Choosing a custom software development partner: 4 major challenges to successful delivery

Outsourcing software development can bring many benefits, from access to a large pool of talent to cost savings. However, it does come with its own set of challenges. Before choosing a vendor to be directly involved in your project, you should carefully consider the potential pitfalls.

In this article, we interviewed Ilya Boroda, Head of Pre-Sales at Timspark, to share his insights on the four key challenges typically faced when choosing a custom software development partner and solutions based on the company's outsourcing model.

Challenge 1

Outsourcing and in-house development: Choose your path

According to Deloitte's Global Outsourcing Survey 2018, 59% of companies choose outsourcing as a means to reduce costs. However, companies that focus only on this factor are overlooking other important aspects that can influence their decision.

Performing some functions in-house may not save you money. But it will give you more control over the quality of your work and the ability to better define and maintain your company culture.

Decision

In order not to fall into a double trap, one should try not to lose sight of new outsourcing models. For example, the last 5-7 years show a clear shift in outsourcing from cost reduction optimization to value creation. Organizations can get the technology and process guidance they need by partnering with third-party vendors and benefit from their deep industry knowledge.

The supplier does not have to limit its role to executors acting according to the client's prescribed instructions. On the contrary, it can bring expertise - an idea of how a business problem can be solved, even if the customer is not yet aware of such a solution.

By clearly understanding business needs, a supplier can offer a wider range of solutions and measure success by business impact rather than by the number of projects won from other suppliers. Saving resources, maximizing value and improving business performance all boil down to customer satisfaction as the ultimate goal.

Challenge 2

Experience of the development team: Conduct a test

The team that will handle your project should ideally have experience working on similar projects. However, the problem arises when a customer chooses a vendor for custom software development based solely on the company's portfolio, without considering the experience and expertise of the specific team executing the project. The future success of the project largely depends on the skills and capabilities of the team working on it.

Unfortunately, in most cases, companies showcase their overall portfolio rather than providing information about the portfolios of individual team members. As a result, the customer has limited insight into their past projects. And once the contract is signed and the project begins, verifying the team's experience becomes irrelevant.

To address this issue, you can scrutinize the vendor's portfolio, looking beyond the number of projects to the complexity and variety of cases handled. This can provide some insight into the overall experience and capabilities of the vendor. However, it still does not guarantee that the particular team assigned to the project has the necessary skills and experience.

Ultimately, the challenge is to ensure that the chosen vendor has an impressive portfolio of companies and deploys a team with relevant experience in projects similar to the customer's requirements.

Decision

Open communication with the vendor throughout the selection process can increase the chances of a successful software development partnership.

Actions may look like the following:

- Ensure that the development team meets the quality requirements and can provide the necessary knowledge and experience

- Make the development team transparent to the client about processes, workflow and available certifications

Showcasing a portfolio with a full description of our structure and the experience of a team that has already undergone a rigorous selection process can be key to establishing a foundation of transparency.

Challenge 3

Business objectives and supplier experience: Align them

As a customer looking for a custom software development partner, you strive to select a vendor that meets the requirements of your project and can deliver high quality results in a reasonable time and at an acceptable cost. Quick feedback to the vendor early on regarding their experience, capabilities , possible solutions and overall future performance is critical.

By studying vendor reviews, customers can reduce risks, gain confidence in their choice, and build a solid foundation for successful software development collaboration.

However, the outsourcing model does not imply that the development team should be aligned with the business goals and concerns even at the development stage. The solution that is requested by the customer is rarely or almost never questioned by the vendor with business objectives in mind. Therefore, additional implementation time and human resources may later be revealed, possibly leading to higher costs and longer time to market.

Decision

How can this problem be mitigated? The answer comes down to aligning the work of the development team with the customer's business goals early on.

This approach ensures that the end product meets the latest technical requirements and benefits the customer's business. The supplier can use its expertise to improve the efficiency of the software while solving the customer's problems at the same time.

If teams get this vision early on, they can keep the business needs in focus. The team can propose a technology solution based on their experience and think through how to implement that solution throughout the development cycle, with possible obstacles and additional costs. Thus, the final solution may differ from the customer's initial request. Nevertheless, it ensures that the team is committed to solving business problems in the most efficient way possible, rather than simply fulfilling commitments.

For businesses, getting quick feedback means sorting out potential pitfalls and getting an accurate estimate of the scope of work, time and costs.

Challenge 4

Knowledge transfer from customer to supplier: make it transparent

Lack of knowledge transfer is a frequent problem in the traditional team expansion model. These gaps can occur between the delivery team and potential customers, as well as between the pre-sales and delivery teams. If managers have no understanding of the system and the goals are opaque to them, this can backfire. Expensive proposals, decreased motivation of technicians, reduced productivity and quality of the final product, and delayed time to market are possible negative results.

Decision

It is not a direct correlation, but effective consultation can bring cost and time savings to the client. Involvement of specialists from development teams already at the pre-sales stage allows to achieve a clear transfer of knowledge about the client's needs even before the project starts and to avoid lengthy communications and transitions from client to supplier.

A pre-sales team responsible for communicating the right recommendations and vision for the delivery process can significantly reduce this gap. As a result, all members of the development team will be fully aware of the arrangements and commit to them.

Conclusion

Choosing a custom software development partner comes with its own set of challenges. However, if carefully considered and addressed with strategy, companies can improve their chances of successful implementation. Possible answers include a focus on value creation, open communication, aligning teams with company goals, and effective knowledge transfer.