Technology
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Outsourced software product development has gained popularity in recent years, and for good reason. The vigorous combination of its benefits and a small number of potential pitfalls enables businesses to build a wide range of quality products for reasonable prices. It also allows companies to concentrate on the core tasks without making efforts for development team assembling, onboarding, and management. That is why outsourced product development has earned businesses' trust all around the world.
Today, we are examining outsourced software product development to determine its other benefits.
Outsourced product development means hiring an external company to build your software product.
Let's assume you have a brilliant business idea for an app. Still, you do not operate in precisely the software development domain. You do not want to miss the opportunity but have no in-house resources to bring it to life. That is when outsourcing product development will come in handy.
When discussing outsourced software product development services, some confusion may arise between project and product development. How can we distinguish between software product development and outsourced projects? Let's clarify this.
The main difference between product and project development lies in customers' presence. For the product, it is vital to fulfill customers' needs and bring revenue to the business. The product's life cycle is longer and goes through continuous transformation. The project fulfills a specific goal or objective. It has defined timeframes, budgets, and lifespans.
Product Outsourcing:
Software Project Outsourcing:
Outsourced product development combines many benefits not only for startups but also for established companies. It helps to quickly organize the development process and make it run like clockwork. The main pros and reasons to start product development outsourcing include:
Product development outsourcing lets you hire specialists of different profiles and vast experiences around the world, making the development team really strong and well-versed. Picking professionals already experienced in a particular domain with solid stack knowledge will significantly contribute to your product's quality.
Perhaps one of the major reasons to start looking for outsourced software product development services is the reduced cost compared to in-house development teams. No expenses on hiring, hardware, workspace, software licenses, perks, and bonuses significantly lower development costs and allow for more efficient resource utilization.
Outsourced product development is also a lucrative option in terms of developer's hourly rates. As they can significantly vary globally, you can find the best cost-quality ratio without running out of budget.
Outsourced software product development eliminates the need for HR activities, such as hiring, onboarding, and team assembling — everything is already done for you, and the team is ready to take off quickly. Additionally, there is no need for many management levels from your side: you can control the process at the higher level, while all micromanagement activities will fall on the development services provider's shoulders. Voila! You can entirely concentrate on your core business processes.
Removing the need to hire and assemble a team, which may take months, frees valuable time that can be spent on product development. If you have a strict schedule and require the final product without delay, outsourced software product development suits your needs.
Startups can benefit from outsourced product development by receiving high-quality products quickly and at an affordable price. Startups value fast and high-class product development, as innovative ideas must be presented to the world as quickly as possible. Outsourced teams comply with these requirements, bringing fresh and original ideas to life.
As a business owner, you remain in control over the outsourced development team during product development. You will receive reports, participate in meetings, and make final decision over the product design and feature set. The outsourced product development provider can offer flexible engagement models and ensure top-notch communication.
Referring to outsourced software product development services providers has become a global trend in recent years. Both startups and businesses of every size and industry may profit from outsourcing talents.
The projected revenue in the application outsourcing market 2024 is $121.60 billion, with the United States generating the most revenue. Now, we'll keep a close eye on the conditions when referring to the development services provider may be necessary.
Companies by Industry:
Software products include building apps within various domains, requirements, and scopes. We can find large-scale healthcare software development products, FinTech solutions, web stores, and more here. They come in different forms, such as Minimum viable product (MVP), Minimum marketable product (MMP), and Minimum loveable product (MLP). Discover the primary software product types you can delegate to outsourced product development.
When you need more than out-of-the-box solutions to reach your goals, be sure that custom software development has your back. It allows you to create tailored solutions that meet your and your client's needs without compromise.
From startups emerging with innovative ideas to established companies with no significant expertise in software development — outsourced software product development allows your business ideas to come true without redirecting many resources toward hiring and management.
As the mobile app market continues to rise along with the number of smartphone users, you may consider developing mobile apps for your business. Mobile apps are not giving up ground. The market is expected to grow and be valued at $228.98 billion in 2023. Therefore, outsourcing mobile app development seems to be a reasonable investment.
Building a website is another option for outsourced product development. Online store with fancy and engaging design, educational feature-rich platform, secure personal finance management web apps, and even more — entrust web app development to the professionals. The outsourced team will find the best ways to realize your idea.
How do you hire an outsourced software product development services provider? Follow these steps to find the best options for building your product.
Overall, when choosing a reliable development company, prioritize research and communication with potential vendors. Keep in mind their reputation, look at their clients' reviews, and check the well-known software development companies ranking websites to get the whole picture.
Expertise: Determine the expertise needed for your product and identify the business needs. What problems will your product solve, and what features are essential? If you do not have extensive experience in software development technologies, do not worry: service providers will quickly define the tech stack.
Portfolio: Examine the portfolio of your potential development services vendor. Look at the technologies they worked with and the domains in which products were developed, and check out for similar products the company has experience with.
Pricing: The cost of outsourced software product development services may vary depending on the region. Eastern Europe, Latin America, and Asia Pacific are the key regions to look for a provider. Eastern European developers are famous for their good English and have a working culture similar to the Western world.
Language: Good knowledge of English is one of the priorities when hiring outsourced product development teams. Look for a team with strong English language skills, especially if it's the project's primary communication language. Moreover, select a team that demonstrates cultural awareness and understands the potential for miscommunication due to language differences.
Time zone: The difference in time zones holds advantages and disadvantages, and it is up to you to decide which is preferable. Close time zones allow flawless communication and similar working schedules, while different time zones offer smooth workflow — in the morning you can contemplate the results your outsourced development team achieved in your out-of-office hours.
Tech support: Remember that each product has an extensive life cycle and may need improvements, updates, and maintenance. Determine whether the software development services vendor provides technical support after product launch.
Knowing the potential pitfalls in working with an outsourced product development team can help you to evade them — awareness is the key. No hurdle cannot be overcome with careful planning and thoughtful communication. Consider the following:
Culture directly influences the way we speak, behave, and work, which can cause tensions in terms of communication, punctuality, and discipline. Despite all differences, you have one goal with the outsourced development team: to deliver a top-notch product. Transparent methodologies that promote smooth collaboration are key to overcoming differences. However, mutual respect and understanding remain fundamental.
Transparent communication fosters a collaborative environment where parties work together seamlessly. It is not only about English proficiency but also about staying on track in the software development process. To strengthen communication, you can schedule consistent meetings (video calls are preferred) to discuss progress, address issues, and answer questions; develop well-documented product requirements that are unambiguous and easy to understand; and be mindful of cultural differences and communication patterns to avoid misunderstandings.
Despite being a cost-effective solution, outsourced product development can involve hidden costs arising from additional development time, sudden changes in the development process, and legal fees. A comprehensive cost analysis may help you overcome these expenses. Conduct it before development launches and have a clear vision of the product you want to build to prevent change requests.
Vague specifications are not suitable for product development. Laying a solid foundation is critical to a successful software project. Before development starts, ensure you deeply understand the product's purpose and how it benefits your target audience. Invest time in crafting high-quality requirements that prioritize user needs. Collaborate closely with the development team throughout this process. Their expertise can refine your vision and ensure the final product meets your quality standards.
Effective development project management is crucial for a successful outsourcing partnership. However, communication gaps, mismatched expectations, and unclear processes can hinder progress. Clearly define upcoming tasks for each sprint and establish acceptance criteria for completion. Consider utilizing central project management tools that facilitate communication and track progress for both teams and Agile methodologies.
If you are looking for an outsourced software development service provider, consider addressing NEKLO. With over a decade of experience in the software development market, we have sufficient resources and expertise to deliver a project of any scale and complexity.
Building an outsourced development team involves careful planning. When the client comes up with a product idea, we first analyze their requirements to pick professionals with the right technical expertise. We prioritize data security and client needs throughout the process, tailoring the team structure to the project. Our outsourced product development services ensure successful, timely project delivery and comprehensive maintenance and support.
Here at NEKLO, we have extensive experience in outsourced software product development. As a reliable and reputable partner, we develop software products that are gaining attention around the world. Today, we want to share some notable examples of our work as an outsourced software product development services vendor.
SkinConsult platform was developed by NEKLO at the request of a US-based innovator, empowering healthcare providers to deliver a modern and streamlined healthcare experience to their patients. The main idea was to connect skincare experts with the customers through a specialized platform.
Our solution streamlines access to specialists by allowing customers to purchase any service offered directly, eliminating the need for separate appointment scheduling. It eliminates a significant hassle for patients and empowers them to manage their healthcare conveniently. The main features NEKLO presented include an AI-powered platform, various communication channels, and seamless appointment scheduling.
NEKLO was asked to develop a web application to enable customers of a Latvian pharmacy to make purchases online. We created a Magento-based store with a unique design, ERP integration, and a custom loyalty program.
With clear communication and no language or significant cultural differences, the NEKLO team delivered a competitive, tailored, and feature-rich solution. The web store seamlessly connects customers with nearby brick-and-mortar drugstores via an interactive map with automatic location detection.
US-based and operating globally, NEKLO spearheads digital transformation initiatives for businesses worldwide. We deliver software solutions complying with your market and legislation.
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