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Should You Outsource Your Software Development?

Charley Thorpe • January 17, 2023

To Outsource Or Not To Outsource?

For small businesses looking for a cost-effective way to get their software development projects completed, it can be tempting to outsource the work to an individual software developer. While there are many advantages to this approach, such as cost savings and flexibility, there are also some potential drawbacks that need to be considered. In this blog post, we’ll look at the pros and cons of outsourcing to a one-man software developer for a small business. We’ll also discuss some of the best security practices you should keep in mind when selecting a software developer. 


Advantages

One of the major advantages of outsourcing to a one-man software developer for a small business is cost savings. Working with an individual consultant or freelancer rather than a larger software development firm or hiring in-house software developers means you can avoid paying the overhead costs associated with larger companies, whilst also avoiding the extra costs from recruiting, paying, and retaining experts. 


Additionally, an individual developer may be able to provide more personalised service and attention to your project than a larger company. An individual developer is likely to be more willing and able to accommodate changes to your project timeline or specifications than a larger firm, since there are fewer people involved. Self-employed software developers have more freedom in the projects they take, so are more likely to be engaged in the project, as they select the ones they most enjoy or are specialised in. This also means the individual developer may be able to provide more specialised expertise in a specific area of software development, allowing you to get the specialised services you need without incurring additional costs. Since they work for themselves, their personal reputation is at stake, not that of a larger company. 


Finally, working with an individual software developer can provide you with more control over the project. You can communicate directly with the developer, rather than dealing with multiple layers of bureaucracy that can come with working with a larger firm. This can help ensure that your project is completed in a timely and cost-effective manner. 


Disadvantages

One of the potential drawbacks of outsourcing to an individual software developer is that the individual may not have access to the same resources as a larger software development firm. This can mean that the project may take longer to complete or may require more effort on your part to get the desired results. Additionally, the individual may not have the same level of experience or expertise as a larger firm, which has access to a range of developers with different skills. This can make it difficult to ensure that the project is completed to the highest quality standards. 

Another potential drawback is that the individual may not be able to provide the same level of customer service or responsiveness as a larger firm. While the individual may be very knowledgeable and experienced, they may not be as available as a larger firm when it comes to answering questions or addressing any problems that arise. 


Finally, working with an individual software developer can be risky as often they are provided access to confidential data and systems to complete the job. Therefore, it is important to take the time to carefully research and select the right developer for your project and then to maintain data protection and security levels throughout the project. Here are our tips for protecting your business. 

When outsourcing to a freelance software developer, it is important to take steps to protect your company and data. Before selecting a developer, thoroughly research their background and experience to ensure that they have the knowledge and expertise to complete the project. Additionally, you should ask for references from past clients and communicate with them to get a better understanding of the developer’s work. Ask for examples of their work or a Proof of Concept before signing with them. 


You should also make sure that the developer has a Non-Disclosure Agreement in place that protects your intellectual property and data, ideally before your first meeting. This should clearly define what information the developer has access to and how it can be used. Additionally, it should outline how the developer is expected to handle any data they may encounter during the project. Where possible limit access to only necessary systems and data. Agree on Service Level Agreements, so you know what to expect in terms of communication and timing, including discussing regular updates and key points of contact. Another important agreement to have in place is a Source Code Escrow. A Source Code Escrow Agreement is an arrangement that protects both parties, the licensor, and the licensee. Its purpose is to provide a licensee with access to a software vendor’s source code when agreed-upon events occur, such as the vendor ceases to trade.


Ensure you ask about the security measures they have in place, such as cyber security certifications, and whether they meet GDPR compliance. A good software developer should expect these requests and questions and be able to answer appropriately.   

Finally, it is important to ensure that the developer is properly insured and bonded. This will protect your company in the event of any financial or legal disputes. 


In conclusion, outsourcing to an Individual software developer can be a great way for small businesses to get their software development projects completed in a cost-effective manner. However, it is important to take the necessary steps to protect your company and data, such as thoroughly researching the developer, having a non-disclosure agreement in place, and ensuring that the developer is insured and bonded. 


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