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The Complete Guide to Outsourcing Web Development

Outsourcing web development could be the best way for companies to unlock the benefits of digital transformation and growth, in today's fast-moving world. Whether you're building an e-commerce or corporate site, looking for ways to boost your brand visibility, need a custom web platform for your clients, partners, or employees, or require a complex enterprise solution, web development can help.

Unfortunately, not all businesses have the internal expertise, talent, or management resources available that are required to rapidly and cost-effectively initiate web development projects. Outsourcing tasks to a third-party agency ensures brands of all sizes, from any industry, can achieve their web development service goals without compromise. However, if you’ve never outsourced a software development or other IT project before, you may have some pressing questions you’d like to answer first.

For instance, why is outsourcing web development such a beneficial solution for today’s companies, how do you choose a company to work with, and how do you ensure your project is a success? In today’s complete guide, we’ll answer all of those questions, and more.

The Top Reasons to Outsource Web Development

Let’s start with perhaps the most pressing question facing companies looking at outsourcing web development: why is outsourcing a good idea? Today, there are numerous agencies offering outsourced back-end and front-end development services to growing organizations, yet countless companies still don’t fully recognize the values of outsourcing.

Essentially, outsourcing web development means businesses can rapidly and cost-effectively access all the skills, resources, and tools they need to plan, design, code, launch, and even maintain web projects. Outsourcing to a web development company offers an effective alternative to hiring in-house specialists to cultivate and create your own sites, web services or platforms from scratch.

The biggest benefits of outsource web development include:

01

Cost Savings

From simple websites to complex custom web apps and platforms, the web application development process will always require some investment from a company. However, the amount you spend on development projects will vary depending on the approach you take. Hiring in-house professionals comes with a multitude of additional expenses to consider, from the cost of paying for electricity and office space to the price of employee benefits and training. Plus, your website development will include your own expert project manager.

Even hiring contractors and freelancers may not save you the time or money you think it will.  Often you end up spending more time managing your temporary team members, taking you away from other important tasks. With a disjointed team of contract workers, there’s also the inherent risk of not getting the result you hoped for and spending more to have the project redone.

Companies offering outsourced web development services already have all the tools, training, and expertise they need to start your task instantly. They save you time and money on searching for web development candidates and reduce the overhead costs associated with managing your own internal team.

02

Access to Expertise

According to some studies, by 2026, there will be a shortage of 1.2 million developers in the United States alone. Accessing skilled professionals is becoming increasingly difficult in the age of digital transformation, making it tougher for companies to build their own internal teams.

A common solution is to outsource web development services to offshore developers. However, offshore outsourcing can have some drawbacks. Communication barriers due to time zone differences and cultural differences can lead to misunderstandings and delays in the project. Additionally, quality control can be difficult as it may be challenging to monitor the offshore team's work and ensure that they are meeting the project requirements.

However, with a U.S. based web development agency such as Diffco, you’ll be able to leverage all the skills and expertise you need instantly. These companies understand your market and provide an excellent level of management and high standards. And, as with Diffic, are completely dedicated to staying one step ahead of the trends and methodologies used in the web development world. It’s even possible to find specialists with specific skills related to UX, UI, and other web development needs.

03

Greater Productivity and Efficiency

Unless you already have a dedicated team of web developers in your business, launching a new website development project will require you to divide the attention of your current technical experts between their day-to-day duties and your new initiative. Not only does this damage efficiency and productivity, but it can lead to an increased risk of mistakes and errors too.

Outsourcing website development means you can unlock the complete focus of a company dedicated to working on your project and nothing else. You’ll benefit from quicker results, while your employees benefit from being able to focus their time on the things they do best.

04

Faster Turnaround Times

Hiring a web development agency to complete your projects for you can also mean you complete the work required a lot faster than expected. Because these professionals can focus exclusively on your goals and needs, they’re more likely to deliver rapid results.

Companies like Diffco even use agile methodologies to ensure you can access a minimum viable product version of your solution as quickly as possible. This ensures you can not only go to market faster, but also test, analyze, and optimize your web development project at speed.

05

Exceptional Scalability

It’s often difficult to predict the scope of a web development project at first. Some efforts which initially seem as though they’ll only take a couple of months could require years of additional work and maintenance. Other, potentially lengthy projects may take less time and effort than previously expected. If you’re hiring in-house employees,you can be limited in scaling up and down in a cost-effective manner according to your changing needs.

On the other hand, outsourced web development services are inherently flexible. You can access new professionals and additional support as you need it. Plus, there are plenty of opportunities to scale back and cut costs, when necessary, too.

06

Support From a Dedicated Team

When you work with an agency to outsource your web development projects, you’re not just leveraging the skills and talents of just one or two professionals. You gain access to a full, collaborative team brimming with experts in their fields. This ensures you can access all of the knowledge, guidance, and support you need every step of the way.

Working with the right web development outsourcing solution means you get access to a service that builds on and augments your existing team and business.

Tips for Choosing the Right Vendor

As the world grows increasingly digitized, demand for outsourced web development solutions is growing. In fact, by 2027, experts predict the market for outsourced IT solutions will reach a value of $628.3 billion. As a result, the number of diversified companies offering outsourcing services is growing. While there’s no one-size-fits-all strategy for finding the right web development outsourcing company to work with, there are a few things you should consider when making your choice, such as:

Language and Time-Zone

Language and Time-Zone

Communication can make or break a web outsourcing project. With this in mind, it’s important to ensure you can communicate with your chosen vendor in the right language, at the correct times. While working with professionals from overseas can be a good idea in some cases, it’s important to be aware of how differences in time zones can influence the lifecycle of your project. Choosing a U.S.-based web development company will ensure easy communication with your outsourcing service.

Accountability and Transparency

Accountability and Transparency

The best web development agencies will work hard to develop trust with the clients they serve. This means they’re committed to both transparency, and accountability. A good company should explain its processes to you in advance and not only provide an estimate for the cost of services but also explain its estimating process.  When it comes to the cost of services, cheaper hourly rates do not always mean a less expensive total cost or ensure good quality. A quality outsourcing web development company will develop accurate estimates and adhere to projected timelines. They should also, provide you with insights in the form of reports and analytics, and ensure you’re never left out of the loop during the development project.

Reputation

Reputation

Just as you might read reviews and testimonials before purchasing a product online, it’s worth checking the reputation of the outsourcing team you’re planning on working with. Most companies will be able to offer access to case studies , testimonials, and reviews to put your mind at ease and demonstrate their expertise.

Service Scope

Service Scope

When looking for the right professional team for your outsourcing needs, it’s worth getting a complete view of the services and packages on offer. Some companies will only assist with the initial steps in developing a minimum viable product. Others will offer end-to-end support with everything from planning to implementation and maintenance.

Approach

Approach

The best web development companies know that every project is different. They tailor their services and approach to your specific needs, discussing your goals, expectations, and pain points with you in advance. Many of the top companies are also inherently agile, which means they can adapt and change to suit your evolving needs. Important factors to consider when choosing an outsourced vendor are their involvement and dedication to your product and domain, their values, and a client-oriented approach.

Tips for Outsourcing Web Development

If you take the time to choose the right company for your outsourced web development needs, you should find the firm makes the process as streamlined and frictionless as possible. However, there are still some tips you can use to increase your chances of success.

01

Define Project Goals and Requirements Clearly

The first step in successfully outsourcing web development is determining exactly what you want to accomplish. In other words, decide what you want to achieve from a business perspective—decide what kind of solution you want to build, and determine precisely what the most important features or functionality of that solution will be. As a team, define what “success” will look like in regard to your project and how you’ll monitor success.

If you have specific requirements related to certain features or capabilities you’re going to need within your project, it’s important to ensure the agency you work with can accommodate you.

02

Research Potential Outsourcing Partners

Next, it’s time to research companies capable of addressing your specific needs. Look up local and global companies offering services that suit your project scope and business. When shortlisting partners, focus on things like:

  • The company’s portfolio: Any previous case studies, testimonials, or client reviews shared by the company can be an excellent insight into their quality of work.

  • Expertise and industry knowledge: Ensure the company you work with isn’t just experienced in web development, but also understands the specific challenges you face in your niche.

  • Costs and packages: Find out what kind of service packages your chosen companies have to offer, and whether their services can scale to suit your changing needs over time.

You may also want to consider things like where your agency is located, how they approach web development projects with clients, and how they charge for their services (i.e. hourly or per-project).

03

Establish Clear Communication Channels

As mentioned above, communication is the key to ensuring a web development project is a success. You’ll need to be able to connect regularly with your outsourced team, to check in on their progress, ask questions, and ensure everything is going according to plan. Since it’s unlikely your outsourced team will be working with you in-house, you’ll need to establish other methods of communication and quality assurance.

This could mean you set up regular video and audio conferencing meetings and check-ins related to your project. You could also consider working with your web development team on project management and collaboration apps like Slack and Microsoft Teams.

04

Set Realistic Timelines and Milestones

Although it’s important to set expectations when working with an outsourced web developer, it’s also crucial to be realistic. Developing complex web tools and solutions can take time, and unrealistic expectations can lead to further issues. Working with your agency, determine what kind of milestones you can expect to reach at different stages in your project.

A good web app development agency should be able to keep you up-to-date and informed if any aspects of your project timeline need to change over time. Similarly, you should be willing to accept delays if the scope of your project begins to change.

05

Put the Right Protections in Place

While the best web development companies will be undoubtedly trustworthy and transparent, they will also take extra precautions to put your mind at ease. This will often involve signing contracts and non-disclosure agreements to keep your intellectual property safe.

If your chosen company refuses to sign an NDA, or is unable to outline the scope of their work in a clear contract, this should be a massive red flag for any business leader. Remember, it’s always important to protect your own assets when working with other companies.

06

Monitor Progress and Provide Feedback

When outsourcing web development services, it’s worth remembering you hired this specialist team for a reason. In other words, it’s crucial to give the company autonomy and freedom to work. However, that doesn’t mean you shouldn’t be keeping in touch. Monitoring the progress of your project and providing consistent feedback will ensure your team can deliver faster results, based on your specific needs.

Remember, working with an outsourced agency means engaging in a collaborative partnership. You’ll need to be willing to work with your vendor to unlock the right outcomes.

The Steps Involved
in Outsourcing Web Development

At this point, you should have a clearer idea of how and why enterprise companies outsource web development projects. However, if you’re still wondering how exactly you can go about hiring the right team, don’t worry. Here’s a step-by-step guide to hiring and working with your agency.

01

Determine Your Goals and Requirements

Before you outsource anything, you should formulate expectations with your team around your web development project. Know exactly what your goals are, what you want to accomplish, and what the components of your project will involve. This might include answering questions like:

  • What do I need to accomplish with this project?

  • What technology and skills will I need to access?

  • How does this project align with larger business goals?

  • How will I determine whether the project is a success?

02

Create Your Partner Shortlist

As mentioned above, there are numerous companies out there capable of offering outsourced web development services, but only a handful will be appropriate for your business. Create your shortlist of ideal partners based on their expertise, experience, costs, and skill sets.

If you’re not sure which company is going to be right for you, arrange an initial discovery meeting with some of the top contenders, where you can ask them questions about how they would approach your project and ensure you reach your goals.

03

Do Your Due Diligence

Gathering as much information about potential outsourcing suppliers and vendors can save you from a lot of stress in the long term. Do your due diligence by reading reviews and testimonials from other companies who have worked with the company previously.

Ask questions to determine how the company will protect your intellectual property, and ensure you reach your goals according to your pre-set targets and deadlines. It may even be a good idea to ask companies to share specific case studies from previous customers in your industry.

04

Define Your Project Scope and Budget

Once you have a short list of potential partners to work with, it’s important to ensure their services fit your budget. Think about the scope of your project and how much work needs to be done, then ask the companies you’re considering working with to give you a quote for their services.

Remember, just because one company might be a little cheaper than another doesn’t mean it will offer your brand the best value. Try to look beyond the initial costs to determine exactly what your chosen partner is going to do for you, and how much you can benefit from their support.

05

Negotiate Contract Terms

Working with your chosen outsourcing provider, create a contract outlining all of the expectations you have set for your project. There may be some negotiation involved in this process, as you might find you need to ask for extra support or services that aren’t offered as part of a company’s standard service package.

Make sure you know exactly what you’re going to be paying for, and speak to the team about what you can expect during different stages of the project. For instance, some outsourcing providers will be able to give you a basic timeline that shows you when your minimum viable project is likely to be complete, and when the workload will be finished overall.

06

Establish Communication Channels and Protocols

Once you’re happy with your contract and you feel the outsourcing company you’re working with has a good understanding of what you want to accomplish, it’s time to start outlining your communication strategy. Let your agency know how often you’d like them to get in touch with updates on the project, and arrange a schedule for regular meetings.

It may also be helpful to determine who your points of contact are for the outsourcing web development project, and how they will likely get in touch with you, such as via phone calls, video conferencing, messaging, and so on. You could even consider leveraging communication and collaboration platforms.

07

Monitor Project Progress and Provide Feedback

Finally, make sure you’re committed to being involved withconstantly monitoring the progress of your project, so you can provide useful feedback to your team of outsourced experts. We recommend allocating a product or project manager to be the dedicated contact with the external team who will answer any questions that come up and monitor, check, and approve the results. During meetings and regular conversations with your company, your agency should provide you with plenty of information about how your project is progressing, so be prepared to offer your own insights in return.

From time to time, you may also need to think about making revisions to your project based on what you’ve learned about your target audience, your competitors, and the marketplace. Make sure you keep your agency up to date on any changes you want to make with plenty of time to spare.

Should You Outsource Web Development?

We’ve already covered some of the main reasons why companies choose to outsource web development, from cost savings, to increased access to crucial skills and experience. However, you might still be wondering whether outsourcing is the right strategy for you.

Ultimately, outsourcing web development is one of the most cost-effective and profitable ways to leverage web development opportunities. Unless you have your own dedicated team of in-house developers, this could be the best way for your business to access benefits like:

  • Access to a larger pool of talent: As mentioned above, working with an outsourced web development team ensures you can leverage all of the skills and expertise you need for your project, without spending a fortune on recruiting, training, and maintaining employees.

  • Improved productivity: When you outsource web development to a specialist team, you ensure your own employees can focus on what they do best. Your staff members can focus on growing your business, connecting with customers, and unlocking growth.

  • Reduced risk and liability: Outsourcing web development to professionals means you’ll need to worry less about compliance, security, and privacy issues emerging from poor development practices. An agency will be dedicated to protecting your business, because if they don’t, their reputation and future profits will be at stake.

  • Opportunities for innovation and creativity: A web development team can work with you to take your project to the next level. They can offer insights, ideas, and guidance you may not be able to access in house, so you can improve your chances of outshining the competition.

If you’re planning on starting your own web development project, outsourcing your requirements to an experienced agency could be one of the most valuable ways to boost your chances of success.

To learn more about what web development outsourcing can do for your company, get in touch with Diffco. Our agile outsourcing services can address the needs of countless digitally transforming companies, helping you to reduce costs and boost efficiency. Contact us today to start discussing your bespoke web development project.

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