The 7 Keys to Successful Software Outsourcing

Securing the ideal software development service provider is no easy task. There are numerous factors to consider when making a successful selection.

In this series of articles, we present a set of best practices and benchmarks to help you analyze and choose the best supplier for your specific needs. You can access the previous posts [here], where we explain why outsourcing can be a valuable strategy for software development and provide a cost comparison between in-house and outsourced solutions.

Now that we've established a cost reference, it's essential to evaluate key aspects of a potential partner’s value proposition and mitigate the risks that could increase project costs or hiring uncertainties.

1. Partner’s Skills and Experience

Skill evaluation can be approached from three perspectives: technological, methodological, and organizational. Let's explore each:

Technological Competence
Assess whether the potential supplier has experience with your project’s technology stack. For new projects, verify that the proposed technologies are modern and widely adopted in the industry. There are various ways to evaluate technical competence—we’ll cover this in a future post. For a preliminary assessment, consider the following:

• Showcases, demonstrations, and technical discussions on past projects

• Client feedback and case studies

• Discussions about the current project's goals

• Maturity and experience level of the proposed team

• Certifications and credentials

The key is to gain confidence that the supplier has hands-on experience with the required technologies.

Methodological Competence
A sound work methodology is vital for project success. This includes processes, rituals, and communication practices that ensure quality and alignment with objectives. Evaluate whether the supplier’s working model aligns with yours or if their proposed approach meets your expectations. Keep in mind, the methodology may vary depending on the engagement model (discussed below). Regardless, you should analyze key elements such as:

• Project kick-off process

• Ongoing and final project phases

• Point of contact responsibilities

• Conflict resolution roles

• Team structure and dynamics

• Onboarding, offboarding, or team member replacement procedures

• Communication methods, channels, and time zones

Organizational Competence
Beyond technical matters, your partner should demonstrate stability and organizational maturity. Investigate how the company attracts and retains talent and check employee feedback.

For example, Novatics has operated for nine years in competitive and innovative sectors such as AITech, CyberTech, InsurTech, and FinTech. With deep experience in complex, international projects, the company consistently receives positive client feedback and maintains an NPS of 9.2. In terms of internal culture, Novatics ranks first on GPTW, offers continuous development programs, and has a turnover rate below the market average. These are clear signs of a capable and mature service provider.

2. Engagement Models

The right engagement model depends heavily on your goals and context. Novatics offers the following models:

Staff Augmentation
Your supplier’s professionals integrate with your existing team to increase capacity or fill specific gaps. Typically, they follow your established processes, but can also provide consulting to improve your team’s maturity. This model is ideal if you already have a team and a mature development process.

Squad as a Service
A dedicated team with all necessary skills works toward a specific objective. These squads may be fully external or hybrid (a mix of your team and the supplier’s). At Novatics, squads typically follow our own framework based on service design, lean thinking, and agile methodologies—but we adapt as needed to align with your internal processes.

Outsourced Solution
The supplier takes full responsibility for managing and developing the solution. Requirements may be provided by your team, or co-created with the supplier. Our teams are equipped to handle development from start to finish.

Choosing the right engagement model for your situation is key to effective project management.

3. Reputation and References

One of the most crucial aspects when evaluating a potential supplier is their reputation. Consider the following:

• What do clients say about their experience?

• Are the clients satisfied with the results?

• Would they recommend the supplier?

This kind of feedback offers insight into the supplier's reliability and quality. Also, look at the brands and industries the supplier has worked with—serving global and innovative companies is often a sign of high delivery standards and maturity.

Novatics frequently partners with forward-thinking companies. You can view client testimonials here:

4. Ability to Attract and Retain Talent

Digital experiences are created by people, for people—making talent acquisition and retention a critical capability. Investigate how the supplier manages these areas and try to learn about their organizational culture. If possible, speak with HR or employees directly to get their perspective.

Here are some best practices to look for:

• Turnover and employee tenure: High turnover can indicate poor retention—understand why people leave.

• Continuous learning and career paths: Investment in employee development correlates with better delivery and higher technical quality.

• Competitive compensation: Salaries and benefits should be attractive enough to retain skilled professionals.

• Evaluation and reward systems: Regular feedback loops indicate a performance-focused culture.

• Organizational culture: Employees should feel valued and engaged.

• Diversity and inclusion: Look for active policies that foster a respectful and inclusive work environment.

• Employee satisfaction: Check sources like GPTW or social media to gauge employee happiness.

5. Intellectual Property and Knowledge Transfer

Intellectual property (IP) protection is essential—especially for projects involving innovation, strategy, or competitive advantage. Ensure that IP rights and responsibilities are clearly outlined in your contracts.

Also, consider how the relationship will evolve at the end of the project. Is knowledge transfer included? Is there a maintenance phase? Aligning expectations early can prevent future headaches.

At Novatics, each project phase is supported by a structured framework, promoting clear communication, seamless transitions, and high delivery standards.

6. Flexibility and Scalability

Project scopes often evolve, so it’s important to choose a supplier that can grow with you. Evaluate their scalability by reviewing the following:

• Contract terms: Can the team size be adjusted easily? Are there penalties for scaling down?

• Company size and longevity: Established companies tend to handle scale changes more effectively.

• Talent pipeline: What’s the talent availability in the regions where the company operates? Are there universities, tech hubs, or innovation clusters nearby?

• Team quality: Assess the team’s education, experience, and English communication skills.

• Onboarding process: How fast and efficient is the process for adding new team members?

7. Cost-Benefit

Price matters, of course—which is why we’ve dedicated an entire post to this topic. You’ll find a cost benchmark there to guide your expectations.

Still, it’s clear that price alone shouldn’t dictate your decision. A broad, holistic assessment leads to a safer, more strategic partnership. Ultimately, the best relationships are built on trust and mutual value.

Did you find this piece enlightening?
Explore the initial stages of our software outsourcing guide [here] for more insights. See you in the next post!