6 Misconceptions About Outsourced Software Development

April 14, 2023
6 Misconceptions About Outsourced Software Development

For a business, software development is a critical decision. Companies tend to have reservations about handing the entire software development to another company or agency, which is understandable. It involves a complex process and it is crucial to get it right.

There are a lot of concerns and worries about outsourced software development, but most of them, if not all, are based on emotional fears. Here in this article, we will tackle the common deep-set notions and misconceptions companies have when it comes to outsourcing software development, and dispel them with real explanations of how it works and how it can be used to a companies’ advantage.

1. Outsourcing might result in a low-quality product

Companies are worried that outsourcing companies would not be able to handle the software development as well as, and with the same care as, them. It is the lack of trust towards other companies and agencies unknown to them that hold businesses back from outsourcing.

They feel that other companies will produce low-quality work, and it would be better for them to handle the development in-house to directly monitor and ensure that the quality is up to their standards.

Reality: Outsourcing provides access to high-quality talent delivering high-quality work

Outsourcing decentralizes development and bridges talent gaps. Reputable and trusted outsourcing companies have dedicated teams with vetted and highly skilled specialists and experts. They are used to, trained, and have the technical know-how to deliver high-quality output on time. Outsourcing companies also have access to various tools, resources, processes, and advanced technologies crucial to produce superior and innovative software.

Having an outside point of view, outsourced teams can provide a fresh perspective on how to approach the project and how to improve it, thinking more about the users who do not know about the company and the software. These highly skilled teams can enhance the user experience of the software and can improve speed in the process, providing a competitive advantage against competitors.

Outsourcing software development can improve business efficiency as well. Companies can focus their energy on their expertise, and not be burdened to take the time to learn about the intricacies of development through costly trial and error. 

2. It takes more time than in-house development

Companies have confidence in their in-house development team, but not in outside companies. 

The in-house team knows the ins and outs of the company, the culture, and how the organization works. Companies tend to think that their in-house people can single-handedly carry out the development and deliver on time. They are cautious that other outsourcing companies or agencies do not have the capability to support them the way they need, and have output on time.

Reality: Outsourcing has faster processes and operates on an agile methodology

In-house teams burdened with too many tasks can lead to burnout, unproductivity, and costly mistakes. Also, being inside the organization, it is easy for in-house teams to lose insight and perspective on how outside parties view the company and products.

Outsourced companies provide dedicated teams for each project to help the overwhelmed in-house teams. It reduces “time to market” by starting development as soon as an agreement is reached. Outsourced teams also adopt an agile methodology that ensures continuous and speedy updates and progress, as well as automation of menial and routine tasks to save time.

By opting for outsourced software development, a business can launch the software faster than doing it solely in-house. It can also have opportunities to scale faster and promptly address issues or adjust quickly based on user feedback.

3. Outsourcing means losing control over the project

By handing over the development to another company, businesses may fear that they would not have control or oversight of the project. 

In most cases, outsourced teams have a project manager who effectively manages and leads the whole operation. This is to ensure clients get hassle-free and holistic turnkey solutions and services, ready to be deployed once the contract is done. Because of this, clients worry that they will not have any say in the software development process.

Reality: Outsourcing is flexible and the degree of control can be determined by the client

Clients of outsourcing firms can easily say what kind of service they require, and the level of oversight or control that they would want for the projects. Outsourcing is flexible and mostly tailored to the needs and wants of the clients. At the end of the day, outsourcing firms cater to clients. 

Some outsourcing agencies even encourage clients to manage their service providers and be involved with the process. When clients are involved from brainstorming and planning to execution, this fosters alignment with the client’s processes, and everyone can be on the same page and work together efficiently. 

4. Outsourcing is only for large businesses

Smaller and medium-sized companies feel that outsourcing is only for large businesses with numerous and complex areas that they need to attend to. Smaller companies pressure themselves and feel that they need to be hands-on and do everything by themselves, without asking for help.

Reality: Many startups grew and were more successful after turning to outsourcing

Performance or outcome-based contracting helps small to medium businesses grow. Many startups have relied on outsourced service providers and were able to benefit and expand tremendously.

Outsourced software developers provide agility, efficiency, and cost savings to their clients, which can be advantageous for small to medium businesses to help them accelerate their growth.

5. It is risky and data security may be compromised

Companies may think that outsourcing is too risky and that outsiders might compromise data security. They fear that their ideas and data for the project might be leaked either through the perceived recklessness of teams other than their in-house teams, or the lack of protection in database systems.

Reality: Outsourcing companies have safeguards in place to protect companies

Reputable outsourcing firms are no strangers to superior cloud storage technology and capabilities that can provide protection, secure properties related to the project, and manage potential risks. They use these advanced technologies to provide the best data security for their clients.

On the other hand, legal documents can protect trade secrets and confidential information. Agreements like non-disclosure agreements (NDA) and non-compete clauses (NCC) protect clients and prevent outside parties from accessing confidential information and competing against them by doing similar trade.

6. Misunderstandings due to different time zones, and language and cultural barriers

It is difficult to handle remote teams already, let alone distributed teams from different countries. Companies may think that way when it comes to outsourcing and distributed teams based overseas. And for clients, differing time zones can hamper effective project management.

Reality: Use of collaboration tools and distributed team workflows for better communication, collaboration, and alignment

It is not as hard to align, communicate and collaborate efficiently now as it was ten years ago. Due to the pandemic, the world learned to work in a remote setup, wherever they are in the world.

Since then, communication applications and online collaboration tools were enhanced with artificial intelligence (AI) to help leaders manage distributed teams and to improve efficiency.

Companies can take advantage of the distributed teams setup by establishing and optimizing workflows that give way to round-the-clock work. 

To take it up a notch, a project may have an in-house team, a manager, or an oversight official from the company who can monitor and oversee the project done by outsourced teams. This can improve communication, alignment, and understanding across teams.

There are more pros than cons to utilizing outsourced software development. At Gigster, we have a global network of over 900 team members from top schools and companies, ready to support clients with their software development requirements. We have proven processes and tools such as AI to assemble fully-managed development teams – based on clients’ project demands and the complementary skills of our team members.

Need software development? Check how the Gigster Solution Delivery can help you.

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