
Become familiar with offshoring
It can be challenging to find someone you can trust to build offshore development teams. If you learn the ins and outs of offshoring, you can focus on ensuring that your partner is the right fit for you – rather than the other way around.
This also means clearly understanding the difference between outsourcing and offshoring. As a result, you can better assess the offshore software company’s suitability.
Evaluate cost-effectiveness, not cost
Access to the most qualified talent at the most affordable price should be a major factor in choosing to offshore your software development. Because the cost of living is lower in popular offshoring destinations like India, every offshoring partner will offer you lower rates than the equivalent back home in Western Europe or the US.
Remember, assessing value is key. For example, company X might charge 50% more than company Y but deliver results that are 3x better—more cost, but higher return.
Results from case studies can be a reliable barometer of value. Nevertheless, you should also evaluate the management team and staff—do you feel confident allowing them to help build your business?
The development methodology
There exist various methodologies and approaches to handling software development projects. Traditionally, the waterfall methodology premised on a cascading sequence of activities at various development stages has been widely applied. However, Agile methodologies have proven to be the most effective, allowing for adjusting strategies and iterative development and complete focus on the end-user throughout the project.
Do a thorough background check of your prospective partners
There are multiple outsourcing destinations hosting thousands of offshore software development companies. But choosing the right partner from this wide pool can be challenging, mainly when they all portray the ability to deliver results and exceed your expectations.
Look at the company size
While most might overlook the company size, it is one of the best indicators for judging a vendor’s ability to carry out an assignment. A small company guarantees full attention to your project and easier team management
Look at company experience
The vendor should demonstrate experience working with companies similar to yours or handling projects like yours. This can help you assess the quality of their output and creativity. Experience working with big brands, particularly fortune 500 companies, is a good indicator of competence.
Pricing
Be wary of vendors offering overly attractive prices as that often comes with a compromise on quality. The ideal partner is one who offers competitive prices. While the objective is keeping costs low, price should not be the primary determinant of a vendor to choose. Quality always comes first.
Flexibility
Projects can get complex. Handling one effectively calls for flexibility in approach to development. As such, it is important to look for an offshore development partner who is flexible enough to adjust based on the requirements of the project. The development methodology is also a determining factor here. Agile development approaches create room for flexibility through development.