Your Company’s Guide for Outsourcing Software Development

Companies need to tread carefully when building a development team

In the lifecycle of thriving small and medium-sized businesses (SMBs) and startups, there reaches a point when your limited team becomes unable to cope with the workload.

What steps should you take? Typically, the solution involves seeking fresh development expertise to boost expansion and bring in essential skills.

However, a challenge with this approach lies in the difficulty, speed, and cost involved in locating such talent. Various complex issues arise when considering the recruitment of in-house developers.

The problem with building an in-house development team

Several challenges hinder small and medium-sized businesses attempting to establish an internal team, posing significant risks for those enterprises.

Putting together your own team takes time and money

It takes a lot of effort and money to assemble a group of gifted, trustworthy, and driven people. Plus, it can be difficult to even know where to begin if your SMB lacks development talent currently.

What sort of developers are you looking for? What knowledge and abilities ought they to possess? What equipment and procedures are necessary for success? And if your company expands, will you be able to assemble a compelling enough bundle to keep them on board?

Beyond all of that, assembling a full development team is expensive and time-consuming. It may take months to find, interview, shortlist, and extend offers to individuals.

It’s also important to consider things like pay, perks, education, and, let’s not forget, maintaining the culture. All of this soon adds up.

During the process, you devote time to hiring, which may divert you from your daily tasks that maintain the proper operation of your SMB.

Running a small business means you don’t have time to squander. However, it’s an unpleasant fact that creating and training your own development staff from the ground up can be dangerous and time-consuming.

Developing a reliable process isn’t smooth sailing

Having recruited and trained a group of engineers and designers, the following step is to set up a dependable, effective, and fruitful development process.

At this point in the game, errors can be costly, so you need this group of people to function as a cohesive unit and in an efficient, well-organized manner. Your chances are poor if you don’t have any prior experience leading or working on development teams.

In addition, there’s a chance that nobody on your squad will get along! It’s possible that their chemistry is negative or even zero.

You can spend a lot of time vacillating between these areas in an attempt to strike the perfect balance because you don’t know what the best practices are, how big of a budget they require, or which tools to connect them with.

You shouldn’t rush building team culture

Establishing the proper team culture is essential to maintaining your team’s motivation and productivity, despite the fact that it may appear vague.

Since you are the one who created your SMB, you already possess the drive to keep it going. You want to make sure that your staff shares your enthusiasm and drive, that they support your vision for the company, and that they are prepared to put in a lot of effort to achieve the same objective.

Building an internal development team quickly cannot ensure this, and it may not be something you can nurture.

When should you go with an in-house development team?

Having said that, there are a few situations in which SMBs would be better off hiring an internal development team. Think about it if.

• Money is no object: In-house development can be a fantastic alternative for you if you have a lot of cash on hand to invest in the newest technology, recruit and retain the best individuals.
• You’re not in a rush – If your project doesn’t have tight deadlines, the more leisurely pace of in-house digital product development may be a suitable fit.
• Your project involves highly sensitive data; you may want to think about keeping things in-house in order to (hopefully) limit possible security breaches. You have serious security worries.

Maintaining things in-house could be the best option if any of the aforementioned situations relate to your company or project.

However, outsourcing software development is typically a better choice for SMBs trying to grow.

What is software development outsourcing?

Outsourcing software development involves hiring a third party organization to generate a digital product according to your specifications and goals.

Software development outsourcing allows you to assign the technical labor-intensive tasks to other professionals. By doing this, project initiation is accelerated and time to market is shortened without the hassles of hiring staff internally.

What IT services can be outsourced?

• Web & Mobile – You can employ a development team to start from scratch and take care of all aspects of your web or mobile application, including testing, development, concept, and even post-launch support.
• Websites — An outsourced team can manage all front- and back-end development work needed to launch your website, from simple informational sites to sophisticated e-commerce platforms.
• Application Management–  To maintain your app safe and functional, outsourced teams can handle upkeep, updates, and troubleshooting.
• Infrastructure Management–  To maintain the security and scalability of your IT infrastructure, offshore teams can supervise your cloud-based servers, storage, and networks.
• Emerging Techs–  Outsourced teams with relevant skills may manage the entire lifecycle of new technologies, from product definition to development stages, such as Blockchain, IoT, and AR/VR.
• Other Services–  Data analytics, cybersecurity solutions, and quality assurance testing can also be outsourced.

How much does it cost to outsource software development?

Outsourcing software development is nearly always less expensive than developing it internally. The overhead expenses associated with conventional in-house development are eliminated.

Naturally, the overall investment can differ significantly based on the intricacy and duration. Budgeting between $100,000 and $300,000 is often reasonable for a custom-designed MVP.

Your bottom line may be impacted by the location from which you choose to outsource. Prices are wildly disparate (pun intended).

For instance, in the US, you’ll probably spend between $60 and $250 each hour. India, on the other hand, offers some of the most affordable rates—roughly $30 per hour—making it a cost-effective choice.

If you want to outsource closer to take advantage of similar time zones and cultural affinities, Brazil provides a good middle ground. Brazilian software development outsourcing firms bill between $40 and $85 per hour.

With an outsourced development team, you mitigate in-house development issues

Now that we understand what software development outsourcing is, why is it a better option for small and medium-sized businesses (SMBs) than creating an internal development team?

The difficulties of creating your own team are eliminated when you choose an outsourced engineering staff. They are prepared to jump right into the success of your company and are accustomed to working in committed teams.

Here’s what that could look like:

Your team is ready to go right away

Hiring the correct people is not necessary when you have a pre-built development team. It is present already. You can scale up or down as soon as necessary thanks to this.

Your business has a significant competitive advantage only from this. It enables you to compete with bigger businesses in your industry, be nimble, and establish your mark in the game.

An external team can work in unison with your current team to support their performance without interfering with any other progress you may be making.

Outsourced team members already know how to work together well

Finding dependable partners is just another fantastic advantage of hiring an external staff. There’s no need to set up efficient procedures, guarantee strong teamwork, or be concerned that these people won’t get along.

Not to mention the substantial experience your outsourced team offers. This might accelerate your learning curve by adding to the expertise you and your team already possess.

You can foster a positive culture quickly and reduce turnover costs

Similarly, an already-existing team will possess the enthusiasm and drive you seek. They are prepared to arrive and ensure the success of your product because they have already received onboarding and training.

Since they already collaborate on a regular basis, there is less likelihood of arguments, discontent, and other issues that could result in unpleasant, unproductive circumstances.

Benefits of outsourcing software development

Yes, companies worldwide can hire excellent outsourced development teams from MoroccanApp. However, we are not endorsing this method of working just for oneself. Based on what we know and have repeatedly observed in the market, this is what we would do if we were in your position.

There are several advantages for both your company and, let’s be honest, your stress levels:

Focus on your business

You already have a lot on your plate managing a business. It doesn’t make sense to push that boundary even farther by accepting the risks and difficulties of assembling an internal development team before you’re ready.

By outsourcing your development, you may maintain a balanced timetable and resource allocation without sacrificing quality. When you have the help of your outsourced workforce, you can effectively manage your time.

When the timing is appropriate, not because you’re under time crunch, you can start the internal hiring process.

Mitigate risk for your product

An external development team can reduce risk in addition to freeing up your time.

An outsourced workforce has credibility built in, unlike establishing a team internally, where you might not know if new hires are fit for your project or company until you’ve already invested in them.

In a similar vein, any development team that is contracted out will nearly always have “more collective experience” than any team you could assemble. You need precisely that right now to provide a high-quality product to your intended market.

Boost the integrity of your startup

An outsourced development team will provide your business with a sense of legitimacy and integrity. You can make promises to stakeholders more confidently, knowing that you have a team on your side who can provide you with the results you need.

This allows you to deliver on your promises, contracts, and sales — even as you scale up in a short period.

3 more benefits of IT outsourcing

Do you need more proof that outsourcing software projects is a superior option? Here are three more things to think about:

• Greater skill pool: Hiring outside of your local area is possible with outsourcing. You can access highly skilled individuals from around the world that might be difficult or costly to employ locally.
• Proven teams: Your project will go faster if you work with seasoned teams. They save you time and lower risks because they are already synchronized and have efficient workflows.
• Increased specialized knowledge: Outsourced teams might offer novel perspectives and creative solutions. When faced with difficult or unique problems or in need of a new viewpoint, this can be extremely helpful.

How to hire an outsourced software development team

Has your SMB been convinced of the advantages and you’d like to bring on a development team? This is a step-by-step guide to help you choose the best external development team:

• Recognize your project: Clearly state the goals, needs, and scope of your project.
  Establish your budget by taking into account the complexity of the app, the project’s timeframe, and other factors that might affect the overall cost.
• Interview and evaluate: Consult with several outsourcing providers for software development, review their portfolios, and request customer references.
• Think on the language and cultural aspects: Select a group of people that will work well together and fit in with your company’s culture. In this sense, offshore software development is frequently inferior to nearshore software development.
• Make a choice: Contract out to a software development business that can accommodate your needs and financial limitations.
• Engage and manage: To keep the project moving forward, collaborate closely with your outsourced staff through frequent updates, reviews, and feedback loops.

Key factors to consider when hiring an outsourced development team

These factors should be considered while screening offshore teams in order to assist you make an informed choice.

• Architectural approach: To make sure your project stays on track, look for clearly defined development, project management, and quality assurance methods.
• Technical proficiency and portfolio: Examine their pertinent work history, credentials, and important personnel profiles to gauge their suitability.
• Infrastructure and technologies: Make sure they have the software and hardware required for your project, and if necessary, they can make investments in particular technologies.
• Security, privacy, and data protection: Find out how they prevent theft and unauthorized access to their clients’ data.
• Reputation in the market: To determine their legitimacy and dependability, use review sites such as Clutch and Glassdoor.

The best countries to outsource software development 

When it comes to pricing, time zone alignment, and cultural compatibility, nearshoring to Latin America is frequently the greatest option for businesses in America and Western Europe.

Particularly in nearshore software development, USA is a rising star. More than 500,000 software engineers work in the nation, including the greatest concentration of Java expertise worldwide. It’s also a top outsourcing destination because of its expanding IT and IT investment industry.

MoroccanApp, a company located in USA, is pleased to hold the top spot in America for software development outsourcing services. We are in a unique position to provide top-notch services that are reasonably priced and culturally compatible with the demands of Western businesses because to our solid foundation in this rapidly expanding tech sector.

How does nearshore outsourcing work at MoroccanApp?

MoroccanApp develops products in four stages, with a focus on client collaboration and customisation all along the way. To ensure that the digital goods you develop complement the objectives of your SMB, we collaborate closely with you. Here’s how we go about it:

Phase 1: Product definition

Starting with strategy alignment, we go on to market research and early technology evaluations. We provide a customer journey map, development plan, and preliminary wireframes at the conclusion of this phase, all of which set the foundation for success.

Phase 2: Product design

Low-fidelity layout creation and early technical validation are the focus of this phase. Our UI designers give the app life while upholding a design system that represents your company’s identity.

Phase 3: Product development

You have two alternatives for product creation based on your needs:

• Complete product delivery: We handle every step of the process, from further development to final testing, on your behalf after finishing Phases 1 and 2.
• Dedicated team: We offer a group of professionals who work as an extension of your business. This team, which consists of front- and back-end engineers, UI/UX designers, and project managers, works exclusively on your project to produce a polished end result.

Phase 4: Product optimization

We propose two methods for improving the product that can be used to address performance bottlenecks, glitches in the user experience, and other issues:

• Ongoing optimization: We keep an eye on your app’s functionality, provide suggestions for improvements, and stay informed of any developments that could have an impact on it.
• In our presence when needed: Instead of continuously monitoring, we can also offer sporadic updates as needed.

Remote-first culture

MoroccanApp, a remote-first startup since 2020, has refined its approaches to long-distance collaboration. No matter where we are in the world, we can synchronize with clients to ensure prompt delivery and clear communication.

We are even more nimble now that we have a talent pool outside of Florianopolis thanks to our remote-first mentality.

While our physical offices are still available for in-person meetings, our remote flexibility is a great fit for a variety of working styles, which is something our nearshore clients value.