How to Choose the Best-Matching Software Development Vendor for Your Project?
IT is a non-core asset for the overwhelming majority of companies. That is to say, the opportunity to transfer it to a professional external partner for outsourcing and free up resources for priority business areas looks very attractive. However, within the wide choice of models, it can be confusing for the company to choose the best-matching software development provider.
IT is a non-core asset for the overwhelming majority of companies. That is to say, the opportunity to transfer it to a professional external partner for outsourcing and free up resources for priority business areas looks very attractive. However, within the wide choice of models, it can be confusing for the company to choose the best-matching software development vendor.
In the article, you will find the answers to the next questions:
- What steps do you need to follow before selecting your suitable software development vendor?
- Among which common cooperation models of outsourcing can you make the future choice suited to your business?
- How to select the most effective engagement model?
- Is outstaffing more profitable than investing in the development of your own IT specialists?
- In what manner do you win if being partners with a staff augmentation IT company?
- What questions should I ask a software vendor?
IT outsourcing: let’s get to know it
Outsourcing is an effective method of doing business where particular services and tasks are performed by a third-party company. In the field of information technology, outsourcing is used in the widest spectrum, from the administration of the entire IT infrastructure to individual services. For example, restoration of the system, software development, computer maintenance, testing, etc.
Companies can choose IT services within the country of their operation (an onshore type of outsourcing) or apply for the services of IT organizations based in neighboring same-timezone countries (nearshore type). In addition, currently IT services are also ordered for doing business from more distant countries (offshore type).
The outsourcing of IT teams is mainly popular among businesses operating in highly competitive market segments such as banks, financial, insurance, and investment companies, representatives of the travel and air transportation industries. That is to say, for mentioned industries a quick response to changes is critical in the external environment. And the business can achieve it with the stable operation of IT solutions that support the execution of key processes.
What steps need to be taken in selecting the software development vendor?
You decide it’s time to automate your business. Then the next issue that needed solving is whom to entrust this important task. Here we have compiled four important steps every customer must take. They will help you when applying for software development services to minimize risks and find the best vendor.
A clear identifying your goals
The first step is to determine what you want to complete within the IT outsourcing. Focus on goals and timing. Think about your needs and the future results you acquire to achieve while cooperating with the vendor.
The most popular problems that clients turn to IT provider-company are:
- a demand for delegating IT project, not needing to have direct control over it;
- to expand your existing inner team of developers;
- the creation of the project from scratch;
- the renovation of the existing one being involved in the development process;
- to delegate specific IT services on determined terms and time;
- cheering up your internal team with the help of new members;
- to temporarily hire the IT talent while your HR finds the constant employee.
Knowing your particular needs will lead to the creation of your right vendor’s search criteria.
Check out the software development provider’s expertise
Nest step is to get to know your possible IT partners. You make your own research and collect data about them. For example, trustworthy sites like Clutch and GoodFirms provide information on the best IT companies, including pricing, location, technology, industry, and unbiased reviews. The links to company websites are also offered so that you can more precisely discover your potential partner. We recommend you consider the next tips:
What impression do you have when you move around it? Is it convenient in use? Is it enough informative and creative? Explore previous projects. Is there anything from your industry?
If you are not a technician yourself, it can be difficult to assess the expertise side of the IT company. However, you can figure out the level of technologies’ extensiveness in the company. In other words, notice if there is a wide choice of provided expertise the company offers in order to optimally implement the project.
The taking-care IT companies keep their finger on the pulse. They are constantly expanding their knowledge in the innovations and investing in their developers’ training.
Check out the company’s infrastructure and recently accomplished projects. It is essential for an IT outsourcing company to offer a full range of services (including development, design, testing, management, support, etc). Otherwise, at some point, it may sooner turn out that you will need more vendors to complete your project.
A valuable source of information is the vendor’s blog since it contains data about the supplier’s expertise, values, steps in various workflows, and even its language proficiency. Within the blog, first-rate companies strive to add value to their customers and colleagues. So the presence of articles on a purely technical topic, as well as what certain technologies can offer a business is a good sign.
Choose your software development vendor
One more step towards the right choice is considering the company that possesses expertise in your specific industry. No less valuable characteristic is the engineering team who can listen to your needs and ask questions related to your business processes, project, and needed results. At Freysoft, we attentively discuss a business idea and carefully work out all proposals and preferences. The process can take from an hour to several days, but it’s worth it.
Dealing with a developed enterprise and a start-up are contrasting things: they have different internal processes, needs, and goals. So make sure the provider has relevant previous experience in having worked with startups or business corporations (depends on your case). This will avoid misunderstandings when it comes to agreeing on decisions or making amendments.
When making the final decision towards your partner, select the one with similar values and approaches so that your cooperation is a win-win situation.
Find out your suitable cooperation model
Sign a nondisclosure agreement (NDA) with your vendor. At FreySoft, establishing an NDA is the first thing to do, so that to protect your rights and intellectual property. Afterward, you are welcoming to provide all information about your product as well as discuss the collaboration model and pricing conditions. The most prevalent engagement models are:
Fixed cost outsourcing
The fixed cost model implies that the scope of the performed work and the price are clearly defined before the engineering team starts the work itself. It can happen that during the course of the project more tasks need to be solved than was originally planned. Then, in this case, the vendor covers the difference in the project cost from its own resources or agrees to change the budget with you as the client.
Hourly rate outsourcing
The peculiarity of this model lies in the absence of a precisely defined project cost since you pay for the actual amount of work performed by the outsourcer, in accordance with the spent time and the hourly rates of the vendor’s specialists. Thus, both parties can flexibly approach changing requirements, conditions, and priorities of the project and, as a result, are able to quickly reschedule work.
Within the outstaffing model, the engagement model we offer at Freysoft, the vendor hand-picked professionals who will form a completely new team for your business needs. You have also an opportunity to take a part in interviewing and selecting your team members. The IT talents exclusively work on a full-time basis for your project while you possess complete control over their work and the ongoing results.
A distinctive feature of the outstaffing model is the direct communication between you and your IT employees that leads to superb team engagement, increased productivity, and excellent efficiency in performance.
Within the framework of the model of a dedicated team, the outsourcer, taking into account your needs, selects a team of IT specialists from its existing staff, and creates the necessary infrastructure for their work. The client chooses the range and scope of services provided by the IT specialists. Moreover, the dedicated team concentrates exclusively on work for your company, not being engaged in other projects.
Ask your provider about all the services they offer and choose the best one that suits your budget and needs. If you would like to consult on collaboration models in detail, contact FreySoft – we are always glad to answer all your questions and offer your best effective solution.
Have a smooth start with outstaffing model
To have doubts about which method of partnership to select is commonplace for all scale businesses, especially if you didn’t have the same experience before. We recommend starting with outstaffing model, and for that, we have valid reasons. Let’s take a look at them.
The control over an IT team or an individual developer is under your business. You are constantly informed about the entire situation on the project. Regular phone calls, meetings, and discussions, updates, sprints – everything you need to be calm about your expenses and the future of your project.
Low level of commitment
Outstaffing model gives you the opportunity to test and try to work even with just one IT talent. Soon, if you feel comfortable with it, you can augment and apply for more developers. Such a choice is the perfect way to step by step dive into IT outsourcing without significant risk.
Quick response to your needs
Compared to other models of collaboration, here you can take part in selecting and managing the developers on the project and consequently be more confident in your team members and their expertise. Within outstaffing model, it is also possible to adjust the size of the team or the number of tasks assigned to the developer accordingly to your changeable requirements.
Concentration on your core business goals
Searching, forming, adapting, and retaining valuable personnel is the task of the vendor. You save not only money (recruiting costs), but also time, which allows you to focus on solving critical issues for the company.
No geographic restrictions
The geography of searching for in-house employees is limited to the region, and most often to one city in which the office is located. In the case of outstaffing, location does not matter at all. You can hire qualified specialists from all over the world, giving preference to tech talent and experience over a registered address.
Questions When Contacting a Software Development Vendor
Choosing the right software development vendor among so many providers all over the world can be a time-consuming and exhausting task. However, by asking the next checklist questions, you can narrow the potentials and underline the best candidates for your project.
Where is the head office?
Will it be comfortable for teams to maintain communication?/ Can you adapt to my business hours?
- Services/ Industry
What are the areas of expertise?
What is the team’s experience with the technologies needed for my project?
What domains does the company work in?
What additional services do you offer?
- English level
Does the team maintain the relevant level of English?
Do they provide the documentation in English?
What engagement models do you offer?
What is the process of selecting the developers for the project?
What project management tools does your team use?
What values are within the team members of the vendor?
After evaluating the above-mentioned steps, it would be much easier for you to formulate the task for your selected vendor. The next step is an efficient discussion of the project with the outsourcing provider. Here, use the following questions to identify the details of the project.
What is the total scope of the project?
What are the recommendations on technical requirements/ experts’ skills for the project?
Do I need an assistant, consultant, or complete solution provider?
How big/small should the tech team be?
- Engagement types
What engagement model will be the best for the project implementation – consultancy, outsource, outstaff, time&materials, fixed-price?
What are the possible additional requirements/specifications?
What payment model is the best-suited for the particular project (full-time equivalent (FTE), fixed price, dedicated teams, blended hourly)?
What are the security and privacy practices when protecting the source codes, and other confidential information?
Who owns the code, process, licenses, and other materials needed to project?
What are the duration of the contract, options for its expiration and renewal?
- Confidence in the outcome result
Does the company provide the test task? How long does it take?
What features can I check at the start of the project? We hope the above information would help you select the right cooperation with your outsourcing vendor. If you would like to consult on collaboration with FreySoft in detail, contact us – we are always glad to answer all your questions and offer your best solution.
We at FREYSOFT have significant experience in staff augmentation, dedicated teams, and outsourcing the entire project. Thus, there is no difficulty for us with any of these models. The choice of the optimal model depends entirely on your individual needs.
FAQ: How to Choose the Right Software Vendor
In the segment of software development, the vendor is a company that engineers and supplies IT solutions for narrow market sectors. For example, delivering web and mobile app development services, Artificial Intelligence and Machine Learning solutions, software integration, maintenance and support of automated production, etc.
Each software development project starts with forming an idea and the requirements needed to implement it into reality. That is to say, first you identify your demands and goals, in particular, what kind of software you are going to create, what are your requirements for the final product, etc. A good software development, in turn, should help you assess your possibilities for their implementation and provide the necessary expertise and talents in terms of your timeline and budget.
The IT outsourcing market is highly competitive. And every software provider is proud to present its accomplishments and excellent developer skills on its sites. All of this can be confusing, especially if you are looking for a decent software company for the first time. That is why, in order not to be disappointed with the outcomes and mitigate the risks of choosing the wrong vendor, you should at once evaluate software partners on the right criteria.
The major mistake to avoid is choosing the lowest price of the vendors’ services on the market. It is a sure path to frustration. This way, the vendor saves on designing or testing the software, or on documenting the requirements and quality of development. That is why you should choose to follow the price-quality ratio. Experienced developers will cost money, but the result will help you earn more.
The other mistake is to limit your choice to a territorial feature. Of course, it’s always nice to meet in person with your development partner. But does this guarantee you the best performance? In today’s world, where there are instant communication channels, you should not select only among local developers. Don’t be afraid to partner with outsourced companies abroad. Their expertise and professionalism distinguish with no less high-quality, but also its cost-effectiveness.