Effective Strategies on Outsourcing Software Development Process

COVID pandemic has accelerated the pace of digitization among enterprises. With restricted mobility and social distancing measures, companies across sectors are trying to reach out to their customers through digital means. This has led to a multifold rise in contactless transactions through digital payment routes across online grocery stores, small retail outlets, and online pharmacies, among others. Even old economy companies such as automobile firms, steel, and aluminum manufacturers are inculcating various solutions powered by AR/VR and artificial intelligence to attract new customers.

As enterprises feel the rising need to go digital, the question arises whether to build up the solution internally or opt for outsourcing software development process. The answer to this question depends on various factors. For instance, if the organization is not a technology services provider or doesn’t have a good IT team, it is always advisable to outsource the development process. 

Also, complex digital transformation projects require experts on the field, for which outsourcing software development is considered as a better option. However, finding a reliable software development company is a tricky process. So, an enterprise should follow a robust strategy for outsourcing its software development process. 

A Coherent Strategy for Effective Outsourcing 

Every decision to outsource a particular function of an enterprise is usually driven by cost and capability. While companies tend to outsource a task to save costs, they also seek to fill the capability gap through an external team, which can be achieved through outsourcing.

In this perspective, the enterprise should have a coherent strategy to achieve the outcome of outsourcing.

Clarity on the Outcome of Outsourcing software Development   

Before embarking on a path of outsourcing the software development process, the enterprise should have absolute clarity on what it wants to achieve. Whether the company intends to develop an application on the front end, a website or a mobile application, or a payment interface, the purpose will determine the approach to outsourcing. 

Similarly, software development for frontend or backend or middleware will guide the outsourcing process accordingly. The approach to outsourcing will differ when the company wants to develop an app that aims to increase sales than when it wants to create software for use by its internal team. 

Choosing the Right Model  

Selecting the right model of outsourcing  software development is critical for a successful outcome. Usually, outsourcing models are of four types- onsite, offsite, offshoring, and global delivery model. 

In the onsite model, the external team works with the internal team on the premises of the company throughout the software development process. In the off-site model, the team from the outsourcing vendor works from outside of the premises of the company but is available for frequent meetings due to the proximity to the client. 

In the offshoring model, the team works from other geographies that generally have low wages but have an abundant talent base. The Indian software services industry is the primary beneficiary of this model. 

The last one is the global delivery model, which mixes two models- onsite and offshore or off-site and offshore-as part of their software development process. Before taking the outsourcing decision, the company should carefully select the model for optimum delivery.

A Tight Outsourcing Contract

As an enterprise exposes itself to various forms of risks through an outsourcing decision, it should take proper care in signing a close-knit contract without any loose ends. An outsourcing contract should have clauses concerning intellectual property rights, confidentiality, and indemnity for protecting the enterprise from any untoward incident. 

Similarly, the contract should mention key deliverables with timelines apart from milestone-based payment methods to ensure timely delivery. The outsourcing contract should also have a termination clause with mention of liabilities in case of such an event.  


A robust strategy is a must for a successful outcome from the outsourcing process. As software development is more complicated than a support and maintenance kind of process, thus outsourcing it to an experienced and renowned partner like Think Future Technologies can help enterprises for effective implementation.

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