9 issues of outsourcing and ways to solve them

 
When a company decides to outsource a software development project, there is always a chance of risk. However, the same situation goes with in-house development. So, there is no point in avoiding outsourcing when another type may have other problems. Our main point in this article is to describe the main issues of outsourcing and solutions for them.
 

1. Not many outsourcing companies match your criteria

First of all, compile a list of possible companies-candidates for your project. Filter them from the most probable variant to the least one. Then communication is key. Discuss with all these outsourcing companies your goals, a vision of the software development, KPI’s and other crucial topics. A face-to-face conversation may help you find an answer to those questions you could not have found only by searching.
 

2. Little or no information about vendors

There are outsourcing companies that:

• do not put much information on their websites;
• have little or no reviews.

Still, it does not mean they have an unprofessional or shady team. A vendor might only have started working on their website or reviews. Of course, you should not choose such a vendor without questioning their outsourcing processes. Therefore, try to look up vendor’s profiles on platforms where clients leave reviews and ratings for outsourcing companies. On such websites, you can find the company’s size, location, and a full list of services. Also, ask for their portfolio that will show their level of professionalism.
 

3. Your company has not worked with an outsourcing team previously

Before fully diving into outsourcing software development, you should have a clear idea of how things go. Thus, at the very beginning, you should meet with your outsourcing team and discuss:

• Software vision
• All development stages
• Communication type and frequency
• Main deadlines
• Models of cooperation (full process outsourcing, dedicated team, staff augmentation)

4. Your company cannot find a vendor of the right size for the project

Your company might face a situation when:

• Large outsourcing companies do not pay much attention to middle-sized development projects;
• Small outsourcing companies cannot quickly scale up the development process.

5. You want to protect corporate data

An outsourcing company is a third party that might endanger your confidentiality and data security. That is why we understand your fears. However, data exposure can be avoided by being attentive to country legislation and contract that you sign before the project beginning.

Thus, try to learn everything about security policy and the NDA contract before signing it. And most importantly, outsourcing company should follow global ISO standards that apply to any vendor and protect your sensitive data.

ISO or any other global regulation is the evidence that the vendor knows how to work securely with requirements and client’s data to provide proper services.
 

6. Developers might come and go during project development and cause inconsistency

If you have a long-term project, developer turnover may come eventually. To make it as low as possible, you and the outsourcing company need to understand what the outsourcing team needs and how you can provide it.

By team’s needs, we mean career future, proper management, understandable policies, and support.
 

7. Turnover may cause project information loss

The thing is turnover may come even from your company. Regardless of the side, if you and the outsourcing team are not sharing or collecting information on changes, it may cause many downtimes. A new employee cannot blend in with a team and understand the whole project at once. It takes time, which usually is a luxury for many development projects.

Thus, your task is to set storage and rules for storing all the essential information on the project. This way you will improve the work of not only new employees but also old ones.
 

8. The vendor might not be agile

Nowadays, to survive in cutthroat competition, outsourcing companies should be fully flexible to client’s needs and changes on the market. Before signing the contract, discuss with the vendor a suitable engagement model for both parties. Most importantly, try to stick to it. Remember, there are many agile methods to try. At least one of them should match your project schedule and development process.

If your company is planning on long-term cooperation, then it will be useful to revise some of the processes to stay on track.
 

9. Difference in culture, language, and location may cause miscommunication

It is clear as day, that each country has its specifics so does the outsourcing team your company has chosen. To be fully prepared, you should learn about the vendor’s country, laws, and culture. It will be great if all of you could speak the same language as English. Thus, even if you have differences, you will still be able to talk them through and come to a common solution.