The global financial sector is going through a massive change, with Fintech gaining momentum and popularity. Users have become tech-savvier and long for more convenient and accessible financial services, so digital banking is on the rise. The market is expected to exceed $26.5 trillion in 2022, enjoying a CAGR of 23%+ over the next decade.
With such impressive statistics at your fingertips, you should naturally be interested in joining the fast-moving, lucrative Fintech train. It’s possible with a feature-rich, functional, and innovative app able to win the hearts of picky users. And the good news is that you don’t need to set up a costly in-house dev team to launch such products; it’s enough to find a trustworthy, reliable software developer and outsource this project to them.
How can you avoid getting into the trap of scams and frauds? How to hire effective Fintech developers with minimal risks? Here is a simple how-to guide to risk-free Fintech outsourcing.
Advantages of Outsourcing
Outsourcing has been here for a while as a flexible, affordable software development approach. So, why do thousands of companies decide to outsource their projects to external providers instead of handling them on their own?
Most companies outsourcing their apps mention costs as the guiding stimulus for outsourcing. It is highly relevant for companies across North America and Western Europe, as the local developer rates are too high for SMEs and startups with limited budgets for software. While an average hourly rate of a coder in a developed country is around $100, coders in Eastern Europe, Asia, and Latin America work starting from $15-20 per hour.
Thus, the total software cost reduces exponentially if you outsource it to a firm or a freelance team in the mid-priced location compared to hiring a local team of pricey coders. Besides, you save money on recruitment, taxation, social package, and developer training; the outsourcing firm covers these expenses.
#2 Global Talent Pool
When you decide to outsource the project, your talent pool boundaries disappear. This factor is of particular relevance for countries with a developer talent shortage or huge coder rates for rare technologies. So, if you are unable to locate a coder with the needed tech stack in your location, you can reach out to the global talent pool and find the firm or person possessing the required skills in another corner of the globe.
#3 Flexibility and Speed
Creating an in-house team with the required tech stack is pretty hard. You need to assign a professional recruiter who will headhunt developers, negotiate the terms with each new worker, invest in team training and management, and build the in-house infrastructure for the team.
Everything works differently when you’re outsourcing the project. The team-building task lies on the outsourcing provider, and you enjoy a quicker time to market than your competitors because of getting a ready team to your service.
Risks Connected with Outsourcing
Obviously, outsourcing the software creation task is not as cloudless as it seems. It conceals some bottlenecks and risks you should anticipate and manage – the earlier, the better.
- Workflow visibility. The degree of your control over the development process is higher when you work with in-house teams. Outsourced projects are less transparent in terms of workflow, as most processes take place away from your office. Therefore, you need to negotiate task tracking and project management tools with the firm before signing a contract so that workflows remain visible and clear to you.
- Security. Working with an external provider on sensitive projects is always a risk. A strong protective measure in this regard is a non-disclosure agreement (NDA). It may reduce the risk of data leakage, though you can never be 100% sure about your contractor’s security measures and infrastructure integrity.
- Role clarity. The outsourced development project can quickly degrade into chaos if you don’t set a clear distribution of roles, responsibilities, and reporting channels for the team. It’s better to assign a Project Manager and a Team Lead to the team, responsible for compliance with deadlines and smooth task performance.
- Product quality. Quality is the major criterion for outsourcing provider selection. You can understand what quality to expect by looking at the candidates’ past projects, portfolio, tech stack, staff experience, and other clients’ referrals. We recommend talking to old clients of every provider before making the final choice. This way, you will discover their experiences and determine the pros and cons of working with each firm.
A Winning Strategy for Reliable Outsourcing Firm’s Selection
With the pros and cons of outsourcing in mind, you’ll be better positioned to find a reliable, qualified provider of software development services. Here are some tips to speed up the process and minimize the risk of error:
- Look for a company in the neighboring location sharing your language and culture. It will be much more convenient to work with a language and culture fit between teams.
- Set up effective communication channels at once. Poor communication or delayed feedback can ruin even the simplest project.
- Double-check the tech stack of available staff in the company. Some outsourcing providers hastily accept the contract and then look for developers, which is a deeply wrong and counter-productive approach.
- Discuss the company’s expertise in your specific business niche. The first try is bound to be a flop. So, if you need a blockchain project on Rust, you need to be perfectly sure that the provider has Rust coders with an experience in blockchain software design.
- Look deeper into the provider’s internal processes. They should be well-designed and fine-tuned, with no fragmentation or redundancy. An ideal option is a DevOps design of software development.
Use these tips to scan the market consciously and select only proven providers with real referrals. The outsourcing market is huge, and there is always a chance to find your ideal partner among dozens of offers.