Outsourcing Strategy

8 Steps to Creating a Successful Software Outsourcing Strategy in 2022

8 Steps to Creating a Successful Software Outsourcing Strategy in 2022

It is no secret that software outsourcing has become an integral part of the modern business world. The ability to get work done without having to hire more employees, or spend time on training new hires, can be a huge boon for any company looking to increase its bottom line.

However, outsourcing comes with its own set of challenges, and it is important to establish a successful outsourcing strategy before you get started.

If you are interested in outsourcing your software development but aren’t sure where to start, here are eight steps that will help you get set up for success.

What is software development outsourcing?

Software outsourcing

Let’s start with the basics. Software development outsourcing refers to hiring a company, or an individual programmer, that is based outside of your business’s home country. It has become increasingly popular over the last decade, due to a number of factors including:

  • The rise of talent available around the world – Software development has become an increasingly popular and rewarding career over the past decade, and as a result, more qualified professionals are available to work on software development projects around the world.
  • Imminent access to global markets – Thanks to the Internet and globalization, companies can now reach new partners and customers around the world with little effort. Outsourcing websites or freelance platforms make it easy to find developers in other countries who can get started on your project right away.
  • Increased Focus on Cost-Effectiveness – In tough economic times, businesses are looking for new and innovative ways to cut costs without sacrificing quality or service. Outsourcing software development can be a great way to achieve this goal.
  • Greater Flexibility – Outsourcing allows businesses to hire programmers when they need them, rather than having full-time employees that may not be needed on a day-to-day basis. It also allows for more specialization, as companies can find developers with specific skillsets to work on their projects.

Due to all these factors, more and more businesses are turning to outsourcing as a way to get their software development projects done.

What is an outsourcing strategy?

An outsourcing strategy is an outline for how you intend to manage your outsourced development. It includes the following:

  • Plans for hiring remote developers – This can include plans on where you will find these programmers, what language they should be familiar with, and any other requirements that must be met in order to work on your project.
  • Project management plan – This includes how you will communicate with your developers, what tools and documentation you will provide them, and any other instructions they need to complete the project.
  • Quality assurance plan – This outlines how you will test and quality control the work that is done by your outsourced team.
  • Financial plan – This includes an estimate of how much the project will cost, how you will pay your developers, and any other related financial considerations.

Once you have created an outsourcing strategy, it is important to follow it closely in order to ensure a successful project.

How do I set up a successful software outsourcing strategy?

create strategy

Now that we know what an outsourcing strategy is, let’s talk about how you can create one for your business. There are many different things to consider when setting up an outsourcing strategy, but here are some of the most important factors:

Define your goals

Before you start, you need to understand what is your end goal for this project. What are you hoping to achieve by outsourcing your development? Is it to save money, increase efficiency, reach new markets, or something else entirely?

Will you be using the team and outsourced developers in the future, or will you just hire them to do a specific task right now? Find out what success looks like before you start working with an outsourced team. Once you know what you want to accomplish, you can start outlining the steps necessary to make that happen.

Research outsourcing partners

The next step is to find a good outsourcing partner. This can be done by conducting research online or through referrals from other businesses. It is important to find a company that has experience in your specific industry and with the type of project you are looking for.

Make sure to ask the potential partner about their quality assurance procedures, communication methods, and any other requirements that are important to you.

Choose the outsourcing model

The next step is to choose the outsourcing model that will work best for your project. There are three main models to consider:

– The first is called “Offshore Development”, where you hire a team of developers in a foreign country to work on your project. This can be a good option if you are looking for lower costs, but you should be aware of the cultural differences and language barriers that can occur. However, if an agency is set up correctly, outsourcing abroad may be the best option in terms of price/quality ratio.

– The second model is “Nearshore Development,” which is similar to offshore development, but with developers located in a nearby country. This can help reduce some of the communication and cultural barriers, but it can still be expensive compared to the first options.

– The third option is called “Onshore,” where you hire a team of developers located in your own country. This generally tends to be the most expensive option, but it can be preferable for those who want in-person communication and want to avoid any potential cultural barriers.

Prepare the necessary documentation

Once you have chosen the outsourcing model that is best for your business, it’s time to prepare any necessary documentation so that your developers are ready to work. This includes contracts, work instructions, payment details, non-disclosure agreements, etc.

Be as clear and specific as possible with your instructions so that there is no confusion about what you want done. It is important to have a contract with your outsourced team because it will help you avoid any legal issues in the future. Make sure that the terms of this agreement are clearly defined and check their references before signing anything.

Decide on your budget

It is crucial to have a clear understanding of how much money you can spend when hiring an outsourced team for development work. This will help determine what type of developers you can hire, the locations they should be located in, and whether or not certain features would be possible for your project.

Create a project plan and timeline

Create a project plan that includes the specific tasks, milestones and deadlines for each phase of your development. This is especially important if you are trying to do more than just one task with an outsourced team, as it can be difficult to keep track of multiple projects at once without planning ahead.

A good project plan will also include specific instructions for outsourced developers, as well as a communication plan so everyone is on the same page. Having a detailed timeline will help to keep your project on track and avoid any costly delays.

Build strong communication channels

One of the most important aspects of a successful outsourcing project is communication. Make sure to have strong communication channels in place, both with your developers and with other teams within your company.

Tools like video conferencing, chat software and file-sharing can help make communication easier, but it’s also important to set up regular check-ins to ensure everyone is on track.

Quality assurance plan

It is important to have a plan in place for quality assurance (QA) when outsourcing development work. This can be done by creating a checklist of items that need to be tested before the project is considered complete, and by having someone on your team specifically responsible for QA.

This person should regularly communicate with developers to ensure that all QA tasks are being completed on time and that the finished product meets your expectations.


Outsourcing development work can be a great way to get high-quality results at a fraction of the cost, but it’s important to take the time to plan your project carefully. By following these tips, you can set up a successful outsourcing strategy that will help your business grow.

Now that you have some idea of what is involved in the process of setting up an outsourcing strategy, it’s time to start planning it and see what works best for your business.

If you want a reputable and reliable team to help you with your next software development project, schedule a free consultation call with us today. Our team consists of dedicated and experienced developers that can assist you with all of your software development needs. We would be happy to discuss your needs and see how we can help.

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© 2021 - MaxinAI | All Rights Reserved