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Top 8 Questions To Ask Software Outsourcing Providers When Assessing

Do you intend to grow your engineering staff? Does locating a trustworthy IT outsourcing partner sound like a good idea? You are not the only one – the global market size of the IT outsourcing industry reached 92.5 billion USD in 2019.

Choosing a top-notch service provider might get more difficult as the outsourcing sector grows in size, especially between Mexico and the US. As a result, it’s crucial to thoroughly vet any potential suppliers by asking the correct questions.

In order to determine whether software outsourcing businesses are a good fit for your needs, we’ve compiled some of the most crucial questions you should ask them. These inquiries will look at both operational and cultural factors that might influence how well your collaboration works.

Here are the key 8 questions to ask outsourcing providers:

1. Do they provide time-and-materials contracts or fixed-price contracts?

Although this is not a given, project outsourcing often has a fixed cost because you outsource the whole project per provider’s proposal. The time and materials approach makes sense for teams working together and continuously addressing changing demands.

Contrarily, single-sum contracts, known as fixed-price agreements, require a service provider to complete the project within the budget specified in the bond.

Some use the BOT Model (Build, Operate, Transfer). A BOT is a business model that entails a contractual arrangement in which a company employs a service provider to launch, develop, and manage a company. If healthcare companies want to outsource software processes connected to the production of a medical device to a much wider talent pool, a BOT model may be quite helpful.

2. Does the outsourcing model they employ work for me?

When analyzing the geography of outsourcing, there are three basic models to take into account: 

Nearshoring: Nearshore outsourcing is a method for developing software products in which some or all of the work is given to remote teams located in close proximity and in the same time zone. This strategy combines lower costs, quicker travel times, and the extra advantages of proximity in terms of culture and location.

Offshoring: Nearshoring and offshore outsourcing are quite similar, with the distinction that an offshore staff is often based overseas. India, Ukraine, and other Latin American nations, including Mexico, Argentina, Colombia, and Brazil are common places for outsourcing.

Onshoring: Onshoring refers to “domestic” outsourcing. It entails moving your company’s software development to a non-metropolitan location.

Look for the top suppliers in the nations or regions where you have already decided to outsource your development.

3. Can they modify their offerings to suit my needs?

Particularly in today’s fiercely competitive and inventive industry, software project development frequently requires constant adjustment.

A good outsourcing partner will be adaptable, helpful, and willing to come up with a solution that will satisfy you, the customer. It is usually a positive indicator when potential partners demonstrate a desire to provide you with what you require, so long as your request is within their ability. Isn’t it the reason you’re out there looking for partners?

If the service provider’s internal procedures look overly inflexible and there isn’t much flexibility for rapidly implementing change, you should take that as a warning sign.

4. Have they already been involved in initiatives like this?

It is a good indicator if the service providers have created software or worked on projects comparable to yours. The downtime spent learning about the requirements of various sectors or technology can be avoided. Therefore, you should constantly inquire about their track record of successful partnerships with businesses much like yours.

You might ask the providers to offer you case studies or success stories, client recommendations, or references during the discovery sessions.

5. Are their software developers proficient in the technology stack you’re employing, and do they have the knowledge you need?

Search for particular areas where you require assistance, such as updating outdated software or creating mobile apps. Then, focus your search on businesses with the necessary industry experience.

6. What is the outsourcing company’s strategy for hiring engineers and ensuring their ongoing education?

How they’re adding new team members is a pertinent inquiry. What steps do they take, and is the procedure rigorous enough? Do applicants are in constant examination or enter bootcamps to demonstrate their coding prowess?

When compared to other industries, the IT industry has the fastest rate of innovation. Therefore, a team that keeps up with new technology and updated software will be able to create contemporary, sustainable products that have a long shelf life. They have a culture of continuous learning if they have training resources and learning opportunities available.

In order to address a talent gap in their team that has proven difficult to fill internally, the majority of businesses turn to outsourcing. Not only should your outsourcing partner be able to meet these demands, but they should also be able to meet any future needs you may have.

7. What are the safeguards for the collaboration’s success?

One aspect of the difficulty is creating excellent software. The other is to guarantee that you have system checks and backup strategies in place so that you can continue developing excellent software without being hindered.

Enabling information sharing between the two businesses is a smart place to start when it comes to assuring success. What channels of communication for commercial and technical inquiries are available?

More importantly, how are problems addressed and managed in the unlikely event that something goes wrong? Problem-solving procedures should be obvious.

8. What are the security and privacy policies of the service provider?

The security posture of a potential outsourcing provider is among the most crucial criteria. Does the service supplier hold ISO27001 security certifications, for example? Exist the required data protection policies?

You don’t want to end up breaking the law and having to deal with the repercussions as a result of your outsourcing partner making a mistake.

Since people naturally believe that security measures will be covered when we pay for a service, the majority of businesses don’t look into security measures in great detail. Nevertheless, if you didn’t require certain security precautions in advance, you can now find yourself at a crossroads.

Our area of expertise is offering customized technology solutions and IT staffing services in nearshoring from the US to Mexico. We would be pleased to assist if you need help creating the ideal nearshoring solution for your business or putting together a larger development or scrum team. 

About ITJ

ITJ is devoted to serving fast-growing and high-value market sectors, particularly the Internet of Medical Things (IoMT), working with innovative medical device companies looking to improve people’s lives. With a unique BOT (build, operate, and transfer) model that sources only the best digital talent available, ITJ enables companies in the US to create technology centers of excellence in Mexico. For more information, visit www.itj.com.

Nearshore

Diversify your nearshore partners

Why do many successful companies choose to diversify their nearshore partners? 

Because it is hard to have in-house knowledge in every technological talent on the market, from micro-services to computer vision, more than one nearshore supplier can bridge the gap between your in-house and already outsourced skills. 

The ultimate purpose of a nearshore software development project is to provide favorable commercial results. In the initial few talks, a strong potential partner should be able to grasp your vision, exchange ideas, and offer counsel and recommendations on how to execute key IT initiatives effectively. Nearshore suppliers can enhance your organization’s core strengths with a wide range of specialized technological skills, significantly when diversified. 

Here you can find other interesting content about How to Choose your Nearshore Software Provider?

Now, according to a SkillValue report, including over 550 technical assessments and +46 countries tested, Mexico comes in 2nd place in the ranking for countries with the best developers in the world. Many companies outsource their software development projects as a competitive strategy to grow and scale the business. Internal resources are frequently consumed by supporting current product lines, developing the firm, and putting out fires. When internal teams are stretched too thin, CxOs often look to nearshore partners to scale up to accomplish key initiatives. 

The key to diversifying your nearshore partners is that this practice includes nearby countries, such as Mexico and Canada. Countries that do not share borders are also in your future nearshore partner list. The costs are generally very attractive, with the added benefit of being in the same time zone for easier collaboration. Having your development staff in the same time zone makes communication easier. Whether you require immediate assistance or have a high-priority issue, your team will be available when you are, allowing you to interact and cooperate as needed, just like you do with your internal teams.

Where to find nearshore partners?

The Cali-Baja MegaRegion, rich with opportunities, would be an excellent spot to start looking. Tijuana, which is approximately 35 minutes south of downtown San Diego, is a strategic position that allows businesses to operate inside the flourishing border economy and improve interactions between Mexican and American companies. Cali-Baja has one of the largest population concentrations along the US-Mexico border. Thanks to its unique cross-border integration and IT/Software development, the region has exceptional quality for relocating global and binational business investments and its transnational culture and high-end binational talent pool.

Software that is developed nearshore it’s not just about saving money by outsourcing labor; it’s also about finding the finest people for the job and maintaining those assets who know the regional market and can transfer that expertise on to the team, making it simpler to succeed when developing and implementing plans. That is why the Cali-Baja area may be just what your firm requires to continue to grow while adapting to the new normal we are seeing.

About ITJ

ITJ is devoted to serving fast-growing and high-value market sectors, particularly the Internet of Medical Things (IoMT), working with innovative medical device companies looking to improve people’s lives. With a unique BOT (build, operate, and transfer) model that sources only the best digital talent available, ITJ enables companies in the US to create technology centers of excellence in Mexico. For more information, visit www.itj.com.

The future of Software Engineering by ITJ

The future of software engineering

According to the US Bureau of Labor Statistics, job possibilities in software development will expand by 22% from 2020 to 2030, well above the national average growth rate of 8% for all professions. These figures indicate that software engineering has a promising future, especially as new software development trends drive the field forward.

But what does the future hold for the key industries regarding software engineering?

For Health Tech, software engineering revolutionizes the collecting and processing of health data, opening up previously unimagined diagnostic and preventive disease possibilities. This increased interest in telemedicine and telehealth and the development of the IoT have led to the emergence of a new industry: the Internet of Medical Things (IoMT). It combines the usage of numerous wearables, such as ECG and EKG monitors, to cover some of the most frequent medical data, including skin temperature, glucose level, and blood pressure readings.

To know more about IoMT, you can visit IoMT and Medical Device Cybersecurity

For FinTech, the advent of online and mobile payments, as well as alternative financing, has increased the demand for financial management software 66.7% of bank executives said they already interact with FinTech and major tech businesses to develop new services for their clients. In addition, the financial sector is highly software-intensive, so an excellent specialization in studies could turn attractive to many undergraduates in IT. 

For eLearning, purchasing educational resources through the internet has become the new normal. According to this study, the eLearning industry will grow to more than 370 billion dollars by 2025, up from 101 billion dollars in 2019. 

For eCommerce with online shopping forecast to quadruple in size by 2023, reaching 6.3 trillion dollars, eCommerce software development is the trendiest field for software developers to work in. As systems progress, autonomous systems will come to play a critical role in delivering, integrating, and interoperating to meet supply chain needs. The expansion of commercial systems in the fourth industrial revolution necessitates connectivity, information transparency, technical aiding systems, and decentralized decision-making for electronic commerce systems to be sustainable. As a result, imagining commercially creative ideas needs smooth and interoperable solutions widely acknowledged across the business ecosystem. It necessitates fast network connectivity, scalable communication across systems and devices in storage and architecture, and transaction decentralization.

For R&D, corporations and governments rely greatly on innovative tech solutions to pursue innovative solutions and discoveries. This trend will continue to gain traction, as software programming research and development will increasingly rely on Artificial Intelligence and Machine Learning solutions soon. As a result, companies are investing more in R&D than they have in the past. In a recent poll of prominent European companies, 52% said their organizations would increase R&D budgets in the next year or two, and 67% said they aim to do so in the long run. The reason is simple, companies who invest in software R&D will gain a competitive advantage. Those that do not will lose clients and be relegated to a second-tier position in their industry.

Programming will pervade practically all business domains and our daily lives in the future of software engineering. The imperative need for skilled software engineers will mold new hiring processes in any business worldwide, and the lack of talent for some countries could harm their speed in operations. Luckily the best solution for this kind of scenario is called Nearshoring. If you want to know more about acquiring the best talent for your company, you can visit How to Choose Your Nearshore Software Provider?.

About ITJ

ITJ is devoted to serving fast-growing and high-value market sectors, particularly the Internet of Medical Things (IoMT), working with innovative medical device companies looking to improve people’s lives. With a unique BOT (build, operate, and transfer) model that sources only the best digital talent available, ITJ enables companies in the US to create technology centers of excellence in Mexico. For more information, visit www.itj.com.