The pandemic has faded gradually, leaving many concerns about the ability to upgrade the apparatus and follow the digitization of many large and small businesses around the world. When a software outsourcing company is tasked with a digital transformation project, there will certainly be a slew of issues and worries.
However, to realize those ambitions, it is necessary to have a highly qualified and talented workforce. What major concerns would you have if you picked a software outsourcing team to assist the project? As a CEO with ten years of expertise in the IT business, I have found that whether it’s a major corporation or a fast-growing startup, the issue of project service costs is always a top priority. So, how can you save the budget on software outsourcing? A few ideas of mine in this article will probably help you understand some of the best ways to save money.
The emergence of software outsourcing lately
Businesses across industries, particularly in finance, healthcare, and telecommunications, are speeding their digital transformation. In particular, these sectors are certainly trying to keep abreast of outsourcing trends. They are also the customers most likely to seek out outsourcing services.
It is not unusual for a company to transition to software outsourcing without first hiring full-time employees in-house. According to Technavio’s IT outsourcing statistics, the value of the IT outsourcing industry is predicted to reach $486.16B by 2024, expanding at a rate of 5% between 2020 and 2024. Especially with the emergence of the pandemic from the beginning of 2020, a rising number of clients across the globe want to increase their usage of IT outsourcing.
How to save software development budget in software outsourcing?
Select an appropriate software outsourcing company
When it comes to choosing a suitable software outsourcing company, we should not ignore the geographical factor. Around the world, emerging software outsourcing regions such as Eastern Europe and Asia are often famous for their large number of talented software engineers, the youth of their workforce, and competitive service fees. If we have Poland, Ukraine, Romania as the three famous names in Eastern Europe, then in Asia we have India, Singapore, and Vietnam as prominent representatives for software outsourcing services. And so, these two areas automatically become attractive points for businesses when looking for a suitable destination for their software development project.
And don’t choose a firm just based on its low price! The issue of inexpensive will never entirely alleviate your financial concerns. On the contrary, if your partner is not truly professional or follows a standard operating procedure… additional issues will surely occur. Lately, the number of outsourcing firms is growing, and not every organization is a good fit. As a result, exercise extreme caution when making your selection!
Define the initial requirements thoroughly and precisely
The criteria specified at the start of the projected takeover will serve as a reference for a proper process. As a result, your software outsourcing team will be able to choose the best and most efficient path. List everything you aim to accomplish in your software project/product, including UI/UX, security protocols, and production monitoring.
To do this, simply specify exactly what you want to achieve, then inquire about the cost of IT outsourcing. Also, ask them to estimate the specific time it will take to complete the project – or at least until the MVP is reached. Don’t let yourself be in a passive position, but proactively plan your criteria for software outsourcing to understand and follow.
Be alert to the fees incurred when the project takes place
It is unavoidable that we would meet unanticipated situations during the project promotion process. What I want to underline here is your sanity and the importance of avoiding these occurrences. Even a small change: adding a member to a group can potentially increase service fees. As a result, each idea of timing and team members must be specified from the outset. You can refer to a few suitable pricing models or ask your service provider to advise you.
Maintain vigilance over the problem and, if feasible, ask your staff to recount instances that resulted in such accusations. It may appear bureaucratic at first, but if we constantly attempt to keep track of progress and do not skip a beat, this will undoubtedly be a chance for you to widen your horizons rather than a problem or danger.
Maintain proactive communication with the software outsourcing team
Proactive communication is always a reliable link in ensuring that the project runs as smoothly as possible. As a result, to better understand the current phases, what difficulties must be resolved by the firm, and what possible chances for change exist.
Among the many successful projects, many outsourcing attempts fail because their goals and overall strategy are not well conveyed. Because software development will suffer if the outsourced engineering team does not get the whole picture of your company environment or lacks the relevant knowledge. Following that, the time required to remedy the fault will be extended, as will the processing cost.
Understand the knowledge transferred from the outsourced team to the business
It’s never too late to learn about the nature and functioning of a project or product, especially if you’re dealing with an outsourced engineering team. From a commercial standpoint, not understanding the technical procedures is already a major issue; nevertheless, additional issues such as time zone differences, language barriers, and so on are also quite likely to cause difficulties. Furthermore, if the information is not shared entirely and thoroughly, the cost of software development will be affected.
This information transfer will occur simultaneously on two sides: the client and the implementation team. Initially, the client must clearly describe to the outsourcing team the requirements, the nature of the present company, basic information about rivals – the market, and so on. The software outsourcing team is responsible for communicating operational information, new properties, remarkable features, and so on to clients at each step of a software development project.
Once you understand the essential work items that must be completed to effectively manage service prices, you may verify the current budget of your project or confidently employ a software outsourcing firm to support you.
Among the numerous clients who have reached out to Saigon Technology for assistance in software development, I – CEO of a major software development company in Vietnam – have serviced many visitors who prioritize international standard quality while also requiring the cheapest costs feasible. If it’s not about deadlines, about in-house talent, it’s about budgeting!
For the last ten years, Saigon Technology has been privileged to be the option for hundreds of software development projects of numerous organizations from global powers such as the United States, Australia, Canada, Germany, the Netherlands, Ukraine, Japan, and Hong Kong. We are proud to be the home of 400+ brilliant software engineers and design specialists in Vietnam’s top 1%, and we are always ready to fulfill any software development needs you may have – no matter what sector you operate in.
Contact us right today for free quotes & consultation!
Thanks & Kind Regards,
Thanh (Bruce) Pham
Saigon Technology Solutions
Email: [email protected]
A Member of Forbes Technology Council
Mobile: (+84) 913 666 227
Skype: tienthanh.pham (Thanh Bruce Pham).