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

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

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.

The key to success in developing custom software.

Being an eMobility leader in various projects across multiple startups, Piotr was responsible for OCPI and OCPP integration as well as EMP and CPO platforms development. With extensive expertise in the open standards field and eMobility tech solutions, he is leading teams of experienced developers and contributing with invaluable knowledge and experience.

Piotr Majcher

 is one of the most demanded services today. Organisations that want to gain a significant competitive advantage and boost their operational efficiency invest in tailor-made software solutions that meet their needs better than off-the-shelf software.

Developing a bespoke solution takes place during five different stages where development teams first engage in business discover, proceeding to design, development and quality assurance, and launch. The first stage is critical here - that’s where software development companies get to understand the needs of their clients and can propose solutions that address these problems.

But to ensure that your bespoke software development project is successful, there are some things you should know.

At Solidstudio, we have a lot of experience in designing

for our clients. Over the years, we’ve developed a range of processes that help to make development smooth and successful.

What are the key benefits of bespoke software development?

But first, let’s see why so many companies are investing in bespoke software solutions. Here are the benefits custom-made software brings organisations.

Access to cutting-edge technologies - considering the pace of technological development, it’s rare for software vendors to accommodate all changes and trends immediately. Custom software development takes advantage of the most recent innovative technologies to bring you the most up-to-date solution.

Scalability - a custom software solution can grow together with your business because it’s easy to scale it to match new requirements. A software company will not only build your solution but maintain it in the long run, ensuring that it scales to support your growth.

Security - a solution available on the market and used by many businesses is an easier target for hackers. A Tailor-made solution will address all the vulnerabilities specific to your business systematically, protecting your business against cybersecurity threats.

Cost efficiency - a customized software solution is designed to work with the software you have. That means you won’t have to invest much in extra hardware - while that’s often the case in licensed software.

Easy integration - organisations often use multiple off-the-shelf software solutions to match their needs. But using several programs at once in challenging in terms of procurements, licensing, and maintenance. By developing a single tailor-made solution, businesses can integrate various processes into one tool.

Support and maintenance - a custom solution comes with reliable technical support and product maintenance plan. The development team that has developed the product will help you resolve any problems quickly and efficiently.

Bespoke software development - how to do it right?

To maximize the ROI from a bespoke software solution, organisations need to have an in-depth understanding of practical problems they want it to solve. Having a strategic vision of the solution is essential to ensure that it perfectly matches a company’s needs.

To start a software development project, organisations need to team up with a trustworthy and experienced custom software development company. It’s important to choose a reliable tech partner who has experience in managing such projects and excellent track record of implementations.

Successful bespoke software development requires smooth cooperation between the development team and the client. Regular communication is paramount here. That’s why it’s best to choose a company that has communication tools and processes in place to support such collaborations.

Are you looking for an experienced software development company to help you build a bespoke solution? Get in touch with us; we have the skills and know-how you need.

Bespoke software development.

Outsourcing is on the rise as a global trend in business management. Companies that experience rapid growth often have insufficient in-house resources to take full advantage of their situation and gain new opportunities. Struggling to meet the demands of a growing business, they fail to see the big picture and miss out on their chance to become big.

Expanding development teams is challenging. Fortunately, companies can avoid recruiting new team members by outsourcing a portion of their operations or selected tasks to offshore development companies.

Here’s everything you need to know about 

Why is offshore software development so popular?

The primary reason behind the popularity of offshoring is an opportunity for companies to reduce labor cost significantly. That allows business to boost their bottom line - and that’s something important in today’s competitive market.

Companies struggle to source, attract, and recruit talented developers. Companies are competing for local talent and finding developers with the right mix of skills and experience is very hard. Offshoring offers companies a way around that problem - by partnering with a business in a foreign country, they get to expand their talent pool and take advantage of the local workforce that often boasts high technical knowledge and expertise.

Moreover, by teaming up with an offshore technology partner, companies get to cut on operational and administrative expenses such as office, equipment, onboarding, training, team management, and many others.

Key benefits of offshore software development.

Here are the most important benefits of offshore software development:

Cost savings - in a competitive market, companies can give their bottom line a boost by offshoring tasks and reducing the cost and labor expenses significantly.

Lowering operational costs - reduced staffing leads to a significant reduction in space required to carry out operations. It’s no secret that locations with high staffing cost are also characterized by high real estate costs. With offshoring, companies get to save up on space efficiently and save up on office costs (heating, electricity, equipment, etc.).

Access to specialized knowledge - businesses that rely on advanced knowledge in a specific area of software development might find it hard to source developers locally. By teaming up with an offshore software development partner, they get to take advantage of local resources without having to go through the burden of recruitment.

Offshore software development - how to choose the right tech partner?

Since there are thousands of outsourcing companies all over the world, picking the right offshore partner can be challenging.

First, it’s a good idea to decide on the geographical region you’d like to focus on. In the past, Asian countries like India used to hold the reign in offshoring services. Today, the situation is entirely different. Companies are looking for offshore partners who share their values and can communicate with them easily. That’s why Central European countries like Poland are becoming the new offshoring destination.

Once you know which region of the world you’ll be targeting, start asking for referrals. When checking a company, find out who their clients were and ask about their collaboration. Knowing how the company performs in the offshore setting is critical.

Get in touch with several companies to compare their offer. Decide which outsourcing model fit best to your project and see how it matches the offered services. Verify the company: check their blog, social media profiles, and endorsements.

Pay attention to how they manage projects. Excellent project management is key to the success of your offshore collaboration.

If it’s possible, make a test run of a potential partner regarding technical requirements and expertise. Start small and if the company delivers the project to your satisfaction, consider teaming up with them.

Poland - The best country for offshore software development?

Poland is becoming an increasingly important IT centre for offshoring and nearshoring software development services. Polish developers have university degrees, ample experience in the field, and plan talent - HackerRank placed Poland in the top 3 countries with the best developers in the world.

Moreover, Polish workers speak English and share similar professional values to Western countries, making them an ideal choice for an offshoring partner.

Are you looking for an experienced software development offshoring partner? Get in touch with us; we help companies all over the world take their business to the next level with our engineering talent.

Offshore software development

5 benefits of working with a nearshore software development company.

If your technology business is rapidly growing and you need new people on board fast, you’re probably considering to outsource development to manage the workload. 

 allows companies to hire skilled developers who can handle even the most advanced aspects of a tech project to let your internal team focus on the big picture.

Nearshoring is one of the most popular form of outsourcing software development or services today. That does not come as a surprise because nearshoring offers many different benefits.

Here are 5 reasons why companies team up with nearshore technology partners:

By partnering with an external company, you get to benefit from the talents it has sourced and nourished for a long time before they join your ranks. You’ll be working with an external team of developers who have previously collaborated and have processes in place to enable smooth development. Hiring a team like that would take you a lot of time and resources.

Nearshore partnerships offer flexible options for scaling your IT team as needed. You may need developers for your project right now, but your needs may change after 2-3 months. Hiring nearshore allows getting the work you need, right when you need it.

Most of the time, nearshore professionals follow the same industry standards and best practices such as agile or scrum. They work on similar timelines, and you have little to no gap between time zones.

Finding qualified talents for your internal team is always challenging. When you team up with a software development agency that builds a team for you, you remove all the hassle that comes with sourcing, attracting, and recruiting developers. You don’t need to spend a dime on the hiring process.

Reducing communication issues that are usually part of outsourcing development helps to improve the ROI and bottom line. In nearshoring, you benefit from reduced language barrier between supervisors and nearshore developers. For example, in Poland pupils start learning English in primary school and are proficient at it by the time they graduate from high school.

How to choose a nearshore software development company?

Hiring a company in a neighbouring country or relatively nearby is different than teaming up with an offshore partner located on the other side of the world. Hiring a nearshore partner is more comfortable, but there are some things you should be aware of when looking for the right technology partner.

Check their knowledge of English or another relevant language - you need that skills for smooth communication. Remember that communication problems may kill a project quickly, especially if we’re talking about the complex process of building software.

Ensure that the company has skills and experience you see - it only makes sense to enter a nearshoring partnership if the partner offers expertise that fills the skills gap you’re experiencing internally. That’s why checking the company’s areas of expertise is so important.

Nearshore development - the current hot topic.

Delegating development tasks to a nearshore development team allows your company to concentrate on the big picture and create a real competitive advantage. Tech giants like Amazon or Apple are aware of the benefits of nearshoring and are increasingly turning to nearshore development today.

Hiring nearshore software developers is on its way to becoming the standard workflow of the future for companies that experience rapid growth and need a sustainable solution to support it.

Don’t leave your company behind and take advantage of nearshore software development. Get in touch with us to see how our team of experts can help you solve problems and achieve new business goals.

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

02 JUNE 2020 • 6 MIN READ