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Top 7 Software Development Outsourcing Challenges and How To Avoid Them

Author: Innotech Vietnam
Date: 09/03/2022

What are the most common software development outsourcing issues, and how can they be prevented? Experts list seven problems with outsourcing, along with the best way to address each one.


Why Software Development Outsourcing Is Becoming The Universal Solution For Every Business?


Pandemics impact our lives in every way. Many businesses are looking to modernize their operations and increase revenue through the use of cutting-edge technology. 

In the wake of Covid-19, many businesses strive to keep up with our ever-changing environment through outsourcing. 

IT outsourcing is the utilization of external services that enable the successful execution of business operations, software development, and engineering solutions for IT business benefits.  


software development


Offshoring and outsourcing are wonderful options for IT organizations looking to grow their business without wasting money or time. 

There are many other reasons for using outsourcing IT software development services including access to talents that are unavailable in-house, the capacity to innovate, flexibility, and organizational scale.

However, nothing is perfect. If outsourcing were so risk-free and flawless, we wouldn’t be talking about the difficulties we have to face when outsourcing. If you’re going to outsource a task, here are the most common issues you’ll encounter and how can you avoid them?


The Most Common Problems Of Software Development Outsourcing


Most clients are unwilling to outsource software development projects because of the possible risks. The truth is, despite the enormous size of the outsourcing industry, there will be a number of challenges found when software development outsourcing. But most of these may be taken into account, assessed, and prevented in future cooperation. 


1. Lack Of The Outsourcing World Understanding


In the beginning, it may be difficult to adjust to new work or employment. You have no idea of industry standards, common ideas, or the standard operating procedure. You should not underestimate the difficulty of trying to convey your vision to a new set of people, especially if you have never worked with them before.


Solution: Choose a vendor with a proven track record of success.


With the guidance of an experienced vendor, you can prevent potential problems and minimize risks. They will assist you in defining objectives, throughout the research process, and selecting the most qualified candidates. While outsourcing might be a dangerous business, the right service provider will be there to help guide you through the process at every stage.




2. Poor Knowledge of the Software Development Task


Lack of skill is another issue with outsourcing. When you outsource JavaScript software development or Big Data analytics to a third-party provider because you lack the necessary experience, you will most likely be unable to appropriately evaluate the results of their work. You run the risk of employing the wrong person or making the wrong decision if you don’t truly understand the technologies and solutions. 


Solution: Close the knowledge gap.


This problem can be avoided most effectively by clearly setting the project’s goals. In this case, you may wish to have an in-house person who can better establish task specifications, and manage the vendor’s work. If your company can’t afford an additional employee, find a vendor who is experienced and trustworthy enough to explain the procedure and results.



3. Inaccurate vendor assessment


There is always a requirement for evaluation throughout the choosing process of a software development company. When it comes to software development outsourcing, one of the biggest issues is a lack of expertise and attention in the evaluation. As a result, poor software, cultural mismatches, misunderstandings, and missed deadlines are all becoming too common.


Solution: Do the research carefully


Thoroughly research the skills of any outsourced team or contract developer before engaging them. In this step, you can verify their former clients’ reviews and experience. Make sure to conduct in-depth interviews if you want to choose contractors who can technically complete the work.


When software development is outsourced, it is common for interviewers with little or no experience in the field to be tasked with finding new software engineers. You should make sure your CTO is a part of your interview team.  This easy preventive precaution will assist you in identifying the most qualified applicants.


4. Communication problems and cultural differences


One of the main issues organizations face today is the communication barrier when it comes to outsourcing software development or any other IT services. 

Misunderstandings occur for a variety of causes. In the first place, the developers’ weak command of the English language makes it impossible for them to precisely outline the scope of their work. Furthermore, there may be problems due to cultural differences or various time zones within the in-house team, and an outsourced developer.


Solution: Find the common ground


Hiring organizations that can properly communicate in English is the greatest method to break down the communication barrier. Outsourced developers and contractors should be overseen by a CTO or project manager on your internal team to prevent misunderstandings. Be aware of the cultural differences amongst the developers. As an example, while discussing time off, think of their holidays.


The remote team or developer will frequently have a lot of questions regarding the project, and you need to take the time to explain everything to them and help your in-house team find common ground with them. As a CTO or a project manager, it is your job to ensure that all of the engineers are on the same page at all times through coordinating meetings and phone calls. 


5. Inaccurate Budgeting


Even though we said outsourcing may save you money, it can go wrong if it isn’t well planned. It’s impossible to make an exact cost estimate without knowing exactly what you need, when you need it, and how much of what you need. It’s one of the most difficult aspects of outsourcing to accurately estimate the cost. Financial problems will result in repeated delays, lowering the overall quality of the software development process.



Solution: Clearly define your project’s scope.


The best method to avoid overestimated expenses is to plan properly. Before the software development begins, you will be able to account for all of the costs involved in the contract.

Find an experienced organization or individual freelancer that can assist you in outlining the project’s particular set of needs. To avoid unwanted costs, ask as many questions as you can think of about the pricing plan. 

Make sure you have a clear explanation about your financial status to the vendor.


6. Intellectual property security


One would assume that the client that pays for the program also owns the produced software. However, this is not always the case. A software development team and its developers may opt to preserve intellectual property rights. If you don’t deal with the ownership concerns ahead of time, you’re likely to find yourself in court for a long period. This has been voted the most pressing concern when it comes to software development outsourcing. 


Solution: Make it clear from the start


Outsourced software’s ownership can be a major cause of conflict. Our recommendation is to work with the contractor on a joint ownership agreement. It’s a terrific idea since it encourages a sense of pride in the developer, which in turn leads to better work. 

When outsourcing for software development, it’s important to clarify ownership issues up front so there are no surprises afterwards. Remember to address code ownership and write a non-disclosure agreement when signing an outsourcing contract with an agency or developer. 


7. Coding uniformity


In order to create a high-quality piece of software, the code itself must be consistent. After receiving the outsourcing contract, uniformity makes it easy for an in-house team to fix bugs. It will be more difficult to maintain a system built by a contractor that implements a different programming language. In that way, you might have to call on that same contractor again in the future for repairs and upkeep.


Solution: Try your best to maintain the code uniformity


In our opinion, the best way to build software is to stick to a single language and architectural framework. This simplifies the process of integrating and maintaining the system. Trust us, you don’t want to spend money on repairs that might have been prevented in the first place of the software development process. In the long run, maintaining code uniformity will save you a lot of money.


As soon as the program has been developed, check to see if you’ve established clear, defined deliverables for future maintenance. Functional testing and unit testing are the two most important aspects of code quality. It’s critical that you do these tests before approving the development of the product or service. If you already have a software development team, you should integrate a peer-to-peer review in the testing process.


The Bottom Lines


If outsourcing is new to you, you will certainly experience some problems at first, which is why selecting a trustworthy firm is critical. A dependable outsourcing vendor is one that has a long track record of successful projects, glowing customer testimonials, and a dedicated team of experts ready to help you at every step of the way.


With 14+ years of experience, 200+ projects done, and a team full of talented individuals, Innotech Vietnam can be a reliable partner if you are looking for a software development vendor. 


Contact our team of experts if you have any queries or concerns about outsourcing and we’ll be more than pleased to assist you.


Mail: [email protected]


We’re here to help and answer any question you might have. We look forward to hearing from you.