Often, a big decision when starting a new software project is whether or not to outsource development or simply do it in-house. The most common reason for this concern to pop up is that companies have heard about bad experiences from friends or colleagues, or they’ve experienced it themselves.

After all, working with third parties can come with its challenges. But as with everything in life, proper planning prevents poor performance - and this applies to outsourcing tasks as much as it does to anything else. 

How does this dilemma come about?

Upgrading software is a critical task for any modern business and can improve a company’s productivity by as much as 50%. Apart from this, new systems are more adaptable and have better security, a key factor in today’s data landscape.

According to Norton, one of the most used antivirus softwares in the world, new software and upgrades can help get rid of old flaws. Hackers and cybercriminals are constantly getting better and you should too, to make sure your company’s data and systems are safe and efficient.

In the same breath, companies don’t always have the resources to allocate time and internal spend to technical projects and need support, to a greater or lesser degree.

5 Questions To Guide You

Every situation and every upgrade is different. It is vital for you to do a thorough analysis of your project, plan out your goals and timeline before deciding who’s going to be responsible for the task of upgrading - and to what extent they’re involved. Key decision-makers should ask themselves:

What is the scope of the upgrade or new development?

The most important question to find an answer to when upgrading your software is why you are doing it. The key objectives you use as a mark, serve as vital information for the development team, and can help you figure out priority and critical areas for development. This will impact the level of resources you need to continue and give you a basis for understanding when and what you can get help with.

Do you have the skillset, internally - and is it your core competency?

Sit down with your team and find out if they have the ability to develop the best possible software. 

Building software is a complex process and the benefit of having an outside company is they can have access and knowledge on the latest technology that is being used. (Maxxor Blog) However, many companies don’t have in-house development teams because of the cost or demand for that kind of work on a monthly basis. 

On the other hand, some companies do software development for other brands, as their core service offering and this presents an ethical and logistical dilemma. When a skill is your company’s core competency, outsourcing this skill makes your business vulnerable. In these cases, it’s best to enlist temporary or supporting development, rather than putting an entirely separate team on the project. 

Do you have capacity?

Does your team have the ability and capacity to do this work while continuing to service your company on a daily basis? Very few businesses can afford a software team solely for building new products. This means that they are constantly dividing their time between your upgrades and their daily tasks. 

Your team may have the skills and the experience to get this job done but do they have the capacity with everything else going on? If yes, then you could think about doing it in-house as a priority - even if the cost is higher than that of partnering with other developers. If no, then it may be more effective to look at outsourcing the work to some extent.

Is your internal infrastructure set up for partnerships?

Agility in the software world is key and can help create environments where partnering with service providers is easier. Without the right communications and data-sharing infrastructure, it will be a complex task to plug in new teams and can create a myriad of challenges when working with freelancers or other organizations.

If your internal infrastructure is not geared up for remote and collaborative working, you’re going to have a problem. In these instances, you need to factor in the costs of creating this environment, although the benefits can be two-fold for your business. If you can’t do this, starting in-house may be a more viable option. 

What is your budget?

Budget constraints play a major role when going into a new project. And while the face value of one option may be cheaper, you need to take into account the cost of mistakes, setbacks, and not reaching the goals you want to achieve. Besides that, the training and infrastructure costs internally can add up fast and need to be considered. 

It may seem cheaper to hire more staff but will you have work for them after this project is done? Further to that S&C says “Businesses cut down their development costs up to 50-60% when they turn to an outsourcing company”. 

Typically, there is a lesser risk and cost associated with outsourcing, as you are not bound to permanently employ developers and not responsible for the overheads associated with third parties, however, in cases where they are too far removed from your team, you are likely to incur quality control and time costs. 

Who can you outsource to?

There are many companies that offer software development services, but quality and competency are two important considerations. At Digital Grind, we’ve got an established team of digital experts who understand the software and user experience design landscape. 

For example, we recently worked on a project with Moro Hub where we built a platform with an A-grade standard of accessibility. In that instance, the infrastructure existed for us to work together as a team and the result was an exciting new platform that could help Moro grow their brand awareness and continue to evolve. Their feedback? "Digital Grind developed our company's website, and they have done an excellent job. They developed a website that was more than our expectation and it is AAA accessible. They were very cooperative and accommodating; their flexibility in amending changes to meet our different stakeholder's requests was exceptional."

So, there are definitely instances where partnering or outsourcing your development can be beneficial to you and your organization. However, considering the checklist above, you will need the right processes and environment to make this achievable and should be aware of your core competencies - and the impact that outsourcing can have on your brand and clients. 

When it’s not your game, it’s best to handoff to an all-star team. Speak to us 

Your secret weapon in the battle for better business

No matter the size of your organisation, achieving and maintaining a high level of operational efficiency is part of the success journey. Usually, striving for efficiency means that the organisation becomes more profitable.

The most successful organisations are always trying to improve the way they operate and finding new and innovative solutions that improve performance. They know the importance of making sure they stay ahead of the competition - at every step of the way.

Generally speaking, continuous process improvement (CPI) seeks to determine if an organisation’s business processes are meeting company goals. There are various tools that are used to achieve this fast - but getting the improvement part right is a little trickier. We’ll get into this in a minute, but first, let’s look at CPI’s application in software development.

CPI in software development - The Dark Horse

For developers, CPI is an ongoing effort to improve products, services or processes through continuous testing and optimisation. This means that attention is put on making sure a business’ products are up-to-date, bug-free and secure. This process is done on a continuous basis as part of a developer’s maintenance protocols.

Changes are implemented either incrementally or in one fell swoop (also known as breakthrough improvement). The advantage of making incremental changes is that improvements are made almost as soon as they have been discovered. 

Once these have been processed, the next step is to ensure that you constantly go back to reanalyse all processes throughout the lifecycle of the project and make additional changes. This is one of the pillars of an agile environment.

Getting it right

One of the most popular CPI models used is PDCA, which stands for Plan, Do, Check, and Act. By carefully going through these steps, the ongoing cycle of continuous improvement can be achieved as the model controls and regulates the processes. 

One can also start by using business process mapping to visualise all the business processes that require monitoring and assigning responsible individuals. Below is a breakdown of the PDCA model.

• Plan: The planning phase is the initial element in the model that sets out to identify objectives and challenges within the particular project. The problem identified would need to be solved in alignment with expected outcomes. A number of possible solutions are identified, with the most favourable solution touted first.
• Do: The selected solution or solutions are then implemented, initially starting off on a micro scale. Data is collected for analysis purposes to measure the progress of the implemented changes. The main purpose of the Do stage is to ensure that the proposed solution is fully tested before it can be rolled out fully to the entire system. 
• Check: The checking stage involves taking the data collected during the Do stage to compare if it matches expected outcomes. The purpose of this is to assess whether the solution was successful and if additional improvements are necessary. Any useful information that can be gathered is recorded and the Do and Check processes are repeated.
  ‍
• Act: This phase involves actual implementation after all the pros and cons of potential solutions are laid out, based on the information gathered in Do and Check stages. Any feedback received is also considered. If the solution is not as successful as initially expected, an alternative is then considered. 

Once a workable solution is implemented, it’s time to focus on the next identified urgent areas to improve and the same cycle repeats.

Why should you use CPI?

There are a host of benefits when it comes to using CPI for your brand. These ensure that the quality and integrity of the software is kept at a high level. Here are five key benefits:

• Quicker feedback: With continuous testing, the development team is able to receive feedback on any issues that require their attention within a short timeframe. By monitoring all stages, early feedback means fewer defects are found in deployed products.
  ‍
• Cost reduction: The cost of development can skyrocket unexpectedly if errors are not monitored and resolved timeously. As fewer defects are found within products, there will be a reduction in the back-and-forth between the client and their developers, leading to the costs of development being significantly reduced.
  ‍
• Improved quality: Using CPI is one way of ensuring that the quality of the product is improved. The quality assurance process via the back-and-forth of process improvement results in better products with fewer errors. Ultimately, user experience is more pleasant leading to greater customer satisfaction.
  ‍
• Faster deployment: One major benefit of CPI is that any updates or upgrades to products can be deployed quickly, while being able to respond to industry changes more efficiently. Automated testing helps to make sure testing is constant and meticulously done. 
  ‍
• Better compliance: With continuous testing comes increased employee engagement and collaboration. As the development team becomes aligned to the software improvement process and overall organisational goals, it creates a culture of success and improved morale leading to better compliance.

CPI is a critical element of any software developer team, creating high quality products that stand the test of time while optimising business processes and achieving its goals. Standardisation is thus necessary in terms of implementation best practices.

Each improvement process needs to be thorough to maximise output and returns on investment. At Digital Grind, it's a part of who we are, as CPI and maintenance are implemented in our development projects. 

We strive to ensure that your brand receives quality outputs that are adaptable and enhanced on an ongoing basis according to evolving needs. Start a development project with us. Our team is always ready to listen.

The cost of software development, upgrade and maintenance projects can be a sore point because they don’t come cheap. Whether you take-on the projects in-house or outsource them, there are technology and resourcing costs that can spiral when unmanaged, causing them to go over-budget.

As with any project, a quick return on investment is wanted from software projects. When your business is reliant on technology to run and be profitable, extended tech projects that don’t perform or deliver value fast are a thorn in the side of business continuity as well as the bottom line.

Here’s an idea of software project costs

In Dubai, the cost of the average app development project ranges from $5 000 to $10 000. For complications and multi-feature app, prices shoot to between $267 000 and $360 000. 

Need a website? For a small and simple business website, expect to pay in the region of $15 000.  For a conversion or lead-focused website, the cost will be about $30 000, and $50 000 upwards for a complex, feature-rich website. 

The average cost of a business software upgrade, from Enterprise Resource Planning and Customer Relationship Management systems to IT security, can range from a few thousand to hundreds of thousands of dollars, depending on the size and the type of business you are in.

Don’t underestimate the time and financial resources needed to build quality, functional software applications. There is a lot that goes into it and costs begin to stack-up when the project doesn’t perform or goes over-budget. 

Use the Cost Performance Index to measure project cost efficiency

The Cost Performance Index is a measure of the financial effectiveness and efficiency of a project, and represents the amount of work completed for every monetary unit spent. Project managers can use CPI to measure the cost efficiency of software projects against the work actually completed for an early flag that budget or scope adjustments need to be made. Simply put, it is a way of demonstrating whether or not your project is on budget and performing.

Using the CPI will give you an honest view of the cost efficiency of budgeted resources as a ratio of earned value to actual costs. 

‍

The power of one

You can calculate the Cost Performance Index by dividing the Earned Value (EV) by Actual Cost (AC). When we talk about Earned Value (EV), we are talking about the amount of the task that is actually completed compared to what was planned to be done by a particular stage. It is expressed in terms of the budget set for the project. For instance, if the budget is $10,000 but only 20% of the work has been completed halfway through the six month project timeframe, then the EV is $2,000. The Actual Cost (AC) is the amount of money that has been spent on the task.

So, CPI = EV / AC 

For example, if a project has an EV of $30 000 but the AC is $15 000, the CPI is 2. 

But what does that mean?

CPI < 1 – a CPI that is less than one means the earning is less than the amount spent. You can say the project is over budget. 

CPI > 1 – a CPI that greater than one means the earning is more than the amount spent. This is when you can happily say that the project is under budget. 

CPI = 1 – a CPI equal to one means the earning and spending are equal. Everything is going according to plan and the project is performing well. 

The upside and downside of technology

In this digital age, you know that technology not only enables your business but powers it. There is a downside though. Software needs constant maintenance and frequent upgrades. Don’t consider maintenance or upgrade projects as a nuisance. Instead, see upgrades as an investment into better efficiencies, seamless continuity, improved productivity, more features, greater functionality, happier employees, more engaged customers, tighter IT security and reduced risks. The list of rewards from optimised software goes on, and they translate into business growth. Maintaining your software systems will ensure that they are up-to-date, bug-free, cyber-secure and working as they should. 

Hand it over

Budget, skills and resourcing constraints will impact the progress and ultimate success of your software projects, whether it’s a new app development or a website upgrade. Poor planning leads to slow progress and failing to reach the goals you want to achieve. You want a CPI equal to one or more if you want the most bang for your buck.

Not your forte? Hand it over. At Digital Grind we eat, sleep and drink this stuff. We have an established team of tech experts who understand the software development, maintenance and user experience design landscape. We also know that getting ROI on software projects is important to our clients. So planning and sticking to budget and project timelines is non-negotiable. We aim for a CPI of one or more on every project we undertake. Have a look at what we did for Moro Hub. 

Got a goal or a project in mind? Start it now with Digital Grind.