Consider these things before signing a tech partner

After founding Solidstudio, Pawel was an originator in terms of pursuing expertise in eMobility. With the build-up of a solid knowledge-base on industry’s needs & wants, he now keeps a close eye on products’ development. He’s also hugely responsible for the business’ side and designs the business models for our products.

Paweł Małkowiak

Individual business owners or companies decide to outsource their IT projects or functions as part of different scenarios. For example, it can be a startup that lacks an internal IT department, an individual who needs additional expertise to transform their idea into a live product, or a company that doesn't have enough tech workforce or suddenly experiences too many projects in the pipeline.

There are several ways for finding you an IT partner - you can find such providers on the web, through referrals, meetings during conferences, etc. Regardless of how you find your IT partner, there's always going to be a process between finding a potential software outsourcing company and the start of development. From my perspective, there are a few factors that can build confidence and trust between the two parties and positively impact the entire cooperation.

Over the last few years of helping other businesses achieve more with technology, I narrowed down the key elements that always help us to gain the client's trust and things that act as show-stoppers. I believe this list can go on infinitely, but the following 4 points are low-hanging fruits every company should expect in a tech partnership.

Reviews and references - every software outsourcing company should have a public profile on websites like Clutch, where reviews are verified by a third party. Moreover, a happy client is always willing to share a positive recommendation letter (note that the reference includes contact details, so it can be easily verified!). All in all, a bunch of positive reviews builds confidence that the tech company can deliver!

A pushy sale is a red flag - does the contact person from your IT partner seem desperate? Consider it as a red flag. The best software outsourcing companies are always busy with exciting projects. Onboarding a new client is a goal that takes time and care to achieve. The process should be mindful and take a proper amount of time to get the requirements set up, build the team, and align all of the project details with strategic business goals.

Commercial workshops before the decision - even well-developed specification documents fail to provide all the product details. A short commercial workshop that lasts one or two days, carried out at the office of the client or software development outsourcing company, gives both parties an excellent foundation for initial trust. Moreover, the product vision will become clearer, and the initial project pace will be set.

Communication is king - this point is self-explanatory. From my perspective, 'sit's safe to say that all the good things that happen during the onboarding process will become stronger during the development phase. And all the things that aren't great will get progressively worse. As communication is one of the most important factors when it comes to delivering IT products, every missed e-mail, meeting, or misunderstanding will impact the process. Ultimately, excellent communication is the foundation for trust in business relationships.

As Solidstudio, we can become your tech partner and a software outsourcing company that helps you achieve key business goals - starting from gathering initial requirements and workshops, through development and testing. We also support and maintain IT products as follow-up steps, so you can be sure to rely on a single IT partner throughout the entire software development lifecycle.

True cost of software outsourcing - how can you meassure this?

Software development outsourcing is the term used when a technology company is hired to create and build a business’ IT systems. A hugely beneficial practise, outsourcing in this way can help small to mid-sized companies in particular not only gain a competitive edge, but significantly reduce costs and implementation time.

While the premise of software development outsourcing is quite simple and its benefits clear, finding a reputable company to deliver such services can be a challenge. Google ‘software development companies’ and the result is seemingly endless pages of vendors offering their services at competitive rates. So how do you know which of those developers will properly fulfill your needs and offer true value for money?

Knowing what to expect from a vendor, from both a service level and cost perspective is vital before choosing the best 

 for your business. There are a number of considerations that will help you identify a reputable software development company, all of which are detailed here, plus how much you should expect to pay for such services.

Software development outsourcing: What to consider

Outsourcing software development involves a significant level of trust from both parties to work successfully. More often than not, a business will have to share confidential and valuable data in order to get the IT systems it requires. Any reputable software development company will understand this and offer a service that not only meets a brief from technological perspective, but a human one too. To find a tech partner who will do just that, look out for vendors with the following attributes:

 – A reputable software development company will be sympathetic to their line of work being highly specialised, and will therefore help clients form requirements, ask difficult question and make sure all parties are completely clear on the business’ objectives

 – Making sure a software development company has the right skillset to fulfill technical requirements is vital, as any gaps in knowledge could lead to costly delays. A close look at a vendor's portfolio will give a good indication of whether the team possesses the correct skills, across the most relevant technology.

 – The more senior a team, the more business-orientated it is. A good way to gauge experience levels is to look at ‘Meet the team’ pages and see what percentage senior developers account for.

 – While a project might need multiple developers input, it’s a good idea to choose a vendor who will assign developers to one project at a time. Not only will the sense of ownership help increase a developer’s output, but means each project has one firm point-of-contact.

 – Any software development company worth it’s weight will help a client see past the ‘now’ with any technical requirements, and offer the expertise to scale a project up or down as needs and situations change.

 – Developers are in high demand globally, but that shouldn’t mean waiting long periods for projects to get off the ground. At Solidstudio, development can start in a matter of weeks, with the initial planning phase up and running in a matter of days.

 – A quality software development company will stay in regular contact with clients for a project’s entirety. At Solidstudio, weekly and biweekly calls are standard practise. Clients are also invited to join internal communication channels and are welcome to dial into daily standups if they so wish.

 – The last but one of the most important considerations of all. A quality software development company will be completely transparent at every stage of a project’s progression. From planning and implementation, to costs and potential issues, any work completed should be visible to the client, at any point. Be wary of talk of or signs of further outsourcing from within the vendor – this is also a major red flag.

Software development outsourcing: How much should it cost?

So now you know what to look for in an outsourcing software development company, the next big question is how much should it cost? Giving an exact figure here is almost impossible for two main reasons; firstly, because every project will have different requirements. And secondly, creating a digital product is a process of constant change, and therefore an estimate provided at initial contact stages could easily change (sometimes significantly) as the project evolves.

In order to get a realistic estimate, the best first step is to spend a good amount of time considering what your product requirements are and drawing it up into a project specification document. This should broadly outline how the required software should function, in both the short and long term, which will help vendors understand what level of work and seniority is required. It will also help avoid any misunderstandings in the development cycle and costly delays.

After sharing this document and an initial consultation with your chosen vendor before any work is carried out, you should expect an estimate based on an initial assessment of how much work is involved and the level of seniority it will require. Solidstudio has a track record of smaller end-to-end software development projects over a three-month period, as well as bigger, on-going projects and so can quickly offer very accurate initial estimates. These would include costs for:

It is worth reiterating costs can (and almost certainly will) change as a project evolves. Be wary of low estimates, cheaper estimates don’t necessarily offer the best value, and can often include hidden costs that soon add up. Reputable software development outsourcing companies will be completely transparent when it comes to costs, keeping clients abreast of any changes, and ensuring to check before undertaking new work that might add to the bill.

 is often best suited to IT outsourcing. This pricing method means fees are configured based on the amount of time spent on a project, combined with the cost of the effort (materials) used in the process. Solidstudio works to an hourly rate structure of $40-75, depending on the level of seniority required, with management overlay kept to a minimum.

For more information on software development outsourcing, or for an estimate, contact the Solidstudio team!

True cost of outsourcing - how can you meassure this? Read our article to find out.

Software development outsourcing: what to consider and how much does it cost?

T&M contract in IT outsourcing: How it works

The ever-evolving nature of software development can often make setting a fixed price for work impossible. Much like the IT products being developed, pricing models need to offer a high level of flexibility for if and when requirements change. This is the main reason time and materials contracts have risen in popularity in recent years. Often referred to as T&M, a time and materials contract model works out the overall cost of a project based on the time spent on the work carried out, plus any materials used.

But how does that translate in the world of IT outsourcing? In this article, we take a close look at exactly how a time and materials contract works, plus what types of projects it is best suited to.

Time & Materials contract: How does it work?

A time and materials contract is based on the number of hours a developer spends on a project (according to a pre-arranged hourly rate), plus any materials (eg software licenses) used for the duration of said work.

The key to a time and materials contract is flexibility – it can evolve alongside a project, and easily be adjusted as and when requirements change. The level of control this type of agreement offers to both clients and vendors is what makes it such an appealing option.

A highly agile-orientated workflow, time and materials contracts can be hugely beneficial, ensuring cost-efficiency, transparency, and timely delivery of the task in hand. However, this type of agreement requires a level of trust from both parties in order for it to work successfully. Vendors must be transparent when it comes to time spent on a project and regularly update clients with costs incurred, and clients must always be present to discuss requirements and approve decisions, as well as pay the agreed rate. Needless to say, picking the 

In practise, a T&M contract will include milestones of product delivery, all of which are defined and agreed by both parties. Here’s how a time and materials model works at Solidstudio:

The size of the project is initially assessed, before being broken down into small deliverables, each of which will be estimated and carried out subject to a client’s approval.

Developers, UX designer and Project Managers at Solidstudio work at fixed hourly rates of between $40-75, based on their level of expertise, skills and qualifications. Staff best suited are assigned to a project, with the hourly rate communicated to the client before any work is undertaken. Each month, a worklog and invoice according to the specific developer’s hourly rate is sent to the client.

Solidstudio works in agile iterations of two weeks, presenting progress to clients at the end of each iteration. In addition to this, the Solidstudio team also hosts recurring planning sessions with clients to track and measure performance.

Time & Materials contract: When should it be used?

While it might seem like a time and materials contract is the perfect pricing model, it’s not always the best solution. As a general rule, time and materials contracts are most suited to projects, where the scope of the project is initially hard to define or can be subjected to a change. T&M is perfect for when there is no clearly finalized product, and when there is no easy way to divide the project into smaller parts. This contract type lends itself in particular to:

Projects with undetermined or vague specifications

Start-up businesses, with no exact, predefined goal

Projects that need to quickly react to market trends

Outsourcing a development team to work side by side with the internal IT department

Whatever software development you might require, it’s always best to check all pricing options available. For more information on time and materials contracts and how they work, contact the Solidstudio team.

Pros and cons of Time & material vs fixed price contracts.

Time and materials contract

Needs evolve with technology, people, & processes.

At some point, almost every startup is faced with the outsourcing decision. Whether your company would benefit from outsourcing some or all of their development to a trusted partner depends a lot on individual circumstances. If you are considering outsourcing, there are a few questions you should get answers to and a few things you should consider before making a decision.

Outsourcing falls into two main categories: adding to your existing and total outsourcing.

Scaling up your current team or setting up a complementary development team that works closely with your internal IT department or another department within your organization. This option is great for established startups that need to scale their operations or access developers with skills their internal team doesn’t have. This form of outsourcing lets companies access a pool of experienced developers with a wide range of skills and quickly scale up development as needed without committing to hiring more internal team members.

Total outsourcing involves relying on an external partner to support all of your development needs. This is a great option for smaller companies that don’t have the budget to support an internal team. In this case, the technology partner handles the entire development pipeline, including implementation, testing, and deployment.

Why Should My Startup Consider Outsourcing?

There are a few reasons companies consider outsourcing. Outsourcing allows your company to quickly and easily scale your development team up or down to meet your changing needs and requirements without the hassle and cost of in-house recruitment. Outsourcing is also a great way to add necessary skill sets to your team, particularly if a select skillset is only occasionally required.

Partnering with an experienced development team that understands your business goals is vital, particularly if your startup is still in the early stages. Having a steady and experienced team on your side can help you achieve your goals.

Choosing the Right Development Partner to Suit Your Needs

Every startup is unique, just like every development partner is unique. Finding a partner that works well with your team and can meet your unique needs is vital for success. While some aspects of development, such as good UX design or solid project management skills, apply to all projects, you need a development partner that can tailor their skills and expertise to meet your needs. A good partner will finish all the tasks you assign them, but 

 will work with you to identify potential growth areas, offer suggestions and advice, and help you achieve both your short and long term goals.

To help our partners succeed, Solidstudio offers a wide range of 

, to help potential partners clearly identify their needs before committing to the partnership. We also host workshops to help our partners identify their true business needs and help them determine what steps they need to take to achieve their goals. Choosing a partner who looks at the big picture and is able to support both your current and future needs in the IT product development sphere is essential for a successful, long-term partnership.

The ability to scale quickly and seamlessly while keeping development quality high is at the core of any great development partner. Startups move quickly, and you need a development partner that can keep up with you.

When working with a new partner, it’s vital that you see the value add from the very beginning of the relationship. Your development partner shouldn’t only be interested in the number of hours they will need to work or which resources they will need to commit to you and your projects. Instead, look for a partner that focuses on how they can help make your product, and your business, better by assisting with things like planning and assigning out work to the right resources for the job.

You should also make sure you choose a partner whose values and attitude match your company’s culture. Cooperation is key to the success of any project, particularly in the fast-paced startup world. It can be difficult for teams to work together if their values and corporate cultures aren’t compatible, so look for a partner that cares about the same thing you do.

One organization the Solidstudio team partnered with was a Berlin-based, rapidly-growing startup in the 

. This startup already had an internal development team, but they needed access to additional skills their internal team members didn’t possess, leading them to partner with Solidstudio. Our team is currently working with them to finish their partially completed solution and now provides full development support for 3 additional projects to address the pressing needs of their clients.

We were also able to facilitate the migration of their app to the cloud and help them architect their platform using micro-services. We are also working on implementing best-in-class cloud solutions. In addition to helping this client achieve their goals, we also helped them fundamentally change how they approach development by assessing their team and their needs and introducing them to the agile method.

Our team partnered with a company that had no internal development resources to provide total development support in this case study. 

 is a UK-based company in the health and wellness sector that was looking to develop a web-based application to help their customers track and improve their well-being.

Our team worked with them to create a minimum viable product (MVP) and continue to offer ongoing support using a variety of tools and methods, including planning, workshops, and backlog development through the implementation phase. We also handle their hosting.

Whether or not your startup should outsource their development (either partially or totally) depends on a lot of unique factors. The Solidstudio team is here to help you identify your core needs and craft solutions that allow you to achieve your goals, all while providing ongoing support and valuable advice.

Needs evolve with technology, people, & processes. Click to read our article.

Best software outsourcing companies

15 AUGUST 2019 • 6 MIN READ