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13 Jun, 2022

Top 6 Risks to Outsource Software Development & Mitigating Them

Outsourcing custom software development is advantageous and reduces your business costs. However, it also comes with its risks. As someone looking for outsourcing services for their business, it is natural to have doubts and fears about the dangers of hiring an offshore outsourcing team. You can’t ignore the risks, but you can avoid them if you take the proper steps.

When you outsource the app development services to a custom software development company, you allocate certain parts, or all the software development functions to an offshore team. That comes with its own set of risks. Here are the nine risks associated with outsourcing a custom software development.

9 Risks Associated with Custom Software Development and How to Mitigate them

Most companies would talk about their vast experience and present you with a world of promises on perfect deliverables. However, the question is, are they as good as they say?

#1 Unreliability

Building trust is vital for a custom software development company. Here is what you can do before outsourcing.

  • Learn about the history of the company
  • Check & observe their social media presence
  • Read about their case studies, how the company worked on the projects they undertook
  • Check out the company’s presence on review platforms like Good firms, Clutch and more.
  • Watch the client testimonials and, if needed, talk to the different clients they have worked with.

#2 Domain Expertise

Custom software development will depend on one business requirement to another. There are different requirements for developers who excel in multiple frameworks, languages, and technologies. Before outsourcing the software development requirements to a third-party firm, you must check the portfolio of the projects they did.

  • Check the company offerings and the services on their website.
  • Read about the case studies on the projects they completed and delivered successfully.

custom software development

#3 Knowledge, Proficiency & Tools

Many outsourcing firms will pitch to you about their proficiency in different technologies. However, the question is, how can you be sure that the vendor company’s developers are as skilled as they are saying. Furthermore, you wouldn’t want to hire a company that can’t fulfill your basic requirements.

Thus, you shall need genuinely skilled professionals for every project requirement.

  • Check the computer proficiency of the developers
  • Know about the latest technologies that they have updated with
  • See the software and tools used by the developers in various projects

#4 Time-Zone Adjustment

When you outsource projects to a different country, there will be concerns about time zones. There will be times when the outsourcing companies will be in totally different time zones. Sometimes the outsourcing company could be ahead or behind the time zone of the existing business location. In this situation, you might feel the project will not be delivered within the deadline.

  • Thus, you will have to find the companies that offer 24*7 tech support.
  • Choose companies with the best client reviews, especially regarding the time factor.
  • Choose companies with quick deliverables for projects.

#5 Losing Control of the Project

One of the significant risks of outsourcing a custom software development project is losing control of it. Your tasks will need creative control from your end. Also, the outsourced company would want to have some creative control, especially when using new tools and technologies.

Many outsourcing companies would agree to offer you experienced and skilled developers. However, once the project is provided, they would again assign the projects to the inexperienced developers. Now, you are not allowed to get in touch with the developers.

Loss of control can affect the quality and the outcome of the project. If the project is mismanaged, it can cause a loss of time, effort, and money.

Here is how you must mitigate this:

  • Create a detailed plan of management, requirements, and responsibilities
  • Offer an in-depth catalog of all the requirements and the chosen tools, languages, technologies, and frameworks.
  • Establish proper communication channels along with the outsourcing company where you will be in contact with the developers of the project
  • Set up small milestones, identify the point of contact and keep track of the metrics

#6 Hidden Costs

When you seek a custom software development company for outsourcing your projects, there are high chances that the company might charge you additionally for the last-minute edits. In addition, many outsourcing companies might charge you hidden costs, relocation, upgrades, redeployment, troubleshooting, after-hour services and more. This will increase the budget for the overall project.

Here is how you can refrain from these:

  • From the beginning, keep your needs clear while dealing with the outsourcing company.
  • Make a detailed list of every expense that the company will have to incur throughout the project
  • Get in touch with a third-party law firm before selecting the outsourcing company and sign a contract with all the costs mentioned.

Also Read: Custom Software Development Ensures Enterprise Data Security

Why Should You Choose to Outsource Custom Software Development?

There is no doubt that outsourcing comes with its own set of risks. But there are some major benefits of outsourcing as well.

Some of the benefits of outsourcing include:

  • Saving time on the development process
  • Reduced cost of software development
  • Option to avail higher efficiency due to a large pool of talented developers
  • Easy to manage peak demands while outsourcing multiple projects to different companies
  • You get complete freedom to focus on other businesses, functions, and responsibilities.

In a Nutshell

Outsourcing custom software development comes with some pros and cons. There will always be risks, especially when there is a return involved. However, the advantages of outsourcing are way more compared to the risks that come with it. Outsourcing is the best way to reduce the costs of custom software development. Even though there are certain risks involved, there are ways to mitigate the risks involved with outsourcing software development.