How to outsource software development

Outsourcing software development works when you treat it as building a team, not buying a commodity. Here’s the process we use with clients.

1. Define the work

Product goals, the stack, what “done” looks like, and what you’ll keep in-house (usually product ownership and architecture).

2. Choose the model

Staff augmentation, a dedicated team or a fixed-scope project: see staff augmentation vs outsourcing.

3. Choose the region

Time-zone overlap vs cost: nearshore vs offshore.

4. Vet partners and people

References, security practices, attrition and (most importantly) the actual developers. Interview them yourself.

5. Contract

Rates and invoicing, notice periods, IP assignment, NDA, data protection, security requirements, replacement terms. See NDA and IP for software development. Have counsel review: this isn’t legal advice.

6. Onboard

Access to repos and tools, architecture docs, a buddy, the same rituals as your local team.

7. Manage and measure

Weekly demos, cycle time, defect rates and a monthly review of the engagement.

Frequently asked questions

How long does it take to start an outsourced project?

Typically 2-4 weeks from first call to developers starting, including shortlisting and interviews.

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