Business Scaling

Outsourcing Custom Software Development Best Practices

Outsourcing Custom Software Development Best Practices

Your unique business challenges require unique solutions. But how much can custom software development truly cost you? Whether you need to integrate tailored functions into your eCommerce platforms or set up new project management systems for your team, crafting customized software can be expensive. 

Depending on project complexity and size, businesses may spend $20,000 to $500,000

That’s a lot of money. And that won’t end there. You’ll need to be ready for maintenance, regular quality checks, and software update costs.

Our solution? Outsourcing. 

This article guides you through everything you need to know about the best practices for outsourcing custom software development, its advantages, and how to avoid mistakes when choosing an outsourcing partner. 

As staffing experts, we have a wealth of experience helping businesses like yours without draining their budgets.

Ready to cut costs? Let's get started with...

What Is Custom Software Development?

Custom software development is the process of creating software tailored to meet the specific needs of your business. It is a solution designed specifically for you and your business rather than a one-size-fits-all solution.


Custom software development involves having a team of developers to work with you. They understand your business requirements and create a software solution that meets them.

On the other hand, off-the-shelf software is a plug-and-play application available to anyone. It includes a wide range of features that may appeal to most users. However, since it’s a for-all application, none of its features will be uniquely tailored to your business’ needs. 

Benefits of custom software

  • Tailored to specific needs: Custom software addresses your unique business requirements, offering features and functionalities that off-the-shelf solutions often lack.
  • Increased efficiency: Custom software streamlines workflows and processes, eliminating unnecessary steps and automating tasks, improving operational efficiency.
  • Enhanced security: With custom software, you have greater control over security measures, ensuring that your data and sensitive information are protected according to your specific security standards.
  • Scalability: Custom software can grow with your business, allowing you to easily add new features and functionalities as your needs evolve without major disruptions.
  • Cost-effective: While initial development costs may be higher, custom software can be more cost-effective in the long run by reducing licensing fees, minimizing manual work, and boosting productivity.

What Does Outsourcing Custom Software Development Services Mean?

Outsourcing custom software development services is hiring a third party to develop tailored software applications for your business. This means that instead of having an in-house team of developers, you contract an external team to handle the software development process.

Outsourcing custom software development can be cost-effective for businesses that do not have the resources to set up a local team of developers. After all, custom software can cost tens of thousands of dollars or so much more, depending on factors.


Outsourcing vs. freelance vs. remote staffing

When outsourcing custom software development services, you can work with a company specializing in software development. You can also work with a team of freelance developers. Both options have pros and cons, and it is important to carefully evaluate each option before deciding.

Working with a company specializing in software development can provide access to a team of developers with a wide range of skills and experience. This can be particularly beneficial if you have a complex software development project that requires a team of developers with specific expertise.

On the other hand, working with a group of freelance developers can be more cost-effective and flexible. Freelance developers can work part-time or full-time and be hired for specific projects or tasks. But, working with freelance developers can also be more challenging, as you need to manage multiple contractors and ensure they all work together effectively.

But another option worth considering is teaming up with a remote staffing company like MultiplyMii. Hire a skilled remote developer without adding to your overhead.

In fact, you get to chop off a chunk of your expenses through our services.

Want to know how much you can save? Let’s talk about it!


Advantages of Outsourcing Custom Software Development
 

When you outsource your custom software development, you gain access to various benefits that can help you streamline your operations, reduce costs, and improve your bottom line. 

Here are some key benefits of outsourcing custom software development or having a dedicated remote team member for the task.

Streamline communications

When you work with a remote team, you can use management tools to stay in touch and collaborate effectively. This can help you stay on top of your projects, ensuring everyone is on the same page.

Skip recruitment delays

How long does it take to hire someone? It can depend on factors like position level, type of role, number of applicants, and the hiring manager’s experience. But on average, it can last up to 6 weeks, and that’s a long time if you’re looking to launch a custom software.

Recruiting and hiring new software developers can be time-consuming and expensive. Outsourcing can allow you to skip the recruitment process altogether and start working with a team of experienced developers immediately.

Create healthy teams

When you work with an outsourced software development team, you can create a healthy team dynamic to help you achieve your goals. A team passionate about their work and committed to delivering high-quality results can create a positive and productive work environment.

Access high-quality, pre-vetted talent

Gain access to a pool of high-quality, pre-vetted talent who are skilled and capable of doing the job for you. 

By working with a team of experienced custom software developers with a proven track record of delivering high-quality results, you can ensure that your projects are completed on time and to your satisfaction.

But you know what? You can also tap 5% of top talent when you work with a remote staffing company like MultiplyMii. We’ve done this over a thousand times, placing top Filipino remote professionals into global businesses.

Best Practices When Signing an Outsourcing Contract

As you outsource your custom software, ensure the contract is comprehensive and addresses all aspects of the project. 


Define objective and scope

Clearly define the objective and scope of the project to make sure both parties have a clear understanding of what is expected. This will help to avoid any misunderstandings or miscommunications down the line.

Set service level agreements (SLAs)

Establish SLAs that outline the expected performance standards for the project. This will indicate the expected quality and delivery timelines for the project.

Define roles and responsibilities

Clearly define the roles and responsibilities of each party involved in the project. This way, there is no confusion about who is accountable for what.

Address data security

Make sure that any sensitive information is protected. The contract should include measures for data encryption, access controls, and data backup and recovery.

Establish dispute resolution

Create a dispute resolution process in the contract that will address any disagreements or conflicts. This way, they are resolved in a timely and fair manner. It should also include a clear escalation path and a method for mediation or arbitration if necessary.

Address exit strategy

Include an exit strategy in the contract that outlines the process for terminating the project if necessary. This should include provisions for the transfer of knowledge, data, and intellectual property.

Conduct legal review

Conduct a legal review of the contract to guarantee it complies with all applicable laws and regulations. Include an assessment of intellectual property rights, confidentiality agreements, and liability provisions.

Foster open communication

Finally, foster open communication between the outsourcing company and your organization. After all, you both are working together. It’s crucial to establish trust and an open space for discussing matters for the betterment of the project.

Follow these best practices for a successful project outcome that satisfies both parties.

Common Pitfalls in Outsourcing Development and How To Avoid Them

Outsourcing custom software development is a great business strategy as long as it’s done right. Take note of these common mistakes to steer clear of.

Failure to understand the scope

Jumping on a project without knowing what to do is a recipe for disaster. Without any clear understanding of the project's requirements, timelines, and deliverables, there will be a mismatch in expectations, delays, and cost overruns.

To avoid this pitfall, have a detailed project plan in place. It should outline the project's scope, timelines, and deliverables. This plan should be shared with your outsourcing partner, and both parties should agree on it before work begins.

Code quality challenges

When outsourcing development, check if the code quality meets your standards. Poor code quality can lead to bugs, security vulnerabilities, and performance issues.

Establish coding standards and guidelines before work begins to avoid this pitfall. All project stakeholders should know these standards, and code reviews should be conducted regularly to ensure compliance.

Cutting development costs

One of the primary reasons for outsourcing custom software development is cost savings. But, cutting costs without considering the impact on quality can lead to significant problems down the line. Poor quality can lead to bugs, security vulnerabilities, and performance issues, which can be more costly.

Balance cost savings and quality. This can be achieved by selecting an outsourcing partner offering competitive pricing while maintaining high-quality standards. Or, if you want to avoid any upfront costs, hire a remote developer with the help of MultiplyMii. You get to save up to 80% on labor costs, too!


Loopholes when signing the contract

Another common pitfall of outsourcing custom software development is loopholes in the contract. Review the fine print to avoid disputes, delays, and cost overruns.

Have a lawyer review the agreement before signing. Hiring a professional to help you go through with what’s written will leave no room for ambiguity or loopholes.

Not considering remote staffing

Outsourcing, like freelancing, doesn’t guarantee exclusivity to your project. Many outsourcing companies cater to multiple clients, sharing the same resources for various projects. This is why it’s crucial to consider remote staffing.

Remote staffing is the best alternative to the typical outsourcing services, wherein you hire a remote staff (on your own but better if through a remote staffing firm like MultiplyMii) to work exclusively for you. Not only do you gain efficiency, but you also get to save on labor costs by tapping experts in locations with lower costs of living.

Outsourcing custom software development can be a great way to drive your business forward. But to ensure its success, you must know how to do it right. So, remember our tips for a surefire way of reaching your project goals.

Customize Your Development Team With Skilled Remote Developers

Have the right team of skilled developers and unlock your project’s full potential!

We understand that every business has unique demands, making tailored solutions necessary.

With MultiplyMii’s expertise, we can help you tap skilled remote tech talents to help fulfill those demands and bring your custom software to life.

Don’t settle for anything less than the extraordinary results we can offer!

Your custom software and your remote development team are within reach.

Book a discovery call with us today and transform your projects into success stories!

Get 3 FREE quotes
From a dedicated recruitment specialist

Frequently Asked Questions

What is outsourcing software?

Outsourcing software involves hiring others to develop, maintain, or support your software applications. It allows you to hire software development experts while reducing costs and focusing on your business’s core activities.

What is custom programming outsourcing?

Outsourcing custom software programming is when you hire an individual or a service provider to help you develop customized software solutions. It involves collaborating with external experts to design and build software from scratch or modify existing solutions.

What is the outsourcing strategy of software?

The strategy of outsourcing custom software is handing off software development, maintenance, or support tasks to third-party providers to ensure timely market entry. This helps businesses tap specialized experts and avoid any delays caused by recruitment.

What is a custom software company?

A custom software company is a firm that offers software development services to businesses. Unlike remote staffing companies that assist you in hiring your own software developer while saving up to 84% on labor costs, this type of company has its developers working with you to create the software solutions you need.