6 critical steps for successful software outsourcing

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In the dynamic landscape of modern business, maintaining a competitive edge necessitates the adoption of effective and efficient solutions. Software development, serving as a pivotal catalyst for innovation and expansion, stands as a lucrative investment avenue.

Outsourcing software development presents businesses with the opportunity to harness the expertise and resources of external vendors, thereby reducing costs, accessing specialized skills, and expediting development timelines. Nonetheless, successfully navigating the outsourcing process demands meticulous planning and execution. Through this article, Evotek aims to furnish you with insights into the essential stages of software outsourcing, empowering you to make informed decisions and optimize your outsourcing endeavors.

Exploring Outsourcing: Pros and Cons

Before delving into the intricacies of outsourcing, it is imperative to grasp the advantages and disadvantages linked with this practice

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  • Cost Reduction: Accessing talent pools in regions with lower development costs and minimizing investment in infrastructure can result in significant cost savings for businesses.

Learn more about outsourcing costs. Compare outsourcing costs among countries.

  • Access to Specialized Skills: Leveraging a wider talent pool with diverse expertise across various countries in specific technologies or industries.
  • Faster Time to Market: Utilizing an experienced team to expedite development, establish efficient processes, and accelerate product launches.
  • Focus on Core Competencies: Liberating internal resources to concentrate on core business functions, thereby enhancing operational efficiency.
  • Increased Scalability: Effortlessly scaling the development team to mitigate business risks and adapt to project demands.


  • Communication Challenges: Time zone disparities and cultural differences may hinder effective communication between parties.
  • Quality Control: Ensuring adherence to quality standards necessitates stringent processes and effective communication channels.
  • Intellectual Property Protection: Establishing clear data security agreements to mitigate intellectual property risks for the business.
  • Supplier Selection: Diligent evaluation is crucial to identify a trustworthy and compatible outsourcing partner, with factors such as experience and reputation being significant considerations.

Evotek, with ISO 9001 , ISO 27001 and CMMI Level 3 certifications , is committed to delivering high value to customers through excellent Quality Management and Information Security Management.

Software outsourcing process: 6 key stages

Software outsourcing entails a structured process comprising six pivotal stages. To ensure a seamless and prosperous outsourcing endeavor, adhere to the following systematic approach

1. Determine your project scope and requirements

  • Articulate the project’s objectives, goals, and target demographic, delineating specific outcomes or deliverables.
  • Delimit project constraints, encompassing factors like budgetary considerations, temporal constraints, and available resources.
  • Formulate a comprehensive project plan delineating the project’s trajectory, encompassing tasks, milestones, and associated deadlines.
  • Identify pertinent project stakeholders, encompassing individuals and entities participating in or impacted by the project, elucidating their respective roles and responsibilities

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Project Scope

  • Payment Methods: Identify supported methods such as NFC, QR code, e-wallets, etc.
  • Transaction Limits: Set limits based on security protocols and user profiles.
  • Integration: Identify integration with existing systems including bank accounts, POS terminals, and select loyalty programs.
  • Geographic Scope: Determine whether the platform will have a specific regional focus or an international reach.
  • Additional Features: Consider incorporating bill payments, money transfers, peer-to-peer payments, and in-app rewards.

Complexity and Technical Challenges:

  • Security: Implement robust security measures for data encryption, user authentication, and prevention of unauthorized access.
  • Integration: Ensure seamless integration with diverse payment networks and existing systems.
  • Performance: Optimize platform performance for speed and reliability, especially during peak usage periods.
  • Data Security: Adhere to data security regulations and user consent protocols to safeguard sensitive information.
  • Device Compatibility: Ensure compatibility across various devices and operating systems for a seamless user experience.
  • Regulatory Compliance: Meet compliance requirements for financial transactions and data security.

1. Related Parties:

  • Financial Institutions: Includes banks, payment networks, and other financial entities involved in transactions.
  • Merchants: Businesses that accept contactless payments through the platform.
  • Users: Individuals utilizing the app for payments and other functionalities.
  • Regulators: Government agencies overseeing financial transactions and data security.
  • Technology Partners: API providers, development tools, and security solutions.

2. Additional Considerations:

  • Marketing and User Acquisition: Develop strategies to drive platform adoption among merchants and consumers.
  • Scalability: Ensure the platform can handle increased transaction volume and user growth.
  • Future Upgrades: Establish plans for future feature expansions and technological advancements.

2. Research and Evaluate Potential Outsourcing Partners:

  • Assess and compile a list of potential partners based on their demonstrated experience and expertise, substantiated by available evidence and certifications.
  • Review portfolios and customer testimonials to gain insights into their past performance and client satisfaction.
  • Consider the pricing structure of each company alongside the value proposition offered through their services.
  • Select outsourcing partners that align with your business culture, fostering a conducive environment for seamless and effective cooperation.

1. Expertise and experience


  • Years of experience in developing mobile payment platforms.
  • Proficiency with selected payment methods (NFC, QR codes, etc.).
  • Track record of collaboration with financial institutions and similar projects.
  • Possession of relevant industry certifications and accreditations.


  • Review customer feedback and testimonials on similar projects.
  • Evaluate portfolios showcasing expertise in mobile application development.
  • Assess the number of certified engineers within the outsourcing partner’s team.
  • Consider awards and recognition in the financial technology sector, both domestically and internationally.

2. Technical Capabilities:


  • Capability to develop a secure and scalable platform.
  • Experience in integrating with APIs and related systems.
  • Knowledge of data encryption techniques and security protocols.
  • Understanding of regulatory compliance requirements.
  • Utilization of Agile development methodologies.


  • Examination of security certifications such as PCI DSS.
  • Review of experience with cloud infrastructure and data security solutions.
  • Analysis of past performance in meeting project deadlines and quality standards.
  • Verification of Agile development practices implementation (e.g., Scrum, Kanban).
  • Assessment of the use of automated testing tools and continuous integration/delivery (CI/CD) processes.

3. Communication and Cooperation:


  • Establishment of clear and consistent communication channels.
  • Assignment of a dedicated project manager to oversee the project.
  • Provision of progress reports and regular updates.
  • Openness to feedback and collaborative approach throughout the project.
  • Adaptability to changing requirements.


  • Evaluation of customer feedback regarding communication effectiveness.
  • Assessment of the availability of various communication channels (email, phone, video conferencing).
  • Analysis of the frequency and detail of provided project reports.
  • Observation of response times for questions and requests.
  • Examination of the use of project management tools for collaboration and transparency.

4. Costs and Price Transparency:


  • Adoption of a transparent and competitive pricing model.
  • Flexibility in pricing based on project scope and requirements.
  • Absence of hidden or unexpected costs.
  • Offer of payment terms aligning with the client’s budget.


  • Detailed analysis of project costs by activity.
  • Comparison of quotes from multiple outsourcing partners.
  • Assessment of willingness to negotiate and customize pricing packages.
  • Examination of financial stability and track record in delivering projects within budget.

5. Cultural Fit and Value Alignment:


  • Shared values and dedication to quality and innovation.
  • Alignment in working and communication styles.
  • Promotion of a respectful and cooperative working environment.
  • Understanding of the client’s company culture and business goals.


  • Evaluation of customer feedback regarding company culture and working environment.
  • Conducting interviews with the proposed project team to assess cultural fit.
  • Examination of alignment between company values and mission with the client’s business.
  • Review of references from customers in similar industries or cultural backgrounds.

Additional Criteria:

  • Project completion time: Evaluation of compliance with agreed-upon timelines.
  • Error rate: Tracking the number of errors and issues identified during development.
  • User satisfaction: Conducting surveys and collecting feedback on app usability and functionality.
  • Platform uptime and performance: Monitoring availability and response times.

3. Negotiate and sign contracts

  • Understand Your Business Needs and Goals: Gain clarity on your business objectives to make informed decisions during negotiations.
  • Market Research and Evaluation of Potential Partners: Review pricing and service terms offered by other companies to better understand market standards.
  • Clearly Communicate Needs: Transparently communicate project goals, criteria, and expectations regarding price, process, and deliverables to outsourcing partners.
  • Willingness to Compromise: Be open to compromise on certain issues to achieve mutually beneficial agreements.
  • Relationship Building: Foster collaboration and focus on solutions to cultivate strong relationships with outsourcing partners, fostering success in software development outsourcing

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In addition, key contents required in the contract include:

  • Project Scope: Clearly define project goals, constraints, and expected outcomes.
  • Roles and Responsibilities: Define the roles and responsibilities of both parties, including decision-making responsibilities.
  • Payment Structure: Specify payment terms, including payment schedules, penalties for late payments, and consequences for failure to meet agreed terms.
  • Agreement Term: Clearly outline the duration of the contract and terms for extension or early termination.
  • Intellectual Property Rights: Define ownership of intellectual property rights

4. Establish effective communication and collaboration

  • Clear Communication Channels: Determine communication methods (e.g., email, phone, online platforms like Jira, or Trello), and establish specific usage guidelines.
  • Progress Tracking: Schedule regular meetings to review progress and discuss project status with partners.
  • Use Simple Language: Avoid technical jargon and use clear, concise language.
  • Openness and Responsiveness: Be open and responsive to partner issues, discussing and resolving them promptly.

5. Project supervision and management

  • Set Clear Goals: Define project goals and objectives clearly.
  • Project Planning: Develop a detailed project plan outlining timelines, deadlines, and tasks.
  • Regular Evaluation: Monitor progress regularly to identify and address potential risks or obstacles.
  • Plan Adjustment: Modify the project plan as needed to keep the project on track.
  • Maintain Open Communication: Keep in regular contact with outsourcing partners to provide feedback and ensure project progress.

6. Deployment and maintenance

  • Quality Evaluation: Assess work quality, including accuracy, functionality, and aesthetics.
  • Project Effectiveness Evaluation: Review whether the project achieved its goals and provided value to the business.
  • Collaborative Deployment Planning: Collaborate with partners to plan and execute a seamless deployment process.
  • Maintenance Planning: Establish a maintenance plan and schedule for resolving post-deployment issues.
  • Continued Communication and Feedback Sharing: Maintain regular communication with outsourcing partners, providing constructive feedback for ongoing improvement.

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Outsourcing represents a potent strategy for businesses seeking to enhance their development operations and secure a competitive edge.

Through meticulous articulation of requirements, selection of suitable partners, and adoption of a methodical approach, companies can adeptly navigate the outsourcing landscape and realize project success.

It is imperative to emphasize that effective outsourcing hinges on transparent communication, robust collaboration, and an unwavering dedication to quality throughout the entire journey.

Evotek takes pride in its position as a premier software outsourcing firm, committed to delivering top-tier services at competitive rates. We remain steadfast in our pursuit of providing clients with bespoke software solutions that precisely address their needs and preferences.

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