How To Outsource Software Development? Complete Guide For Outsourcing!

Outsourcing or not?

Today outsourcing is no longer an only buzzword for low-cost labor, it has become a key business strategy for both small and large business enterprises. Outsource software development is one of the most effective strategies to stay competitive, offering not only the economic sense but also a promise on better efficiency.

  • Reduce Cost — You can access to quality outsource companies at a lower cost.
  • Increase Productivity — Outsourcing shows an increase in your productivity, customer loyalty, level of quality, business value, profits, and much more.
  • Improve Work Quality — You can focus on primary business tasks with the help of outsourcing software development.
  • Access To Skilled Expertise — As described, one of the primary reasons why a business should outsource is skilled expertise.
  • Delight Your Customers — Outsourcing can help you get benefits from increased customer satisfaction and thus creating a stream of loyal customers.

How to choose an outsourcing company — Step by step

Once you make a decision to outsource software development, the next step is to ensure you will find the right outsourcing partner. If you choose the wrong outsourcing company, the results could be harmful to your business. That’s why this step is regarded as one of the hardest parts, yet crucial in the process.

Identify the best approach to outsource

A successful outsourcing strategy is clearly a desirable yet measurable goal. It’s your responsibility to define business objectives in the first place. Hardly a project reach success if you don’t know where to you are going, right?

  • What is your business need?
  • What is your target when outsourcing such as cost/timeline target?
  • Why you should use software outsourcing services?
  • How to find best solution to achieve your desired outcomes?

Research the best countries to outsource

Determining which country has qualified individuals to work and maintain its values on products and services is no less important. The main things you should care for are a lower cost yet developed IT market, backed by a high-quality educational infrastructure. In addition, their ability to communicate in your fluent language is also noteworthy.

Locate an outsource company

You can start with Google search and gather information of possible partners. Don’t forget to put companies that seemingly offers the best quality outsourcing solutions on a shortlist.

Project experience

First thing first, you need to look up what kind of projects that outsourcing software development company has done. Scroll through the rating of the best partners they meet your quality standards. They have done projects that share similarities with yours? Great start!


Secondly, other options for an ideal outsourcing partner is maintaining a good level of communication. Although with the help of Slack, Skype, G Suite, no software can truly overcome a language barrier. It’s better to request conference calls with all the involving employees that to ensure they are the right fit for you.

Flexibility support

It is very important concerning how flexible your outsource partner is. If any urgent support requirement arises, even in different time zones, you need to be very serious in this aspect. Similarly, support should include any future bug fixation and software updating.


Don’t look for the cheap. Avoid software outsourcing companies applying hidden costs or additional costs. Keep the size of the project and budget factor in mind.

Outsource contract and start outsourcing

Now, the hardest part is choosing which outsource software development company is the most suitable. You need more than spoken words to know if one IT outsourcing is the right fit for your project.

How to set up a dedicated development team?

It is a challenge most clients face when building the dedicated development team. If you are considering working with one, this guide below will give you some useful information and tips.

Choose the right outsourcing model

Fixed cost model

With this model, you must have a clear and detailed project plan in advance since the budget for the project will be fixed. A fixed price model will work best with small trial projects and protect the customer from any budget fluctuation. You also don’t need much supervision for this project as the plan is communicated transparently right from the start.

Flexible contract base model

With this kind of model, you do not need to have a precise plan in advance and you can adjust along the way until customers are satisfied with the final results. It still requires a document of carefully described specification and functionality along with the costs, timeline and which to deliver in each milestone.

Dedicated team model

Here we come to the ideal model. This model is the most flexible and scalable among the three. You will have full control over the operation process and the team. Not only follow the product to its finish but also assure the maintenance and regular update of the project.

Choose reliable partners

Have a look at their work history

You surely don’t want to work with partners with bad reviews from their customers. Search for the most honest feedback on websites like Good Firms or check their portfolio and ranking. You can also have a check on their employees to have a better picture of whom you will work with: their recognition, awards, qualifications, years of experience, etc.

Effective Communication

Be sure that your team has a good command of English to prevent misunderstanding. You should discuss with your potential partners thoroughly about your concern and worries to avoid conflicts later.

Get started with your team

The whole hiring process is all about finding a trust-worthy outsource software development. And there are more ways you can further do that:

  • Check websites that provide the company category ranking, rating and reviews like the
  • Check out their work progress on sites like GitHub, Quora,… to fulfill your expiations and product requirements.

Outsourcing mistakes you need to avoid

Don’t need management

Big mistake. Set up regular chats with the outsource team over Skype or weekly email. Make sure that everything is running smoothly and on schedule.

Looking for cheap

Though, many small businesses will take a look at finding outsource software development. But cheap is never a good deal! In another word, you get what you pay for. Always working with the partner that can provide the best quality for outsourcing. Don’t just search for the lowest price.

Misunderstanding the cost

Outsourcing isn’t always the cheapest way to grow the business. Sometimes, it actually costs more to hire employees from abroad rather than employing full-time workers. Make sure the outsourced team is on track and performing effectively.

Considering cultural factors

Working with cultures different from yours, there are some issues to consider. For example, the time zone, sometimes, presents some troubles in contacting with your outsource software development.

Is it better to choose small or large outsource software company?

Once starting new projects, there is a question — Who can provide you good development service? Big corporation or small business outsourcing? Usually, everyone looks for not just perfect communication but fast, reliable and high-quality outsource software development. In fact, there are pros and cons in both of them.

Let Go!

Finally! The steps by steps for the outsourcing plan will help you create systems for your employees, and motivate them to be productive with or without you. But remember, the first time outsourcing can seem a little overwhelming.



A quality outsourcing/offshoring company in Website/Mobile Apps, Blockchain services, AI - big data services. Visit our website:

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AgileTech Vietnam

AgileTech Vietnam


A quality outsourcing/offshoring company in Website/Mobile Apps, Blockchain services, AI - big data services. Visit our website: