5 Common Mistakes IT Companies Make While Outsourcing Projects

Outsourcing Projects

IT outsourcing has become a global business today! Major companies, including Slack, Alibaba, WhatsApp, etc. leveraged the benefits of outsourcing development in the initial days. It has enormous potential to boost business efficiency or reduce the time to market an application, resulting in significant cost savings.

However, it needs to be done correctly! If you don’ set up and manage an effective outsourcing strategy, it may prove detrimental to your business goals. Therefore, it is essential to know the common mistakes ahead of time that most of the IT companies commit.

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5 major blunders you need to avoid while outsourcing a project

Miscommunication-A Major Pitfall

The biggest benefit of software development outsourcing is that it provides access to a global pool of talent. However, sometimes the business owners outsource the projects without an understanding of what needs to be done. 

If you have only a vague idea of your project, it becomes complicated to explain the outsource development partners the clear requirements. Establishing regular communication channels with your outsourced team is of utmost importance. 

Here are several things about an app development you must sketch out before handing the task to the outsourcing team-

  • Profile of the target audience.
  • Business objectives.
  • Features of your android, web app, or iOS 
  • Technologies you want to use in an app development
  • Design details
  • Examples of the existing applications you want the product to look like

Making Decisions Based On Price

Many of the small businesses look for cost-effective solutions to meet their software development needs. However, the problem with using price as a base of your decision is that you might be compromising with the quality.

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It’s not uncommon for the outsourcing companies to offer services at a lower price, but they are far behind on the modern trends in technology. It may cause major troubles later. Though they seem to code better than anyone else, they may be using interfaces or workflows specific to their local areas only.

The best things in our life aren’t for free! You may or may not get what you pay for. But, saving a few dollars won’t matter in the long run if you end up handing your project to the inexperienced hands.

Setting An Unrealistic Timeline

Aside from having unfeasible standards regarding a software developer’s capabilities, some companies have unrealistic expectations about the completion time. Some entrepreneurs think software development can be done in three. And, others believe that it will take at least a week to do so.

But, the thing that rings true to all the development projects is that the timeline needs to be flexible. It allows sufficient time for debugging, edits, or quality assurance testing. So, give your programmer a reasonable timeline while adding a bit of space for potential delays or contingencies.

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Underestimating Software Quality Indicators

In order to assess the quality of your project, you need to have a bit of understanding of software quality trends. It is gauged by several things, including how easy the code is for the developers, or how few bugs are there in the project.

Look for the outsourcing service providers who:

  • Use agile practices.
  • Use testing frameworks.
  • Do pair programming.
  • Use diagrammatic plans for initial tasks.
  • Follow in-house coding standards.

Inadequacy In The Laws While Signing The Contract

Handing a huge amount of money for a legal fee doesn’t seem to be a viable option. But, a loosely framed contract or the one that leans in favor of a contractor might result in loopholes. The outsourcing company may exploit the contract, resulting in severe monetary losses.

Therefore, it is necessary to deliver a well-defined contract by outlining the deliverables and timeframe. Have a milestone-based payment schedule to ease the resolutions of any conflicts in the payment process. Instill code guarantees, intellectual property rights, confidentiality, and jurisdiction for the resolution of the issues.

These are some of the many mistakes that most IT companies commit while outsourcing software projects. The best way to avoid these pitfalls is to discuss with your in-house team beforehand. Make sure that both sides have clear expectations. Have realistic expectations, and talk to the outsourcing team regularly.

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