According to Technavio, the IT outsourcing market share will increase by USD 117.24 million from 2021 to 2026 at a 4.12% CAGR. In the pandemic era, the trend towards outsourcing is on the surge. Organizations have embraced digital transformation to become more resilient and responsive to changing customer preferences. Responses to COVID-19, according to McKinsey, have escalated the adoption of digital technologies by numerous years, and many of these changes may be here to stay for long. Industry leaders actively seek opportunities to focus on their core competencies while outsourcing some aspects of their business to Offshore App Development Company. They are motivated by diverse demands, including globalization, digitalization, scarcity of engineering talent, operational complexity, fragmentation of demand, technological challenges, and the need to meet fluctuating demands of the market.
However, “how” and “when” to outsource have become the cause of concern for many. Learning from past mistakes is always the best method for figuring out what to do – preferably from others’ mistakes. This article will discuss some common mistakes companies make and how to avoid them when looking for offshore software development services for your next application development project.
1. Not Verifying Company’s Past Experience
One of the most significant factors to ponder when choosing an offshore development company is its experience. If an organization has been in business for years and has worked on different projects before, it is more likely to deliver high-quality applications.
However, not all companies have enough experience. Outsourcing companies may lack the technology, industry, and domain experience to do the job. At worst, they may not even have in-house resources or lack the next-generation technologies required for transformation.
What to Look for, then?
- When considering an offshore software development company, ask for proof of their previous work accomplishments. It will help you evaluate how much value they can add to your project.
- You can ask for feedback from their clients about their service quality and performance.
You may also check out their case studies, which will give you a quick overview of the problems a company was experiencing and how your prospective outsourcing partner provided robust solutions and benefited their business.
2. Not Considering Time Zone Differences & Language Barrier
Your offshore partner might be located in a different time zone, making it challenging for you to communicate with them. Also, time zone differences can cause unintended delays in customer feedback, testing, and deployment if customer feedback is delayed. However, you can take steps to avoid miscommunication.
What Should You Keep in Mind?
Hire a Custom Software Application Development Company that offers a hybrid onshore-nearshore-offshore model should be your preferred choice. For example, many companies have two or more project managers (onshore and offshore) who work seamlessly to ensure no communication gaps and delays in your project. Also, ask your prospective outsourcing company what collaboration tools (Microsoft Azure, GitHub, Jira, and more) they use. Their ability to deliver results to their clients will be determined by this as well. Also, when shortlisting a few companies for outsourcing work, check whether people working in the company are fluent in English, both technically and in concept and abstract ideas, since that will eliminate any language barriers between the parties involved.
3. Not Communicating Business Goals Clearly
If the offshore application development company does not understand your business goals, they can’t contribute towards achieving them. Also, any miscommunication can cost a significant loss to your business, trust and failure to provide service on time. It is expected that deadlines may be missed while working on a project due to various reasons, such as:
- Lack of understanding about the project
- Less involvement with other projects, as they may have divided their attention to other projects
- Delays caused by clients making changes to their requirements at the last minute
What is the Best Way Out?
Before beginning a project, your offshore application development company should be able to articulate your business goals clearly and have a dedicated team with vast industry experience. Also, make sure they can clearly understand and communicate your business goals.
4. Not Focusing on Changing Technology Landscape and Expertise
Technology is changing rapidly, and new trends keep emerging. For example, businesses are leveraging the power of a few emerging trends, such as Cloud, Edge, Microservices, IoT, Digital Twin, AI, and RPA, to remain competitive. Not keeping a close eye on current technology trends can leave you behind in your goals.
How to Get Sorted?
Keeping up with ongoing market demand is essential. For example, many application development companies are good at coding, but they may use workflows and interfaces specific to their area of Expertise. Your end-user experience can be significantly affected by this, and are will likely abandon your service for something more modern-looking and appealing.
The mistakes mentioned earlier should not be made while choosing an offshore application development company. To capture incredible benefits from your outsourcing partner, address these key questions, such as:
- Which development project competencies do we want to outsource?
- Which outsourcing partner has the competencies required to accomplish your project goals?
- What are the success factors for collaborating with an offshore development company?
Remember, you can open the door to new opportunities with extensive research.
You may be interested in: Why You Stand to Benefit from Forming an Offshore Company
Leave a Reply