⚡ Get All Content for 20% Off ⚡

How I Overcame My Fear of Hiring Outsourced Developers The list of people's fears regarding digital outsourcing is lengthy, but those fears can be alleviated.

By AJ Agrawal

entrepreneur daily

Opinions expressed by Entrepreneur contributors are their own.

Shutterstock

The term "outsourcing" has become a bit of a dirty word in the software development industry. However, outsourcing software development, -- or "digital outsourcing," as it's called -- is a great way to maximize efficiency. Outsourcing certain tasks, a once-taboo subject, is quite common: Accenture, IBM, Microsoft, Intel, Amazon, P&G, Bank of America and Hewlett-Packard have all jumped on board.

Related: 5 Reasons Why It's a Bad Idea for Startups to Outsource Software Development

The list of fears surrounding digital outsourcing can be lengthy, but those fears can be alleviated. Below are four of the most common concerns regarding outsourcing software development and how to mitigate them to make outsourcing work for your business.

Hidden costs

Many business leaders have expressed concern about the hidden costs associated with outsourcing. Hidden costs include money wasted on unproductive operations abroad, money lost due to cultural differences, transition-related costs like temporary decreases in productivity and the costs of managing the outsourced team.

Luckily, good communication will do a lot to mitigate these costs. In addition to informal daily communication with your "abroad" team, schedule teleconferences or meetings regularly to discuss larger issues that might be hindering productivity or cohesion. The more you can get to know your abroad team, the better: You'll be able to verify that this particular team is the right fit for your company.

You can also avoid hidden or extra costs by planning ahead. Establish clear productivity and team-building goals, and have the outsourced team commit to accomplishing those goals within a set period of time. Make milestones frequent and achievable by adjusting them as necessary.

Selecting the wrong vendor

The fear of choosing the wrong vendor to handle your development needs is valid and common. However, you can take certain precautions to make sure you're happy with whom you choose.

Related: Should You Outsource Mobile SaaS Development?

Pick your outsourced vendor wisely. Instead of just choosing the cheapest service, look into experience, success metrics, testimonials and potential language barriers. Also, ensure that the vendor will be willing to work on your schedule. Depending on your project, close collaboration might be necessary; as such, you'll want your abroad team to operate on your local team's hours.

Most importantly, don't be afraid to switch! One great thing about outsourcing development is that outsourcing opens the door to many viable options. If you're unsatisfied with the work product of your outsourced team, you can easily find another team for a comparable, or even lower, price.

Skill gaps between outsourced and local developers

Another common fear is that leaders won't be able to ensure efficiency due to skill gaps between outsourced developers and local developers. Creating strong ties between the two groups, however, is an easy fix.

Depending on the structure of your company, consider keeping a few skilled developers in-house. You can then implement systems to check the outsourced work as it is created, to avoid receiving a subpar work product.

For example, re-compile and build your software every time a developer submits work for a product. Doing this will help detect problems immediately so they can be remedied without delay. You can also require that outsourced team members develop and run individual tests for their products during development.

Creating tests prior to the implementation of a feature can help clarify what the software should ultimately do. These tests can then be run again and again throughout development. Testing needs to be automated and thorough, and the end-user experience should always be kept in mind.

Collaboration is another valuable method to mitigate the skill gap. If possible, in addition to frequently communicating with your outsourced team members, strive to collaborate with them to better resolve potential problems that occur during development. Using Scrum is a great way to facilitate this collaboration.

Finally, require that your outsourced team members create technical documentation so you can better understand their work. If you switch vendors in the future, you'll need the technical and architectural specifications for the tasks your current outsourced developers are working on to avoid future delays.

Security

Security is a concern for many developers who work with trade secrets and other types of private data, so it's imperative to take this into account when selecting a vendor. International certifications for data privacy exist, and most reputable vendors should meet the certification requirements.

When choosing an outsourced vendor, look for past incidents regarding client security. How did the vendor handle it? How would you handle it? By considering possible security issues beforehand, you can avoid potential disaster later.

Related: Outsource Your App Development Effectively With These 5 Tips

In today's world of globalization and near-instant communication, outsourcing is more viable and beneficial than ever. By looking past some common fears, you can create a strong international team that will create great products and bolster your business.
AJ Agrawal

Founder of Verma Media

AJ Agrawal is the founder of Verma Media, a marketing agency that focuses on emerging tech, like blockchain and AI, and on cannabis companies.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Side Hustle

The Remote Side Hustle a 43-Year-Old Musician Works on for 1 Hour a Day Earns Nearly $3,000 a Month: 'All From the Comfort of Home'

Sam Ziegler wanted to supplement his income as a professional drummer — then his tech skills and desire to help people came together.

Marketing

Ever Wonder Why Certain Websites Rank Higher Than Yours? This SEO Expert Reveals The Secret to Dominating Search Results

It's often the smart use of SEO, now supercharged with AI, particularly in keyword optimization.

Business News

AI Is Impacting Jobs. Here Are the Gigs Affected the Most, According to an Analysis of 5 Million Upwork Postings

The researcher said in the report that freelance jobs were analyzed first because that market will likely see AI's immediate impact.

Franchise

The Top Franchise Brands Growing Globally

While our main Fastest-Growing Franchises list focuses on North American growth, more and more brands are looking to grow worldwide. These are the 25 that had the greatest franchise growth outside the U.S. and Canada from July 2022 to July 2023.