Software Outsourcing Guide Book (2020)

This is our complete guide book for companies that are developing a strategy toward software outsourcing.

The best part?


If you are new to software outsourcing, you will love our guide book.

Let’s dive right in!    1. What is software outsourcing? And why outsourcing software development?  

In a nutshell, like any other outsourcing service, software outsourcing is hiring 3rd party service providers to handle one of your internal operations, in this case, your software engineering team. The outsourcing partner can help you:

  • Develop anew
  • Maintain
  • Upgrade
  • Migrate
  • Etc.

There can be multiple advantages of outsourcing software development, but the most common are:

  • Cost-saving when you can make use of income gaps between countries/regions and pay outsourcing developers less compared to local developers with the same skill set
  • Time-saving by quickly making use of your partner’s resources instead of building your team and going through the full recruitment process
  • Knowledge sharing because your outsourcing partner should be an expert in the softwaredevelopment process, and if they have experience with a similar project, that would be a huge plus
  • Overseas resource abundance, especially in Vietnam, India, etc.

  Depending on your needs, outsourcing can help you cut costs, save time, upgrade your knowledge base, etc.   2. A step by step guide to starting your first outsourcing project  

There are a lot of questions to be answered before you can start your first outsourcing project:

Should I outsource my project?

How to start my software outsourcing project?

How to find a software engineering team that matches my project?

Important note when doing software outsourcing?

A step by step guide is just what you need.  Step 1: Identify your need and create a draft software development plan  

There are thousands of different outsourcing companies out there globally, and each of them offers a unique set of skills, experience, abilities. To avoid a lengthy screening process, and find a partner that best matches your needs, it is essential to know what you need first.

  • What are the project details and requirements?
  • How do we plan to start the project?
  • How soon can I start my project, and what is the expected timeline?
  • What is the expected budget that I can allocate to this project?

To answer these questions, you need to prepare each of the following documents:


  1. A short description of your project, describing your idea or concepts
  2. A specification document, describing the project function, expected architecture, its relationship with operators, or another system if necessary (it is best if you can produce a Software Requirement Specification)
  3. An expected timeline, identifying your expected start/end dates, and detailed milestones if necessary.
  4. An expected budget range or the maximum budget you can invest in this project

Additionally, depending on your project:

5. Do we need more outsourcing developers to add to our current team, or we want someone to handle all the work and just deliver the product to us?

6. What technology (coding language/platform) will this system use?

7. What management methodology will we use tomanage the project?

8. Are there any laws or special requirements we have to fulfill when building the project? (Government laws, company policies, etc.)

The more details you have, the better chance you can find a suitable partner faster.  An example of your discussion  

***Note:– When you agree on each of these terms, remember that your team knowledge and experience are limited. Try to keep your mind open for change when you go down the process. (E.g.: you may find out your expected timeline is not suitable to build a system the size you planned)– A software outsourcing partner is like a tailor that will make your suit. The better you can describe it, the better the suit can be.  Step 2: Narrow your scope before reaching out by knowing where, what, and who?  

After step 1, your team should have an excellent base to start looking for partners, but where do you look? What are you seeking for? Who should you ask?

Where can I find local providers that match my criteria? If a foreign provider might suit my plan better, which countries should be in your consideration list?

For example:

If your business is in Singapore, it is usually tough and expensive to work with 100%-local providers. And due to various factors like time zone, culture, regulations, it will be best to consider your outsourcing partner located in Vietnam, India, Indonesia, Malaysia, Thailand.

Do your research and learn more about your options. You find, classify minor/significant problemsthat potentially increase the risk or the potential of each option. Discuss with your team and remove one that cannot process further. business registration Singapore

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