8 red flags to look out for when outsourcing software development

On November 17, 2021 / By Admin

8 red flags to look out for when outsourcing software development

On November 17, 2021 / By Admin

Businesses without in-house expertise may have to outsource software development. This is an incredibly important decision and should be approached with absolute care. 

Often, a project’s success is determined by how the outsourcing provider is selected. A great provider adheres to standards and considers the context, including expected results and desired outcomes. 

Red flags to watch out for when choosing a provider

  • Problems with communication 

One of the most important aspects to consider is communication. Fluency in English isn’t the only way to determine if a provider and its team can communicate effectively. They must ask questions and provide guidance. Communication can be greatly enhanced by face-to-face meet­ings with your team.

  • Poor transparency

Whenever de­velop­ment firms withhold their assets from stakeholders, they are doing a dis­service to everyone involved. You should look into a vendor more closely if he or she is hesitant to let you speak with a solutions architect or team leader, fails to provide you with information on time, or doesn’t provide you with a clear picture of how they structure their pricing. 

  • Weak estimates

It’s not always a good sign when a provider offers an estimate upfront without asking enough questions to fully understand your project or if the estimate you receive is lower than you anticipated. Low estimates can be an indication of inexperience or a sign that the provider will cut corners during development. You may be tempted to save money, but you may end up paying much more in the end if you factor in missed deadlines, software bugs, unnecessary rework, and even scrapped work that needs to be rewritten.

  • Absence of work samples 

Having a portfolio is crucial for any development company to win new business. It’s a major red flag if the company claims experience but cannot provide any details. When researching providers, always ask for a well-written list of case studies and references. 

  • Lack of a clear roadmap

If a company cannot provide a clear and detailed roadmap for your project, that is a big red flag. This may indicate that the company is disorganized or feel uncertain of the process itself.  

  • Guarantees that sound too good to be true 

When a development company promises great things but you get the feeling that there may be delays or bumps in the road, it’s probably a guarantee that is too good to be true. Great vendors know that excellent results are difficult to accomplish. As a result, they will seldom overpromise. 

  • Missing deadlines during the sales process

Missing deadlines even before you’ve signed up for a service is a serious sign of underlying issues. If the outsourcing vendor can’t call or send information on time, it’s likely to only get worse along the line.

  • Cheap price models and scope of work

Some agencies will try to beat the competition with low rates but then start charging large amounts through countless change requests. This can be a hint of a lack of experience and proper upfront discovery.

What to look for in a good outsourcing vendor

  • Consider the size of the vendor

Choosing a partner of the ‘right size’ in congruence with your project’s scope is vital to the overall success of the partnership. Simply put, if you have a simple project, skip the big firms and look for a provider that will put your work first.

  • Look for a local presence

It is recommended to choose a vendor that has an office in your country. Technology has allowed effortless digital communication, but a local provider that shares your company’s culture and business context is in a better position to understand your industry and project.  

  • Identify technical skills

If you don’t have access to the most cutting-edge technology, your software product may not succeed in the market. Ask a vendor which technologies they are experienced with and if they could source the technologies you require. A good vendor should also have the infrastructure to manage your project effectively.  

  • Keep management maturity in mind

You must understand just how experienced a development company’s managerial team is. To identify this, you could ask for a one-on-one meeting and proof of experience and skills. 

  • Consider methods of communication

When choosing a provider, finding the best method for collaboration is essential. Ask them if they use Skype, Slack, Jira, Trello or any other innovative collaboration tools? How you choose to communicate should be agreeable for both you and your potential partner. 

  • Look for testimonials and reviews 

What other clients say about an outsourcing vendor is key. This gives you a good idea of past partnerships and the overall level of client satisfaction. 

Other important factors to consider

  • Be transparent and organized 

Just like you want your chosen outsourcing provider to communicate efficiently and stick to deadlines, you should be clear about your objectives and desired outcomes, as well as your directions. 

  • Meet with the project manager 

You have to speak to the project manager, tech lead, or solutions architect appointed to your project as soon as possible. You want to have a reliable contact person who can give updates and important information straight away. If a company cannot provide you with such a person, it may not be the right vendor to work with. 

  • Go with a paid discovery phase

Before you hand over your entire project, it is recommended to ask them to work on a test project. This is called a paid discovery phase and it is essential to consider in your development project. Allow your chosen provider to work on a module or smaller project to test how the process goes. During this stage, you can analyze their trustworthiness, delivery of promises, and how quickly they can meet deadlines.

The Final Word

When trying to find the right development partner, knowing what to look out for is just as important as knowing what to prioritize. If something feels off, it’s always a good idea to go with your gut and choose a provider that doesn’t hint at any of the red flags above.