Tips for Successfully Choosing a Foreign Partner for Outsourcing Software Development

The idea of ​​outsourcing software development to an offshore development company can be daunting. The following tips can make this decision easier for you as you can check if potential software development outsourcing partners meet the criteria listed below.

One of the most important factors is the quality of development. Most companies look for long-term, stable and reliable relationships and demand the same high level of quality that their own in-house developers would produce. However, in reality, a new offshore partner always presents the risk of exactly the opposite. From my own experience as the CEO of an outsourcing software development company, which has been in operation for many years, I know that it is very difficult or even impossible for a company (for example, an IT company in Europe or the United States) to be absolutely sure that a potential new partner in India, China, Russia or anywhere else can really offer the best quality. However, the following tips can help you build successful business relationships with development companies abroad.

The first step should be to research the potential company online. Check the registration year of your domain because sometimes offshore companies claim on their website that they have around 10 years of experience, but strangely your domain was only registered the previous year. It is also important to divide all offshore software development providers into two categories: developer groups and legitimate companies with a brand name and reputation. You need to know from the start who you are working with. Developer groups are unstable and often not very reliable. Their experience is difficult to verify as the quality varies from individual developer to individual. If a good developer leaves the team in the middle of their project, development timelines and quality are likely to suffer significantly. Developer groups charge less for their services than offshore outsourcing companies, and while these groups can work well for small-scale projects (ranging from $1,000 to $10,000), they often disappear unexpectedly. Developer groups tend to advertise themselves as trustworthy and qualified with many years of work experience. If you only have small projects to outsource, I recommend looking into working with a group of developers. If you do your research and choose the right pool, this can be a very profitable option.

However, if you are looking for someone to develop a larger project with a prospective timeframe of three months or more, I recommend working with a legitimate foreign company rather than a developer group. The problems that can result from a group of developers disappearing mid-project, missing deadlines, or failing to deliver the high quality you need are simply not worth the lower cost.

To minimize this risk, I recommend that you outsource any large project or long-term development only to large, established companies with a good reputation (good references, great clients, good online reputation, older domain name, etc.). These companies typically have well-organized software development processes and are known to follow modern software development methodologies and best practices. The most qualified software developers often work for established companies rather than working as freelancers or in small developer groups. When faced with complex projects or unusual tasks, working for a company provides the benefit of always having someone to turn to for advice on a specific technical issue. This is just one of the reasons why companies tend to consistently offer better quality.

Some additional points to keep in mind:

1. If a service provider gives you a price and deadline for the project, but does not include a detailed estimate of the time and costs required for individual tasks, doubts about the qualification of that particular partner are completely justified. Such a company might not meet deadlines or deliver high-quality software solutions.

2. Development should always include testing. In some cases, testing and bug fixing accounts for 50 percent of the entire project implementation period. An experienced and professional company knows that extensive testing is absolutely vital in the development of complex projects and applies the necessary quality control measures.

3. Check the company’s portfolio. I highly recommend finding a company that has already developed projects similar to the one you are looking to outsource. It is likely that the company that best suits your needs is one that works in the industrial specialization you are looking for for your project.

Don’t make the lowest price your priority. Keep in mind that you get what you pay for. If a company offers a low price, it may be because they are using junior developers instead of senior or mid-level developers. Another reason may be that they are actually freelancers or developer groups, who work from home and do not have expenses such as office space rent, taxes and other costs that a company usually has to bear.

I also urge you not to rush into a business relationship with a new partner (a policy I follow as well). Begin step by step by discussing any issues and details that come to mind and deciding on a model and style of work that works well for both parties. Following the above-mentioned tips will surely help you find an overseas software development center that can be a reliable business partner for many years.

Communication is another factor that worries many clients. Even for people who speak the same language, misunderstandings are a reality. The risk of misunderstandings increases exponentially when it comes to different languages ​​and cultures, and therefore also different preferences and styles of communication. Just having English speaking contacts in your new Offshore Development Center is not enough. The company should have a system in place that encourages communication using the right software, such as issue tracking systems, conference call scheduling, Skype chats, etc. Professional companies usually have a lot of experience in establishing effective communication measures.

Last but not least, we have to discuss source code security and intellectual property protection, as this can easily become the most important factor of all. When a company plans to outsource its software development and the software to be developed will be based on existing source code, it is essential that this source code, as well as any information about customers, remain confidential. For this reason, I do not recommend working with groups of developers if you are dealing with sensitive information, as these developers cannot guarantee serious intellectual property protection nor is their reputation as important to them as it would be to a large company. For example, as the CEO of the company, I sign confidentiality agreements along with all my developers. I think it’s the right approach for any company. Be sure to ask your service provider about their NDA approach for all employees.