This Checklist Helps You Hire The Best Software Outsourcing Partner
Posted on March 15, 2019
The global market size of outsourced services is over $85 billion. Hence one thing is for sure – it is a massive industry and software development is a major part of it.
Most of the businesses globally outsource to cut down costs and increase efficiencies. The results are rather disappointing, when one looks at it from a value addition angle – 80% of outsourcing relationships fail to deliver any collective value.
Would you really want to cut costs if they are more expensive than the capital you saved by outsourcing? The answer, obviously, is a resounding no.
So, how do you ensure you have the right software development company helping you get the product out of the door? Simple – here is a checklist of characteristics:
1. They promise value beyond cutting costs. If you are looking at an offshore vendor in Asia, you know it for a fact that they will be able to bring down your development costs. This works out because talent and technology are available at cheaper rates in their market. That said, any software developer can promise the same costs – how do you then choose between different partners?
You have to look for expertise and not just competence. There are a ton of software outsourcing solutions providers who promise the bare minimum to get your project rolling. You will get the maximum value for your dollar when your prospective partner has expertise in the area and hence can be a better partner than even your local vendors.
2. They have very strong referrals. In B2B markets, referrals play a very strong role. That said, these days, every single developer has a ton of referrals available.
Finding the right development partner based on the referrals they have can hence get tricky. So, focus on the following:
i. Look at the quality of referrals over the quantity: Which referral adds more credibility – one given by a vice president of a big commercial air carrier or one thousand given by unknown small businesses?
Usually, the bigger company’s referral has more value because it shows that the vendor can handle a project of huge scale and can satisfy multiple KPIs in one go.
ii. Look for referrals on employee level: Most of the software development companies focus on referrals for the companies. You can go to LinkedIn and check out a few profiles of the developers the company has. Here, you will get to see the industry expertise of the very people who will actually be working on your projects. This is where quantity of referrals coming from various sources can be of great value.
3. They focus on a niche of services. If you find a software development company in USA that is ready to take up any project you throw at it, there are very high chances that the company is outsourcing the project further to an offshore developer.
The most credible outsourcing partners have deep expertise in certain market segments like payment solutions, eCommerce or enterprise tech for a specific industry. This goes in line with the earlier given advice and helps you find developers who can add real value to your project above and beyond the mere cost cutting.
4. They are approachable at any time you reach out. More often than not, your implementation or project management team will find a bug in your software. They will try reaching out to your outsourcing partner and outline the problem very specifically.
In a reply, they will get an automated reply from the partner stating they will get back to you ‘soon’. Since you did not have any contracts defining ‘soon’ you are justify waiting.
For projects that have multiple levels of iterations, this can get very tedious and you might miss out on small but important feedback. Just because your outsourcing partner is in a different time-zone does not mean they take forever to revert.
If the outsourcing company does not put up a 24-hour business day revert in their response rate, it is a big red-flag. A potentially good outsourcing partner will be ready to promise you one day reverts and wouldn’t even be hesitant in the contract.
5. They are proactive in understanding your requirements. The ideal outsourcing partner will want the engagement to succeed – because that is the only way they will ever get more business. Hence, they will be ready to sit with you and define the exact deliverables of the outsourcing engagement.
That is the sign of a good outsourcing partner. A great outsourcing partner will go one level beyond that and ask you questions about your business to understand the real-life situations where the deliverables will be used. They will act more like technology consultants and less like software developers.
The ideal outsourcing partner will want to know more about the business case of the deliverables, have expertise in solving technological problems pertaining to your industry, would be approachable and have experience in dealing with big ticket clients. If your prospect shows these indicators, you can get started with the engagement.
Software development trends 2019: What to look out for
Posted on December 10, 2018
Trends in software developments are ever-evolving, and you may often find them to be short-lived. In fact, ideas in the digitized world become stale too quickly. The secret to success in this competitive business environment lies in remaining future-proof. Currently, business leaders heavily rely on custom software development services from the reputed professionals, who help them walk a step ahead of time. New trends in software development are about to appear in 2019. The demand for accomplished software developers remains constant. However, the advent of the blockchain technology and artificial intelligence (AI) has infused the industry with a greater degree of enthusiasm. 90% of the European and North American banks have already invested in blockchain. The challenge now lies in aligning these technologies with the existing software and developing new ones based on AI and blockchain.
Here are some of the trending software technologies, that will be absorbed into the mainstream in 2019.
The blockchain technology has several applications beyond cryptocurrencies. Across all industries, the blockchain technology is gaining ground rapidly. Business firms dealing with supply chain, administration and medical data are incorporating the blockchain technology into their software to streamline the process. Last year, IBM had launched its own blockchain platform, and other leaders are likely to introduce their own platforms, banking on blockchain. Professionals specializing in software development services are working in close association with their clients to leverage their software infrastructure. Banks, distributors, governments and other organizations are keen to embrace the blockchain technology. It will effortlessly make its way into the mainstream in 2019.
Cybersecurity continues to be a daunting challenge for business firms. A research reveals that 18% of the business organizations have reported about cybersecurity breach at least once in the last one year. The loss or leakage of processing data (67%) is the greatest concern for the professionals dealing with cybersecurity. Next comes data privacy threats (61%) and confidentiality breaches (53%). These statistics clearly reveal that business firms across all sizes are trying to strengthen their cybersecurity. They will be heavily banking on the companies specializing in software development California to combat these challenges. With this, the developers have a new responsibility to execute.
Artificial intelligence is a catalyst for the digital transformation of business firms from all verticals of the industry. Developing software integrated with AI is now a priority. An analysis by Gartner reveals that by the end of 2018, the AI industry will reach $1.2 trillion and the value of AI-driven business is likely to cross $3.9 trillion by 2022. Business firms, in an attempt to stay abreast to the latest software trends, often partner a software development company. In the next one year, over 40% of business organizations will be using AI to automate their operations. This ensures a better user experience, while you keep your technologies upgraded. Once implemented, AI-backed software will enhance the quality of customer experience and services.
Progressive web apps
Progressive web apps are web pages or websites that resemble and work like conventional mobile apps. The popularity of these apps is on the rise, and 2019 is likely to witness a large-scale integration of these type of software into the mainstream. These are integrated with the latest browser technology, capable of delivering an enhanced mobile experience to the users. They can enjoy the feeling of mobile apps, while they use a browser. These are less complex in terms of development, while the maintenance costs are also lower. Flipkart, BookMyShow and Twitter Lite are only a few to mention.
The low-code development technology has been comparatively new and has made its way into various businesses swiftly. In developing and deploying enterprise-grade software, it has proven to be a faster solution. 2019 is likely to witness a greater integration of the low-code development technology into software. In recent months, the acquisition of Mendix, a low-code development company by Siemens for $730 million clearly indicates the demand for the technology. In fact, it is becoming popular faster than the conventional software development methodologies. Even developers without extensive knowledge in coding can develop software through low-code development.
In a nutshell, 2019 will witness a greater penetration of technologies that are in use since the recent past. Business leaders with foresight and acumen have already braced up for these changes. They have been seeking custom software development services from the reputed companies, who come with an advanced skill set to strengthen their software. Get across to one of the established developers to bolster your business.
How Software Development Companies Can Help You Strengthen Your Business Model
Posted on October 2, 2018
One thing established businesses have is the financial freedom- provided they utilize it in the right direction- they can make millions out of it. Looking at the market scenario, it can be seen that recent start-ups are coming with software to solve the problems of people. If a traditional business does not adopt to this change, it would be wiped out. One step towards adopting this change would help you provide provide better services to your clients or end-consumers. To approach a software development company for this work is the right step towards strengthening your business model.
A software development company is that company which makes software according to the organization’s requirement. They have knowledge of different languages such as Java, HTML, Python etc., and have the capability to develop software, experience, tools and tricks which helps them to provide best possible software for your organization. They use custom software development services to solve the unique requirement of your firm. Following, you will encounter with few points which would give a better clarity on how software development companies can help you strengthen your business model-
Right software for an organization’s needs: Organisations just put together the idea of what kind of software they need. Software development company identifies the situation and the need, search for possible solutions, make an outline while considering all the issues possible, discuss them with the team and make a software which is the best for the organization. This software solves not only the organization’s problems but gives better services to the organization’s customers as well.
Outsource lead expertise: If organizations plan to develop software in-house, they need to incur a high cost because of hiring new employees, developing infrastructure and many more. It is not a good idea especially when there are companies available which provide software development services at a lower cost. These companies have established infrastructure and experts available which can do the same job at a lower cost, in lesser time with better results.
More focus on business activities: After giving software development jobs to an expert company, you can focus more on the business activities and give proper time when you are required to take an important decision related to the growth of business and achieve the organization’s actual goals. The last thing what you need is to check that whether the software is working properly, if it is solving the customers’ problems and meeting its objective. If there are any problems with the software or you need to update something on the website, the software development company would make these changes so that it fulfills your requirements.
Provides support and maintenance: Better technology is being developed faster and to keep yourself update with them is very important. For this, the software needs maintenance and support for achieving better results. Software development company provides regular services to its clients and updates the software as well. To maintain the software and check it regularly are crucial for the organization. If it does not happen, you would not able to provide the best services to your customers.
In this competitive world, having the right software is very essential. Software development company provides lots of services which helps an organization to keep itself ahead of the competition in the market. If you haven’t developed a software yet then it is high time for approaching the best software development company in California (or in your city) and build a strong business model of the organization.
How to Align Your Software Outsourcing Process With Your Business Strategy?
Posted on June 6, 2018
The global outsourcing market stood at a resounding $88.9 billion in value as of 2017. An interesting insight on this market are the major segments of this market. Out of this huge number, approximately $64.3 billion was spent in IT outsourcing. Even in the IT outsourcing segment, 64% companies worldwide spent on software development; this simply makes software outsourcing the poster-boy of a highly lucrative market worldwide.
Software development has definitely become the need of the hour for many small, medium and large scale businesses. That said, there is a clear differentiation between how the small and medium scale businesses outsource their software development and how their large scale contemporaries do the same. Does it have anything to do with the complexity, vendor size and budget of the outsourcing projects? For sure, but that is not at the core of the entire comparison. The major cause of difference is the strategic outlook.
Most of the small and medium scale business think that getting the cheapest possible technology that ‘does the job’ is the best they can do and that is where they miss the bull’s eye. Technology in large and software in specific, are not cost overheads; they are investments. Think about it this way – you will be using the same software with new data and technology updated timely, for years; using the same software you will simplify and automate many processes and cut costs heavily over the years. Every penny that is saved after the software comes into picture, is that return on your investment. Simply said, in order to avail the long term benefits of your software outsourcing, you have to treat your software development outsourcing process as a strategic process.
Strategy is not just a fancy word out of management books. It is a clear way to get the competitive advantage. Here is how you can align your software outsourcing process with your business strategy:
1. Understand the life-cycle stages of your business. The business can be in any of the life cycle stages: Launch, Growth, Shake-Out, Maturity and Decline. On every stage of the business’ life cycle, your goals will change – for instance developing strong brand equity to cashing out from archaic products. Strategy building has to be done on Corporate, Business and Implementation level. That is how you will know what will be your larger needs on every stage and what should you expect from your software development company.
2. Invest in long term outsourcing partners. Investing in long term business relationships is not about occasional emails, dinners or corporate gifts. It is built on consistent performance, reward sharing and transparent communication. It is very easy to choose the vendor offering the ‘best price’; but how do you define the best price? One which saves some money in the short run or one which saves large money in the long run? There might be many a software development company offering custom software development services; your job as a business is to choose the one that will be with you in the long run. Biggest of brands, working with the same ad agencies for over half a century, have learnt that investing in such long term relationships has a huge impact on the outcome of the projects. Same applies to software development services.
3. Get organized with the Goals, Corrections, Pivots and Rewards. When the software outsourcing process becomes strategic, there should be precisely defined set of goals. These goals shall go over the long run and make the organization more efficient; the same goals should be broken down in the shorter run and every project undertaken should be a reflection of the same. Now, to get the best results, any company would go through a learning process understanding the unique needs of your business. Gradually, the iterations will decrease as the cohesiveness between you and your outsourcing partner increases. In some projects, you might even have to pivot, in order to stay abreast with the technological trends; but as far as it is still in line with your strategic goals, it will be easier to embrace the change because it will have a clearly defined purpose, a precisely defined long term goal.