How to Outsource Custom Development the Right Way

If you need custom development, think twice before trying to handle it with an in-house team. Taking matters into your own hands may be a mistake that’ll cost you – literally.

For companies looking for a quality product that’s easy on the pockets, outsourcing has become the norm.

But why the hype, and how do you do it properly? This guide has it all.

What Is Custom Software Outsourcing?

Custom software outsourcing is the act of hiring a third-party team to develop software tailored to your business needs. While in-house development leverages your own developers, outsourced teams typically work on a per-project basis.

What’s more, outsourcing allows you to cast a wide net for the set of specialist skills you require. There’s no need to put your software in inexperienced hands when the perfect team for the job is out there.

🔥 Hot tip! If you need a quick refresher on what custom software is, click here for a crash course.

Benefits of Outsourcing Custom Development

According to Equiteq’s 2023 report, the custom development outsourcing market will reach an impressive $120 billion in 2026.

Of course, outsourcing bespoke software didn’t get so popular out of nowhere. These are the benefits that have made it a must-have for enterprises of all industries and sizes.

Tailor-Made Solutions

Outsourcing custom software development is the best way to turn your business needs into an actionable solution. Whatever your challenges and objectives, purpose-built apps are designed to meet them as efficiently as possible.

With unique software developed to your specifications, you have a unique advantage over your competitors.

Not only that, but outsourcing is a one-stop shop. Most vendors have full-cycle development on offer, which means they’ll be handling every step from design to testing.

Cost Efficiency

The cost of outsourcing custom programming may look steep on paper, but that’s only if you ignore the alternative cost.

Hiring, onboarding, training, and maintaining an internal team is a long-term expense that adds up over time. You’ll also be footing the bill for all the resources they’ll need during development.

By contrast, outsourcing is a fixed-price one-off that’s much easier on your budget. That’s why Deloitte’s 2022 Global Outsourcing Survey indicates cost-cutting is its primary driver.

Access to Global Talent and Technology

Local talent is just a drop in the ocean compared to the size of the global talent pool. Outsourcing custom development opens you up to skills across the world, including experience within your business niche.

This diversity of experience is just what you need if your project involves 4IR tech or innovative solutions. For example, specialization in the sectors of AI, data analytics, and IoT may be hard to come by locally. But with outsourcing, you don’t have to settle for less.

Faster Time to Deployment

Hiring and training in-house developers eats up a lot of time before they can even get started on your project. Not to mention how long it can take for a new team to build up a rapport and communicate effectively.

Outsourcing has no such problem; an external team goes straight from signing the contract to phase one of development. On top of that, they already have an established workflow and team dynamic.

This level of efficiency means you get your custom app – and your return on investment – as quickly as possible.

Flexibility and Scalability

Because outsourced teams are typically hired only for the duration and scope of a project, outsourcing creates a scalable workforce. You can up- and downsize resources as and when required.

Your dedicated external team performs one vital task and then parts ways, no strings attached. That way, you don’t have to assemble a permanent in-house team or take existing staff away from core business functions.

🔥 Hot tip! Thinking about building a web app? There are just as many compelling reasons to outsource web development, from lower cost to full-cycle involvement.

Tips to Effectively Outsource Custom Software Development

The success of your partnership with an outsourced team (and eventually your custom development plan) depends on the clarity of your communication, expectations, and vision.

So, to get off on the right foot with your vendor and ensure you come away satisfied, heed these steps.

Consult All Stakeholders off the Bat

Early in the process, be sure to consult all the stakeholders involved in the project.

This is especially important if your custom software is for your staff to use. Their feedback, gathered through interviews or surveys, can be the difference between an app that’s useful and one that isn’t.

So, have a firm grasp on what your team’s challenges and requirements are, and build your software around them.

Choose the Right Team for the Job

Once you’ve narrowed down your search to a few custom programming services, the real fun begins. Through portfolio checks, referrals, and consultations, you should evaluate the team’s –

• Experience with your industry and projects like yours
• Technical skills, especially as they relate to the features your custom software needs
• Size and resources and whether they can accommodate your project’s scope

Establish Clear Goals and Expectations

Before your outsourcing vendor draws up the contract, your goals should be crystal clear. That entails discussions of –

• The boundaries of the scope, preventing scope creep while allowing as much room for innovation as you prefer
• Your comprehensive expectations so you can avoid misunderstandings
• Deadlines and deliverables that are realistic and work for everyone

With a transparent plan in place, the development process will run smoother, and communication will be more efficient.

🔥 Hot tip! One of the most important aspects of your project is what engagement model you’re signing up for. Make sure you’re aware of the differences in scope and client involvement.

Set Up Communication Channels

To keep development running smoothly, you’ll need open and accessible communication channels such as regular check-ins. This not only provides an outlet for feedback but also allows you to identify issues and implement changes quickly.

Ultimately, responsive collaboration keeps everyone on the same wavelength and reduces the risk of delays.

Ensure Post-Launch Support

Maintenance is the backbone of a successful platform. That’s why you need to plan ahead when it comes to long-term technical support, bug fixes, and updates.

Details about post-launch maintenance should be included in your initial custom development contract. So, it’s important to come to an agreement with your outsourcing vendor early on in the negotiations.

🔥 Hot tip! Wondering if maintenance is worth the hassle? This app maintenance guide will tell you everything there is to know, from the why to the how.

Secure Your Data

The safety of your data should be at the forefront of your mind when engaging in any third-party partnership. So, prioritize these steps when you approach an outsourcing vendor –

• Draft an NDA – Non-disclosure agreements (NDAs) place your data behind a legal shield. Your vendor will be obligated to uphold confidentiality and keep your data under wraps, or else face legal repercussions.
• Restrict Access – The fewer people with access to your sensitive data, the better. Limiting it to a select few roles and individuals reduces the risk of data breaches.
• Ensure Secure Development – Your custom programming should be airtight. Make sure your outsourcing vendor enforces secure coding practices and tests regularly for vulnerabilities.

Trial Your Partner with a Test Task

It’s a smart idea to give your prospective developers a trial run before getting into a serious commitment. A smaller project or a prototype of your custom software will help you gauge their communication, performance, and quality. And with minimal impact to your budget.

🔥 Hot tip! While you’re at it, avoid the top six custom software development mistakes that are the leading causes of project death!

Looking For the Best Custom Programming Services Out There?

Your search may just be over.

DPL has decades of experience helping businesses like yours develop the perfect software solution for their needs. If you’re ready to take your tech to the next level, our custom development services are around the corner.

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