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Common Mistakes to Avoid While Selecting Software Outsourcing Partner

Common Mistakes to Avoid While Selecting a Software Outsourcing Partner

When you’re looking to outsource your software development, it’s vital that you partner with the right company to get the best results possible. 

When it comes to choosing the right software outsourcing partner, there are lots of things you should keep in mind and avoid so that you can be sure your project will go smoothly without any major issues or complications. 

By knowing what issues to look out for, you can reduce your chances of experiencing problems or disputes down the road, which will save you time and money in the long run.

To help you avoid these common pitfalls, we’ve put together a list of some mistakes to avoid when selecting an outsourcing partner.

Here We Go!

Mistakes to Avoid While Selecting a Software Outsourcing Partner

1. Price Should Not Be the Only Criteria

When choosing a software outsourcing partner, price should not be the only factor. Make sure you take into account the efficiency of their development process and other criteria that are important to your business. 

For example, You can get a quote for 20 thousand dollars or for 200 thousand dollars for the same thing.

Now the crucial factor you need to look at here is how many resources the vendor will put into your project. This way, you will be able to find out whether the vendor is expensive or not. If the vendor has already worked on a similar project like yours before, then surely it will take fewer resources and time, saving you money.

In addition, once you’ve selected a vendor and signed a contract with them, make sure that they deliver on their promises because if they don’t, then it may cost you more in both time and money in order to fix any issues with them. 

It’s also worth checking reviews online to see what others think about this company. If there is some negative feedback about this company, then consider whether or not this company is right for you before signing a contract with them. 

2. Evaluation Points For The Vendor

When you are going to select a potential software outsourcing partner, you also need to keep in mind the evaluation points for the vendor. 

For example, when you contacted them, did they ask questions relevant to your project? Did they try to understand your project requirements? 

You need to ask these significant questions since they can show you fake works. But by going through the above questions, you can easily know whether you should give your project to the vendor’s hands or not.

3. Capacity To Work On Emerging Technologies

If you are planning to work on the latest technologies like IoT, Blockchain, or Metaverse, make sure your vendor has expertise in these technologies. IoT and Blockchain are the technologies that are transforming businesses at a faster pace. 

It’s good that you want to create an IoT-enabled app or a Blockchain-integrated application. However, by ensuring that your software outsourcing partner has the right expertise can come up with advanced solutions. You can also find out if they have an R & D process in place or not.

4. Quality Assurance (QA) or Testing Process

Quality assurance is a critical component of software development. It’s important not only to create quality software but also to ensure the accuracy and validity of any subsequent changes or modifications. 

When selecting a partner for outsourced QA testing services, be sure that the firm understands your project and industry guidelines and can deliver accurate, valuable feedback from their end. Your vendors must tell you the testing process they follow up for their clients. This way, you will have the idea of quality assurance from the vendor side.

Moreover, quality assurance does not end when the software is delivered; it must be monitored and updated throughout the lifetime of the product.

5. Thorough Scrutiny of The Cost Proposal & Contract

While looking for an outsourcing software outsourcing partner, make sure you thoroughly scrutinize the cost proposal and contract. For example, what is the warranty period? You need to have at least a 30 or 60 days warranty period. 

You must also check whether your vendor is ready to support you after the warranty period expires in terms of infrastructure and bug fixing. The next thing you should check is how much upfront payment the vendor is asking for. 

The first payment should not exceed more than 25% to 30%. And the upcoming payments should be given at a fraction of the milestone you accomplish as the project goes on.

Now you should look for whether there is a termination clause in the contract from both sides or not. Make sure there is a termination clause where either you or the vendor can terminate the contract. There should also be a confidentiality clause so that vendors can not disclose any information regarding your project.

When looking for vendors, be sure to examine the cost proposal and contract thoroughly. What is the total cost? Are there any hidden fees? What is the service warranty period? Will you have access to the necessary information when you need it? 

A clear agreement will help avoid potential surprises or disappointments. It should contain the deliverables (scope), cost, time frame for delivery, details about scope change management, and other important clauses. The longer the term of engagement (length of time) offered by the vendor, the better. You should also ask if they have an NDA policy in place with their customers so that they can share proprietary product development details with you in confidence.

6. Communication Process Should be Clearly Defined

Team communication is the backbone of any successful collaboration. Miscommunication can cause stress, make projects take longer than they should, and generally lead to the breakdown of the entire process. 

So make sure your vendors use efficient communication tools like Basecamp or Slack. This way, there will not be any communication gap between you and your vendor.

Doing so ensures all team members are able to share thoughts and suggestions when necessary and know-how when decisions are made. It’s best to get on the same page about project timelines and decision-making processes early on in order to avoid confusion later. 

Hence you will want your software outsourcing partner to be as transparent as possible about their processes, timeline expectations, and deliverables at every stage of the project – so you’ll know what you’re getting into from day one. 

7. How Project Tracking and Monitoring Done By the Vendor

Insufficient and infrequent project tracking and monitoring is a major red flag. If the vendor cannot provide any specific metrics related to your company’s projects, this might be a clear indication that they are not providing the necessary level of support. 

You must look out for the project management tools vendors use. Doing so will give you an idea of how project tracking and management are done by the vendor. 

There are some popular project management tools like Asana, Jira, and Zoho. You can also choose any of them and keep an eye on your project with the help of these tools.

Project tracking should include at least the number of bugs found, time spent on individual projects, and other milestones. 

Ideally, the software outsourcing vendor must provide summaries about how your team can improve overall productivity for both parties involved. Hiring Indian developers can also assist you in filling up the right talent for your software development project.

8. Lack of a Proper Governance Structure

Last but not least, you must check whether your vendor has a proper governance structure in place or not. For example, what is the escalation matrix over there? If you don’t like to interact with the project manager or have any personal issues with him or her, then whom else can you contact? Hence, you should ensure that there is a proper governance structure.

Final Thoughts

So, these are some common mistakes you should not make while searching for an offshore software development company. Whenever you look out for a software outsourcing vendor, make sure you keep the above-mentioned things in mind. Doing so will surely help you get the right outsourcing vendor.