Going for whoever is the cheapest
While you may want to outsource to save money on staffing and overheads, the cheapest vendor may be the riskiest one — and your first hurdle. They’ll likely provide quotes you can’t refuse — something that’s way lower than $60 per hour for a US-based Java software engineer. But if you know nothing about this vendor and are outsourcing for the first time, step back and run the numbers.
Unreasonably low prices often come from corner-cutting. That’s why the cheapest service providers may NOT:
- Have access to the best talent and technologies for your software development project
- Deliver your product as quickly as those who charge more
- Be up for changes, improvements, or updates
- Be able to meet the security and compliance requirements of your project
Either of these missing competencies passes on additional costs to your business. Whether they come from subpar deliverables or a longer-than-expected time to market, they lead to costly failures in outsourcing in the long run.
That doesn’t mean you should only team up with a service provider that pushes prices skyward. The most expensive isn’t necessarily synonymous with the best.
What you should do is outsource to those who have a relevant portfolio, expertise, and complete dedication. Ask your vendor what specialists they hire for the job and whether they can ensure successful outcomes throughout your project lifecycle. You have the luxury of choosing at this stage, which brings us to the next outsourcing problem.