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How to Pick the Right Application Development Outsourcing Partner Beyond the Budget

How to Pick the Right Application Development Outsourcing Partner Beyond the Budget

In 2021, an ISG research found that companies have spent 40% more on managed services and outsourcing. Outsourcing non-core business operations and processes is a widespread practice for companies of all sizes. The decision to hire software project outsourcing companies is driven primarily by cost savings.

But that’s not all.

Outsourcing allows businesses to tap into the expertise, knowledge, and creativity of experts in other parts of the world who can provide various cutting-edge services. By contracting out portions of IT infrastructure or business applications to IT outsourcing companies, businesses can reduce labor costs and enjoy greater flexibility.

"However, there are several factors to consider before picking an outsourcing partner. If you’re looking for a reliable outsourcing partner but don't know how to kick-start your journey, we will help you choose the right outsourcing partner for your business needs. Here are some best practices for selecting a software outsourcing company.

Did You Know?
Some of the world's largest and most successful companies, such as Alibaba, Starbucks, and Skype, started outsourcing and even continue to outsource a component of their development today.

How to Pick the Right Software Outsourcing Company

Look for Experience and Qualifications

It is crucial to find an outsourcing partner with good experience and qualifications who can meet your budget, understands your business and fits the culture. Once you've narrowed down your selection of a few outsourcing software development companies, understand the nature of expertise and the kind of talents each brings to the table. The goal is to select a partner who is confident in their ability to deliver on time and willing to consider your on-demand requirements. Besides, it's a good idea to speak with each shortlisted SME and discuss your requirements, such as:

  • The kind of software you want to create
  • The number of developers you require for your project
  • Their prior experience working for organizations like yours
  • The timeline in which you want the project to be ready

Evaluate Domain and Technology Experience

Depending on their prior work experience and available skillsets, software outsourcing vendors often develop specializations. These specializations can be classified into two categories:

  • Industry focus: Banking and Financial Services, Telecom, Retail Media, Manufacturing, Life Sciences, Automotive, Logistics and more.
  • Technology focus:

            (i) OEM focus: Microsoft, AWS, GCP, ServiceNow, UiPath, to name a few

            (ii) Solution focus: Big Data Analytics, Industry 4.0, Industrial Internet of Things, Blockchain, AI & Machine Learning, RPA & Cognitive Automation.

When choosing your outsourcing partner, be sure to confirm their experience in your industry and also be sure to get references. To understand your partner’s technology capabilities, ask them about OEM partnerships and case studies where they have implemented cutting-edge tech leveraging OEM capabilities.

Check for their Previous Work Accomplishments

As soon as you outsource software development, the provider will become a part of the business's day-to-day operations. So, before you onboard them, check for their work accomplishments. The best way is to check the reference organization’s portfolio, ask for a reference for a client with similar business needs. While doing so, ensure that the company you are planning to hire for outsourcing

  • Can be well-adept with your existing technology stack
  • Has the expertise and skills to adapt to the new tech stack

Has industry experience in several business verticals

Ensure Availability and Support

Geographical discrepancies can significantly impact how remote team function. So, when looking for a software outsourcing services company, one important feature is the time zone in which they operate. You should consider working with a partner that offers hybrid on-shore and off-shore models for cost-effective time zone-aligned support so that communication becomes as smooth and efficient.

Certify their Technical/Project Competence

Certifying outsourcing partners’ technical and project competency is critical in ensuring both the quality and performance of their services. Follow this checklist to ensure you onboard the best technical expertise for your software development project:

What is the scope of work that you would like to outsource?

  • What is your budget?
  • Are you looking for better support?
  • Are you looking to improve your focus on your core activity?
  • What is their employee turnover rate?
  • What methodologies and engagement models does the company use?
  • Does the company follow Agile/Scrum methodology?
  • Do they use the most current technologies when developing solutions?

Should Be Capable of Maintaining Transparency

Every successful outsourcing relationship is built on transparency. This necessitates open and honest communication between the agency and your organization. So, you must check their communication policies before onboarding them.

The other critical thing to consider is that the outsourcing agency should strictly follow the mechanism of feedback loops. Companies that follow Agile DevOps framework ensure continuous feedback between client and the project teams that help speed up the work by collecting and assessing feedback and implementing changes to improve the overall process of development.

Read More: Learn Softura’s capabilities as a software outsourcing partner through the E-Book.


Finding a reliable outsourcing resource can be tedious, but it can significantly impact your business’s plans once you find one. With the sheer number of outsourcing partners available, beyond the budget are the factors that ultimately drive your results. As you do your quantitative data evaluations, be sure to leave room to evaluate the people, the respective cultures and judge if you think your teams will enjoy engaging with each other. If not, the relationship will be fraught with communication errors, misunderstandings and this will impact the final results.

Ultimately, we are all in the business of relationships which ultimately impacts the financial performance of projects and companies.

Tip - Communicate clearly with your outsourcing partner; they will only deliver what you describe in your briefing.

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