How to outsource software development?

Communication!

We cannot stress enough that good communiction is vital when you work with remote teams. Don’t assume that everybody uses the same tools and methods to communicate. It’s much easier to clearly state how and when and what in the beginning.

How you will communicate

Firstly, do not assume that bad spoken English means a bad developer or company. Remember that English is almost certainly a second lagiuage for most software developers. We have found over the years that the majority of communication is typed so the most important language skill is reading and writing.

There are so many communication channels these days that it’s important to define what you will use. Maybe you’re used to Skype but the Provider always use a different tool? Maybe you prefer an email overview daily or weekly? Make sure to define the following:

Tools: Email, Skype, Whatsapp, Phone, etc.
What you use the tools for: i.e daily scrum without video on Skype, Skype chat during day, emails for status updates, weekly video conference, etc.
Software repositories and ticketing systems: how will you track the project and where will your code be stored?
Access rights: don’t forget that you will need to manage all access to your code and create various user accounts with different access rights.

When you will communicate

It’s important that you establish clear times for direct communication, especially if the Provider is in a different time zone. Don’t assume that 5pm is great for you because it might mean your team has to stay late every day just to do basic communication.

It’s important to find an outsourcing provider in a compatible timezone. Maybe you have found a provider with the right skills but keep in mind that a 12 hour time difference is difficult to manage.

How regularly you will communicate

Set expectations and be realistic. Think about how often you need to communicate and tell the team how quickly you need people to respond. Try to keep the communication succinct and not waste bandwidth by, for example, changing your mind every hour.

Requirements

What you take for granted might not be obvious to somebody else. Make sure to clearly specify everything inluding:

Specifications – a good and complete requirements document is always recommended
Tasks – content and proposed resolution
Timings – make sure developers provide ticket estimates in advance and actuals
Communication – e.g. all task related feedback included in ticket

Cost

One golden rule is that a low hourly rate is not always better. Maybe the provider is a lot cheaper but if their time estimates are 5 times longer then it’s not going to help your budget.

Keep in mind that outsourcing saves costs for much more than simply an hourly rate. For example:

You don’t have to pay for hardware or software.
You don’t have to pay vacations or social/medical costs.
There are no other startup costs such as offices, desks, telephones, etc.

Location

Think about time differences

Great, you’ve found the right team but you can only talk to them at 7am every morning. Is that really what you want every day?

Make sure there is an overlap between office hours so you have time each day to communicate.

Think about cultural differences.

Estimates

Clearly specify the project. and get a rough time and cost estimate. If it’s a very large project then create a smaller dummy project that is not time consuming to anayse. The results will still give a good idea of how the Provider works.

We recommend a detailed specification with associated stories and tickets.