11 Software Outsourcing Challenges And How To Overcome Them?

There is better access to the best talent to hire for software development projects and related products and services. Cost efficiency, better human resources, and improved business results are important reasons why software development projects are outsourced to software development companies.

Software outsourcing challenges

Find a partner you trust

A trusted software development partner means that they not only have the expertise and skills needed to complete the project but also take a keen interest in your company’s needs and requirements and provide solutions that can create value accordingly. There are many software outsourcing companies that offer software solutions, and the way you choose a partner is to know if they are trustworthy based on your needs, not just what third-party developers can offer based on their own understanding of your organization.

Insufficient or poor communication

This can result from several factors such as culture, language, and the distributed nature of teams. This can be further exacerbated by the client/service provider dynamic, where provider staff may feel pressured to be accommodating to the client and not challenge unmet requirements, ultimately leading to disappointment when results are not forthcoming.

Lack of experience with remote teams

We live in a time where remote work is becoming more and more common. Many businesses are very remote.

Project estimate accuracy

Project estimation is tricky, and especially when it comes to larger software projects, even a small deviation from the actual plan can mean huge costs.

Lack of control over process and management

As a business leader, it can feel uncomfortable and alienating to hand over a huge amount of your organization’s infrastructure and process management to another outsourcing company, and this perceived loss of control can be really unsettling.

Service quality of the outsourcing provider

Poor quality of outsourcing services is a nightmare and one of the most common risks of outsourcing. To save costs, companies choose outsourcing companies with the best price, overlooking the reason for the low cost of services.

Delay due to lack of provider resources

Risks are factors that providers cannot completely avoid but can be mitigated with proper planning and implementation to see the project through. Regardless of whether you’ve done your best planning, challenges do come, primarily through an external partner.

Key people leave the project

The problem arises when the sourcing partner is unable to recruit within a certain time frame and the project is delayed due to a lack of skilled manpower. If the outsourcing partner happens to back out of their commitments for various reasons, there are legal options for the outsourcing company to choose another partner, but again this is starting from scratch and risks delaying the completion of the project.

Data security and IP protection

In an outsourcing model, you must be aware of this risk and take all necessary precautions to avoid damages that may result from a potential breach of data security and/or intellectual property rights when outsourcing services. Sharing sensitive information and personal or vital data about your IT systems can lead to a reduction in security. Securing your data when using a service provider requires a multifaceted approach and regular risk assessment.

Conclusion

The past two decades have seen a surge in offshore software development outsourcing, which has undergone many minor adjustments as reliable and trusted sourcing partners have become available to meet the demand of overseas clients.