In the world of digitalization, it is hard to build trust and reputation and catch your customers' attention without at least a proper representation of your services online. But not every business needs serious and long-term investments in digitalization, does it?
ITO or information technology outsourcing is a “savor” for many businesses worldwide. It is one of the favorite strategies of global business leaders to save money, resources, and time, and mitigate risks.
According to Global NewsWire, the global digital transformation market is expected to grow at a CAGR of 16.5 percent to $1,009.8 billion by 2025, up from $469.8 billion in 2020. In the meantime, according to Fortunly:
- Almost 54% of all companies use third-party support teams to connect with customers.
- Globally, businesses spent $75.2 billion on outsourcing security last year.
- 78% of businesses all over the world feel positive about their outsourcing partners.
- About 300,000 jobs get outsourced out of the US each year.
- 71% of financial service executives outsource or offshore some of their services.
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All right, so now we know that software outsourcing is an amazing "weapon" in today's highly competitive environment but what about finding a reliable software vendor?
All these great ideas, tips, tricks, and benefits are useless if you're working with a poorly managed software vendor.
This article aims at educating readers about the most exquisite tactics for finding a qualified software vendor. As a business development specialist, who has been working at CodeRiders software outsourcing company for the past 5 years and helping international businesses fulfill their tech goals, I will walk you through the top 5 amazing ways of recognizing a good software vendor as well as the “red flags” all the software outsourcing partner selection process.
1. Start with exploring the international software outsourcing market
To not be lost in the huge pot of international software outsourcing companies, first identify the world’s top software development hubs. If you value quality, efficiency, and communication, I suggest 3 main countries, Armenia, Poland, and Hungary. These countries are affordable yet the risk of ending up with an unqualified software vendor is low. For example, in Armenia the low software outsourcing rates are associated with the following factors:
- Government-level sponsorship: The Armenian government reduces taxes for software development companies, and sponsors free and accessible tech education across the country. For instance, did you know that Armenia is one of the fewest countries that have a free IT-oriented public school, TUMO center of creative technologies?
- Low cost of living compared to the developed countries: Armenia is a developing country in the South Caucasian region. You can not compare the per diem of this country with central Europe, the USA, Canada, Japan, Australia, etc. It is much lower which allows businesses to define lower service rates. We sometimes associate low rates with low quality; however, this is not true in these tech hubs.
- Whether it is a custom CRM system, content management system (CMS), custom E-commerce system and ERP system or SaaS products and supply chain management solutions, the cost for software development in such tech solutions is different in non-tech hubs.
- International IP enforcement guidelines are supported.
- You will not have problems with communication, mentality and working style, and routine.
2. Go through the most reputable tech directories
Tech directories notice qualified software outsourcing companies and make sure there are listed on their websites. Trust reputable software outsourcing directories and awards. It is their job to find and introduce the best IT companies worldwide. Some of the top tech directories include:
- Euro-Asian Startup Awards
3. It is time for shortlisting
At this stage, you should go through the lists of these directories and make your own shortlist based on further research. Directories do not only write the name of top software vendors, they give information that backs up their claims as well as contact information and website address. Let’s review an example from Clutch.co:
- The company’s name
- A summary of its vision, mission, history, and services
- Number of employees and approximate service rates
- Focus and location
- Portfolio and reviews and of course the website link
4. Reach out to your shortlisted software vendor candidates
I suppose you have already checked the listed companies and by now have a shortlist of your possible software vendors. Finally, it's time to reach out. There are several ways to get in touch with a software vendor candidate:
- Fill in their "contact us" form directly from their website (if there is one). Briefly introduce yourself, and your problem and request a call or free consultation.
- Send an e-mail directly. Companies usually put their contact information, like address, phone number, and e-mail on the footer left or right corner of the website.
- Check their social media accounts and find the exact person who is responsible for such matters.
5. Observe how they communicate
Remote communication is the biggest challenge in software outsourcing. A great software vendor should be a pro in handling remote cooperation. You will feel the level of professionalism right from the first answer. Do not be afraid if your software vendor asks many questions․ This means your vendor knows the business and needs clarifications to understand if your request is in their field of expertise. On the contrary, if the software vendor immediately jumps into starting the cooperation, that is a red flag.
Check out what CodeRiders' clients say about our software engineers and developers' communication skills.
If you do not know the answers to some of their questions, that's normal. Do not feel embarrassed. Instead, let them know about it and encourage them to get into details. This is also a great way to learn more about the software vendor candidate's expertise. Some of the basic questions, a software vendor may ask to include:
- Do you have an SOW (scope of work document)?
- Do you care about the tech stack?
- How much involvement would you like to have in the SDLC?
- Do you have a prepared software outsourcing engagement model?
- Do you have a specific time and budget frame?
If you have a ready complete SOW document, that will wrap up the answers to all these questions. However, if you are not precise in your requirements, the software vendor may offer to proceed with the time and material engagement model.
Test tasks also say a lot about a specific company's expertise. During the introduction process, feel free to suggest a test task to your possible software vendor. Explain to your software vendor that it is for double-checking. You obsoletely have the right to a small and short test task. If the software vendor happily agrees to comfort your concerns that's a good sign. Otherwise, consider it a red flag.
Bonus point: Social media
Some business leaders underestimate the power of social media; however, the truth is, it says a lot about a company's culture and professionalism. For example, in our company, we emphasize the importance of open communication. We share posts and pictures about our office life as well as fun activities. We write about the values and morals we appreciate the most as well as introduce our employees individually. We give a platform for our employees to share their opinion and experience by conducting interviews.
To conclude, IT outsourcing is absolutely an amazing opportunity for company leaders to compile more successful and beneficial business development models and strategies. However, do not lose vigilance among all the good staff. Ensure your business is safe with minimum risks by choosing a reliable software outsourcing partner.
For more information, feel free to schedule a free consultation with team CodeRiders.
CodeRiders will address your web and mobile development challenges by creating custom software, helping with outsourcing services, or just consulting on your software development requirements.