To recap, those seven risks are:
Risk 1: High Hourly Cost
Risk 2: Time Zone Differences
Risk 3: Not Agile Enough
Risk 4: Language Barriers
Risk 5: Culture Barriers
Risk 6: Knowledge Transfer
Risk 7: Questionable Code Quality
Today, we’re going to discuss the 1st risk of outsourcing: the high hourly cost.
Outsourced Software Development Risk One: High Hourly Costs
One of the biggest obstacles to overcome when outsourcing – especially onshore outsourcing – is the high hourly costs.
On average, experienced full stack developers can charge $60 to $100 an hour. A US-based agency with US developers will have to pay those rates to their developers, so will start at $100 and go up from there.
And experienced Python developers – like those working from our Python Center of Excellence – are in short supply. Expect to pay more on the upper end of the salary spectrum for developers who know how to build complex data science algorithms, create powerful Machine Learning models, and make use of artificial intelligence… at least, if you’re going the onshore outsourcing route.
Costs can easily balloon out of control when you combine high hourly development costs with the normal risks of software development.
- According to one Gallup poll, — failed IT projects cost the United States $50-$150B annually in lost revenue and productivity.
- 17% of IT projects go so badly they threaten the company’s very existence
- One in SIX IT projects overrun their budgets by 200%, turning them into a “black swan” project. (That’s a euphemism for massive failure.)
There are steps you can take to control your timeline and costs with any tech project. These steps should be done whether you’re using an in-house team or bringing on a nearshore team like Aptude.
Develop clear project requirements.
According to the research, the “root cause” of project failure is due to poor requirements-gathering. To address this, project managers and product owners should align with external stakeholders on:
- Required features
- “Nice to have” features
- Budget and timeline
- Internal and external risks
- Business reason for the project
- ROI for the project
- Use cases and user stories
- Testing metrics and success criteria
By gaining alignment early, you can feel more confident that you’ll be able to control costs because you’ve made deliberate decisions as you move forward with your development team.
Adopt Agile from the Start.
Another way to control the costs is to run your project lean from the get-go. By adopting agile, scrum, or lean approaches to your DevOps, you’ll stand the best chances of staying on time and in budget.
Use a Project Management Tool like Microsoft Project.
Finally, you can control your costs by ensuring that everyone is using the standard project management tool for your team. Whether that’s Atlassian’s JIRA, Microsoft Project, Trello, or something else altogether, just make sure that your entire team – including outsourced developers – are using the tool and making the most of it’s features.
It’s easy for projects to go off-rails when team members don’t communicate often. Agile and scrum teams recommend regular standups and touchpoints to stay on track. At Aptude, we encourage our clients to meet with their Project Lead as often as needed to stay on track, on time, and in budget.
Here’s how AptudeFlex can help you Mitigate the Budget Risk
When you use Aptude’s Nearshore Developers, you’ll be able to move forward with confidence.
- You’ll get a team of experienced developers working under very experienced Project Leads and SMEs. Our Python Center of Excellence in Mexico City is filled with developers who know Data Science, Big Data, and Full Stack development very well.
- Cost Savings. You’ll get development work done for as little as $38 an hour in US time zones
- Agile First. You’ll get a team very adept at working within agile frameworks and timeframes
- Remote Always. Our team knows how to work well remotely. Their workspace, routine, and communication patterns enable remote work with high productivity.
- We flex with you. You can ramp up as needed … and ramp down just as quickly. So if you need to move faster to meet deadlines, you can ramp up with us. And if you need to scale down in response to slowdowns or budget changes, you can ramp down.
- Complex is no problem. Our project team is highly experienced in running complex projects, and can support you in staying within scope and budget.