Articles

Things to Know Before Hiring an Offshore Software Agency

by Prashant Kumar Digital marketer

Outsourcing has become a normal practice, especially when it comes to the IT industry. In 2018 the total contract value for Information Technology Outsourcing was 62 billion US dollars. So we can see that IT outsourcing is done by a lot of companies, whether you are a small startup or a large enterprise there is some aspect of your business that you would be looking to outsource.

Talking about software outsourcing companies there are two kinds you can find; one is an onshore agency and the other is an offshore agency. The difference being, one is located near you and the other might be located across the world. Normally offshore software agencies are much more economical than hiring an onshore software agency.

There are a few things to you should know before hiring an offshore software agency.  We can divide these into three categories called General, Technical and Business. Let us discuss them one at a time.

General

In this category, we focus on things like; the purpose, workflow, communications, and commitments.   

 

Purpose

The first thing you need to know is why you are looking to hire an offshore software agency is it because it is more economical or is it because of the software expertise that comes with it? It is important to have a clear understanding of what your reason is.

 

Workflow

You need to know how things are going to work, right from hiring the offshore software agency to the delivery of the finished product. You need to know, will you get to choose the resources or will they be assigned by the agency, what is the estimated time for the project completion, will the resources be dedicated to your project or not.  

 

Communication

There are various offshore software companies around the world and you should hire one that speaks and understands your language clearly. This is really important as most delays in any project happen because of miscommunication or lack of understanding. They should also be available to communicate with you based on your time zone.  Be available on email, phone, and Skype as you require.

 

Commitment

You need to check the commitment you are getting into, is it easy to start and end a contract. Hiring an offshore software agency and getting into a long term contract right at the start may not be such a good idea.  Instead, you should look for offshore agencies that offer monthly rolling contracts, and you should be able to change the candidates working on your project if required.

Technical

In this category, we focus on things like; expertise and resources. 

 

Expertise

As there are various offshore software agencies, you need to find the one that has expertise in delivering projects in your domain. If possible you should test the candidates on their technical skills. And you should also check their case studies to see if they have worked on similar projects. This was you can be sure that you are getting an expert for your project.

 

Resources

Does the offshore agency have all the resources required to fulfill your requirements? They should have a pool of skilled developers, testers, project managers, and more. The hardware and software they use should be up to date and have all the required licenses. Their infrastructure should be robust.

Business

In this category, we focus on things like; cost, management, and experience. 

 

Cost

You need to understand the costs involved in hiring an offshore software agency. We are not only talking about the hourly rates but the cost of doing the full project. The hourly rates may be low but they may take longer to complete the project increasing the overall cost. You should also check what the fees on contract termination are, and if they offer extended support.

 

Management

The management team from the offshore software agency is a very important piece to the puzzle. If they are cooperative, transparent and detailed, your project will run much smoother. You need to see if you will get a project manager for your project or would you need to pay extra for him/her.

 

Experience

Last but not the least you need to check how much experience the offshore software agency has, have they handled similar projects in the past. You need to see if they are reliable, take references and cross-check them. Remember that experience does not come from active years in the industry; it comes from successfully completed projects.

Conclusion

 As you can see that you have to put in some work before hiring an offshore software agency. This is important because hiring a wrong agency can be a financial and operational failure. You take your time to learn about the offshore software agency, this will not only help you save money but also make your project a success.


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About Prashant Kumar Advanced   Digital marketer

33 connections, 0 recommendations, 127 honor points.
Joined APSense since, January 15th, 2018, From Melbourne, Australia.

Created on Oct 15th 2019 04:42. Viewed 368 times.

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