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Outsourcing web development has been a worldwide trend for many years because of several advantages over using a local team for the same web development projects.
Due to the high demand, IT outsourcing market revenue has grown significantly over the years, where the expected market revenue was $413.7 billion in 2021.
Suppose you are looking for a company to outsource web development projects for you. In that case, this article describes the essential knowledge about outsourcing, how it differs from using an in-house team, optimal structure, some tips when looking for an outsourcing web development company and during the project, and factors that the price of web project depends on.
Main benefits of outsourcing web development
Cost-saving
The most important benefit of outsourcing is the cost savings outsourcing companies can get. It is the first, and the foremost reason most software development companies outsource resources rather than hire an in-house team for the project. When Outsourcing a company, you normally do not require HR managers or any other training for the hiring process.
When you are outsourcing website development, neither are you required to buy special furniture equipment nor buy office space for outsourcing. Therefore, you can cut down a significant amount of costs you will have to bear if you otherwise use an in-house team for your project.
Reduced risks and Responsibilities
Another benefit is the reduced risks and responsibilities as they are delegated to the outsourced team. Usually, a dedicated web development outsourcing team consists of specialists who work under a Project Manager that leads the team, taking the responsibility of managing the team and steering the project to the right path. If any issue arises in the project, the team needs to resolve them internally.
Access to the right technical expertise
Another significant benefit from outsourcing is receiving the best talent with the right skill set required to run your project. It is a good opportunity for you to find the most suitable staff among a wider talent pool than your in-house talent pool. When you have the right skill set and talent, you can ensure that your project will meet your desired outcomes.
In recent years, the complexity of web software and applications has steadily increased. The Technology Stack is expanding which requires the involvement of specialists from many fields. Our clients appreciate the fact that they don’t have to build a large team in-house, but can use external engineers in those areas where they have deficiencies. Paul JackowskiCEO, ASPER BROTHERSContact Me
Faster product launch
If you want to launch your web projects faster than your competitors, outsourcing the web development process is the best way. Outsourcing software development helps your company to develop and launch products faster. While your outsourced team does the actual development, you can focus on marketing the product.
What is the difference between an outsourced team and an in-house team?
An outsourced team is usually an external team you hire to complete a specific project or task on your organization’s behalf. The outsourced team consists of specialized people to do the tasks specified by your organization. For example, you can hire an external web development agency to build a tool that will integrate into your main web application. The outsourced team will handle the development and maintenance of the tool.
On the other hand, an in-house team is comprised of employees within your organization itself. It means if you assign your internal employees to your project, then the team will become an in-house team.
Usually, using in-house web developers is an expensive task because the costs involve hiring, salary payments, bonuses, other profit payments, providing medical and insurance, etc. The commitment is also longer than an outsourced team because you will have to continue to pay the in-house team for their tenure in your company when the project is completed.
Also, an in-house team may not possess the required skill set to complete your project. They may require additional time to fill the technical skill gaps. On the other hand, the outsourced team already possesses the skills required so that you can kick start the project faster with an outsourced team.
Outsourcing is a way to grow both a new company and an established business. The main thing is to recognize your requirements and the way to achieve them. / Data Source: uptech.team
What is the optimal structure of an outsourcing team?
The optimal structure of your outsourced web development team largely depends on your organization or the project. There exist different types of outsourced teams that can carry out specialized tasks. Choosing the optimal structure helps you avoid unnecessary costs and risks.
Project Manager – Generally, the optimal team structure starts from a project manager (PM) at the top of the team structure. A project manager works as the development team coordinator and can steer the team towards delivering to the target date. A project manager will always be on track with the teams’ progress and resolve any dependencies and blockers the team faces.
Backend Developer – Another major role of an outsource software development team is the back-end developer specializing in developing the back-end or the server-side of the web application. A highly skilled back-end developer is an efficient problem solver and provides scalable and high-performing overall architectures for the project.
Frontend Developer – The team structure is also composed of a front-end developer specializing in developing the web application’s User Interface (UI). As a skilled developer in front-end technologies, the front-end developer ensures that your web application renders different browsers, operating systems, and devices as expected.
UI Designer – Another key role in the optimal structure can be a UI designer responsible for designing the project’s Minimum Viable Product (MVP). They will involve in demonstrating how your product looks when it gets delivered to the customers by working with the product owner of your company.
Quality Assurance Specialist – Also, the development team needs to consists of a Quality Assurance specialist to test the web development. A quality assurance engineer usually will be highly skilled in both manual and automation testing.
62% of companies increased their sales by designing responsive mobile platforms for their websites. (Source: SAG ipl)
Tips when looking for a web development outsourcing company to run your project
Choose the right person in your company – Dealing with an external company can be tricky if you do not have the necessary skills. Therefore, always ensure to appoint the most competent person who has the sound technical knowledge and communication skills to cooperate with the external company. This may be the product owner of your company who knows inside and out of the project, what type of technical talent requires, and what budget is available to complete the project. Thus, if you get the right person at the frontline, it is easy to identify the right outsourcing company for your project or product.
Carefully prepare your requirements – Before you outsource, prepare as much information as possible about the project. Identifying and setting the business goals for the project is a must as otherwise, you will have to waste money on a project with undefined business goals. This process clearly defines the project requirements, including the technical skills required, the budget available for the project, and the timeframe to achieve the business goals.
Verify the reputation of your future partner – Another important tip to consider is checking the company’s history you are looking to hire. You can talk to their previous clients, check testimonials, if any, and talk to them and see how their experience was. You can also check for how long the company was outsourcing the web development projects to other companies. Check opinions on platforms such as Clutch, where you can see in-depth reviews about the company. This is a crucial part of finding out if the company you are looking at actually has the reputation they claim.
Choose specialists in your field – Your decision on the outsourcing company should also depend on the technology stack required for your project. Check if they have technology specialists that interest you or are already developing a project. This will help you easily narrow down your choices as technical skills are always a high priority for a web development project.
Ask about cooperation and payment models – When looking for a company, always consider the kind of financing models they offer. Check if they offer a fixed price or T&M for the project. Then based on your budgetary constraints, you can decide if you cannot afford them or revise the budget plan if you need to hire them.
Get to know each other better before you start – You can also engage with them directly and get to know each other through video meetings to ask about the team, experience, communication skills. This face-to-face communication will help you assess their engagement with your company in a more realistic manner and decide if they are the actual fit for your project.
Focus on companies working in SCRUM – Another important tip to consider is the software development process they are using. Look rather for teams working in Agile Scrum as it is the most optimized methodology for faster software development.
Two-thirds of organizations plan on increasing or maintaining IT outsourcing in the next 2 years (Source: Whitelane Research)
Tips during the project with a web development outsourcing company
Don’t save money on workshops to communicate your vision – During the project with an external company, it is important to communicate your requirements and business goals clearly before starting the development. The team must know the needs thoroughly, and your visions must be coherent. This will save time and money during development.
Be involved in regular meetings, including during the daily scrum – Also, continuous engagement with the web development team is very important to track the progress of your project and keep up-to-date with any risks and challenges. Communicate with the team regularly. If the team is agile, you can participate in daily scrum meetings and get daily updates on the planned work.
Give frequent feedback – If the web development team requests any information or clarification regarding any requirement, your prompt response is important to avoid the team waiting on your feed response. Also, provide your clear feedback during comments on subsequent stages of work. Openly say what is ok and what is not, don’t leave it for the end.
Be flexible and not afraid of change – Sometimes the project team might face unexpected situations and require adjustments to the current plan. In such situations, don’t be afraid to make changes during the project. Because, normally, not everything can be planned. Your flexibility in making amendments to the project is important to steer the project on the right path.
Ask questions and clarify doubts – Last but not least, if you don’t understand something, do not be afraid to directly ask about it and clear everything without keeping any doubts throughout the project.
Outsourcing is a benefit in many areas. It is worth considering which element is the most critical for your company and choose the best partner in this area. / Data Source: mlsdev.com
What does the price of web development depend on?
Several factors contribute to the price of outsourcing web development. These include
The complexity of your web development project
The number of resources required
The amount of time required to complete the project
Hourly rate of the developers
The scale of the project
One of the most crucial deciding factors is the hourly rate of the web developers involved in the project. Consider the hourly rate of the developers in North America, Europe, and Asia, known as the most famous software outsourcing regions. The hourly rate in North America lies between $100-$150, Europe lies between $50-$100, and Asia lies between $40-$60.
Earlier, the argument was that the most innovative technologies and highly skilled developers are in the North American region. On the contrary, the developers in Asia and Europe are now also gaining a reputation as having well-developed skills in most technologies.
Summary
Outsourcing web development is a popular business strategy most organizations use to execute their projects faster with minimum costs. Apart from the cost savings, it provides several other benefits, including gaining access to a wider talent pool reducing risks and challenges to the company. Hiring an in-house team is costlier than outsourcing because of the ongoing costs and lack of specialized skills. You need to consider several things when looking to outsource a company and deal with them after outsourcing. Continuous engagement with the project is a key tip to success in your outsourcing experience.
