Outsourcing product development is a smart way to speed up innovation and reduce costs. Working with skilled external teams allows you to access global expertise and get your products to market faster. More and more businesses are turning to this approach to find better ways to launch new products.
So, if you’re looking to stay competitive, it’s important to know what’s working in the industry and how outsourcing can give you that edge. This article covers everything you need to know to make the right choices for your business and keep growing.
Outsourcing Product Development Process: Explained In Simple Terms
Let’s break the product development outsourcing process down step-by-step.
Step 1: Clarify Your Product Idea & Goals
Start with a solid plan for your product. Outline the main idea, who it’s for, and what you want it to achieve. Keep everyone on the same page about the purpose and long-term vision of your product.
Next, set specific goals. What features should it have? What should the user experience look like? Define your timeline, budget, and the impact you want. These details help guide your outsourcing team and keep things on track.
What You Can Outsource:
- Mobile apps
- Web applications
- Cloud platforms
- Enterprise software
- E-commerce systems
- AI tools
- Data analytics
- SaaS solutions
- CRM systems
- IoT products
Step 2: Research & Pick Your Outsourcing Partner
Now that your product plan is clear, it’s time to find the right outsourcing partner. Doing your due diligence in researching will save you from potential headaches down the road.
What to Look For:
- Experience in your industry: Choose a company that knows your field and has worked with similar businesses, so they can meet your specific needs.
- Proven work on similar projects: Check if they’ve completed successful projects that match the type of development you’re after, showing they can handle your requirements.
- Easy, open communication: You’ll want a team that’s easy to talk to, keeps you updated regularly, and is clear about progress and next steps.
- Pricing that fits your budget: Make sure their rates align with what you’re willing to spend, while still maintaining the quality you need.
- Positive client feedback: Look at reviews and case studies to see what past clients have said about working with them, helping you gauge their reliability.
Top Outsourcing Choices:
- Genius: Connects businesses with top-tier global talent, specializing in matching companies with the perfect experts for their needs. No monthly retainers, just a one-time fee equivalent to 25% of the new hire’s first-year salary. Comes with a 6-month talent guarantee.
- Toptal: Specializes in providing top-tier freelancers, including experts in software development and design. They’re known for their rigorous screening of talent and offering high-quality professionals. Rates vary greatly depending on the freelancer.
- Upwork: Offers a large, flexible talent pool, ideal for businesses looking for variable pricing options. Costs can vary greatly depending on the project, with some freelancers charging as low as $5/hour, but complex projects may go much higher.
- Innowise: Full-cycle development company that focuses on enterprise-grade solutions with a strong emphasis on digital transformation. Pricing is custom and targets large-scale, sophisticated developments.
- Aloa: Connects you with specialized development teams and provides access to a platform where you can manage tasks and track progress. Custom pricing comes with a free replacement guarantee.
Step 3: Plan & Define Project Scope
After choosing your outsourcing partner, it’s time to plan out the project scope. Lay out exactly what needs to be done, who’s responsible for each task, and set clear deadlines. A well-structured scope helps keep your project on track and aligned with your overall goals.
Make sure to cover all key areas, including specific tasks, timelines, and the tools you’ll need for the project.
Key Elements in the Project Scope:
- Clear objectives: Define what you aim to achieve with the project, so everyone understands the main goals.
- Deliverables and deadlines: Specify the key outputs and set realistic deadlines for each stage of the project.
- Team roles and responsibilities: Assign tasks to each team member, making sure everyone knows what they’re accountable for.
- Required resources: Identify the tools, software, and any other resources needed to complete the project efficiently.
- Budget and payment terms: Set a clear budget and agree on payment milestones to avoid any financial misunderstandings.
- Communication plan: Establish how and when you’ll stay in touch, ensuring regular updates and quick problem-solving.
Step 4: Develop Prototypes & Final Designs
Now it’s time to start building your prototypes. These early versions show you how the product will function and look before you finalize everything. Take a close look to find issues early, so you can make changes and avoid costly fixes later. Focus on performance and user experience to keep things on track.
Also, try to get input from your team and potential users. Their feedback helps you adjust the design to meet real-world needs and expectations. This phase is key for making sure your product is usable, reliable, and ready for the next step.
What to Look For When Checking Prototypes:
- Usability and ease of navigation: Test the user journey to ensure it’s intuitive, with clear instructions and minimal steps needed to perform tasks.
- Compatibility across devices: Run the prototype on multiple devices and screen sizes to confirm it works smoothly across platforms like desktops, tablets, and mobile phones.
- Visuals that match your brand: Compare the prototype’s design with your brand guidelines to ensure the colors, fonts, and overall style align with your brand identity.
- Speed and overall performance: Perform load and stress tests to see if the prototype responds quickly, especially during high-traffic scenarios.
- Room for scaling: Review the design’s flexibility to handle future features or increased data, ensuring it can grow with your business needs.
- Any bugs or glitches: Test the prototype under various conditions to catch any technical issues, and document these to be fixed before final development.
Step 5: Conduct Testing & Quality Assurance
Once your prototypes are set, it’s time to dive into testing and quality assurance (QA). The goal of this phase is to catch bugs and fix performance issues before launch. Run several rounds of tests to see how the product performs in different environments. Identifying problems early lets you stay on schedule and avoid delays.
After testing, review the results with your team and fix any issues you find. A smooth QA process helps you build a product that’s ready for launch without surprises.
Testing & QA Checklist:
- Product functionality and responsiveness: Test each feature individually, ensuring buttons, forms, and interactive elements work as expected. Simulate real-time scenarios, like high-traffic conditions, to confirm responsiveness.
- Compatibility across devices and browsers: Test on a range of devices (e.g., iPhone, Android, tablets, desktops) and browsers (Chrome, Firefox, Safari, Edge). Pay attention to any inconsistencies in layout, functionality, or performance between platforms.
- Load times and performance: Measure load times under different conditions, like a slow internet connection or during heavy usage. Use tools like Google Lighthouse to benchmark performance, ensuring the product remains under optimal load time thresholds (e.g., under 2 seconds).
- Accuracy in data handling: Test data input fields, forms, and calculations to ensure no errors occur during data processing. Cross-check databases for correct data retrieval, input validation, and storage.
- Data and security issues: Perform security audits, checking for vulnerabilities like weak encryption, unsecured APIs, or exposure to SQL injection attacks. Ensure user data, like passwords and personal information, is properly encrypted.
- User interface problems: Review the layout and design elements on different screen sizes and resolutions, ensuring buttons are clickable, text is legible, and navigation flows logically. Test for accessibility issues like color contrast or keyboard navigation for users with disabilities.
Step 6: Launch & Implement
With testing behind you, it’s time to launch your product. This step is all about getting your solution into the hands of users and making sure everything works smoothly. A successful launch means having a solid plan, keeping an eye on performance, and making quick fixes if any problems arise.
Work closely with your team during the launch to handle any surprises. Stay focused on tracking how the product performs and gathering feedback from users.
Quick Steps to a Smooth Launch:
- Set a firm launch date and stick to it: Confirm that the team is aligned with the deadline, and ensure marketing efforts are timed to build excitement.
- Announce the release to your users: Prepare targeted communications like emails, social media posts, and press releases to inform users in advance and encourage early interaction.
- Watch performance closely in real-time: Use monitoring tools to track server loads, page performance, and user interactions. Look out for slow load times, crashes, or performance dips.
- Fix any post-launch bugs quickly: Set up a dedicated team to address bugs as soon as they’re reported. Prioritize critical issues that affect user experience or security.
- Collect user feedback for future updates: Deploy surveys, in-app feedback, and analytics tools to gather user insights. Watch for trends in complaints or requests to guide future improvements.
Step 7: Monitor Performance, Maintain, & Improve
The work doesn’t stop just because the product is live. Keeping an eye on how it performs is the priority now. This phase helps you catch any issues early and make updates to improve the product. Watch user activity, address any bugs, and roll out updates regularly to keep everything running smoothly.
Regularly communicate with your team to review performance data and user feedback. This will help you pinpoint what’s working and what needs adjustments. Focus on improving features that users care about and quickly handling any problems that pop up. Regular improvements help your product stay effective and meet growing user expectations.
How to Keep Your Product Performing Well:
- Track user behavior and product performance: Use analytics tools like Google Analytics or Mixpanel to monitor how users interact with your product. Identify which features are popular or underused, and track performance metrics like page load times or error rates.
- Fix bugs or issues quickly: Set up an alert system for crashes, errors, or user-reported bugs. Have a dedicated team ready to address these immediately, prioritizing issues that impact core functionality or security.
- Release updates to improve features: Regularly schedule feature updates or patches. Make sure updates address usability, add value, and improve performance without disrupting the user experience. Test all updates thoroughly before release.
- Listen to user feedback and adjust as needed: Gather feedback from customer support tickets, in-app surveys, and social media. Make data-driven adjustments to improve features, navigation, or functionality based on what users need or want.
- Plan long-term changes based on trends and data: Use tools like Tableau or Power BI to analyze long-term trends in user behavior, technology shifts, and market changes. Develop a roadmap for future updates that align with both user needs and industry advancements.
When Should You Outsource?
Now, let’s explore when outsourcing makes the most sense for your business.
I. When you don’t have the specialized skills or resources needed for product development
If your team doesn’t have the expertise needed to build your product, outsourcing is a smart choice. It lets you bring in external experts quickly without spending time or money training new staff or hiring full-time talent.
Outsourcing gives you access to the skills you need, just when you need them. This approach keeps your team focused while specialists handle the technical challenges.
To assess whether you need to outsource because of a lack of specialized skills or resources, follow these steps:
- Conduct a skills audit of your team to identify existing competencies and gaps.
- Have open discussions with your team about their confidence and capability in handling specific tasks.
- Consider the availability of tools and technology to support the project.
- Analyze past experiences where skill gaps impacted outcomes.
II. When outsourcing can provide cost savings compared to maintaining a full in-house team
Running a full in-house team can be expensive, especially for short-term or specialized projects. Outsourcing lets you save money by paying only for what’s needed, without the long-term costs of hiring full-time staff.
This approach helps keep your budget flexible. You save on salaries, benefits, and office space, which is perfect if you need to keep costs low for a specific project. Here’s how you can assess it:
- Calculate the full cost of running an in-house team, including salaries, benefits, training, equipment, and office space.
- Gather detailed quotes from outsourcing providers for the specific services needed. Make sure these quotes include all potential fees to make a fair comparison.
- Determine the project scope and how long you’ll need the resources. Short-term projects benefit more from outsourcing because of lower commitments.
- Analyze when the costs of maintaining an in-house team would exceed the costs of outsourcing. Calculate how many projects would justify hiring full-time staff versus outsourcing.
- Evaluate your budget and cash flow to see if outsourcing allows for more flexible spending based on project needs without long-term financial commitments.
III. When there’s a need to speed up product development to meet market demands or deadlines
If you’re facing tight deadlines or pressure to get to market fast, outsourcing can speed things up. In fact, according to a study, outsourcing can cut time by at least 25%.
You can add an external team to boost your capacity and get the product ready faster without overloading your in-house team.
Also, an external team can work in parallel with your own, helping you meet deadlines while maintaining quality. This lets you respond to market demands quickly and stay ahead of competitors. Here’s how you can do it:
- Determine if your current team has the bandwidth to meet the accelerated timeline without compromising quality. Assess current workloads, skill sets, and project complexity.
- Compare the project deadline with your team’s current pace. If the timeline is too tight, calculate how outsourcing specific tasks could help reduce bottlenecks.
- Weigh the cost of hiring external developers against the potential loss of market opportunity if the deadline is missed. Factor in both financial costs and time saved.
- Research potential vendors’ track record in delivering projects on time and whether they have experience with fast-paced product development in your industry.
IV. When you need external expertise & innovation that you don’t have internally
Sometimes, your team might lack the fresh ideas or cutting-edge technology that an outside expert can bring. Outsourcing can connect you with the talent needed to push your product forward with innovative solutions and creative approaches.
By bringing in specialized knowledge from outside, you can improve your product’s quality and take advantage of new ideas that might not be available within your current team. Here’s how you can assess it:
- Determine if new technologies (e.g., AI, blockchain, or advanced UX design) are essential for the project and whether your team lacks the necessary expertise to implement them effectively.
- Review whether your company has the capacity to dedicate resources to R&D for innovative solutions, or if external experts can offer faster, more efficient innovation.
- Consider the time it would take to train your internal team or hire new talent versus outsourcing to experts who can start immediately with the knowledge you need.
- Determine if external experts can offer innovative ideas or creative solutions that your internal team may overlook due to familiarity with current processes.
V. When outsourcing lets you focus on its core strengths and strategic objectives
Outsourcing allows your team to focus on what matters most—your core strengths and strategic goals. By offloading tasks like product development to an external partner, your in-house team can zero in on the big-picture objectives that drive growth.
This balance lets you optimize your team’s efficiency and stay aligned with your company’s long-term goals without being bogged down by technical tasks. Here’s how you can do it:
- List non-core activities like IT support, maintenance, or customer service that consume significant time and resources, pulling attention away from strategic growth initiatives.
- Determine whether handling peripheral tasks in-house negatively affects the efficiency and focus of teams responsible for key areas like product innovation, sales, or business development.
- Review if outsourcing certain functions would allow your leadership and core teams to concentrate on scaling, market expansion, or other critical objectives tied to your company’s long-term vision.
- Estimate how much time, effort, and capital can be saved by outsourcing non-core functions and redirecting those resources toward activities that drive core business growth and competitive advantage.
- Evaluate whether outsourcing support functions (e.g., back-office tasks, HR) provides the flexibility to scale quickly, allowing your team to focus on strategic planning and expansion without being bogged down by operational concerns.
5 Mistakes To Avoid When Outsourcing
Worried about getting things wrong? Let’s talk about 5 common mistakes to avoid when outsourcing.
1. Skipping Clear Goals & Expectations
Without clear goals, your project can easily go off course. Be specific about what you need, the timeline, and how success will be measured.
Giving vague instructions or not laying out expectations early can cause delays or poor results. A detailed plan gives your outsourcing partner a clear path to follow, avoiding confusion down the road.
Solution: Start with a simple project outline that spells out what you want and when you need it done. Share it early with your outsourcing team, then check in regularly to keep everything on track.
2. Going for the Lowest Price
Opting for the cheapest option may seem like a good idea, but it comes with its own problems. In general, a low cost usually means lower quality or missed deadlines. So, instead of just focusing on price, consider the skills and quality you’re getting for your money. Spending a bit more on a qualified team can save you from bigger issues later.
Solution: Get at least 3 quotes and compare them based on experience, reviews, and work quality, not just price. Look for client feedback and previous projects to see what value you’re actually paying for.
3. Poor Communication
Poor communication can stall even the best outsourcing projects. It’s best to keep communication lines open from the start. Regular updates, check-ins, and using the right tools can make a big difference. This way, you can stay on top of progress, clear up misunderstandings quickly, and avoid delays.
Solution: Set up weekly or bi-weekly calls to go over progress and address any issues. Use tools like Slack or Trello to keep everyone connected and in the loop.
4. Ignoring Time Zones & Culture
Time zone differences and cultural barriers can cause miscommunication and delays. Limited overlapping work hours can slow down decision-making, while differences in communication styles or work habits might cause confusion and delay the projects.
Solution: Use shared calendars to find meeting times that work for both teams and keep communication going with communication apps. You can also brief your team on cultural norms to avoid any misunderstandings.
5. Forgetting Long-Term Support
Outsourcing doesn’t stop once your product launches. You’ll need a plan for long-term maintenance and support. Neglecting this part can cause technical issues to pile up over time. Make sure your outsourcing partner can handle ongoing support, including bug fixes, updates, and future improvements to keep your product running smoothly.
Solution: Talk to your outsourcing partner upfront about long-term support. Agree on a basic service plan that covers future updates and quick fixes, so your product stays up and running without issues.
Conclusion
Outsourcing product development is a smart way to speed up your process, cut costs, and access top talent you might not have in-house. But to get the most out of it, you need a clear plan and the right partner. Avoid common mistakes, and you’ll set your project up for success.
At Genius, we make outsourcing product development easy. We connect you with the top 1% of global talent while helping you save up to 80% on salaries. No monthly fees, just a one-time payment, and if you don’t hire, you don’t pay. With our 6-month talent guarantee and local partnerships, we’re here to help you grow.
Ready to build your team? Partner with Genius today.
FAQs
How do I find the right outsourcing partner for my project?
It’s more than just picking based on price. Look at their experience in your industry, how they communicate, and their past work. Make sure they understand your goals and can stick to your deadlines.
What should I do if my outsourcing partner falls short?
Start by having an open conversation to address the issues. If that doesn’t fix things, you may need to adjust the project scope or find a new partner. It’s always good to have a backup plan.
Can I stay in control of my project while outsourcing?
Yes, you can. Set up regular check-ins and clear milestones so you can track progress. Keeping communication open ensures your team stays aligned with your vision.
Is outsourcing worth it for small businesses or just big projects?
Outsourcing can work for small businesses too. It’s a cost-effective way to get expert help without the expense of full-time employees. You can scale up or down as your needs change.
