Outsourcing is one of the reliable ways for a businesses to develop software at a lower cost and effort. Software outsourcing entails the following benefits and risks:
The outsourcing process setup will take from several days to several months. It will depend on the chosen outsourcing model, the maturity of the vendor’s processes, your readiness for such kind of initiatives, and more.
A software development outsourcing initiative should start with a feasibility analysis. It can include the following steps:
A vendor provides you with remote professionals for you to manage directly. You can get an exact number of experts you need, from 0.5 FTE to 100+ FTE.
A vendor offers a dedicated team to work on an outsourced project or a part of the project, sharing risks and responsibility for the quality with you and/or your other vendors. Team management mostly stays on the vendor’s side: their Team Lead/PM reports regularly to your PM on the work progress.
A vendor takes over the whole development process, with full responsibility for team organization and management, quality of the development results and accompanying risks.
When shortlisting potential vendors, consider the following factors:
Vendors offer a variety of support models, for example, free/paid post-implementation software maintenance for a certain period, free/paid post-implementation software maintenance and free/paid post-implementation support (L1, L2, L3, L4 support in different combinations) for a certain period, free post-implementation software maintenance and support and paid software support and evolution for the required period, etc.
To outline a project roadmap, manage the software & AI development life cycle, and foster collaboration between business and tech stakeholders.
To analyze business and user needs and translate them into technical requirements for software, AI, and integration between them.
To cleanse data for AI and engineer features; to build, train, test, and validate ML models. Domain experience is preferred.
The software development outsourcing cost is defined by the following factors:
The hourly rate for outsourced resources. The price varies greatly depending on the outsourcing region.
The performance of an outsourced team.
The transition to another outsourcing vendor (it is quite costly).
Specific cost factors for full process outsourcing:
With 32-year background in IT and 700+ IT experts, Vertscend provides flexible software development outsourcing services for businesses to deliver software solutions cost-effectively and fast.