Outsource Software Developers

We are experiencing a global talent shortage in nearly every industry. However, when it comes to software development, the shortage is perhaps the most severe. Companies are having a difficult time finding qualified software engineers to fill positions, and this is happening in record numbers.

Recent technological advancements have increased the demand for software engineers. Increased specialization in programming languages, automation, and emerging technologies such as AI and neural networks, machine learning, big data, augmented reality, DevOps, and IoT is also required.

Outsourcing software development is a dynamic market that changes year after year to global events and business trends. Like the previous year, 2021 has been defined in many ways by the pandemic and its impact on industries and businesses worldwide. The expanding role of the remote workforce and the growing demand for cost-effective software development will be the primary drivers of the IT outsourcing market in 2020 and 2021.

Let's take a closer look at the current state of software outsourcing and how to do it effectively in this article.

What Is Software Outsourcing?

Software Development Outsourcing or Outsource software developers, in its most basic form, refers to a situation in which an organization chooses to hire an external software development agency to complete all of the tasks of a software development project that could be completed in-house instead. Software outsourcing is the practice of a company handing over control of a specific business process or assignment to a third-party vendor who is qualified and capable of handling the required business tasks.

Nowadays, technology evolves at such a breakneck pace that new technology introduced this year may become obsolete the following year. The competition is fiercer than ever. As a result, businesses must continue to evaluate and adapt to new business trends toward a cost-effective business model that includes offshore outsourcing as a viable solution to stay ahead of the competition.

By utilizing outsourcing services, business owners/entrepreneurs will obtain various IT functions to provide the best results for their clients. Aside from that, it can relieve them of the burdens of money, time, and other things that the in-house team cannot provide.

Why is Software Outsourcing Important?

Outsource software developers would be an excellent place to start for businesses during this challenging period. Some of the reasons for this include cost savings, time savings, being on the cutting edge of technology, etc. This service will help the company differentiate itself in the market, increase productivity, and improve business outcomes. Some reasons or benefits that can provide a clear vision of why hiring outsource software developers would be a good choice for business:

Quality of product

A reputable software outsourcing company with extensive experience and knowledge will ensure a high-quality product delivered on time, with quality considerations such as methodologies, contract models, and obvious project detail.

Cost saving

Cost-savings could be a fundamental reason for a company choosing software outsourcing services. Depending on which countries or what kind of service that a business will take, the outsourcing service can save around 25%-35% on operation cost.

Fast delivery to the market

With the number of experienced developers and their experience in providing the best solutions, the software outsourcing company can help their clients to launch products at a particular time; in order to catch up with the digital transformation and give you a chance to stay on top of the competitive environment.

Focusing and developing core business

By relegating most tasks relating to technology, the company and its staff could spend more time staying focused on its business strategy. “The less workload, the better business outcomes”.

Updating to the latest technology

By using software development outsourcing services, you can have a chance to update to the new trends which assure the best business outcomes for your company.

Easy to follow up and manage the development team

In software outsourcing terms, you will have a plan to show all processes. This will help you track the progress of your project.

Access to talent pools

Software outsourcing services will help you to work with the international team and solve the problems of human resources, notably in finding talented developers for software projects.

Gain professional service and fresh perspective

Software providers, with their global experience and experienced consultants, can provide you with ideas and perspectives from the technological and economic viewpoint which might give you a chance to gain a competitive advantage.

Types of outsourcing services

Businesses can outsource their software projects to vendors all over the world in a variety of ways, with development centers located on-shore, offshore, or near-shore. Consider the following in depth:

Nearshoring

Nearshoring is a business strategy in which a third-party company provides specific services from a geographical location that is relatively close to the company's area. Nearshoring occurs when a company decides to outsource work to a company that is less expensive and geographically closer.

Onshoring

Onshoring refers to “domestic” outsourcing. It entails relocating your company's software development to non-metropolitan — and thus less expensive — locations within your own country.

Offshoring

Offshore outsourcing is very similar to nearshoring — with the exception that the offshore team is typically located on another continent.

The Main Models of Software Outsourcing

The information provided above is based on location or distance. Let's look at the outsourcing models that will identify the various ways to use these services based on the client-vendor relationship. Three primary outsourcing models are mentioned below, among the many outsourcing models involved in IT software outsourcing services.

Staff Augmentation Model

Instead of hiring a permanent developer, the staff augmentation model requires the client to employ temporary developers through a contract with a software outsourcing provider. This model will aid in filling gaps in the in-house team, particularly in skill sets. As a result, they will be able to complete the project.

In this case, the IT outsourcing company will provide their clients with elite individuals who have specific skill sets that meet their clients' needs. They will collaborate with the client to ensure the highest quality outcome. In this case, the clients are still in charge of the project from start to finish. They must manage the distribution of tasks and responsibilities and the provision of a workplace.

However, once the contract for outsourcing is signed, the software developers become part of the client's human resources. They are also responsible for ensuring that tasks are completed and reported to the team on time. With this model, clients must select talented and skilled individuals who meet the project's needs/goals.

Dedicated Development Team Model

The Dedicated Development Team Model is one in which the client entrusts the project to a software outsourcing partner, who provides a high-quality and professional team to oversee it from start to finish. The professional development team may include every role required to complete a project, such as software developers, project managers, business analysts, quality assurance, etc.

Having a professional team here also means that they will handle any issues. Such as recruitment, information technology infrastructure, vacation, team-building, sick leave, administration, etc. The clients will discuss project criteria with the software outsourcing provider. For example, the team size, skill sets, launch date, and the addition of some additional requirements.

Once this model is implemented, the clients will have access to a dedicated development team. They can be directly involved in project management if they so desire. They can also rely on the project manager from the software outsourcing partner to keep them up to date on tasks and how the project is progressing.

The Dedicated Development Team Model would be a good option for a company looking to get the best business results. However, this model should be considered if the project is long-term, dynamic, and complex.

Project-based Model

The project-based model is also known as the software outsourcing model or the outsourced development team model. In this model, business owners will hire a software outsourcing company and delegate full responsibility for adhering to the client's requirements and expectations to the end-to-end development team. It means that the client will be hands-off on all aspects of the project instead of concentrating on core business or business strategy.

This model allows the outsourced team to be flexible throughout the entire process, from start to finish. For example, defining and managing the process, assembling a capable team to manage it, implementing the most appropriate technology, etc. Rather than the process, the result is what is expected to be seen in this model.

How to outsource software developers effectively?

There are hundreds of thousands of IT outsourcing companies worldwide. The question of how to choose between these businesses is always a difficult one. A business owner/entrepreneur cannot simply say, “I like this one,”—though they do have the right to do so. It is simple to select a software outsourcing provider at random. However, ensuring that they can deliver the best quality products or outcomes is different.

Here are a few steps to choose the right software outsourcing services company.

Define goal/goals clearly

It's an essential step because you can't get anywhere if you don't know where you're going. Before contacting a software development company, business owners should define the business goal/goals they wish to achieve. For example, create a better/new enterprise management system, incorporate new ideas into a software product to increase business profit, integrate IT/technology to improve service quality, or optimize business processes.

The assessment will assist business owners in determining whether or not to outsource. Aside from that, it can help them determine what they want to outsource. Remember that having a clear vision can provide you with a clear direction.

Decide the type of outsourcing services

Whether you choose onshore, nearshore, or offshore outsourcing, each has advantages and disadvantages. The decision must be based on internal resources as well as careful consideration of all other factors.

Make a list of potential company

Now that you've decided on the types and models of outsourcing, it's time to look for potential partners. Make a list of at least 4 to 7 likely software development outsourcing firms. This can be accomplished in a variety of ways.

Do thorough research on their background

When you have a list of software outsourcing companies, the next step is to research the companies. The following questions and criteria will assist you in choosing the best outsourcing company.

• Reputation
• How professional are they?
• What are their competencies and domain knowledge? It is an essential question because it will screen out companies that are not a good fit for the project. If a company has a good reputation for specific skills/knowledge but does not have an online profile, the owners should contact them personally.
• Examine the case study. A case study will show how the company solves problems and whether or not this case is similar to the client's project.
• How long have they been operating in the market?
• The size of the company
• What have their clients said about them?

Contacting potential partner

When you have a list of software outsourcing companies, the next step is to research the companies. The following questions and criteria will assist you in choosing the best outsourcing company.

It would be beneficial to explain the project's problems and expectations. If possible, request solutions, technology consulting, or the CVs of developers to ensure that the software outsourcing company hires the most talented and skilled individuals. At this critical juncture, references from previous projects and clients can be a reliable source.

Finally, if the company meets the expectations and requirements, the owners are on the right track. And, if everything is going well, let's wait for the results and see how quickly the company grows.

Where to find the top software development company?

Vietnam has recently emerged as a rising star among Asian countries, as well as the top leading country in technology, particularly software outsourcing services.

There are numerous reasons to believe that Vietnam will be a top investment destination. According to AT Kearney's 2019 Global Services Location Index (GSLI-this index edition identifies locations that can best provide information technology (IT) and business process outsourcing (BPO), Vietnam has moved up one position from 2017 edition-from sixth to fifth.

It demonstrates that Vietnam is rapidly emerging as a promising offshore outsourcing destination for technology investment. In other words, Vietnam is emerging as Asia's tech hotspot.

Aside from that, cost-effectiveness is a significant benefit when investing in Vietnam. Compared to India and China, outsourcing software development to Vietnam can save up to 50% on operational costs. According to CIO Magazine, this can save up to 90% in costs compared to the US.

The quality of outsource software developers is also improving in terms of skills and knowledge. Many universities and training centers have opened and invested in information technology courses and IT-related courses.

These and many other factors ensure that Vietnam will be an excellent choice for software outsourcing. Without a doubt, this is the best place to find the best software outsourcing companies.

Groove Technology is a top software outsourcing company in Vietnam, with mature software development processes and a track record of repeat customers worldwide.

Customers worldwide can rely on the company for high-quality and professional application development, web development, mobile application development, and offshore software outsourcing services.

We have been in business for over many years and have extensive technical experience as well as in-depth knowledge of the industries we serve. We specialize in assisting our partners in increasing revenue and productivity through the use of high-quality software development tools and technologies.

We collaborate with our partners to overcome their specific business challenges, from providing necessary software development resources to managing the entire development life cycle. We become your technology partner for every development project and provide full-service support.

If you are thinking about starting a project and want to find a top outsource software development company to help you grow your business and stand out in the market, don't hesitate to contact us.