Mistakes To Avoid When Outsourcing Product Development

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For all those who are planning to outsource, you can download our Software Development Outsourcing Guide. This is an all-encompassing guide that will tell you everything you need to know about your process, advantages, strategies, tips, and more for a successful outsourcing relationship.


Simply explained, outsourcing is assigning a task to an outside party who will finish the work in exchange for cash within the agreed-upon deadline. One of the main benefits of outsourcing is that you may hire remote developers who are highly skilled experts to work with you for less money than you would pay them directly.

Before outsourcing a task, you must be satisfied that doing so is the most practical course of action, all other things equal.

Need For Outsourcing Product Development

The advantages of outsourcing are numerous. 

The first justification for considering outsourcing is rather straightforward. Your core crew may lack the expertise to complete a task for a specialty project. Because of a time deadline, outsourcing to India is occasionally the best option. Sometimes, though, spending a lot of time on an activity that is not repetitive is worthless.

HR SaaS Software Development (1)

Everyone will agree that outsourcing costs are far less than in-house development if you only consider its financial benefits. However, unfortunately, it comes with almost no financial commitments except paying the third party you outsource to for their work.

You have access to the world's top talent without having to add them to your permanent payroll. No pensions, health insurance, or paid time off are provided. Additionally, you should not bother about notice periods or leave processes after the outsourcing contract is complete. When you pay for a service, you receive it without additional fees.

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In addition, most importantly, your internal team's productivity can be increased by sharpening their attention on routine work rather than burdening them with additional, difficult jobs.

Mistakes To Avoid When Outsourcing 

The secret ingredient for the success of most IT start-ups and small enterprises is choosing the proper software outsourcing partner. The appropriate partner can help drastically cut expenses and lighten the stress on your staff by delivering custom software development.

Despite the many benefits of outsourcing, there are still several critical mistakes that companies frequently make that can lead to failures, added expenses, and lost time. Because of this, it is crucial to be aware of potential traps and prepared to avoid them.

Also Read: Outsourcing Development? Here Are Tips To Protect Your IP

Therefore, the following is a list of the top mistakes to avoid while choosing an outsourcing company:

#1. Choosing an outsourcing company without proper research

The first thing you should do is conduct thorough market research before selecting a vendor. Before choosing a vendor, research their market performance, customer feedback & reviews, and level of experience.


Going with a vendor with a solid reputation and experience working on varied projects will not be a problem because they can finish the project on schedule and per the specifications. On the other hand, if you choose to work with a less expensive vendor who lacks the necessary skills, you will end up doing more harm than good.

evaluating software development partner

#2. Lack of clarity in communication

Whether a project is internal or external, communication is essential to its success. Since there would be a difference in the teammates' locations for outsourcing product development, effective communication is very important. Your project will fail from the outset if there is poor communication.

Before entering into any agreement with the vendor, you should discuss the requirements and milestones. The vendor must comprehend the needs and develop efficient solutions for completing the work.

The answer to this problem is to comprehend the project's requirements thoroughly and clearly express all crucial details so that the final product development is exactly what you wanted.

#3. Thorough scrutiny of the cost proposal and contract

One of the most frequent errors is failing to carefully review the estimate, cost proposal, or agreement to determine what is and is not included. The forecast may initially seem appealing, but after a close look, you realize it leaves out several crucialkids o components.


Request a detailed price from the outsourcing partner and ask them to specify everything covered. What are the hourly rates for your team, for example? This should be one of your questions, what is the timeline for payments? Are there any milestone-based payments? etc., to better understand the contents of this quote.

#4. Selecting a partner based merely on low cost

Although it is a significant aspect of decision-making, cost should never be the only consideration. Along with these, you should consider the outsourced team's record of accomplishment, experience, technological expertise, and ability to match your needs.

You should always keep in mind that you get what you pay for. If you choose the cheap wildcard SSL provider, you can receive inadequate service and work of poor quality. Additionally, you might spend extra in the long term if the project exceeds its budget or takes longer than anticipated.

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#5. Vague about deadlines

It is never a good idea to play fast and loose with deadlines, even when outsourcing. Regarding the delivery of important projects, there should not be any rough estimates or arbitrary deadlines. Without strict deadlines, there is no incentive to complete your project. When you do not set appropriate deadlines for your project, you give it a sense of unimportance.

When outsourcing product development, be sure to avoid making this mistake and establish appropriate timelines to demonstrate how serious you are about your project. Make sure everyone involved is aware of the deadlines for project delivery and map out all the milestones that will arise.


#6. Poor work on feedback from your stakeholders 

Do not arbitrarily outsource. Before you contract out the creation of your products, talk with your core team. Before outsourcing development, find out what they can and cannot handle from them and consider their needs as well. Since they are professionals in the field, they can advise you best.

You are responsible for providing everyone involved in creating your product, including the team you hired to work on it, a voice. The larger your talent pool, you are exposed to more ideas and viewpoints. Getting input from your stakeholders will also increase the likelihood that you will innovate your finished product.

#7. Outsourcing to vendors who are not in sync with modern technologies/trends

Using old, out-of-date companies that do not work coordinated with modern technologies and trends for outsourcing might have serious consequences. For example, even though the web development business you have chosen may be the best at coding, they may employ local interfaces and workflows. This may significantly alter how end users interact with your software.

 It is important to ensure the outsourcing partner lives up to your standards in terms of more than just the technical ones, such as legal hazards, labor ethics, cultural differences, and broadband bandwidth. The most important of them is having at least a low-cost SSL certificate especially if the site runs on unlimited subdomains then a low-priced or cheap wildcard SSL certificate would suffice. All SSL certs are available readily and can provide the best security for your project.

#8. Underestimating quality assurance and testing

To ensure that your finished project is reliable and performs, as it should, testing it as it is being developed is essential. A tester should be involved in the process right from the start; otherwise, you will probably wind up with many bugs. Therefore, make sure your software is tested properly. Testing and quality assurance should be a fundamental component of software development from the very beginning, regardless of what you are doing.

quality assurance

The organization that works with you on your development projects should preferably also handle quality assurance.

#9. No precise roles

Given that you outsourced it, your role as the project owner is clear. What about the other parties involved, though? Are all participants aware of their unique roles?

If not, this will cause needless misunderstanding, slowing the project's delivery. When you are outsourcing software development and your team is not in the same physical workspace as you, clearly defining duties is essential.

To start, you can accomplish this by organizing a kick-off meeting. Make sure that everyone is aware of both their own and the other team members' roles. You can briefly summarise everyone's roles, responsibilities, and titles. When these positions are established, you will know whom to contact.

#10. Poor planning

Planning is crucial to whether or not your remote product development is successful. When third parties are involved, careful planning becomes even more important. Without good planning, your project lacks a clear path the team can follow, eventually leading to chaos and confusion.

So, make a detailed plan and choose targets that can be completed within time constraints. To improve collaboration and ensure that the project is carried out without too many hiccups, you may create a project roadmap that your team can follow.

Concluding Words 

These were the key blunders to avoid when outsourcing a software development job. You can get the job done while saving time and money by outsourcing, but keep in mind to prevent these frequent errors.

Once you start avoiding these blunders, you will be able to identify contractors you can trust and form bonds with. However, you must avoid these catastrophic errors when you first begin. Then, fix these issues and move far in the right way.

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Topics : Outsourcing, Product Development

Michelle Roy

Written by Michelle Roy

Michelle Roy works as a Data Analyst & Blogger. He's a passionate freelance writer with several years of experience writing for eCommerce, WordPress, SEO, Blogging, Web security, and Cybersecurity. Adept in developing original content based on the needs of clients, and committed to writing with integrity and a dedication to the craft. Bringing forth valuable experience serving as a content creator for high-traffic blogs and websites.

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