The first step in avoiding the outsourcing problem is to have a solid strategy, road map plan, everything in detail and take a systematic approach to find the right software development partner. This guide will show you how to successfully outsource your software development projects and maximize your chances of success.

A step-by-step process for successful software development project outsourcing

The following process increases your chances of success with software development outsourcing, whether you’re hiring developers near where you live or around the world.

Road Map | Tecxar

1. Be Clear About What You Are Building

It is essential to be clear about what you want to build. Once you know what you need, it becomes easier to communicate your requirements to your development partners. Ask yourself at a very high level.

  • Is the concept tried and tested or is it completely new?
  • Does the idea have a proof of concept (POC)?
  • Is there any technical validation for this?
  • What Successful Technology is the software based on?
  • What problem does your software product solve for its target group?
  • Before embarking on your search for an outsourcing partner, a basic idea of what you want to build is essential.

2. Create a Scope Statement for Your Software Project

Before deciding on a software development outsourcing partner, you need to dig a little deeper and identify issues such as goals, deliverables, scope, content, and budget. This will form the basis of the project road map. This is what the project scope template helps answer.

A. Project Goals

  • Define the overall goals of the software project. Who do you want to serve and what problems do you want to solve for them road map?
  • Describe how the software project aligns with business goals.
  • Understand why you develop software. For example, do you solve problems within your organization? Are you trying to make a profit? Are you modernizing your legacy software?

B. Project Services

  • What results are expected at the end of each sprint cycle (if using an agile approach)?
  • Do you use an MVP (minimum viable product) approach? Identify the expected result at the end of the development process.

C. Identify Outliner

  • What doesn’t your software project cover?
  • Defining the scope of your project ensures that you don’t get caught in the weeds or waste your budget on features that don’t improve your project or bring you closer to your goals. can be prevented.

D. Define Project Deadlines

  • When will you start working on the project?
  • What is the estimated timeline for MVP adoption (if using the MVP model)?
  • What is the estimated timeline for launching a full-fledged software product?
  • What are the important milestones of the project?
  • What are your budget constraints?
  • What are the regulatory constraints that outsourced teams must comply with?

E. Estimated Hourly Fees

  • What is the estimated time required to complete the project?
  • What is your hourly rate (specify range)?

F. Change Request Policy

  • How do you communicate change requests to the outsourcing team?
  • Are defined guidelines for change management in place?

G. Approval

  • Do all stakeholders agree on the scope of the project?
  • Include a complete list of all stakeholders and their designation and approval status.

3. Decision Time: To Outsource, or Not to Outsource

The time has come to decide between in-house development and outsourcing. Many factors must be weighed to make an informed decision. Price isn’t the only factor to consider, but competitive pricing is a major advantage of outsourcing software development offshore. Especially if you find a talented team that understands your vision.

outsourcing software development

The following graph from Acceleration Analysis compares the costs of in-house software development versus outsourced software development for US companies. What other factors should I consider? Read more about how to hire a dedicated development team.

4. Decide Between Onshore, Offshore, and Near-shore Outsourcing

When choosing an outsourcing partner, the location of each potential vendor is an important factor that can affect not only the price but also the communication, efficiency, and overall quality of the final product. To explore and consider options, for companies that outsource software development, he identified three different categories based on the company’s location.

  • Onshore Outsourcing (i.e. On-shoring): Choosing an outsourcing partner based in your country.
  • Offshore Outsourcing (Offshoring): Selection of outsourcing partners based in distant countries.
  • Near Shore Outsourcing (Near Sourcing/Near Shoring): Selection of outsourcing partners based in nearby countries.

Here are some of the pros and cons of each model. Note that many of the factors that influence near-shoring and offshoring can vary greatly from company to company. More on this is below.

Why are our cultural orientations, communication in English, and expertise different?

Simply put, there is a big, wide world out there. Certain countries, such as India, have large English-speaking populations, and the majority of Indian professionals achieve exceptional levels of language proficiency. Many also have a deep understanding of cultural differences and know how to bridge communication gaps. How can you tell if a potential outsourced has the communication skills, cultural alignment, and technical know-how to deliver a quality product? It’s easy. Check out their track record. Have you worked with different companies, including international brands? Do you have customer case studies to back up your claims of providing excellent service? Your outsourcing partner (whether onshore, offshore or near-shore) should have a track record of success.

communication skills

5. Choose an Outsourcing Model

There are three forms of relationship-based outsourcing: Staff augmentation, managed teams, and project-based outsourcing. Choose the model that best suits your needs, budget, and long-term planning.

Staffing Augmentation:

In this model, the staff is typically outsourced temporarily by an external organization to complete the project. This is primarily done to fill talent gaps within the organization. Outsourced staff work under your direction to help your team cross the finish line. I wrote another blog post where you can learn more about augmentation and the benefits that come with it.

Management or Virtual Team:

The managed team model is a hybrid of staff augmentation and a project-based model. In fact, with an organized team, you can hire a full team of experts including business analysts, designers, QA engineers, front-end and back-end developers, etc. to handle any or all of your projects. I can do it. This team often works collaboratively with internal teams and often reports to internal project managers. In contrast to the staffing model, this model typically does not require the day-to-day management of individual employees.

Project-Based Model:

In this outsourcing model, team management is handed off to the outsourcing her partner’s project manager. Your project manager will work with you to set the schedule and communicate your needs to your colleagues. Project-based outsourcing does not mean giving up complete control. You will continue to be involved in important decisions such as feature development and prioritization. It simply means you don’t have to worry about managing an outsourced team. This is the most practical option available.

6. Shortlisting Companies

Once you know which countries to outsource software development too, you can narrow your search. The review of software development companies begins with a thorough internet search. The following tools can help with this:

Software Development Review Website

Sites like Clutch, Confirms, G2 Crowd, Agency Spotter, and Crowd Reviews offer curated lists of software developers. Find the best software development institutions and filter by location, rating, hourly rate, talent pool, and more.

Software Development Review Website

Reach Out to Industry Peers, Clients, and Friends

Talk to friends and colleagues in the software industry who have outsourced his projects. Your experience helps us narrow down agencies with expertise in your industry. If they are happy with your work and have a proven track record of success, your chances of success increase significantly.

7. Evaluating Tecxar

Once you’ve narrowed down your vendors, interview them and evaluate each on a deeper level. There are a few things to consider.

Company Size

Tecxar consists of a team of 50+ consultants who can help you develop your desired and customized app tailored to your need.

Business Life

Tecxar is a start-up having exposure in delivering solutions in a broad spectrum of Industries, Overcoming challenges for different businesses and scenarios Despite being in this legal entity for the past 3 years we have successfully thrived in providing satisfactory results to our clients.

Technology Experience

Tecxar is working with a diverse range of technologies and can pick the best fit consultant for your project from a team that has Technical expertise that fit exactly your requirement.

The Maturity of The Software Development Process

Tecxar has deep knowledge of the software development life cycle (SDLC) process we can also tweak the process for your convenience

Software Development Methodology

Tecxar is open to using Agile, Waterfall, or another methodology based on your current processes or preferences.

DevOps Maturity

Tecxar has experience running a CI/CD (continuous integration/continuous delivery) pipeline, has done projects using a DevOps model in the past

English knowledge

Tecxar is well-versed in software development with fluent English proficiency and required nuanced discussions about strategy, planning, design, usability, and more.

Time zone flexibility

Tecxar adjusts their working hours as you wish, that’s a big plus and speaks to our commitment.

Industry/vertical experience

Did the company develop software for an industry similar to yours?

Fee structure

Our pricing structure meets your needs and our cost structure transparent, with no hidden costs

Work portfolio

Tecxar has worked for many companies in past and some of them are well-known MNCs like Airtel and FIS. Not just MNCs but our belief approach in start-ups are with the same enthusiasm since they come up with really great ideas. Compliance certification Tecxar Is a software outsourcing company compliant with ISO 27001 for Data Privacy and Protection and ISO 9001: 2015 for delivering excellent Quality

8. Request a Free Consultation

Once you’ve shortlisted Tecxar as a software development agency, you can reach out to our sales team. Talk to our experts, ask for free advice, ask for portfolios of work and case studies, and discuss software development processes, methods used, programming language preferences, technology implementations, and more. You can reach us at Email: or call us on: +916353710079

These conversations ideally include discussions such as:

  • Software requirements
  • MVP development criteria
  • Cooperation period: Short-term or long-term?
  • Cost and development time estimates
  • Development strategy and road map

9. Draft and Sign the Paperwork

Once you have selected a software development outsourcing partner that meets your needs,road map, the next step in the process is to create an agreement that looks like this:

  • The non-disclosure agreement (NDA)
  • Master Service Agreement (MSA)
  • Service Level Agreement (SLA)
  • Service Description (SOW)

The contents of each are as follows.

Confidentiality Agreement

An NDA is an agreement between two parties that acts as a promise that neither party will disclose confidential or confidential data or information to third parties.

  • Identify the main components of an NDA document
  • Important confidential information in documents
  • Information that is not confidential and may be shared
  • Software Road Map Project Intellectual Property (IP) Rights
  • Duration of NDA
  • Consequences of Breaching Confidentiality Agreements


An MSA contains basic terms that define a long-term relationship between two parties. With an MSA in place, both parties will not have to renegotiate terms in the future, and development can proceed quickly. The main elements of MSA are:

  • Project evaluation process
  • Payment terms
  • Dispute resolution procedures
  • Support period: Product Life-cycle and Project Life-cycle
  • General terms of confidentiality


An SLA is a software service level agreement. Measure overall software performance based on industry-specific metrics. Key elements of an SLA are:

  • Key performance indicators (KPIs) that measure software quality and performance
  • Communication, reporting, and process monitoring
  • Support, Maintenance, Hosting, Infrastructure and Development Terms
  • Information about backup and restore logs


An SOW acts as a formal, project-level agreement that sets expectations for deliverables. The main elements of the SOW are:

  • Describe the project and mention its unique sales proposition (USP)
  • An overview of the phases of software development and their content
  • Key performance indicators to help measure the success of software projects Road Map
  • Deliverables (e.g. MVP, full-fledged product)
  • Development and deployment schedule

Master Service Agreement

10. Choose a Communication Tech Stack

Once everything is done, the final step in the software development process is choosing a communication channel for tracking development progress. Some of the most reliable communication channels are:

  • Base-camp, Click-up, and Trello for project management
  • Zoom, Google Meet, Microsoft Teams, and Webex for live meetings
  • Chat-based communication tools Slack, Rocket, Chanty
  • Email to manage formal communications

The Value of Outsourcing

Whether you are planning to start a SaaS business or create internal software, outsourcing software development to the right partner is not only cost-effective—it can produce exceptional products. According to a Deloitte report, cost reduction is the number one objective for companies choosing to outsource, road map, but others include flexibility, speed to market, agility, and technical expertise surrounding the tools and languages used to create some of the most successful products on the market today. Are you thinking about outsourcing some or all of your software development? Tecxar has designed and developed thousands of exceptional software products over the past years being the part of IT Ecosystem.