… or everything you need to know about outsourcing to a custom software development company

Updated 6 February 2018

It’s scary, isn’t it? Hiring a custom software development company based in another part of the world. While they/it costs you less than in-house web and app development engineers, how should you differentiate those who are good from those who talk a good game?

Let’s face the fact that hiring the best app developer requires some trials and errors. The process of dealing with an IT outsourcing company from Ukraine or Eastern Europe actually appears to be very different from local in-house development. Basically, it refers more to the case where entrepreneurs and startups assign some of their business processes to offshore service providers.

In our recent article “Why Startups Should Outsource IT” we unveiled the top 5 reasons and rewards for startups (for) hiring overseas IT providers. However, down below, we’ve laid out the key tips to help you find a custom software development company for your project.

First up, let’s briefly point out the main benefits of hiring an offshore web development company:

• Startups and businesses get more flexibility, due to the fact that there is no need to spend time finding, hiring and training new employees.
• The overall process of software development takes less time. Team members may work on your product round-the-clock, hence a faster release/launch of your app (to the market).
• With IT outsourcing you can cut costs and reduce the workload of your employees. The main point of hiring offshore companies is that you get the suitable solution at a reasonable price.
• IT outsourcing aims at streamlining business processes. Thereafter, web development companies provide enhanced accuracy and focused strategy, which is a great advantage for startups and businesses with a lack of IT experience.

Deloitte has recently revealed a major survey of global outsourcing with a comprehensive overview of how and why businesses prefer working with offshore IT companies. When asked about the reasons for outsourcing, almost 60% said that it is more cost effective, meanwhile, 57% claim outsourcing allows focusing in-house resources on the core business goals.

Top outsourcing destinations for IT companies

Very often business owners get dollar signs in their eyes when they first hear about cheap IT services offshore. And the major mistake they often make is going for the lowest cost possible and then getting poor results. The other mistake often made, is drawing the wrong conclusion. Yes, software development outsourcing works, especially if you figure out the actual costs of hiring programmers correctly.

Famous for professional skills and expertise, Eastern Europe software developers can be divided into two branches: Ukraine and Belarus (featuring lower costs for high quality) and Poland, Bulgaria, Romania (with higher costs for the same quality). Keep in mind that the time zone difference between Eastern Europe and for example the US (which is around 8–11 hours) may affect your communication and the overall schedule.

For instance, due to a recent A.T. Kearney’s Global Services Location Index research, Ukraine has managed to increase its position significantly by 17 points in one year and has gotten into the Top 25. Due to the steady improvements in compensation cost score and competitiveness of its tax and regulatory costs, Ukraine now ranks 24th in global services delivery.

Thanks to a strong educational emphasis on STEM areas, the IT services market in the country is growing very fast.IT services outsourced to Ukraine cost considerably less than the same work performed in-house in Western Europe or North America. Albeit prices are a bit higher than those in India or China, outsourcing companies in Ukraine provide top-notch skills and a far better product quality.

Delegate app development to a custom software development company without compromising quality

No doubt, the quality of your software directly depends on the provider you hire. The question is how to choose the right provider for your project. Considering recent statistics by Mobile Development Survey, nearly 75% of mobile applications ship with around 10 bugs, which calls into question IT outsourcing effectiveness. These stats suggest the first and the foremost rule to follow:

Do NOT make a decision based on a prompt Google search or the cheapest app developer possible.

Instead, follow these 6 simple steps:

1. Inspect your potential provider’s portfolio. Before hiring an IT service company, check out their portfolio, case studies on company’s website and ask about their successes/success across different markets. It will give you an idea of the quality of work they can perform.

2. Check for reviews and social proof of your potential IT partner. If you are new to software development or just want to make sure your startup is in good hands, search for the actual reviews on Clutch.co. Long story short, this is the platform where you can find true company reviews made by real clients. “Our research helps start-ups, mid-market, and large enterprises find partners that meet their needs, whether for a one-off project or a long-term relationship.” – the Clutch story says. Besides, you may look for reviews on other dedicated resources, such as Google, Facebook, etc.

3. Ensure you have the same goal. A top-notch software can be provided mainly by a service provider that has rich experience in your industry. An IT company you want to start working with should be able to provide an individual approach to each client, using collective knowledge to solve emerging problems and overcome difficult challenges. The win-win cooperation is only possible when there is a common aim.

4. Hire an IT service provider based on the domain of expertise (ideally). This will help you manage the complexities of your software. For example, if you want to create a cross-platform app, consider hiring a Qt QML development company; or if you are building an app that allows showcasing and modifying furniture or real estate property, hiring an AR / VR development company with proven experience in this industry can ensure you are moving in the right direction.

5. Get ready for tons of questions and a pile of docs. One of the most important secrets of a truly successful collaboration with a custom software development company lies in the initial communication with a developer. The first and the foremost question to answer is “What do you actually want to develop?” In details. This is the point where your idea should embark on the journey to life with confidence. While (to the developer) drawing each frame of your app may be quite time-consuming, it is crucial for saving time and money in the long term.

6. Finally, choose an optimal model of cooperation/pricing scheme and start the collaboration. Define the key collaboration principles, determine all possible risks, discuss and document responsibilities before starting the actual cooperation with the IT outsourcing provider.

Despite the fact that choosing the best possible approach fully depends on the specifics of your project, the tips, and definitions of the “Time & Material, Fixed Price or Dedicated Team” comparative article might be exactly what you need to know.

To sum up, let’s take a look at a tiny but important fact: the success factor of your affair is hidden at the start of the initiative in finding the right contractors and putting together a great team consisting of the in-house and external employees/staff.