Three Top Tips When Building An Outsourced Software Development Team

Clare Anderson
28th January 2021

Are you considering offshore software development outsourcing? Over the last few decades, software outsourcing has grown tremendously - around 64% of all companies now outsource their entire development process. However, what exactly does software development outsourcing entail, and how do you go about it with risk mitigation and BCP objectives in mind? Here are three helpful tips to help you outsource your software activities seamlessly:-


    Here are three of the most common software outsourcing models:

    • PROJECT-BASED - this model outsources end-to-end management of the entire software project. You can hand over the project requirements to the outsourced team and they will work on the project from start to finish. Make sure both you and the team agree and fix the price and deadline of the project before it begins.

      Opt for this model if the project requirements are clear and the project scope is fixed. 
    • DEDICATED TEAM - this model consists of hiring a team of skilled experts from a software outsourcing partner who work together and act as an extension of your core team. This dedicated team might include software engineers, designers or UX specialists. They ensure your product development processes are running smoothly and effectively. Pricing in this model will depend on the number of hours and number of dedicated team members you hire.

      Opt for this model if you’re looking to build a long-term relationship with a software outsourcing company; if your software requires regular maintenance and updates and if your software is highly scalable.

    • STAFF AUGMENTATION - in this model the software outsourcing company builds the software development team but you’re responsible for the core processes. You manage the software development projects and all their individual tasks. You also distribute responsibilities to the software outsourcing team. Your outsourcing partner is responsible for the team’s productivity and manages HR concerns like payroll and salaries.

      Opt for this model if you’re looking to be more involved in the development process and want more creative control during software development.



    Risk mitigation and the success of your offshore outsourced software development team importantly includes key experts who will play a crucial role in organizing the outsourced team. These include (but are not limited to):-

    • PRODUCT OWNER - responsible for bridging the gap between business requirements and the remote developers. They will routinely ensure that business goals are clarified and achieved with first class solutions. This role should be assigned to a single person who will be the dedicated point of contact.

    • SOFTWARE ARCHITECT - will serve as a mentor and key technology enabler on the project. They will be responsible for the technical success of your dedicated team and ensure that the team follow the product architecture.


    A crucial part of your risk management strategy is making sure that the offshore software development outsourcing partner is a true fit for your unique needs. It’s not just about being skilled on paper, they need to be the right fit for your business and the specific project scope. They need to not only understand the product requirements but translate them into measurable business outcomes in order for the collaboration to yield positive results.

    Part of your business continuity plan when outsourcing software development must include:
    • Aligning expectations
    • Ensuring all project milestones and requirements are clear before embarking 
    • Speaking to some of their former or existing customers for first-hand testimonials
    • Reviewing and understanding their recruitment process to ensure you’ll be getting the top talent available. Be involved in this, evaluating soft as well as hard skills.
    • Having a single point of contact who understands the full project scope and who will relay your company’s needs to the executing team.
    • Considering starting with a test project. Though it will involved some time and resources investment, this is worth it as it will highlight the software outsourcing partner’s communication skills, trustworthiness and time management.

Software Development outsourcing requires intricate planning, skilled implementation and thorough testing. Understanding the Software Development Life Cycle (SDLC) is a key part of your business continuity planning in order to track project progress when considering offshore software development outsourcing. By outsourcing your software development, you’ll leverage a talented workforce to speed up your software development process, take advantage of the cost arbitrage in offshore outsourcing locations, tap into a much wider talent pool and ultimately scale quickly and cost-effectively.

If you’re looking for an offshore software development outsourcing partner, Sharesource could be the answer you’re looking for. Download our eBook, '30 Essential Questions to Ask a Provider Before You Outsource’ to ensure you're informed and have the right questions to ask when considering the next step.

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