5 Ways to Find a Reliable Software Vendor Discover how businesses worldwide benefit from software outsourcing and learn the best practices to identify a good software vendor.

In digitalization, building trust and catching your customers' attention is hard without at least a proper representation of your services online. But not every business needs serious and long-term investments in digitalization, does it?

ITO, or information technology outsourcing, is a "savor" for many businesses worldwide. It is one of the favorite strategies of global business leaders to save money, resources and time while mitigating risks.

According to Fortunly:

• Almost 54% of all companies use third-party support teams to connect with customers.
• Globally, businesses spent $75.2 billion on outsourcing security last year.
• 78% of businesses worldwide feel positive about their outsourcing partners.
• About 300,000 jobs get outsourced out of the US each year.
• 71% of financial service executives outsource or offshore some of their services.

We know software outsourcing is a "weapon" in today's highly competitive environment, but what about finding a reliable software vendor? All these great ideas are useless if you're working with a poorly managed software vendor.

As a business development specialist who has been outsourcing vendors for the past five years and helping international businesses fulfill their tech goals, I will walk you through the top five ways of recognizing a good software vendor along with "red flags."

Related: Five Ways To Protect Your Company Against Cyber Attacks

1. Start by exploring the international software outsourcing market

First, identify the world's top software development hubs not to be lost in the huge pot of international software outsourcing companies. If you value quality, efficiency, and communication, I suggest three main countries: Armenia, Poland and Ukraine. These countries are affordable yet the risk of ending up with an unqualified software vendor is low. For example, in Armenia the low software outsourcing rates are associated with the following factors:

• Government-level sponsorship: The Armenian government reduces taxes for software development companies and sponsors free tech education across the country.
• Low cost of living compared to the developed countries: Armenia is a developing country in the South Caucasian region. You can not compare the per diem of this country with central Europe, the USA, Canada, Japan, Australia, etc. It is much lower, which allows businesses to define lower service rates.
• International IP enforcement guidelines are supported.
• You will not have problems with communication, mentality, and working routine.

2. Go through the most reputable tech directories

Tech directories notice qualified software outsourcing companies and make sure there are listed on their websites. Trust reputable software outsourcing directories. It is their job to find and introduce the best IT companies worldwide. Some of the top tech directories include Clutch.co, TechReviewer, TechBehemoths, TopDevelopers and GoodFirms.

3. It is time for shortlisting

At this stage, you should go through the lists of these directories and make your own shortlist based on further research. Directories do not only write the name of top software vendors; they give information that backs up their claims. They also provide contact information and website address.

4. Reach out to your shortlisted software vendor candidates

I suppose you have already checked the listed companies and, by now, have a shortlist of your possible software vendors. Finally, it's time to reach out. There are several ways to get in touch with a software vendor candidate:

• Fill in their "contact us" form directly from their website (if there is one). Briefly introduce yourself and your problem and request a call or free consultation.
• Send an e-mail directly. Companies usually put their contact information, like address, phone number and e-mail, on the website's footer left or right corner.
• Check their social media accounts and find the exact person responsible for such matters.

Related: 5 Ways Small Businesses Can Use Digital Branding to Stand Out

5. Observe how they communicate

Remote communication is the biggest challenge in software outsourcing. A great software vendor should be a pro in handling remote cooperation. You will feel the level of professionalism right from the first answer. Do not be afraid if your software vendor asks many questions․ This means your vendor knows the business and needs clarifications to understand if your request is in their field of expertise. On the contrary, if the software vendor immediately jumps into starting the cooperation, that is a red flag.

If you do not know the answers to some of their questions, that's normal. Do not feel embarrassed. Instead, let them know about it and encourage them to get into details. This is also a great way to learn more about the software vendor candidate's expertise. Some of the basic questions a software vendor may ask to include:

• Do you have an SOW (scope of work document)?
• Do you care about the tech stack?
• How much involvement would you like to have in the SDLC?
• Do you have a prepared software outsourcing engagement model?
• Do you have a specific time and budget frame?

Test tasks also say a lot about a specific company's expertise. During the introduction process, suggest a test task to your possible software vendor. If the software vendor happily agrees to comfort your concerns, that's a good sign. Otherwise, consider it a red flag.

Bonus points: social media

Some business leaders underestimate the power of social media; however, the truth is that it says a lot about a company's culture and professionalism. For example, our company emphasizes the importance of open communication. We share posts and pictures about our office life and fun activities.

To conclude, outsourcing is an amazing opportunity for company leaders to compile more successful and beneficial business development models and strategies. However, do not lose vigilance among all the good staff. Ensure your business is safe with minimum risks by following these simple tips.