The Complete Handbook to Outsourcing Your Web App Development

Developing a digital solution is a resource-intensive and expensive task, especially if in-house specialists work on the project. Not every business can afford to implement software on its own. There are several reasons for this:

• Lack of qualified personnel.

• Lack of time for the project.

• Technical problems.

• Access to technology.

• Limited budget.

• Poor understanding of the IT concept in the context of the business.

That is why it is worth delegating the project to outsource, where specialists will handle it and complete it on time.

• According to Precedence Research, the outsourcing niche reached a market capitalization of $572.88 billion in 2022. According to experts, the CAGR will remain at 8.06% until 2030, indicating a growing demand for freelance services in the IT industry.

There is a myth that outsourcing is expensive and dangerous for businesses, startups, etc. Lampa Software specialists have prepared a material where they outlined the key advantages of freelance development and refuted the illusion of the problematic nature of this type of cooperation.

Outsourcing and its benefits for small businesses

Outsourcing is advantageous for small and medium-sized businesses, regardless of their specific industry. Typically, the budgets of these companies are limited, and they have a staff of up to 50 employees. With such resources, it's challenging to implement a high-quality project, at least not promptly.

Regardless of the type of business and industry, having its own IT solution is essential for ensuring competitiveness and viability. Outsourcing, in particular, allows for the smooth implementation of a digital product, with benefits for the company such as:

• Minimal financial investment.

• Access to top talent in the industry.

• Timely realization of the IT product.

• Saving on in-house resources.

• Ability to focus on key business processes.

• Comprehensive services for development, testing, and support.

Thanks to outsourcing, a startup or newly established company can quickly debut in the market with a high-quality, fully functional MVP (Minimum Viable Product), MMP (Minimum Marketable Product), or MLP (Minimum Loveable Product).

However, outsourcing has both advantages and risks. Let's take a closer look at them. 

Determining the Need for Outsourcing

Despite the obvious strengths of outsourcing, you need to understand whether this type of development is right for your business.

• Suppose the company plans to quickly enter the market with a basic SPA (Single Page Application) or PWA (Progressive Web Application). In that case, the staff can implement such a project.

However, it is better to outsource the development if you need a more complex IT solution, such as a cross-platform program or a full-fledged web application.

Reasons why small businesses may need to outsource web app development

Before deciding on outsourcing web app development, entrepreneurs carefully consider all the advantages and risks, the feasibility of delegation, and the financial aspects. Typically, outsourcing development is more beneficial because it allows them to:

• Focus on critical business needs.

• Obtain a high-quality digital product.

• Free up company resources.

• Save the brand's budget.

• Ensure that the IT solution meets business requirements.

These factors are crucial when choosing to outsource. However, in some cases, entrepreneurs are concerned about the risks associated with outsourced development.

The risks and benefits of outsourcing web app development

Despite the advantages of the outsourcing development model, it has a number of risks:

• Communication problems (when hiring offshore companies).

• Personal or corporate information risks.

• Potential disruption of development.

• Theft of ideas, concepts, etc.

• Potentially low quality of the product.

• Failure to meet specifications or deadlines by the contractor.

However, all these potential problems are leveled if you choose a reliable team to implement the project. For example, Lampa Software. Moreover, the company's specialists will develop your digital solution and provide maximum support and scaling of the IT product.

Preparing for Outsourcing

Before launching a project, an entrepreneur needs to address the following key development issues:

• Type, scale, and specifications of the app.

• Maximum possible development budget.

• Type of cooperation.

• A project executor.

The choice of the right software depends not only on the initial quality of the released version of the digital product but also on the scaling potential, competitiveness, and viability of the software.

Identifying the requirements for your web app development project

First, identify the future project's key functionality, tech stack, and features. Its cost and further potential will be based on this.

Budgeting for outsourcing and choosing the right outsourcing model

There are three available outsourcing models: offshore, nearshore, and onshore. The first one is the most cost-effective if you are based in the USA or Western Europe, but it can be challenging in terms of time zone synchronization and communication.

The latter two models are more balanced, offering high-quality development with minimal risks.

Dedicated Team vs. Outsource Team: Benefits of these models and their difference

Depending on the goals and scale of the project, you may need some type of cooperation with the developer. Traditionally, there are two models: a dedicated team and classic outsourcing. Each has its own peculiarities, which we will consider in more detail.

Work with a dedicated team

Cooperation with a dedicated team is usually more traditional. This team reports directly to the project manager and is closely integrated into the development hierarchy. Interaction can take place both remotely and locally within the office. All specialists who join the project remain in it until the work is completed.  

Work with outsource teams

The outsourced team often works remotely and fully manages the customer's project. By delegating development to such contractors, you completely free up your in-house resources to focus on priority tasks. Outsourcing teams independently manage and create IT solutions, periodically adjusting current tasks with the client.

What are the benefits of these models

Dedicated teams:

• Integrate closely with the in-house development team.

• Are better controlled by the manager.

• Stay with the project until its completion.

Outsourced teams:

• Manage the project independently.

• Provide their own equipment.

• Offer comprehensive services.

Therefore, dedicated teams are suitable for long-term work when the performers need to know the project's nuances. Outsourcing is more advantageous when there's a need to relieve the in-house team or completely delegate the implementation of the IT solution to experienced developers.

Finding the right outsourcing partner

When choosing a developer, consider their experience, portfolio, reputation, and price. These indicators will allow you to quickly find a responsible partner like Lampa Software.

Managing the Outsourcing Process

Outsourcing is usually a remote collaboration with contractors, so you should ensure the following:

• Clear TOR and specifications for the contractor.

• Reliable and fast communication channels.

• Control of the work process and project progress.

• Flexibility in solving possible problems.

Use the advice of Lampa Software specialists to prepare for delegating a software development project.

Establishing clear communication channels

Agree with your partner on the use of certain systems for communication. Set up online meetings that are convenient for all participants and prepare for each one in advance. Use reliable communication channels like Slack and programs that protect conversations, chats, and corporate information.

Setting project milestones and deliverables

Create (or ask your partner to create) a project roadmap. This will give you a comprehensive view of the deadlines and their shift in case of emergencies, problems, etc. Also, set up key points where you will receive complete information about the product's status, current operations, etc. 

Monitoring the progress of the project

Install and configure DevOps tools, such as Jira, Jenkins, etc. With their help, you will monitor the progress and development process in real-time. Accordingly, you can prepare and adjust the project in time without creating inconveniences for your partners. 

Handling challenges and resolving conflicts

Any collaboration creates emergency or even conflict situations. Try to minimize them in advance or at least solve them flexibly. This will reduce the stress level of business representatives and the development team. This, in turn, will positively impact the implementation time and quality of the IT solution.

Evaluating the Success of Outsourcing

Each work should be valued. Not only financially but also objectively. It is recommended to set standards to which the quality and complexity of the finished digital solution will be equated. For example:

• Performance and stability of the software.

• Technical condition (code, architecture, structure, etc.).

• UI/UX (usability, navigation logic).

• Compliance with business needs (design, functionality, monetization).

• Scaling potential (technological base).

• Competitiveness (unique ideas, innovations, etc.).

By studying all the mentioned parameters, you can calculate the profitability of investment in development and the chances of IT solution growth. Moreover, it will allow you to decide on further team collaboration, search for other performers, or even hire your own staff. 

Assessing the quality of the web app development project

Users usually evaluate the quality of a product. So, to check it, you should apply typical application use cases and look at it from the point of view of the target audience.

Calculating the ROI of outsourcing web app development

It is almost impossible to calculate ROI in advance, as many external factors influence this indicator. However, you can do it in the first month of publishing an IT solution.

Determining whether to continue outsourcing or bring development in-house

It's simple: if you are satisfied with the quality and profitability of the software, continue to work with the developer. If not, transfer the project to another team or hire in-house developers and return to the first option after a while.

Conclusion

Outsourcing, like in-house development, has its advantages and disadvantages. The scales balance resource and cost savings against reputational and financial risks. But this is only the case if some unknown small team does the development

Market leaders usually don't encounter such problems. On the contrary, it is the industry's top experts who will provide you with the following:

• The highest quality digital product.

• Comprehensive support in all matters.

• Speed in development, deployment, and scaling of the IT solution.

• Affordable prices for development services.

• Personalized collaboration terms.

• Software that meets the needs of your business and target audience.

The outsourcing market is rapidly growing due to the increasing demand for the services of external developers. Thousands of entrepreneurs worldwide have already recognized the benefits of remote collaboration. Do you want to stay on-trend too?

Delegate your development project to the experts at Lampa Software and provide your business with a high-quality and reliable tool to increase profitability!