Author: Hania Saleem, Mar 17, 2023
Innovation in the digital sphere has sparked a fierce competition between organizations to launch exceptional products and services using the latest technologies.
But not every organization can afford the luxury to develop and launch jaw-dropping technologies. Finding an experienced development team for the job can be financially exhausting followed by infrastructure, training and development and performance reviews costs.
This is where outsourcing comes into play! You can outsource your project and save the trouble. Don’t worry about finding the right team for the job. According to statista, there are more than 27 million software developers in the world so there’s a good chance you will find the right team.
Outsourcing projects are commonly done by businesses to scale their scope of services. The IT outsourcing industry is thriving with an accumulated revenue of nearly 400 billion U.S. dollars in 2022. By 2023, this generated revenue scale is predicted to escalate its reach.
Embarking on its high-paced sensation outsourcing software development is not merely a cost saving strategy opted by small-scale startups anymore. It is now opted by leading enterprise businesses due to the dynamical immense benefits it offers.
Outsourcing can start small from project based technical support to programming an entire application development cycle. In fact, the possibilities can be raised to smoothly outsourcing an entire IT department leveraging business to focus better on their core tasks.
What is Outsourcing Web development?
Web development outsourcing in the core stands for hiring a third party technical support for handling the design, programming, development, maintenance and testing on a website or web applications. It covers everything from user interface, interactive-element to a powerful backend and frontend development of a website for ensuring it is highly responsive on every screen type.
Types Of Outsourcing Models
1.Staff augmentation outsourcing:
Staff augmentation is the type of outsourcing which involves hiring niche specific experienced professionals for both long-term and short-term engagement. This type of outsourcing allows you to either augment an entire team or hire a single developer for your mentioned period of time to work alongside till the project delivery.
As part of this outsourcing model the external service provider source, recruit, and hire skilled professionals who work directly under the hiring company. The hired staff through staff augmentation model may work on-site or remotely regardless of your project scope being too complex or too simple.
This outsourcing model is gaining immense popularity because it allows you to hire full stack developers from the pre vetted global talent-cloud. Each developer for hire through this outsourcing model has the required industry level hard and the needed soft skills for enhanced collaboration. Moreover, the lengthy and time-taking hiring period is skipped while not compromising on quality hires.
Project-based outsourcing is hiring for a project specifically with the pre-defined goals, scope, budget and the timeline. On the contrary to outsourcing an entire business unit, this type of outsourcing requires an external team to perform only the allocated tasks falling within the project.
The vendor is responsible for meeting the contract's quality standards as well as delivering the project on time within budget. Without the need of spending full-time hires and training them to meet the standards, it allows businesses to focus on their core competencies by outsourcing temporary external experts.
Team-based outsourcing involves hiring remote developers in a pack of an entire team including a designer, developer, QA engineer,and a project manager. The team can be tailored as per your requirement, however, the vending company will be choosing the experts to be deployed on your project. For example, if you need a website built on a particular content management system (CMS), such as WordPress or Drupal, you'll want to find a team that has experience working with that CMS.
A separate team is allocated to work on your project while not disturbing your existing team with their operations. This form of outsourcing ensures to keep everyone on the same page with a highly transparent communicative environment using modern channels.
How Can I Outsource Web Development Successfully?
Where outsourcing web development offers a wide array of benefits, it also has a pool of failed cases of unthoughtful implementation. 20% to 25% of outsourcing relationships do not last longer than two years, and 50% do not last longer than five years, according to the "Barometer of Global Outsourcing".
With this in mind, it is crucial to run an in-depth analysis before outsourcing your web development needs. To make this easy for you, listed below are a few of the significant evaluation-based steps you must consider before reaching out to an outsourcing vendor provider.
You must carefully define the scope of your project and the kind of website you wish to deploy for embedding your grounds of brand identity. It is all about understanding the real essence you wish to achieve from your website inclusive of the benefits you wish to convey your target market with.
This initial step requires listing down every feature you want to embed in your website starting from the functionalities to the designing and development requirements. and scope of your project
Project budgeting revolves around drafting a considerable amount that you wish to spend on as your overall outsourcing goal. This includes allocating a budget that does not allow you to compromise on the quality of the work as it is crucial to launch a website with premium user experience in the saturated technical market.
Secondly the labor cost associated with your outsourcing needs is a major consideration as differences in time zone causes fluctuations in the cost. Last but not least, payment terms must be clearly defined in order streamline your project budgeting. There may be down payments or milestone payments required by some outsourcing partners, while others may offer flexible payment plans. To make sure you align your budget and cash flow with the payment terms, you must do your research while communicating it clearly avoiding any future surprises.
Market research when finding the perfect outsourcing partner who satisfies you in terms of conditions, location, budgeting, industry experience and knowledge is important. A reliable outsourcing partner demands an in-depth analysis of every other competitor to land with the one that is best suited for your needs.
You can list down 5 to 10 outsourcing agencies and filter out your chosen one by looking out for what their previous customers have to say about them, online ratings and the references of the quality work they have been part of. You need to dig deeper than the reviews and case studies on the company's website. Your research will define how well you ran the background check utilizing the assistance of several platforms including Clutch, GoodFirms, and Upwork.
4.Establish A Clear Project Plan
It is crucial you pen down the specifications from the early stage of the outsourcing partnership to reduce the room for mishaps. This step requires you to establish a project plan which includes clear instructions regarding the breakdown of your annual milestones, the timeline, deliverables and communication channels you wish to keep in touch with.
As a result, your outsourcing partner will know exactly what you expect from them and the entire development cycle will stay on track. Moreover discussion on the frequency of communication and modes including emails,video conferences and much more will empower transparency within a collaborative environment.
5.Review NDA Contract
You must ensure that your outsourcing partner has a strict NDA agreement policy. The agreement should comply with the applicable laws needed for data protections. Here is a tabular representation of what a NDA agreement for outsourcing web development should look like.
Here is an example of a tabular representation of what a NDA agreement for outsourcing web development could look like
It is however, important to note that the actual contents of an NDA agreement may vary depending on the tailored requirements of the outsourcing web development project. For the agreement to be legally compliant and meet both parties' needs, it is advisable to consult an attorney.
Cost Of Outsourcing Web Development?
Now that you have narrowed down the essential step to be taken for ensuring a smooth outsourcing process, it is time to get down to the budgeting!
When outsourcing your web development needs — cost analysis stands at a vital role withstanding the diversity in global markets.
The cost to outsourcing web development will vary depending on several factors. A few major factors including, locations, time zones, skill level of the required team, the scope and complexity of the project. Based on a general market analysis, outsourcing within offshore or nearshore locations such as India, China, or Eastern Europe is considerably less expensive than hiring an in-house team in North America or Western Europe.
The cost can be divided into hourly and project based charges. The hourly rate can start from $20 going to a rounded figure of $180 per hour, tailored to the differences in location and expertise of the hired team. On the other hand, Fixed project prices can rise from a few thousand dollars to hundreds of thousands of dollars depending upon the complexity and the scope of the project.
Let us further look into the estimated hourly rate in major tech-rich countries around the world.
How Can I Outsource Web Development Without Sacrificing The Transparency Of The Process?
Wanting to outsource your web development needs and still feeling the need to be aware of the updates is a major consideration for many. Good news is—Demanding transparency on what's happening on both sides of the fence is not hard to get!
Any decent agency would acknowledge your need to be on top of what is happening. For such scenarios, white box outsourcing is best suited as it allows the client to have complete access to the vendor’s technology and processes.
It is called a "white box" model because clients get a glimpse inside the vendor's operations, rather than being hidden by a black box where processes and infrastructure are concealed from them. Apart from leveraging the transparency the client is also allowed to provide input and feedback throughout the outsourcing engagement.
A seamless outsourcing journey starts with acknowledging your bottom-line requirement and finding a reliable partner who understands each requirement. The old school hiring processes of conducting through interviews and spending time on training employees is long gone. The rise of the outsourcing market has allowed business to hire a temporary pre vetted talent without disturbing the existing team Whether it requires you to hire UI/UX designer as an individual or an entire team dedicated to the process, if the outsourced talent adds value to your web development cycle — it is high time you begin!
1.What should I know to start a web development outsourcing company?
Before outsourcing web development you must have the needed skills and technical expertise necessary to develop and manage websites, including front-end development, back-end development, and database management,perform a market research to gain the competitive advantage, have solid online presence to showcase your portfolio and lastly ensure legal compliance including tax, employment laws and legislations.
2.Is web development still in demand in 2023?
Yes, the web development market is highly dynamic and with the rise in the adoption of technologies like artificial intelligence, the demand for complex and highly engaging web applications is predicted to grow. This makes web development a constantly evolving field with emerging opportunities for skilled developers to leverage in 2023 and beyond.
3.How much does it cost to outsource a website?
North America stands at the highest price rate starting from $150 to $200 per hour. The European companies on the other hand go from $70 and $190 for an hour of work. The most price-friendly choice is considered to be within the Southeast Asian region where the per hour charges are $10 to $40.
4.What are the three 3 types of outsourcing?
The three types of outsourcing are offshore,onshore and near shore. Offshoring includes a company outsourcing the web development services located outside their locality within a country. Onshoring refers to outsourcing the web development domestically within the same region or country. Nearshore outsourcing is outsourcing the services from an agency located within a neighboring country or in the same continent.