10 Tips to Select a Reliable Software Vendor
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By the end of 2021, the overall value of outsourced IT services will surpass $413.72 billion. (Source: Daxx)
This data shows that software outsourcing is a fast-growing industry that will continue to expand with time. Companies are choosing to outsource software projects primarily because of the cost benefits that outsourcing offers.
In addition, as technologies evolve, the need for the right technical skills has gone up even more. And hiring tech-savvy developers is not easy.
9 in 10 HR managers find it challenging to hire qualified technical professionals (Source: Indeed). Therefore, outsourcing software development to a vendor seems to be a preferred option for most midsize to large companies.
Outsourcing helps maximize operational flexibility. It also allows businesses to gain a competitive advantage and reduce operating costs.
If you want to outsource software development, you must choose your vendor wisely. In this table below, we have listed a few tips that will help you choose better –
10 Tips to Select a Reliable Software Vendor
| Consider Expertise & Technical Proficiency
Ensure that your vendor is backed by years of experience and expertise and well-versed in technological innovations. |
Make Sure You’re Culturally Compatible
When you and your vendor are culturally compatible and see the world through the same lens, building a lasting relationship and boosting your bottom line is more effortless. |
| Hire a Vendor with Niche Capabilities
Hiring a vendor with domain-specific experience and capabilities can help speed up the development process and bring positive outcomes. |
Consider Time Zones to Ensure Cooperation
Working with a software vendor in a different time zone is not problematic as long as you choose a communication time and stick to it. But, if you have collaboration issues, partnering with a team in your time zone is ideal for you. |
| Go Through Their Case Studies & Testimonials
Portfolios give you a sense of the kind of projects the vendor has handled. Besides, you can check testimonials from popular sites like GoodFirms, Clutch.co, DesignRush, and more. |
Check the Communication Skills
Make sure there are no language barriers so that you can communicate effectively and clearly with your vendor to ensure transparency. |
| Pick a Suitable Payment & Engagement Model
Based on your needs and budget, choose a pricing model that can be fixed-price, time & material, or dedicated team. |
Determine the Long-Term Value
Partnering with a suitable vendor can positively impact your business and help with long-term value creation. |
| Check the Security Policies
Ask about the security measures that the company follows, like signing the NDA, to eliminate the chances of your data leaking. |
Evaluate the Value for Your Vendor
A partnership is a win-win solution where both parties benefit. So, once your vendor successfully gets your project done, add a recommendation or a testimonial to help your vendor gain a good market reputation. |
These tips can help you choose your vendor intelligently.
Given below is a table that highlights the costs of hiring a software vendor from various parts of the globe.
The Costs of Hiring a Software Vendor
| Rank | City | Total Cost of Employer (US$) |
| #1 | Bucharest | $33.7k |
| #2 | Madrid | $48.6k |
| #3 | Barcelona | $52.2k |
| #4 | Singapore | $55.5k |
| #5 | Brussel | $60.5k |
| #6 | Dublin | $62.0k |
| #7 | Paris | $67.0k |
| #8 | Sydney | $90.9k |
| #9 | Boston | $116.7k |
| #10 | New York | $118.0k |
| #11 | San Francisco | $127.2k |
Source: Adopted from an original research by Luxinnovation
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