How to Manage Third-Party Software Outsourcing Services

Hiring a third-party team to manage software development projects and needs is a great way for companies to successfully achieve their goals. It has actually become quite a common practice across virtually all industries. That’s because many companies simply don’t have the time to hire for, manage, and fully deal with all of the moving components associated with software development.

Software development outsourcing has become a common practice among not only startups or smaller companies with budgetary constraints, but also multinational corporations and enterprise-level organizations.

Typically, there are two main reasons why businesses choose to hire software outsourcing companies to begin with. The first is when they encounter talent gaps within their team that may prevent a project or job from reaching completion. Most companies don’t have an expert for every subject matter in-house nor do they have access to find it temporarily otherwise, so they can’t tackle the tasks that require niche or specific technical know-how,

The second reason why organizations turn to software outsourcing services is because of cost. To keep a comprehensive and all-encompassing software development on the payroll is exorbitant in cost – and typically overkill for organizations outside of the IT field. Working with a software outsourcing company helps connect organizations with necessary talent while keeping overall costs down.

Managing Third-Party Software Outsourcing Teams
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The Top Tips for Managing Third-Party Software Outsourcing Teams

While many companies recognize just how beneficial a partnership with a third-party software outsourcing provider is, they just don’t know how to get started and struggle to get the relationship off the ground. It can understandably be difficult to figure out how to piece together a team located both in the office or virtually while merging with team members.

Here are a few of the top tips for making the transition of working with an outsourced team as seamless as possible while aiming for success and boosting productivity:

Before the contract ever starts, take the time to discuss all project goals, expectations, and details in-depth with the current team.

Everyone needs to be on the same page internally before bringing in fresh talent. Arbitrarily assigning tasks or a totally new project to the new offshored team will only lead the company into hot water. The product may lack in certain areas or miss the goal entirely simply due to the fact that everyone was not on the same page.

Both the internal and third-party teams should have a clear vision of the end result so that they understand what the requirements are of themselves as individuals and a group. Without the discussions prior to distributing tasks, a project will most likely end in chaos.

Choose exactly what to outsource.

When outsourcing a full project or even just aspects of a project, the in-house team can remain partial to its development. It’s important that decision-makers decide and recognize the strengths of their own team members as well as their weaknesses to help decide what is completed in-house and what the outsourced team members will be responsible for.

Continually be a part of the development process.

Handing off a software development project to a totally new third-party team can become problematic if you don’t pay attention. It’s best that the third-party team members have regular (or constant, when applicable) access to liaisons within the company who fully understand the idea as well as the target audience and overall motivation. This helps paint a full picture of the product for the dev team.

Another benefit of keeping in-house team members involved with the outsourced team is that mistakes or misalignments in the vision of the product are much more quickly resolved than if identified and taken care of at the end.

Leaders should make sure that communication and engagement with the outsourced team occur on a daily basis with simplified communication, especially if there is a language barrier. Choose methods of communication and keep them open for anyone who needs anything for the duration of the project.

Avoid the “us” and “them” mentality when it comes to the in-house team and the outsourced devs.

It’s important to create a culture where the outsourced team is as welcome as those sitting at desks in-house. By creating a culture where all employees feel respected and valued, their productivity levels will increase, the working relationship will improve greatly, and everyone will feel a lot better overall.

Working with a third-party software outsourcing company sounds like difficult work, but it’s really an incredibly beneficial process once an organization gets the hang of it. As with any relationship, it takes building trust between the parties, learning how to effectively communicate, and staying involved and engaged with everyone working towards the common goal of delivering a successful software product.

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