Behind the Scenes: Who develops your digital solutions?

What probably comes to mind is a fancy office space with crazy amenities — volleyball courts, cafeteria, lounge zones, yadda yadda yadda. And sure, this luxurious space is where top developers are coding and providing a phenomenal customer experience. But are you sure that your favourite software or technology was created there?

Don’t rush to say, “Of course!” Giants like Apple and Microsoft have already confessed that they outsource software development to plain-Jane IT agencies, where maybe even more talented engineers build software for iPads and develop and maintain Google’s IT infrastructure. Microsoft even has a new corporate policy: to contract employees over full-time ones for the sake of cheaper expertise. The same way followed GitHub — and basically hired as a contractor it's key visionary Scott Chacon because the company merely couldn’t afford to hire the right talent full-time.

In fact, there are more successful IT companies that prefer to delegate all the dirty work to third-party vendors while reaping the benefits. Take a look at Chinese eBay, Alibaba, which outsourced eCommerce website development. Last year, the service increased its annual revenue by more than 50% compared to 2021. Of course, cutting-edge tech isn’t the only reason. After all, we can’t neglect a thriving business model, reputation, outstanding customer service, and affordable prices. But still, those who built a performing engine and keep maintaining it day by day hardly receive their fair share of the profits and recognition.

Why Would Giants Risk Their Privacy and Outsource Software Development?

Confidential information, be it users’ private data or a $1-million-dollar idea, is like a toothbrush — you wouldn’t want to share it with anyone. However, tech giants eagerly disclose their sensitive information and air their dirty laundry to third-party developers. Why would they do that when they have enough funds to hire even Dennis Ritchie, the creator of the C programming language, or Bjarne Stroustrup, who gave life to C++?

You won’t believe it, but it all comes down to money and time. Let’s get real… hiring the best coders is hard and takes forever. You need to come up with a lucrative offer, but it doesn’t always come down to money. Top coders are getting crazy offers from all sorts of companies, each trying to outdo the others by offering company shares, luxurious working conditions, and plenty of opportunities for creativity. And even if they don’t accept the offer, you’re still footing the bill for the cost on the HR side of things. The recruiting process is pretty expensive, after all!

Outsourcing is like a magic pill. You find the right vendor who’s already done all the legwork: assembled a team of the right talent, ensured they efficiently communicate with each other, and found a supervisor (AKA project manager) to keep the work running. It’s like ordering a lovely lasagna from the best Italian restaurant. You can buy groceries and cook them yourself or just order and wait for a hot, delicious meal to be delivered to your doorstep.

You don’t need to look for a chef or Google the recipe yourself. Cooks already know how to do it all: where to source the best ingredients, how to combine them, and how long and at what temperature to bake the dish. If we convert this into tech language, an outsourcing company has an experienced team of developers, QAs, DevOps, business analysts, and UI/UX designers who are waiting for you to order. And they will start working as soon as your order (technical specification, budget, and other details) is set.

Does It Sound Too Good To Be True?

Yes, outsourcing has tons of benefits, but it isn’t perfect. What about control, security, and geo-related problems if you are outsourcing overseas? Delegating software development implies sharing supervision, quality control, and team management. Therefore, you either trust your vendor to adhere to the agreed terms, or it’s better not to start a business with an agency at all.

The same applies to security issues. Obviously, you are to share sensitive data or, what may be even more precious, a successful business idea with a whole team of strangers who might want to resell the information to earn even more. One way to protect yourself is to sign an NDA agreement. If a vendor breaks the treaty, you can sue them (at least, you think so). In reality, a reliable agency won’t risk its reputation and steady income just to dupe you, unless you decided to save as much as possible and partnered with some shady outsourcing company.

How Can I Choose a Reliable Outsourcing Partner That Won’t Play Me?

Unfortunately, you can never be 100% sure that you won’t be played. Still, there are some signs of a reliable outsourcing vendor:

• Reputation. In the era of information, there is no greater force than word-of-mouth. If you choose an agency that’s been in the market for several years, there should be some reviews on third-party sites. So, first and foremost, Google your outsourcing company.
• Transparency. Those who have nothing to hide won’t conceal their team, processes, or fees. Check their corporate website and social media accounts, and look for the company’s employees on LinkedIn to ensure they are all real people that you meet during video calls. Ask as many questions as you want to get up to speed on all major details.
• Expertise. You turn to an outsourcing agency to get experts right here, right now, and at a more affordable price than hiring. Ensure your team has a proven professional background, preferably with a portfolio. But don’t be surprised if the portfolio isn’t as exhaustive as you expect (you aren’t the only one who insists on signing an NDA).