31 Aug 2020
Common pitfalls that Startups must avoid while Outsourcing Software Development
In the tech-driven era, having a software application is an essential need for every business in order to reach target customers. While some businesses opt to develop the software in-house, others choose to outsource it to an expert software development company. Especially in case of start-up businesses, they usually prefer outsourcing software development to keep their operational costs low.
However, when you want to avail high-quality software development services, selecting the right outsourcing partner is important. Even though outsourcing offers a number of benefits to start-up companies, there are certain pitfalls too.
Here are some of the common pitfalls that every start-up company must avoid when outsourcing their software development projects:
Also Read: Tips to Avoid Scrum Meeting Hurdles With Your Offshore Team
1. Choosing the Outsourcing Partner without Comprehensive Analysis
Lack of comprehensive research and analysis is one of the common mistakes that most start-up companies make. While most start-ups make the outsourcing decision solely based on cost-efficiency, it is not the only factor to consider. In order to select the right outsourcing partner, conducting a detailed analysis is important for the enhanced decision making.
It includes analyzing the portfolio of the company, considering their experience and expertise, and looking at the previous client feedback. Analysis of all these factors will enable you to decide whether a company is fit for your software development project or not.
2. Lack of Understanding of Project Cost
This is another pitfall that the start-ups must avoid. While the main reason for outsourcing is to save costs, it is not always right to go for cheaper software development options. It is so because most of the time, the inexperienced developers have a low pricing structure. In such cases, you might save costs, but the quality of the product you get is low. So, make sure to focus on software development quality over the cost of the project.
Also Read: Why is it important to have offshore IT team as part of your business plan?
3. Ambiguity about Project Requirement
There are several start-ups who outsource software development projects without a clear understanding of what they want actually. Lack of a clear understanding of the specific requirements creates difficulty for the outsourcing company in delivering the desired outcomes. Without any specific requirement, they fail to find the right direction for software development. Hence, before collaborating with an outsourcing partner, it is important to know your exact needs. Then only, you can easily communicate your needs to the vendors effectively.
4. Lack of Tech Expertise in the Start-up Organization
Even when you are outsourcing a software development project to the experts, having technical expertise in your own organization is important. The absence of technical expertise may create major risks for your software development project. When you have professionals with the required technical expertise, they can continuously monitor the project. They ensure that the latest technologies and the right approaches are being implemented in order to deliver high quality software for your start-up business.
5. Expecting Faster Development
Most start-ups expect their software to be developed too early. However, this is a major mistake and needs to be avoided as software development takes time. Faster development may result in compromising on quality. So, it is advisable to provide sufficient time to your outsourcing partner and get quality software for your company.
Avoiding these common mistakes can help in enhancing the success of software development projects of the start-up businesses.
Mobio Solutions is a Business technology Solutions company who will guide you with strategic advice on the technology that fits best to your business solution. You can contact and get a 1-week free consultation service from the best technocrat of the team.