How to Choose a Software Development Outsourcing Company?

Outsourcing software development is not only a way to reduce costs. Today, it is a full-fledged tool for increasing business flexibility, access to global talent, and accelerated growth. There are several models of such cooperation: from nearshore to offshore partnerships, as well as outstaffing, when specialists become part of the customer’s internal team.

Eastern European countries, where the IT infrastructure is steadily developing, remain one of the attractive areas for remote cooperation. For example, cooperation with an offshore software development company in Ukraine or Poland is often considered a balanced choice due to the optimal price-quality ratio, a strong engineering school, and experience working with Western markets. If you want to learn more about outsourcing, this article is for you.

Why Do You Need Software Development Outsourcing?

The customer always has a goal. Even if he cannot formulate it right away, this does not mean that there is none. Businesses have their own goal, and startups have their own.

Businesses need to reduce process costs, increase productivity, increase sales, improve the fault tolerance of already implemented software, and reduce the time to detect failures (underline as appropriate). Startups need to quickly launch a product and then scale it.

To achieve goals, you need a team that has expertise in software development and an understanding of the client’s area of activity.

It is good when you have your own experienced team in development. If you do not have one, then the selection can take from two weeks to several months. It is even better when the team knows the subject area. Otherwise, you need to spend the same amount of time on training it. If you have the time and money not to go towards the goal now, you can go the way of hiring and training your own team. If there is no time, then you need to find a ready-made team outside the company.

Which Outsourcing Company to Work With?

First of all, you need to look at the contractor’s website for cases from the required field of activity. If there are cases, go to the next step.

Leave a request in any convenient way, and receive a response. Usually, this is an appointment for the date and time of a call or meeting. If the response came within 24 hours, then this is very good.

At the first meeting or call, an interested contractor will ask many questions about your business or idea: what you earn or plan to earn on, what goals you pursue, what the company’s strengths and weaknesses are, and why it is necessary to create software now.

Next, there will be questions directly about the project, the team from the business side, and expectations. And the contractor will also ask for all available materials on the project (technical specifications, sketches of the appearance, etc.). If everything is so, then the probability of successful completion of the project increases several times.

After the contractor has processed the materials, a detailed discussion of the project follows to clarify the details. A software solution for achieving the goal will be proposed, as well as a story about the progress of the work and the frequency of demonstrating the result. If you agree with everything, go to the last step.

At the last step, the developer company will send a technical and commercial proposal. It should be read in full and very carefully. Although this is obvious, not all customers do this.

From this point on, your decision depends only on: 

• Your feeling of how comfortable it was to discuss the project. 
• Whether the company and its processes are transparent enough. 
• Whether what is written in the commercial proposal matches your vision and expectations.

If everything matches, then most likely this is the team you need. If you have doubts, you need to continue communicating until they are resolved or until you move on to another potential partner.

The Difference Between Outsourcing and Consulting

Outsourcing differs from service services and consulting in that the company receives a finished product, and not just a consultation or maintenance. The outsourcer takes responsibility for the implementation of the project in accordance with the customer’s requirements and ensures its quality work, which makes this process more convenient and efficient. Outsourcing includes not only development, but also technical support and maintenance of the project after its completion.

The Difference Between Outsourcing and Outstaffing

These are two different terms that are often confused with each other. Outsourcing is the transfer of certain functions or processes to the contractor company on a temporary basis. In the case of IT outsourcing, this may be software development, testing, support, and maintenance of the project. Outstaffing is the transfer of employees of the customer company to work for another company that provides outsourcing services. In this case, the employee remains on a permanent salary and is under the management of the contractor company, but performs tasks set by the customer company. Thus, the difference between outsourcing and outstaffing is that in the first case, the contractor company performs certain functions on the basis of a service agreement, and in the second case, the customer company transfers its employees to work for another company.

Final Thoughts

Choosing an outsourcing partner is not just a technical decision, but a strategic step towards developing and scaling your business. Regardless of whether you are leaning towards near-shore outsourcing, an offshore model, or outstaffing, key factors include technical expertise, flexibility, and transparency of interaction.

Among reliable partners in the field of offshore development, Ukrainian and Polish IT companies stand out, successfully working with customers all over the world. For example, N-iX is one of the leading software development companies, which has established itself as a supplier of high-quality solutions for large international brands. The experience, stability, and professional approach of such teams allow you to build truly effective and long-term cooperation. A well-chosen software development company is not just a contractor, but a technology partner capable of supporting your business at every stage of growth.