Top 9 Best Practices to Outsource Software Development


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There are numerous reasons due to which companies opt to outsource software development needs. They are either short of resources or don’t have the required expertise to achieve goals. Because of the numerous benefits offered, more and more companies are nowadays outsourcing their software development needs. There is no wonder that the perks offered are making outsourcing gain traction.

The process of outsourcing is not smooth sailing. There are a lot of things that you need to consider to obtain the best possible results. If you are new to outsourcing you can refer to our complete guide on software development outsourcing. Despite the benefits offered, outsourcing has some significant risks and challenges that need management. To achieve the success of your project, it is crucial to follow the best practices to make sure you outsource a project the right way.

Let us look at some of the best outsourcing practices that will help make your project successful.

1. Select the Right Task to Outsource:

Select the Right Task to OutsourceImage Source

One of the best practices to outsource software development is determining the tasks you want to outsource. You should not try to delegate the tasks that you are not willing to complete. If you try to push the functions you don’t want to achieve, you risk developing the essentials. Furthermore, you can also lose the entire outsourced part. Before outsourcing software development, you should first review your current practices and goals, depending on it, decide which part of outsourcing would work best for you. After weighing the pros and cons, outsource specific tasks.

2. Choose an Engagement Model that Fits your Needs:

The engagement model here refers to the control you will have on your project, the time you can spend on it, and the payment structure of the outsourcing team. For instance, if you are looking only to outsource a small project, hiring the team at hourly rates would be the best solution. However, outsourcing companies offer some other models for you to choose from. They offer fixed rate models and dedicated models, apart from the hourly rate model.

3. Create Milestones and Mini Goals:

Create Milestones and Mini GoalsImage Source

Don’t make the mistake of handing everything over to the development team. It may further lead to catastrophic results in several ways. Establishing certain mini-goals and milestones for a project will help you keep track of the project, and you will know what is done and what is still pending. Several milestones set will also let you see the numerous functional parts of the application.

4. Give Your Presence in the Meetings:

In the outsourced relationship, you share with the outsourcing team. You are the primary stakeholder. Even if you have delegated the entire project to the development team, you should stay aware of the issues, development progress, blockers, pitfalls, etc. It would help if you always kept in touch with the outsourced development team to get all uncertainties resolved at the earliest.

Also Read: In-House VS. Outsourcing Software Development

5. Set Up Progress Visualization:

Monitoring and controlling your project will become a lot easier when you are aware of the latest updates and visualize the project now and then. Team management agile boards such as Kanban provide clarification on the in-progress, not-started, and completed tasks. Teams generally prefer their own choice of tool, but you should try to pick a unified solution for your in-house and outsourced team.

6. Pay Attention to Security on Both Ends:

When dealing with third-party service providers, you are required to stay extra careful. You should establish a secure means of transferring information regarding the project, but they should also implement a level of access control over data that is very sensitive. It will be beneficial to know the security measures that the outsourcing firm already has and their plans to handle your data. However, you should ensure security on both ends—how data is dealt with and how it is being transferred to the outsourcing team.

7. Establish Communication Channels and Schedules:

One of the biggest challenges that consumers usually face when working with an outsourcing team, the communication gap between the two parties. The software development outsourcing team doesn’t have a clear understanding often, which further leads to the development of unusable software or delays in delivering the work. Proper communication channels enable forestall it. It helps in ensuring that the deliverables and project score are clearly stated. You can also ensure that the objective and scope is understood by the team clearly.

8. Be Realistic:

You should not forget that the outsourcing team consists of humans, and hence, be a little flexible. Set realistic goals. For instance, you cannot expect to get significant software developed with severe complex features in a short turnaround time. You will end up getting a software build that is not worthwhile. However, this doesn’t mean that you can be too lax with your expectations and goals. Master the trick of knowing when and where to apply pressure to achieve the best possible results.

9. Organize Work Effectively with Project Management Tools:

Project management tools are nowadays used by almost every organization, and hence, they are getting more visibility. They are effective for collaboration between the in-house teams or between your in-house and outsourced team. They also help to streamline software projects. They offer a platform where the teams and software partners can share files and communicate with each other. It also enables you to track several tasks and stay on top of deadlines.


Outsourcing software development is on the rise recently. It may take some time for you to find a good outsourcing team that would fit your needs perfectly well. When you find the perfect outsourcing team, your business will grow and expand in unexpected ways. This arrangement will have a significant impact on your business, and for it to come out right, you should take proper measures. Entering into a partnership with a third-party or software development company is not an easy task. However, if you are looking for seamless cooperation with the team, above listed practical steps will help you go a long way. All the best!

Vikrant Bhalodia
An Avid Writer by nature. People Ops & Marketing Strategist: Leader with 15+ years of experience in Organizational Capability Building and Marketing Success. Having passion towards technology and with multi-functional experience at WeblineIndia, a leading Software Development Company based in USA and India, Vikrant loves sharing insights on optimizing the success and internet visibility of the customers’ businesses.


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