#Outsourcing – the buzz word that can help you grow

April 17, 2015

About ten years ago the word “outsourcing” was simply associated with low costs and India. Nowadays, both are not so accurate, because outsorcing has become a growing business for lots of companies, mainly in Asia and Eastern Europe. The increasing market demand and the new players had positioned the outsourcing services as well-paid ones in return of a high quality. Even more, companies started to outsource not only their customer support, but also critical issues as software development.

What do you gain from outsourcing the development of your product?

Time to focus on your core competency
Software development is a process, which needs dedication, experience and lots of resources in terms of time, money, people, skills, experience. When your core business is monetizing your idea for a software product, normally your focus is on the market, on your customers, on your marketing and sales activities, on your competitors. It is hard and expensive to have it all under your belt.

Optimize your expenses
Why it is more expensive to make software development in-house? Because when you have your internal team, you pay salaries, taxes, company overhead, you invest time and staff to recruit, educate, motivate and retain people. This is a high cost, which can be used for attracting and retaining customers.
Experience and skills
Technologies are changing fast and good developers rely on their experience to learn faster. An outsourcing partner can set up a team for you with the technologies and skills you need and it is their responsibility and interest to keep it on a high level. Thus, in a software company, working on different projects, there is a big diversity of technical knowledge and experience that you can benefit from.

How to set up a software development team abroad?

Find a reliable partner.
This is your very first step in outsourcing. You can always hope that freelancers will also do a good job. And they probably will..to some extend. It could be a working plan for a certain task or a well-defined small project. But if you want to grow bigger, to have a dedicated team and to mitigate your risk, then you need a partner with experience and proven reputation.

Define your goals.
It is important to have a vision of what do you expect from your outsourcing partner and communicate it in the initial stage. This way you will avoid wrong expactations and misunderstanding of the final goal. Of course, if you don’t have experience with outsourcing, it can be difficult for you to set up a good plan or even to define your priorities. But this is what your partner can help you with, because of doing it many times before with other organizations.
Make sure you follow same processes.
It is not the cultural differences that fail the project, but the wrong processes and bad communication. If you and your partner agree on same strategy and proven processes for software development to follow, your project could do pretty well. It will also help for a good communication, because you will be on the same page in terms of planning, executing and having the same definition of “done”.
Let them do what you’re paying them for
If you are paying someone to do a job, it doesn’t make sense for you to manage his performance all the time, because it is unefficient. Having an outsourcing partner means you had already put your trust on this company and now is the time to benefit from the experience of people involved. Micromanagement could be useful when working with a freelancer or your internal junior people, but will get you nowhere with your outsourcing partner. Instead, you can have your control on agreed level, following a strategy and defined processes.
Start small and grow stable.
Once taken the decision for software outsourcing, many companies start dreaming for big teams and lots of projects to transfer to their partner. And the reason is clear – they realize how much time they could save for more strategic business activites. It is not that realistic though. Experienced people don’t stay on hold waiting for the big customer. If an outsourcing partner promise you that in 3 months you’ll have your team of 20 people, it has to ring a bell for you that these 20 people will be mostly juniors with close to zero experience.
The smart way is to start small – with a few experienced people and then add some juniors who can learn from their senior colleagues. It will assure you a stable growth of your project.
Inspire your dedicated team with your company culture.
Having an outsourcing partner doesn’t mean simply you had paid a few people to get a job done. It means you have a dedicated team in another country that develop your product with the same passion as you would have done it. To ensure a good colloboration and strong relationship, you have to inspire them with your own company culture and try to make them part of it. It is always a beneficial approach in long-term perspective.

Why choosing Bulgaria for your outsourcing destination?

Bulgaria is the ultimate hub of software technologies, enterpreneurship and innovations in the region. It is not the cheapest destination for hiring software engineers, but it proves to be the one with a very good quality of its services. Here you can find all the big names in the IT sector – SAP, VM Ware, HP, IBM, Microsoft and much more. We are going to explain some of the main benefits to choose Bulgaria for your software outsourcing.

Excellent professionals.
Informatiom technologies are interesting and desirable area for development of many students in Bulgaria. There are several universities and a few private academies, which are working for the good education of software engineers, QAs, UX designers and other positions.
Understanding not only technologies, but the business domain as well.
Technologies are simply a tool to reach your business goal. Tehcnologies could be learned fast. What is really valuable though, is the business domain knowledge. We teach our people to get the most out of their experience and use it not only to develop the software product, but also to consult their customers.
Proactive people with certified skills.
It is the perfect match to have skillful technical people who can be also proactive, taking the initiative, propose improvements. This is your best scenario – to have thinking partners instead of strictly implementing coders.
Low flat tax rate.
Salaries in the IT sector in Bulgaria are one of the highest in the country. Nevertheless, they are lower than the pay rate for the same positions in Western Europe. But what you can additionally benefit from is the low flat tax rate, which currently is only 10%.
Excellent internet connectivity.
Bulgaria ranks 5th in the world in quality of broadband Internet, according to results of a research by Cisco Systems Inc. This is very important when we are talking about colloboration with different countries and even more – different continents.
So, if you are already considering to have software outsourcing, we strongly reccomend you to take a note of our advices.
Read this on ICT Watch 2015