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Struggling with Tech Complexity?

38% of small businesses currently outsource a business process.  This percentage is set to increase as we are about to move into 2023. There is a multitude of reasons which you can find online on why you should outsource your business development needs to a custom software development company.

Outsourcing custom software development to the right vendor can significantly reduce development costs and decrease the workload on your employees.

Despite a great number of advantages, there are some significant pitfalls that businesses often make while outsourcing, which can result in failures, additional costs, and time loss.

Five Things to Avoid When Outsourcing Software Development:


1.Lack of Comprehensive Research

Selecting a Custom Software Development Company without conducive research is one of the major pitfalls that businesses make. Most startups base their outsourcing decision solely on the basis of cost-efficiency.

Although the cost factor plays an important role in the decision-making process, it is not the only one. Other things that must be taken into consideration include – a company’s portfolio, and expertise, feedback and reviews, and the way your outsourcing partner functions on the market.

There are a couple of areas that you should research to make sure that you have aligned the right outsourcing partner for your next project. 

You’ll have to dig into the intricate details to know everything that you would like to know such as:

Questions to ask before Software Outsourcing

Principally, a lot of research should be done at the time of the primary interview. The rest will come from real-time communication with your Offshore IT Outsourcing Company.

Ultimately, after a thorough and detailed analysis, it becomes much easier to identify whether that team can realize your project. 

You should make up time for research and preparation as its worth it. The time that you have spent on research should be in correlation with the investment size and expected cooperation support that you would like to have.

Your research intricate will depend on your project requirements like for a simple project, you must not invest more than 3-4 months while choosing your next software development company. 

But if you need to scale your technical team from 40 to 70 or you have a 3-year roadmap, then you should take your time and do the proper research.

Also Read: A Guide To The Emerging Software Development Outsourcing Trends

2. Keeping Ambiguity in Requirements and Miscommunication

Many times, small business owners outsource their software development projects without a complete understanding of what needs to be done. 

Obviously, if you have just a vague idea about your project, it becomes quite difficult to set clear requirements for the outsourcing partner, as well as to evaluate whether the process is headed in the right direction.

A few questions that can help you clarify the requirements of your project:

Requirements for Software Outsourcing

Besides, before initiating a collaboration you must discuss the milestones and the approval system as well. Your outsourcing vendor must understand exactly what you want in order to find the most effective ways to implement your idea.

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Looking for Outsourcing? ValueCoders would like to Assist You

3. Outsourcing to Companies that are NOT in Sync with Modern Trends and Updates

Outsourcing to outdated companies that are not in sync with modern trends can impose troubles in the longer run. 

Although it may seem that you have chosen a web development company, who can code better than anyone else, they may be using workflows and interfaces specific to their local area. This can cause a significant drift with how end-users will experience your software.

No region is worse than others, but it is necessary to check that your outsourcing partner meets your expectations on issues beyond technicalities – such as legal & compliance risks, working ethics, cultural differences, broadband capacity.

4. Lack of Basic Tech Expertise at your End

Although outsourcing companies have technical expertise, it doesn’t mean that you presuppose that everything is well aligned at the end of your project. 

Thus, regular monitoring is important. Lack of technical knowledge at your end may impose some major risks on the project.

So, if you are not in a position to manage projects on your own on a daily basis, then you need to have an internal person or a project manager who can manage and take a consultative approach towards your project.

Opting for such a partner releases you from the pressure of being on your toes with technological upgrades and implementations and also gives you the benefit of leveraging the latest technology for your projects.

5. Underestimating the Essence of Quality Assurance or Testing

Testing your project while it’s underway is vital for gaining a guarantee that your final project is strong and functions just the way it should. 

In fact, a tester should be involved in the development process from the very beginning, otherwise, you are likely to encounter tons of bugs in the end. So, ensure that your software is tested appropriately.

Whatever you’re building, software testing should be an integral part of your software development process from the very beginning.

Quality Assurance should ideally be done by the same company that collaborates with you for your development projects.

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Looking for Outsourcing? ValueCoders would like to Assist You


We haven’t failed to mention the challenges while outsourcing software development needs. So, last but not the least, one common mistake that companies often make while looking to outsource app development is to expect the impossible.

The best way to avoid this mistake is to discuss it with your development team beforehand. Ensure that both sides have the right and clear expectations and remember that this is an equal partnership and things always need to be discussed.

5 Common Pitfalls to Avoid While Outsourcing A Custom Software Development Company

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