How To Find Outsourcing Companies?

Last Updated
February 7, 2024
How To Find Outsourcing Companies?

Let us assume that you have a business plan or an idea. You probably have the business expertise as well. But without a talented team, your dreams of starting the business will be futile. So, keeping your budget in mind, you need to look for staff.

If you are a start-up, there are high chance that your budget will be low. So, the best way to get your work done is through outsourcing. The software and IT sector in general is more inclined towards outsourcing for several reasons. Before you get down to answer the question, ‘how to find outsourcing companies,’ it is crucial for you to know the reasons why you need it. 

You must also know what outsourcing is. 

What Is Outsourcing?

Outsourcing is a business practice, in which the services and several job functions are delegated to a third party on a contractual basis. In the realm of the IT business or software in general, it entails outsourcing a huge range of operations, that may include software development, disaster recovery, and network services. 

Today, companies outsource the tasks to companies in the same geographical zone, or outside. Outsourcing outside the geographical zone is more profitable. 

Some experts also define outsourcing as a cost-cutting measure, that is adopted by companies to reduce overhead, labor, and operating costs. This strategy allows companies to focus more on other core aspects of the business. 

With outsourcing, new technologies can be adopted faster, without having to take the pain of training the in-house staff and overburdening them. It helps in migrating to newer advancements in technology, without losing your productivity. 

According to Grandviewresearch, the business process outsourcing market's total worth stood at $280.64 billion alone, with projections indicating a compound annual growth rate of 9.4% from 2023 to 2028.

Reasons Why You Should Go For Outsourcing For Software Development 

Flexibility 

You can easily scale a remote, outsourced team, according to the status of your business. Assembling and dismantling is a lot easier, as you have the leeway to operate in different geographies. Most companies in this realm go for an outsourcing firm, which is located in a region with relaxed labor and compliance rules. 

Speed 

The second reason why most software firms are going for outsourcing is because you can get an entire team to work on your project. So, you have more control over the deadline. If you had hired your own, in-house team, it could add to your budget and delays may have also occurred, which eventually raises the project cost. 

Access To A Ready Pool Of Talent 

You can get access to a global talent pool, at lower costs. If you try looking for talent in your own zone, there is a high chance that you may face a lot of competition. Most software outsourcing companies have development teams on the rolls. When a project approaches the firm, the task is easily delegated. 

Reasonable Pricing 

The cost of hiring an in-house team is always high, as you have to add on various perks, compliance-related pay, leave pay, and so on. However, when you hire an outsourcing company, you get to access an entire team for your work. You may abstain from making hefty payments, apart from also getting away without any leave pay or sick pay. 

So, now that you have a good idea, about why app and web development is being outsourced, it is time to find out ways to find the best outsourcing firm. 

Ways To Find The Best Outsourcing Companies 

Your Requirement

This is an important stage, which will enable you to make sure that the project is going to the right company. It also gives one a clear scenario of the business idea, subject, and deliverables. 

Many companies work with mundane and traditional tools, which may fall flat in a competitive, global environment. And, this ultimately impacts the development of your software. As a business looking for IT outsourcing, you need to verify the resources that are available to the outsourcing firm. 

Outsourcing Engagement Model 

Agile methodology is one of the new-age project management methods that are used in software development. It helps teams to work together while delivering faster results.

Here, the software development is divided into small components, which work independently. So, whenever you have to add something new, it can be done, without encumbrances. 

Searching Various Sources To Find The Outsourcing Company

There are numerous sources, from where you can find the best outsourcing firm to suit your needs. 

Google – Searching on this prominent search engine is one of the best things that you can do. You can search with keywords related to the kind of technical skills you are looking for. Once you get the results, you must spend some time weighing the pros and cons of each company. You must go through the reviews and testimonials, before finalizing any one.  

If you're looking to outsource IT services then you can consider outsourcing to Aphelia Innovation, It provides software development, web development, or AI development. Alternatively it also provides IT staff augmentation so if you need any expert that can work with your team then feel free to contact.

Referrals – You can also choose an outsourcing company based on referrals. Business partners, colleagues, and acquaintances can give you suggestions about possible companies that suit them. However, it is your prerogative to check the background of the company that you choose. 

Online Marketplaces – This is another place online, where you can look for outsourcing IT firms. These companies often handle multiple projects, which you can easily check on their profiles. Go for verification of claims, no matter which company you choose. 

Directories – You can also check online directories, among which Clutch and Reddit are both quite good.  

Industry Networks – You can also reach out to business networks, trade associations, and communities to get the best outsourcing partner. Networking with professionals can prove to be profitable, so you must attend conferences, seminars, and trade shows. 

Social Media - You can also leverage the power of social media. There are forums and groups on various platforms, like LinkedIn, where you can get leads. 

Understanding The Technical Capacity Of The Outsourcing Companies 

You must check the technical expertise of the shortlisted outsourcing companies. There are a few parameters, which you must check. You can find them given below. 

  • Check if the outsourcing firm or team has worked in your industry or not. 
  • You ought to find out their outsourcing model, i.e. whether the firm works on an hourly basis or monthly. 
  • You must check the kind of software the outsourced team has worked on, in the past. 
  • You must ensure that the project management tools used by the company to must match with those of yours. The communication and collaboration bit assumes a lot of importance here, as you may need to have meetings and briefings on an ongoing basis, through modes such as Skype, Hangouts, and VoIP. 
  • You must check the security and confidentiality infrastructure, and what conflict resolutions possibilities are there, for smooth project development. 
  • You should also check if the company has earlier delivered projects on a timely basis or not. 

Assessment and Compatibility Check

  • Cultural Alignment - It is very crucial in the business environment, for the cultural value of the outsourcing companies match with the outsourcer. It is important, as it facilitates a seamless integration of values and work ethics. 
  • Handling Time Zone Differences and Language Issues - Most outsourcing companies will agree to the client’s time zone. Flexible collaboration is also possible. However, you can also allow the developers to work at their own pace at their time. No matter what you opt for, you should make it very clear in the beginning. Set the terms of communication timelines clearly before starting. 
  • Scalability and Flexibility - As we have already covered technical expertise, you may think that suffice. However, there are other things that you need to assess as well. Your outsourcing company should be able to scale its resources at the right time. Discuss the contract terms properly, before both sign on the dotted line. 

Managing The Outsourcing Relationship 

No matter, if the work being outsourced is mundane or very complex in nature, managing relationships is a crucial part. There are some factors associated with the management of the outsourcing relationship. 

Setting Realistic Goals - After identifying the cultural, social, business, and geographical landscape, exploring the capabilities and managing the expectations becomes important. Assess if the relationship is going to be mutually beneficial or not. 

Contingency Planning - Always develop an exit plan at the beginning. Although both parties want a fruitful outcome for the project, things can turn awry. Anticipate the same, and put in place all legal, financial, and change management plans, to get out of the association without hassles. 

Measuring Performance - Keep the performance metrics clear and manageable. All the data should be accessible to both parties at all times. Continuous evaluation is extremely necessary against measurable KPIs. This will help you to avoid nasty surprises later. 

Providing Feedback - A timely and constructive feedback mechanism should be in place. It will help both companies to align their goals and expectations, identify areas for improvement, and create a strong working relationship. Regular code review sessions, development-related parameters, and proper two-way communication are essential to foster a refined development process and meet the desired expectations. 

Making Adjustments On the Move - You should have the leeway to make adjustments down the line. For that, prepare a transition plan way ahead of time. Reviewing the developmental process can open up a range of possibilities, where you can make alterations before too much damage is done. Keep provisions for the addition or removal of services in the outsourcing contract, for that same reason. 

Final Words

Once you have zeroed down on an outsourcing firm, it is important that you also check the company culture, as that will impact your project in a big way. If you are struggling with outsourcing, then the above-mentioned strategies may help you. Evaluation may include parameters like experience, scalability, security, and collaborations. Take time before making that final decision, and signing on the dotted line.