Software Outsourcing Company: How To Choose The Right Size For a Startup?

When outsourcing, what will happen if you choose the wrong team size? Try Googling “How to choose the right size IT outsourcing partner for a startup”, then you will end up with many search results. There are plenty of companies of all sizes to outsource to. And no single “one size fits all” strategy seems to work when choosing a software outsourcing company. Some outsource software firms emphasize location, some stick with cost, and some prefer expertise.

You may think team size is the only criterion to select a software outsourcing company. But there are thousands of high-quality outsourced companies around the world. Which is the best outsourcing firm to fit your business? Consider combining team size with technical experience and location to select a software company.

The size of your future outsourcing partner is not given as much thought as it deserves. If you are about to make a decision, but have some lingering doubts, consider it carefully. Before approaching a technology partner, ask yourself whether your project is small, medium, or large. And accordingly, you can shortlist possible vendors. In this article, AgileTech will give you a complete guide on how to choose the right software outsourcing company size for boosting your business!

1. Choosing a Small Outsourcing Company

First, the size of your project should be considered when choosing a software development outsourcing company. If your project is estimated to take under 500 hours to complete, it’s ok to hire freelance developers. Other, if your business is small, you can hardly get good results from a large IT software outsourcing company. Thus, choosing the right size software outsourcing company is very important.

Small outsource companies tend to have progressive business plans. In addition, such outsourcing firms usually are expected to be nimble and excel at finding their niche, regardless of the field. Also, the small companies might pay attention to every wish of the client and follow all requirements, as the rule of survival.

2. Benefits of choosing small outsourcing companies

• Low operational costs. When it comes to outsourcing, price is always the first thing to consider. A company with small workers usually provides outsourcing services at lower prices. Therefore, outsourcing in a small technology company will guarantee an affordable price and significantly save the budget.
• Enhanced the productivity of internal teams. At the same time, you will get quality service at a reasonable price. Also, time and money are freed up for recruitment, training new in-house staff, etc.
• Flexibility. Outsourcing services, especially IT, your company has more flexibility to pick and choose whom to work with on specific projects or tasks. As mentioned, small software outsourcing company will reach customer needs in a flexible manner.
• More efficient process. At smaller companies, it’s common to work together and know each other better. Therefore, the team can cooperate more effectively.

Read more: How To Outsource Software Development? Complete Guide For Outsourcing!

3. Choosing a Medium-sized Software Development Outsourcing Company

One of the main reasons why outsourcing fails is the lack of dedication and passion in the outsourced team. If you choose the wrong size of the software outsourcing company, your project will be far from what you dream about. Choosing a mid-sized team with the right set of skills, experience, and passion is a considerable choice. Such partners have already worked with many types of customers. The only thing left to be concerned about is that the price won’t be as cheap as a small company.

Pros of hiring Mid-sized outsourcing companies

• Access to a larger pool is available. When hiring in-house employees, you don’t have much choice. Medium-sized companies have already been on the market for a long time as well as secured many proficient staff. The more experts are involved in your project, the faster all tasks get done.
• Fewer worries about the maintenance of the system. When you outsource, focusing on your core business becomes slightly more relaxed. You don’t need to think about how every department works and what its specific needs are. You can focus on marketing strategies or other business activities.
• Enhance process efficiency. If some problems suddenly happen, the medium-sized team will solve them quickly. A software outsourcing company can help you carry out some burdensome tasks. Therefore, you can achieve better results, make all processes more efficient, and boost team productivity.

4. Choosing a Large Outsourcing IT Company

Lastly, let’s talk about a well-known company. Large software outsourcing companies must be experienced in various outsourcing services. If your outsourcing team has more than 3 developers, the lack of management may risk. Besides, if you are hiring developers from leading software companies, it may produce higher-quality code. However, such partners charge more money than a small or medium-sized technology firm.

Advantages of outsourcing to large outsourcing companies

• Brand reputation. Companies of medium size have worked for several years, so they have quite a wide client base. Additionally, they take care of their reputation and strive to gain customers’ trust.
• Experience in developing large projects. Due to having many experts, the developers can handle projects of any size and complexity. You can hire as many software engineers as you want to create a solution that matches all requirements and meets your company’s goals.
• Extensive portfolio. Large outsourcing companies have been working for a long time, so they can provide you with a large portfolio and satisfied clients. As a result, you can ensure your vendor expertise.

5. How To Outsource Software Development Successfully?

Define your exact goals

If you want to outsource successfully, you must communicate what you need to your software outsourcing company. Be detailed with role descriptions, quality expectations, scope, and deadlines for the project, etc. For whatever project you’re outsourcing, it’s important to keep track of communication. You need to have answers to the following questions:

• What is your product concept?
• How much are you ready to spend on web or mobile app development?
• Which expertise do you need to bring it to life?
• What is the size of the team you want to hire?

Read more: 5+ Fastest Growing Industries | Best To Start A Business

5.1. Shortlist potential service providers

There are thousands of software outsourcing companies providing IT services. How to choose the best fit? It will take time to select the right size outsourcing vendor. Spend time to find out which outsourced software development specializes in what you need! Also, you should compare and contrast their strengths with other outsourcing providers.

There are many factors to consider when choosing who to start a business relationship:

• Does the company have a quality product and a great price?
• Has the provider shown consistent improvement during its time doing business?
• How about their experience, location, flexibility, tax laws, and language or cultural barriers?
• Last but not least, what is their reputation and ratio of positive vs. negative reviews?

Read more: Vietnam – Top Location for Offshore Software Development

5.2. Evaluate your prospects

Now that you have narrowed down the list of the best-fit outsourcing company for software development. Next, you need to further evaluate each of them. The following list will help you perform a thorough investigation and make a final decision regarding your IT outsourcing service provider:

• Background check: How long has the outsourcing company been in the market? What are the main outsourced services? Is the portfolio similar to your projects?
• Client references: You should hire a software outsourcing company with good user feedback and reviews. How many projects has the vendor completed? Are they outsourced or not?
• Capabilities of an IT outsourcing company: Let’s look deeper. You need to have extensive information and what technologies they can offer you!
• Work process: Since the outsourced work, it’s important to set meetings periodically. Discuss key elements of your business or whatever makes sense for your partnership. Don’t forget to know what tools your software company uses to communicate!
• IT quality standard: Make sure that the company you are considering as your service provider can deliver the quality. What is their certification? How does the outsourcing company ensure a high quality of code?

6. Bottom Line – Consider Software Outsourcing At AgileTech

That said, are larger outsourcing companies more scalable? Are they more stable financially and less dependent on the customer? Probably yes. But are they better organized? As well as provide better services? Not necessarily.

There is no right or wrong answer when it comes to deciding how small, medium, or large your future IT software development company should be. Think carefully about your business strategy and decide how important the company’s size listed above is for your business. Also, consider 3 other factors like the partner’s reputation, review, and feedback on the market, time zone, and technological expertise etc. Finding the right size software outsourcing company will deliver the best value for your business!

Why should you choose us to outsource?

AgileTech is a quality software outsourcing company that provides many outsourcing services at affordable prices. By providing multiple needs and services, AgileTech is here to ensure your technology project is a successful element of your omnichannel strategy. We have expert Project Managers along with excellent teams who have delivered the best products to customers in more than 10 countries, namely the U.S, U.K., Germany, France, and Singapore.

• Our dedicated team is good at English. So, you can communicate with us all the details of the project easier.
• Software engineers are flexible. Even if they have a different time zone, they are always ready to follow your schedule and find an appropriate time for calls
• AgileTech expands and gains access to new market areas by taking the point of production or service delivery closer to its end-users