Software development outsourcing has become very popular among all types of companies, from SMEs to Fortune 500 brands. If before the primary reason for choosing this practice was cost reduction, now organizations mainly delegate IT-related tasks to access the expertise of engineers, increase efficiency, and relieve the time of in-house employees.
Although software development outsourcing provides plenty of benefits, it is important to make everything right. To create a great solution and meet deadlines, you should avoid common mistakes that lead to budget overrun and even project failure.
1. Make the lowest development cost a top priority
Cost reduction is one of the main advantages of software development outsourcing. When choosing an IT outsourcing service provider, you can hire designers and engineers from any country where wages are lower than in yours.
For instance, the cost of building a digital product in Eastern Europe is 2-3 times lower than in the USA while specialists' skills are the same. Developers in countries like Belarus and Ukraine earn $25-$50 per hour. In the USA they charge $70-$150. Asia and Africa offer lower rates that generally vary between $15-$40.
However, you should not make the lowest price a top priority. Since the key goal is to build a quality solution that aligns with your needs, you should focus on finding the right software development partner. Reputation and expertise in the required field (e.g., blockchain, machine learning, or cybersecurity) are the main factors you should pay attention to.
There are many problems you can have working with inexperienced and unreliable contractors, from the non-conformity with the quality standards (product performance issues, multiple errors in the code, etc.) to incompliance with deadlines.
However, cost savings are not necessarily about poor quality.
Read our article “What drives software development cost and how to reduce it” to learn how to cut the price and make a great product.
2. Require to build a software product within a week
Another common mistake is to expect that an IT service provider is able to create a software solution within a week or month. Custom software development generally takes 3-12 months depending on the project size and complexity.
Making a minimum viable product (MVP) that includes only the key functionality generally requires 3.5 months. To clarify why it is impossible to launch an app or website so quickly, let’s consider the project stages using the example of our IT outsourcing company.
At Arateg, we deliver software solutions within the following steps:
1) Discovery — Our team collects and analyzes your requirements. Diving into your business-specific needs, we get an understanding of how a digital product should look and behave to fulfill them. At this stage, we also conduct competitor analysis and prepare a technical specification.
2) UI/UX design — From drawing wireframes to making a clickable dynamic prototype, our specialists create a design of your website or application. Focusing on quality, we ensure a consistent user experience across all devices and platforms, smooth navigation, as well as develop an intuitive interface.
Software development — We build your project taking care of the system maintainability, performance, security, and other important things.
3) Software development — We build your project taking care of the system maintainability, performance, security, and other important things.