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Outsourcing isn’t just a trend—it continues to gain momentum in today’s competitive digital landscape.
Businesses that require innovative—and time-efficient—solutions are having to get creative to stay ahead of the competition. Outsourcing your company’s software and website development work is one way to not only save time and money but also catch up with countless other companies already leveraging this strategy. In the world of outsourcing, IT functions remain a dominant strategy, with 76% of surveyed companies outsourcing these tasks, compared to just 52% for business operations.
So how can outsourcing your software tasks put you ahead of the competition? Read on!
What is Web Development Outsourcing?
Web development outsourcing is when a business hires an external company to handle the design, development, and maintenance of their website. Companies that outsource web development can increase productivity, reduce costs, and access global talent with specialized skills. This differs from in-house web development, which relies on the time and expertise of a company’s existing team members, meaning they may lack certain specialized skills required for the project.
What can you expect from outsourced web development specialists?
Outsourced web development specialists can assist you at any stage of software development and can serve all types of clients and industries. These teams can be hired to design, create, and monitor Java web applications, e-commerce sites, WordPress sites, databases, and more, with expertise in areas like cloud computing, computer-aided software system engineering, cybersecurity, Java development work, and testing.
These providers can:
- Design, test, and develop software according to your users’ needs.
- Suggest software upgrades for your current technology.
- Create solutions designed to be scaled and integrated with your current business technology.
- Monitor that the software runs properly during testing and any follow-up maintenance.
- Keep a detailed record of all work for any potential upgrades or changes down the road.
Tapping into the highly skilled expertise of outsourced talent will enhance the speed, quality, and outcome of your project, reducing the time to market for your website and potentially increasing your ROI.
Benefits of Outsourcing Software Development: Now More Than Ever Before!
The benefits of working with dedicated teams or on a project-based outsourcing model especially serve small to midsize companies. For both small and large tasks, outsourcing projects enables you to:
- Access global talent: Your outsourced software provider’s team will be made up of experienced engineers, development experts, designers, and project managers who are adept at completing both general and niche software tasks.
- Increase productivity: Don’t waste time with onboarding. Outsourced experts have set procedures and approaches, allowing them to work quickly and effectively.
- Save money: Outsourcing custom software development is typically more cost-effective than hiring in-house, as you will save money associated with recruitment, training, and infrastructural development.
- Utilize cutting-edge technology: Don’t worry about purchasing high-tech equipment. Your hired talent will already have all of the programs and tools you need to produce stellar software.
- Mitigate risks: Remember security! When developing your software solutions, your outsourcing providers will be programming with cybersecurity in mind. They will identify risks and implement a system of checks and balances to keep you and your users safe.
Let your outsourced software product development talent produce high-quality technology so you can get back to focusing on your core business activities.
How to Choose the Right Web Development Outsourcing Partner
Not sure how to pick a web design and development company?
From defining project goals to choosing the right outsourcing model, here’s what you need to know:
- How to define project goals before outsourcing: The first step to finding the right outsource web development partner is to clearly define your software goals. If you don’t want to do this yourself or don’t know where to start, companies like Scopic offer discovery phase services to help you pinpoint the best approach to swiftly achieve your desired product.
- What to look for in an outsourcing company: With defined goals in mind, you can proceed to research your provider options. When choosing a software development services company, it’s important to consider which software outsourcing business models best fit your project scope. You should also choose an outsourcing location that best serves your needs, considering time zone, language, cost, and cultural commonalities. Once you understand the scope of your project work and have chosen the best outsourcing model, reach out to each viable provider and compare prices, proposals, solutions offered, and company reviews. Be sure to also examine their portfolio to see the kind of work they are known for.
- Where to find reputable vendors (Clutch, GoodFirms, referrals, etc.): There are various ways to identify reliable development partners. In addition to receiving referrals, you can use websites like Clutch and GoodFirms to compare reviews, ratings, and client feedback to find a provider that aligns with your needs.
Different Outsourcing Models
When searching for relationship-based software outsourcing business models, you can consider:
- Staff Augmentation: In a software development staff augmentation model, the client brings outside talent in-house, manages them, and is responsible for the process and quality of a project.
- Project-Based Models: On the other end of the spectrum is the project-based model, where everything is outsourced. Specifications and scope of the work are defined, and the responsibility lies mostly on the outsourced team.
- Dedicated or Managed Team: Dedicated teams fall between the two, with responsibility more evenly spread between the client and talent. Unlike project-based models, this team operates as an extension of the client’s in-house staff.
The differences between these models are defined by the level of involvement and interaction that you, as the client, want when collaborating with your outsource web development talent.
Scopic is a virtual company that offers the best of different outsourcing models: affordable prices, high-quality work, English-speaking team members, and we conveniently have different time zones that can accommodate your location. We’ve provided thousands of high-quality software outsourcing services since we opened our doors in 2006.
Let’s discuss the best customized outsourced software solutions option for your company’s needs.
The Web Development Outsourcing Process
Now that we know what to look for in web development projects outsourcing companies, let’s go over the 6 steps you should follow to ensure successful web app development:
- Step 1 – Define project requirements: Begin by mapping out the project, including budget, timeframes, milestones, and desired software capabilities.
- Step 2 – Choose outsourcing model: You should then choose between the different outsourcing models discussed above, considering the unique pros and cons of staff augmentation, project-based models, and dedicated teams.
- Step 3 – Shortlist vendors: The next step is to narrow down a list of potential web development companies by evaluating their expertise, past projects, client reviews, and alignment with your project needs.
- Step 4 – Review proposals & negotiate terms: Keeping your company’s project requirements and goals in mind, you should review proposals, negotiate terms, and choose the best outsourcing company for your project.
- Step 5 – Onboard outsourcing team: Onboarding processes may vary depending on the outsourcing model you choose. That said, you should establish clear expectations, discuss communication channels, and provide the necessary tools and resources to help the team integrate smoothly into your project.
There are various strategies you can use to streamline this process and ensure great communication. For instance, you may want to consider Agile methodology as an approach to managing software development projects. It breaks down projects into several phases, allowing for quick adaptability and continuous improvement. You can also use collaboration tools like Jira and Slack to enhance communication.
Cost Considerations & Budgeting for Web Development Outsourcing
There are various factors that affect web development costs, including the size of the website, project complexity, and engagement model. The region where the web development outsourcing company is located also affects the overall price.
- North America: $80–$150/hr
- Eastern Europe: $40–$80/hr
- South Asia: $20–$50/hr
- Latin America: $30–$70/hr
It’s also important to note that there are different pricing models available:
- Fixed Price: Web development companies deliver a project for a set price. While this model ensures cost predictability, it has limited flexibility for changes in project scope.
- Hourly: Companies pay on an hourly basis, meaning they only pay for the exact time worked. This offers greater flexibility but, when not managed carefully, can result in unexpected costs due to projects taking longer than expected.
- Dedicated Team: Clients hire an entire external team to handle their web development project. This is a scalable solution but may require ongoing management and communication to ensure alignment with business goals.
Companies must consider their unique needs before choosing the right pricing model. At Scopic, we provide custom web development services tailored to your needs, ensuring you find the right solution to achieve your business goals.
Future Trends in Web Development Outsourcing
The new standard for globalized business calls for remote and outsourced work options. As you start exploring web development company outsourcing, here are some trends you can expect to see in the upcoming years:
- AI-powered development: The market for AI technologies is vast, amounting to around 200 billion U.S. dollars in 2023 and is expected to grow to over 1.8 trillion U.S. dollars by 2030. AI and web development is a highly efficient combo: AI technologies like GitHub Copilot and automated testing tools are becoming increasingly adopted by development companies to create more efficient processes.
- Cybersecurity concerns in outsourcing: As outsourcing becomes more popular, concerns regarding cybersecurity—such as data breaches, ransomware attacks, and regulatory compliance issues—are becoming increasingly prevalent. For that reason, partnering with an outsourcing company that implements strict security protocols is key to addressing these concerns and safeguarding user data.
- Increased remote collaboration tools: Communication is essential to a successful outsourcing project. With the growth of remote collaboration tools, companies can now improve communication among teams, enhance task management, and boost workflow efficiency.
- Specialized and tailored software: As the outsourcing market grows, more software niches are popping up to serve industries and provide a greater range of products. As a result, bespoke web development solutions are more important than ever, helping companies create solutions that address their unique challenges, goals, and industry-specific requirements.
Common Mistakes to Avoid When Outsourcing
To ensure a successful web development project, let’s take a look at some of the common outsourcing mistakes you should avoid:
- Choosing the cheapest vendor over quality: When you select a partner based solely on price, you risk poor-quality work, security vulnerabilities, and inconsistent service—potentially leading to higher costs down the road. While you should choose a partner that fits within your budget, it’s equally important to evaluate the long-term ROI of investing in quality web development solutions.
- Lack of clear communication & expectations: As mentioned, communication is key when it comes to outsourcing. By prioritizing clear communication, you can avoid some of the risks associated with misunderstandings, such as misaligned expectations and project delays.
- Ignoring security & legal protections: When outsourcing, your number one priority should be legal compliance. If not, you risk regulatory penalties, data security breaches, contract disputes, and potential damage to your company’s reputation. With web development consulting, you can receive guidance and advice on website design, functionality, performance, and compliance.
- Over-relying on AI-generated code: Development companies that over-rely on AI tools may promise you faster delivery times. However, while AI technologies are valuable in web development outsourcing, companies must also provide proper oversight over AI solutions to avoid security risks and integration issues. At Scopic, we embrace AI technology while maintaining strict human oversight, ensuring that the final product is maintainable and aligned with the client’s needs.
Conclusion
Outsourcing can be used to optimize all aspects of your business. Whether you want a new website design, are interested in implementing AI solutions, or want to build a website from scratch, web development outsourcing helps you streamline the process, reduce costs, and access specialized expertise.
At Scopic, our team of experienced web developers is ready to help you with all your web development needs. To learn how we can assist with your next project, contact us today.
This guide was authored by Helen Schenck and reviewed by Baily Ramsey.
Note: This blog’s images are sourced from Freepik.