How to Set Up a Team With an Outsourcing Company

Softensy
6 min readNov 7, 2022

When you’re starting a new business or expanding an existing one, it’s important to get your team in place as quickly as possible. And while it might be tempting to try and do everything yourself, the truth is that you need a reliable development team if you want to be successful.

One of the best ways to build your team is by outsourcing some of the work to a company specializing in web/mobile development, UI/UX design, and digital marketing. By working with an outsourcing company, you can get access to domain experts with strong expertise in your area of interest.

In this article, we’ll discuss some of the benefits of working with an outsourcing company, and we’ll also offer some tips on how to find and choose the right one for your business.

Define the scope of work

Before contacting an outsourcing company, decide what you want them to do.

  • Are you going to entrust an outsourcing team with the whole project, or do you want them to implement a particular project part?
  • Do you want an outsourcing partner to undertake managerial functions, or do you prefer to manage the project by yourself?
  • Do you need them to come up with a development plan, or do you have one and want the team to strictly follow it?

By taking the time to properly define the scope of work, you can be sure that you’re getting what you need from your software development outsourcing project.

In particular, you can be sure that

  • your software will have specific features and functionality
  • your business processes will be positively affected by the new software
  • the outcome provided by the outsourcing team will match the expected result

Research and identify potential outsourcing companies

Do not regret time searching for the right technology partner. After all, you’ll be working with this company for a long time, so you want to make sure it’s a good fit that comes along with your business goals.

There are many factors to consider when outsourcing, such as the type of work you need to be done and the focus area to cover. Here are a few tips to make your decision faster and easier:

  • do your research and identify a few potential companies.
  • meet with the team from each company and get a sense of their culture and how they work.
  • ask questions about the process and make sure you’re comfortable with their answers
  • make sure the company has a good reputation and is financially stable
  • view portfolio and examine experience with similar projects
  • ask for a sample of a software development contract

Request for proposals

You can significantly increase your chances of acquiring a professional development team if you write a request for proposals (RFP). This document will help you filter out unqualified vendors and make the selection process more efficient.

A request for proposal is a written description of your project that you can use as a trade item in an auction. By posting your RFP on your own website or a specialized platform, you can receive offers from vendors ready to implement your project. You will also be notified about the price they expect to charge and the deadlines they promise to meet.

To make sure you get the most accurate proposals, include a detailed project description in your RFP. Describe at what stage of development you are now, the technologies in use, available resources, team composition, and other details which will allow potential vendors to estimate the project.

By drafting an accurate RFP, you will put yourself in the best possible position for a successful outsourcing partnership.

Example of request for proposals
RFP example

Select an outsourcing company

When you have several potential candidates, found by self-search or through an RFP application, you will need to compare them and choose the best one.

There are a few key things to look for when evaluating potential outsourcing partners.

First, you want to make sure the company understands your project and has the necessary skills and experience to complete it. Do they ask the right questions? Do they propose reasonable technologies? Do they provide realistic deadlines? All these things matter.

You should also consider the company’s communication style and whether they have a good working relationship with other businesses in your industry. In view of this, you need to compare how quickly you can contact company representatives, access necessary information, and receive feedback on your request.

Finally, be sure to compare pricing and discounts to get the best value for your money. The best way to evaluate the price-quality ratio of a given company is to order the discovery phase. The discovery phase will show how the team will handle your project and what it will spend money on.

Project estimate by Softensy
Example of time estimation provided at the end of the discovery phase to our client

Set up communication channels

Once you are happy with a selected outsourcing partner, it’s time to pick up communication channels and set up effective communication. Here are a few tips on how to do that:

Use a common communication platform. Whether it’s Skype, Slack, or email, use a platform that everyone is comfortable with and that allows for fast communication.

Establish clear communication protocols. Make sure everyone knows who is responsible for initiating communication, how often they should check-in, and what kind of information needs to be shared.

Set up regular meetings. In addition to daily or weekly check-ins, it’s helpful to have regular meetings with your outsourcing partner to review project status and discuss any issues that have arisen.

Use project management tools. Programs like Asana or Trello will help you track work progress. By having all tasks in a commonly shared platform, you can stay on top of things and identify any potential issues early on.

Be clear about your requirements and expectations. Outline what you’re looking for in detail and make sure that your outsourcing partner understands them fully. Explain to your outsourcing partner that you expect the same open communication in return.

Negotiate the сontract

The last step in establishing a team with an outsourcing company is signing a contract. Software development contract protects

the rights of both parties and ensures that the final product fully meets the client’s expectations.

The content and structure of the contract will vary depending on the project type and duration. However, development partners usually sign one of the three contract types mentioned below:

Fixed price contract. This ensures that the client and software development provider agree on a fixed project price, which does not change during the project development cycle.

Time and materials. This indicates that the price of work depends on the number of hours spent on development and the resources used.

Dedicated team. This provides the client with a dedicated development team, each member of which receives a pre-agreed salary once a month.

Types of software development contracts
Types of contracts in software development outsourcing

Kick off the project

When the ideal team is found, the details of the project are agreed upon, and the contract is signed, it’s time to proceed directly to development. You, as a business owner, should be involved in the implementation process. At the same time, you should trust your team enough to rely on them in making important technical decisions.

If you’re looking for a reliable and experienced software development outsourcing company, Softensy is your best choice. We have over six years of experience working with outsourcing partners, and we have a proven process in place to ensure successful project outcomes.

Contact us today to learn more!

This article was originally published at Softensy

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Softensy

Softensy specializes in fintech development and enterprise-level apps. Our team helps companies automate business processes by developing software solutions.