Outsource app development without risk. Ensure quality guarantees are in place

How to save the outsourced app development cost and establish quality guarantees in advance.

Step 1 of outsourcing app development is to engage an appropriate and high-quality software development partner. Step 2 is to ensure all guarantees are foreseen. You obviously don’t want to be overcharged when you outsource mobile app development let’s say to some software agency in Poland.

It is important that you establish leverage over the vendor in the early days of the partnership so that if they aren’t delivering a quality output then you can take action and in a worst-case scenarios have a painless way out and can get your outsource app development cost back.

1. Ensure there is a Money Back Guarantee in place

Ensuring that you have a money back guarantee in place is super important. If you are not satisfied with the quality of the work, it is not fair for you to have to pay for it. Make sure you have a relevant clause, covering this risk in the contract.

2. Trial phases & Account Management

As a client-side project manager, I often suggest doing a trial phase complete with a test assignment instead of paying large sums upfront. Try to set up a short trial period of 2 weeks to a month within which the development firm has to deliver their best possible services to you and demonstrate they are right for your project.

If you are not that experienced with delivering software projects, but your management team decided to outsource android app development to either nearshore or offshore software company, it makes sense to hire a client-side project manager to manage risks on an ongoing basis. Within the YouTeam model, you are assigned an Account Manager who makes sure that communication, performance and financial aspects of the project are taken care of. The account manager is a third party and is hence impractical to make sure projects are done in a consistent way.

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3. Key the code on the client side

Another basic and essential step is to set up your own client-side repository to take custody of the code immediately, which prevents the Software Development company from not transferring you the code in the case of disagreement. It also ensures that you are not obligated to pay for a poor quality code.

4. Avoid paying out large lump sums early on

It is advisable to request as detailed a cost breakdown of the scope of works as possible, which will make the Contract Management a breeze. Whilst the project is in its early stages try to avoid paying out large lump sums. Until you’ve been working with a vendor for 6+ months you can’t be too confident in their ability to deliver.

Vijay, Founder and CEO at SoftwareTestingHelp, argues, we can not totally avoid these risks but surely we can mitigate the impact:

“The biggest risk is, whether the outsourced team is capable of handling the project. You should check complete background and progress history of the outsourcing company. Start with small contracts and progress gradually by increasing the work.

The second biggest risk is – outsourcing cost. Check if the outsourcing contract is clear enough to handle increased workload, team size, and duration. There should be a clear agreement on all these things to avoid any additional cost burden and legal issues”.

 5. Leverage the benefits of code and payment escrow offer by outsourcing platforms

One of the major benefits of using one of the hiring platforms – YouTeam, Upwork, TopTal and others is that they offer escrow services, whereby your payments are only released when you are satisfied with the quality of the work. And pretty much the same is done with the code, we call this code escrow!

Once you have all the milestones in place and they have demonstrated their ability to deliver quality reliably then you will have a significantly better chance of establishing a win-win collaboration with your chosen software development firm.

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Tristan Senycia

Tristan Senycia

Tristan Senycia is a Product Manager at YouTeam - a curated b2b marketplace that matches businesses with dedicated engineers from pre-vetted software development agencies.

He is also the founder of LeverPoint Advisory, which consults in the areas of commercialisation management, go-to-market strategy, High-Tech marketing strategy and customer development. 

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