How to Outsource

Updated on September 8, 2021
Read — 3 minutes

Outsourcing: the benefits and risks

Outsourcing in business is a way to work remotely with experienced development companies to turn your idea into real, fully functional software. As a result, you can save resources and delegate critical tasks to those who can perform them correctly. 

There are many ways to build software efficiently, and outsourcing is very much worth considering. Managed well, outsourcing will achieve your aims and reduce costs. Outsourcing your IT, using a suitably experienced company, is very effective and efficient.

What is IT outsourcing?

A wider choice

Outsourcing implies the use of third-party services that build software according to your requirements. Outsourcing is possible both within your local geographical area and abroad. You can outsource either just certain discrete processes or contract out the entire project on a turnkey basis for your software to be built from scratch with all development-related processes implemented.

Remote cooperation

This has become even more popular during the COVID pandemic.  Many businesses are looking for a dependable IT outsourcing company to take care of complex development processes. Entrusting the project to specialists helps clients achieve their specific requirements.

Go Wombat is engaged in software development on an outsourcing basis, with teams producing great products on the basis of a solid relationship with clients. Our company’s policy is to be transparent – we don’t hide our developers away – and we are always glad to meet clients personally in our office or visit them in any European country. Our business development managers and developers regularly visit conferences outside Ukraine.

Contact us if you have plans for developing new software or need a professional consultancy.

What are the advantages of business outsourcing?

Outsourcing is seen as a huge boost to any business. Read some of the benefits.

Access to a large talent pool

Outsourcing makes it possible to hire a tech-savvy development company with significant experience in various technologies. Outsourcing may be the appropriate and cost-efficient solution where you need a certain specialist but have difficulty finding in-house developers in your region.

Today’s easy global communication means that the geographical location of your outsourcing contractor is a much less important factor than their quality.  Whether the contractor is offshore (abroad) or onshore (within your own country), the quality and cost-efficiency you need are available from collaboration with talented developers. Many business entrepreneurs consider nearshore locations (in neighbouring countries) to be convenient if they already do business there.

Cost-efficiency

A flexible approach to outsourcing costs produces cost-efficiency. At Go Wombat, we provide a flexible system of pricing, and each project is priced individually to fit its requirements and characteristics.

Focus on more critical tasks

As a business owner, you can have contractors with experience in outsourcing handle the relevant tasks and assist in the creation of your software. In turn, you can concentrate on other tasks that require your personal involvement. Therefore, you solve existing significant problems while the outsourcing contractor does the rest.

Process acceleration

Another benefit of outsourcing lies in faster implementation. If your staff is limited and you don’t have appropriate specialists in the team, you can delegate specific processes to an IT outsourcing firm like Go Wombat — it will accelerate the development process.

Flexibility 

If you intend to build the project using the skills of your in-house team only, you should remember that the software development world is constantly changing. Your team will need to adapt to new demands rapidly. By contrast, a reputable outsourcing team always keeps up with recent trends.

Moreover, flexible outsourcing means that you can always hire the appropriate team members you need at any given moment (frontend or backend developer only, or both). The size of your team can be scaled up or down depending on the needs.

The risks of outsourcing and how to mitigate them

There are some weak points and risks in outsourcing. However, these can be mitigated.

Hidden costs

Although outsourcing is a more profitable option, no one wants to find out that they will have to spend much more money after the development process initiation. This is a risk which can be mitigated by discussing and coordinating contract models with the potential service provider. The final cost will depend on the model you choose.

When hiring an outsourcing firm, make sure that you have drawn up all the software development requirements. Discussing every tiny detail with a contractor will be an additional guarantee that extra costs won’t appear.

Go Wombat works with three pricing models:  fixed price, time and material, and dedicated team. Time and material is the model we use most frequently as it allows our clients to have an adjustable development process — they pay for services provided and hours spent, and they always can add something if they consider it necessary.

Lack of control

Some entrepreneurs think it is too risky to work with a remote team since they don’t have absolute control over the project. Even though communication with a remote company may be continuous and flawless, some concerns may still remain.

A manager in charge of product development control and working to an agreed plan can communicate with the dedicated development team and solve arising issues with them. If you don’t want to delegate the entire project for the development, identify those aspects you are prepared to entrust to the remote outsourcing team and designate the key responsibilities of each team member.

Go Wombat representatives will go through important points and explain to you what aspects you should put more focus on. We pay careful attention to communication with clients. Our project managers and development team hold online meetings every day, and they discuss every aspect and issue related to the project development so that critical points are not missed.

How much will you need to invest in software development? Ask for a detailed estimate.

Communication issues

Language, culture and time zones are considerations when starting project outsourcing.

Language is usually not a problem at all in the IT sector, as English is a dominant global language. In some countries, IT companies require their specialists to have at least an intermediate English-speaking level so they can communicate easily with foreign clients. As a company with locations across Europe, Go Wombat considers this aspect crucial.

Cultural differences are generally no obstacle since outsourcing companies are used to working with foreign business owners, and they know the proper rules of business communication. Reputable companies anticipate and adapt to the needs and expectations of clients. Go Wombat‘s tech specialists travel frequently to other European countries and have a wide cultural appreciation.

Time zone differences can even be advantageous. Go Wombat‘s clients are located primarily in the EU, and a one to two hours difference isn’t an issue. If you are located in the US, your project is being developed and created while you sleep.  And during the morning, there is always a suitable time for online meetings and communication.

Sharing sensitive information with IT contractors may always seem a risky procedure for intellectual property. When business owners order software development, they want to be confident that their idea and product won’t be copied or stolen. Part of due diligence about the potential outsourcing contractor might include reading reviews on trustworthy industry websites like Clutch.co or GoodFirms. A well-written non-disclosure agreement will provide the appropriate protection.

Go Wombat has an office in Tallinn, Estonia and works within the European legal framework. We strictly follow all regulations like the GDPR (General Data Protection Regulation) and other fundamental laws. Convenient taxation also contributes to attractive conditions for cooperation.

Why you should choose Go Wombat

Go Wombat is an IT consulting company with considerable expertise in software development (across many sectors, such as AdTech and travel), and we have been creating web and mobile applications for more than eight years. 

We focus on a Python/Django tech stack to create software, and our knowledge and experience proves that Python is an excellent solution for AI and ML-based applications.

Our main priority is to deliver top-notch solutions to our clients. If you are considering new software from scratch, set up a primary consultation to start the development process. We are willing and ready to handle exciting new challenges.

If you’re looking for a ready-made CRM, outsource to Salesforce.

How can we help you?