take into account hiring a vendor who conducts security and network audits in the workplace on a regular basis. Specific tools should be used to protect sensitive data as well as prevent the occurrence of data leaks.


You are faced with several options when you build a business solution. Either you hire an in-house team or you could opt to outsource. While many organizations find outsourcing their requirements difficult, the process could boost growth and efficiency.

Numerous renowned companies worldwide, including Skype, Slack and GitHub, have done it. The question now is are you ready to follow the lead? If you answer “yes,” there are key factors to consider when opting for an outsourcing vendor for your next idea or project.

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