Slack, Skype, and GitHub are just a few of many successful companies that have used outsourced development teams. Get it right, and outsourcing will save you countless hours, not to mention dollars, which you can reinvest in your business.
What’s more, outsourcing may well be the only way to attract the right tech talent to your project, as 65% of CIOs believe there’s a talent crisis in the world and recognize the issue as one of the biggest barriers to a company’s success (the 2016 Gartner CIO Survey).
And yet, despite the need to seek alternative sources of talent, some entrepreneurs worry that outsourcing is too risky a strategy for their business.
True, software outsourcing comes with a number of risks, but if you know how to navigate around them an outsourcing partner can become one of your strongest assets.
Here are four of the most common risks associated with IT outsourcing, as well as tips for mitigating them.
Hiring an outsourcing firm to build software for you typically means ceding control of, and thus insight into, the development process. This might not be that big of a deal if the work you’re outsourcing isn’t core to your business. Otherwise, this lack of control could cost you time and money.
You need to ensure that the end product you get from your remote team meets your standards for quality and usability. Using outsourcing partners, you run the risk of getting software that works just fine at first, but starts experiencing problems in a week or two – when the vendor is no longer responsible for solving them.
When it comes to costs, bear in mind that any vendor will expect you to pay for work not covered by the scope of your initial contract. That means you may end up spending more than the contract suggests, and in some cases a lot more.
If any proprietary company information like algorithms, databases or other trade secrets is going to be transmitted to the vendor, there’s always a risk, however small, that your data will be compromised.
If these risks still seem too great for you to give outsourcing a go, you might want to try a different approach.
More than 65 clients from 17 countries have chosen Daxx's model over IT outsourcing because it gives them all the benefits of the latter, like access to tech talent that might be unavailable locally and reduced expenses, while eliminating most of its risks.
Here’s how it works. You specify your requirements for the type of developers you need. We then scour our database of over 35,000 Ukrainian software engineers and pre-qualify those candidates that look like a good match.
You interview and approve each member of your software team, who we then place in one of our development centers located in Ukraine’s largest tech hubs.
You manage your team directly and communicate with them just like you would with your in-house software developers, thus removing the risk of losing control over your project.
The developers you hire with us are dedicated 100% to your project, and motivated to deliver quality. For them, your project is a full-time job.
While you focus on development, we support you by advising on team management best practices, taking care of HR and retention, and dealing with administrative issues like payroll, taxes, and sick days – all for a flat monthly fee added to your developers’ salaries. No unexpected expenses or extra charges.
If you’d like to learn more about our model, send us a message using the form below.