Choosing a Custom Software Development Partner: Top 4 Challenges on the Way to a Successful Delivery

Outsourcing software development can bring numerous benefits — from access to a larger talent pool to cost efficiency. Still, it comes with its challenges. Before selecting a vendor who will have a hands-on role in your project, carefully considering the possible pitfalls that the outsourcing partnership model implies is essential.

In this article, we interviewed Ilya Boroda, Head of Pre-Sales at Timspark, to share his vision on the four key challenges commonly encountered when choosing a custom software development partner, and solutions practice based on the company’s outsourcing model.

【Challenge 1】Outsourcing vs In-house development: Choose your path

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According to Deloitte’s 2018 Global Outsourcing Survey, 59 percent of companies opt for outsourcing as a means to decrease expenses. Although these are valid reasons to outsource, companies who solely focus on this factor, overlook other crucial aspects that could shape their decision.

While keeping certain functions in-house may not save you any money, it gives you more control over the quality of work that's produced and the ability to define and preserve your company culture better.

Solution

Not to be caught in a double bind between in-house and outsourcing, one should try not to overlook new outsourcing models. Thus, the last 5-7 years show an evident shift in outsourcing from cost reduction optimization towards created value. Through collaboration with third-party providers, organizations can acquire the necessary technology and process guidance and tap into their profound industry knowledge.

As a vendor you are not supposed to limit your role to executors acting by prescribed instructions from the client. On the contrary, you can bring expertise — the idea of how the business problem can be solved, even if the customer is not aware of the solution yet.

With a clear understanding of business needs, the vendor can not only meet the client’s expectations, but also provide a broader solution scope, and measure success with the impact on the business, not with the number of projects won over other vendors. Resources saving, maximizing value, and improving business performance all boil down to client satisfaction as the ultimate goal.

【Challenge 2】Development team expertise: Do the check

The team for your project should ideally have prior experience working on similar projects. However, the challenge arises when a customer chooses a vendor for software development based solely on the company's portfolio without considering the experience and expertise of the specific team that will be assigned to the project. The project's future success greatly depends on the skills and capabilities of the team working on it.

Unfortunately, in most cases, companies showcase their overall portfolio rather than providing insight into the individual team members' portfolios. As a result, the customer has limited visibility into their past projects. And once the contract is signed and the project begins, vetting the team's experience becomes irrelevant.

To address this challenge, one might thoroughly scrutinize the vendor's portfolio, looking beyond the number of projects and instead focusing on the complexity and variety of cases handled. This can provide some insight into the vendor's overall expertise and capabilities. However, it still does not guarantee that the specific team assigned to the project possesses the necessary skills and experience.

Ultimately, the challenge lies in ensuring that the chosen vendor has an impressive company portfolio and assigns a team with relevant experience in projects similar to the customer's requirements.

Solution

Open communication with the vendor throughout the selection process can mitigate this challenge and increase the chances of a successful software development partnership.

Actions steps may look as follows:

• Ensure that the development team is compliant with the quality requirements and can provide the expertise needed.
• Make the development team transparent for the customer regarding processes, work-flow, and available certifications.
• Showcasing the portfolio with a complete description of our framework and the team's expertise which has already undergone a thorough vetting process may be that key for building the foundations for transparency.
  
  

【Challenge 3】Business goals and vendor’s expertise: Get them aligned

As a customer searching for a software development partner, you aim to choose a vendor who aligns with your project requirements and can deliver high-quality results in a reasonable time and with feasible costs. Fast feedback from the vendor at an early stage on their expertise, capabilities , possible solution, and overall future performance is crucial.

By considering vendor feedback, customers can mitigate risks, gain confidence in their selection, and establish a solid foundation for a successful software development partnership.

Yet the outsourcing model does not imply that the development team should be aligned with the business goals and problems, even at the development stage. The solution that the customer is requesting is rarely or hardly ever challenged by the vendor, with business goals in mind. Therefore additional time and human resources for implementation may be revealed later, possibly resulting in increasing costs and longer time to market.

Solution

How can this challenge be mitigated? The answer boils down to having the development team aligned with the customer's business goals early on.

This approach ensures that the end product meets the technical requirements and provides value to the customer's business. The vendor can contribute their expertise and industry knowledge to enhance the software's functionality and effectiveness while addressing the customer's challenges and objectives at the same time.

As teams obtain this vision at an early stage, they have the possibility — and motivation — to delve into the problem and keep the business needs in focus. Not only can the team propose a technological solution based on their background, but they might consider how the solution will be implemented throughout the whole development cycle, with possible roadblocks and additional expenses. Thus, the ultimate solution may vary from the customer's initial request — yet it ensures that the team strives to address the business goals most effectively, not just comply with their commitments and deliver.

For business, getting fast feedback means handling possible pitfalls and getting a precise estimate of the scope of work, time, and costs.

【Challenge 4】Knowledge transfer from customer to vendor: make it transparent

In a traditional team augmentation model, a lack of knowledge transfer between the delivery team and potential clients and between the presales and delivery teams is a frequent problem. While executives (the team) do not have a vision of the system, and goals are not transparent for them at all stages, this can backfire. Costly proposals, reduced motivation among technical experts, lower performance and quality of the end product, and delayed time to market are possible negative results.

Solution

It is not a direct correlation, yet effective consultations may be equal to cost and time savings for the client. By involving specialists from development teams already at the presales stage one can achieve clear knowledge transfer about the client's needs before the project starts and avoid the long communication pipeline and back-and-forths from client to vendor.

Moreover, if the presales team is responsible for transferring the proper guidelines and vision to the delivery, this may significantly bridge the gap. As a result, all the development team members are fully aware of the agreements and committed.

In conclusion

Choosing a custom software development partner comes with its challenges. However, by carefully considering and addressing them with a strategy, businesses can increase their chances of successful delivery. Focusing on value creation, providing open communication, aligning teams with the company's goals, and implementing effective knowledge transfer may be possible answers in this business arrangement.