How to Outsource

Outsourcing: the benefits and risks

Outsourcing means working with an external development company to turn your idea into working software. It lets you save resources and hand tasks to people who have done them before.

Outsourcing works when you can define the scope and keep a product owner on your side. Managed well, it achieves your aims and reduces costs; the risks below show what to check.

What is IT outsourcing?

A wider choice

Outsourcing means using a third party to build software to your requirements, either locally or abroad. You can outsource specific processes or the entire project on a turnkey basis, with the software built from scratch.

Remote cooperation

Many businesses look for a dependable IT outsourcing company to take care of complex development work. Specialists with relevant experience help clients meet their specific requirements.

Go Wombat develops software on an outsourcing basis. Our policy is to be transparent: we don’t hide our developers, and we are glad to meet clients in our offices or visit them anywhere in Europe. Our business development managers and developers regularly attend conferences outside Ukraine.

Contact us if you plan to develop new software or need a consultation.

What are the advantages of business outsourcing?

Access to a large talent pool

Outsourcing lets you hire a development company with experience in many technologies. It can be the right, cost-efficient choice when you need a specific specialist but cannot find one in your region.

With today’s communication tools, a contractor’s location matters much less than the quality of their work. Offshore (abroad) and onshore (in your own country) contractors can both deliver the quality and cost-efficiency you need. Many companies prefer nearshore partners (in neighbouring countries), especially if they already do business there.

Cost-efficiency

Flexible pricing makes outsourcing cost-efficient. At Go Wombat, each project is priced individually to fit its requirements.

Focus on more critical tasks

An experienced contractor can take over the development of your software while you concentrate on the tasks that need your personal involvement.

Process acceleration

Outsourcing can also speed things up. If your team is small or lacks the right specialists, you can delegate specific processes to an IT outsourcing firm like Go Wombat.

Flexibility

If you build the project with your in-house team only, remember that software development changes quickly and your team will need to adapt. An outsourcing team can bring skills you lack in-house.

Outsourcing also lets you add the team members you need at a given moment (frontend developers, backend developers or both) and scale the team up or down as your needs change.

The risks of outsourcing and how to mitigate them

Outsourcing has weak points and risks, but they can be mitigated.

Hidden costs

Nobody wants to find out after development starts that the project will cost much more than planned. You can reduce this risk by agreeing on the contract model with the provider before you start; the final cost depends on the model you choose.

Before hiring an outsourcing firm, write down all your software requirements. Discussing the details with the contractor up front reduces the risk of extra costs.

Go Wombat works with three pricing models: fixed price, time and material, and dedicated team. We use time and material most often: clients pay for the services provided and the hours spent, and can add work whenever they need to.

Lack of control

Some business owners think working with a remote team is too risky because they don’t have full control over the project. Even with regular communication, some concerns may remain.

A manager on your side who controls product development against an agreed plan can work directly with the dedicated team and resolve issues as they arise. If you don’t want to outsource the whole project, decide which parts you will hand to the remote team and define each team member’s responsibilities.

Go Wombat representatives will go through the key points with you and explain where to focus. Our project managers and development team hold online meetings every day to discuss the project, so critical points are not missed.

Ask for a detailed estimate of your software development costs.

Communication issues

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

Language is rarely a problem in IT, where English is the working language. In some countries, IT companies require their specialists to speak at least intermediate English so they can communicate easily with foreign clients. With offices in Estonia, Ukraine and Spain, Go Wombat treats this as essential.

Cultural differences are rarely an obstacle: outsourcing companies are used to working with foreign clients and know the norms of business communication. Go Wombat’s specialists travel frequently to other European countries.

Time zone differences can even help. Go Wombat’s clients are mostly in the EU, where a one- to two-hour difference is not an issue. For clients in the US, work continues while they sleep, and their mornings leave time for online meetings.

Legal aspects

Sharing sensitive information with a contractor can feel risky for your intellectual property: you want to be sure your idea and product won’t be copied or stolen. Part of your due diligence can be reading reviews on industry websites such as Clutch.co or GoodFirms. A well-written non-disclosure agreement provides legal protection.

Go Wombat’s administrative headquarters is in Tallinn, Estonia, and the company works within the European legal framework. We strictly follow all regulations like the GDPR (General Data Protection Regulation) and other fundamental laws.