How to Outsource Development Team with Ease and Manage It Effectively?
Oct 18, 2024
-
22 mins read
Table of Contents
Table of Contents
Over the past decade, IT outsourcing has proven to be a strategic choice for businesses seeking to accelerate software development, shorten time-to-market, cut costs, and fill skill gaps. In fact, Clutch reveals that 90% of small businesses turn to outsourcing business tasks to foster growth and reduce wage expenses by 70% to 90% in top outsourcing hubs like Vietnam and the Philippines.
However, to fully realize these advantages, it’s important to have clear guidelines to effectively outsource development team. Failing to do so can result in project delays, increased costs, and underperforming products.
So, how can companies choose and manage an outsourced development team for maximized success?
Keep reading to find out!
What is an Outsourced Development Team?
An outsourced development team refers to a group of skilled professionals from an external company brought on board to handle specific software projects. These teams typically include software developers, product owners, project managers, business analysts, and other specialists.
What is an Outsourced Development Team?
The team members may operate from various locations globally, providing access to a diverse set of skills and knowledge that may not be readily available within the organization. By leveraging this approach, companies can tap into a broader talent pool that accommodates a wide range of IT outsourcing trends and speed up project timelines without the financial burden of hiring full-time staff.
How to Find the Best Outsourced Development Team?
With countless IT outsourcing companies available, it can be challenging to identify the right partner and narrow down their options.
Follow this step-by-step guide below to outsource a full-stack development team successfully.
How to Find the Best Outsourced Development Team?
Step 1. Clearly define the projects for outsourcing
The first step to take is to articulate the scope and objectives of the projects intended for outsourcing.
This includes specifying the technologies involved, the required level of expertise, anticipated outcomes, and timelines.
A well-defined project scope allows for effective communication of the company’s needs to potential software development outsourcing partners, thereby fostering alignment from the outset and minimizing the risk of misunderstandings or scope creep during development.
Step 2. Decide on the relationship-based type of outsourcing model
Secondly, organizations need to choose their preferred relationship-based outsourcing model from the three primary options: staff augmentation, dedicated team model, or project-based model.
Staff augmentation model augments the current team with additional skilled professionals for specific tasks or phases of a development project – suitable for both short- and long-term engagements.
Dedicated team model features specialized teams that work exclusively on the software development project, integrating seamlessly with the internal team – ideal for complex, long-term projects.
Project-based model involves an external team managing all stages of software development, from conception to deployment and maintenance – working best for those with a clear product vision but limited workforce resources.
Budget plays an important role in determining the quality, expertise, and outcomes of IT projects outsourcing.
As a result, here, organizations need to first consider the scope and complexity of their software development project. Then, they need to research market rates for similar software outsourcing services to gain a realistic understanding of costs. Following that, stakeholders should account for hidden expenses such as software licenses and training for the dedicated team.
The costs associated with each outsourcing model should also be taken into account. For example, when opting for staff augmentation, companies need to factor in the expenses of integrating external personnel into existing workflows and any potential management overhead.
Step 4. Choose the geographical outsourcing strategy
The choice of where to outsource significantly impacts the success and cost of software development. Organizations can take into account three geographical outsourcing strategies:
Offshore software development refers to partnering with a company situated in a different country, even on the opposite side of the globe, such as Vietnam. Depending on the chosen location, offshore outsourcing can be highly cost-effective while providing access to a global talent pool.
Onshore entails outsourcing software development projects to providers within the same country. While this ensures maximum cultural and legal alignment, it typically comes at a higher cost.
Nearshore software outsourcing means outsourcing to nearby countries, offering a balance between cost savings and enhanced collaboration due to geographical proximity and similar time zones.
Here are a few useful resources to help businesses make a well-informed decision:
Step 5. Start searching for potential outsourced development teams
Now is the time to actively search for outsourced development teams that deliver the specific software development services desired.
Below are 3 common methods for finding an outsourced development team:
Common methods for finding an outsourced development team
Personal referrals: Consulting the professional network about partners they have successfully collaborated with can be an excellent starting point. This approach often gives the most unbiased and reliable insights.
Online directories: Directory listing of software outsourcing solutions can be a great help in finding top agencies in their respective fields. Clutch, DesignRush, G2, The Manifest, and GoodFirms are notable platforms for compiling an initial list of potential partners.
Google Search: Both paid and organic search results on Google can bring businesses useful insights as long as relevant keywords are entered.
Step 6. Review their portfolios and domain expertise
The next phase is assessing potential outsourced development teams.
Evaluating past work and portfolios plays a significant role in this process since it gives a tangible demonstration of their capabilities and a clearer understanding of what they can deliver.
4 key aspects to focus on are as follows:
4 key aspects to focus on when reviewing portfolios
Range of projects: A diverse portfolio reflects versatility and adaptability. It suggests that the team has navigated various challenges and can likely manage the complexities of the project. However, if the portfolio lacks focus and is overly broad, it may indicate a lack of specialization.
Industry experience: Consider whether the team has worked in the desired sector before. Prior experience in the same industry means they already understand the specific challenges and needs of the business niche. This can translate to more customized and effective solutions.
Quality of work: Pay close attention to the quality of their output. Is their code well-structured and efficient? Is the software free of bugs? High-quality work is a strong indication of technical expertise and a commitment to delivering excellence.
Similar projects: Most importantly, look for completed projects similar to what organizations need. A proven track record of handling similar work suggests they are well-equipped to meet requirements.
It’s worth noting that software outsourcing companies may sometimes be restricted from sharing details of previous projects due to non-disclosure agreements. Nevertheless, they should be able to provide a general overview of their past work, the development processes employed, and the benefits realized by clients.
Step 7. Check their testimonials and references
Client testimonials and references serve as invaluable resources when evaluating prospective partners. They offer firsthand accounts of what it’s like to collaborate with the team, revealing insights that a portfolio may not convey.
When evaluating testimonials, take into account key aspects such as the team’s strengths and weaknesses, their ability to meet deadlines and commitments, adherence to budgets, and the overall satisfaction level of their clients.
If necessary, don’t hesitate to contact previous clients for detailed references regarding specific projects, the team’s management approach, and any setbacks they faced.
Step 8. Assess their communication skills
Effective communication is fundamental to the success of any outsourcing partnership.
3 essential factors to consider when assessing an external team’s communication abilities are:
Language proficiency: The outsourcing software development company must possess strong relevant language skills.
Feedback reception: The team should be open to listening and making necessary adjustments based on your input.
Communication tools and channels: Consider the team’s preferred communication methods and platforms. It’s perfect if their tools are compatible with those of your organization.
Step 9. Evaluate project management capabilities
Checking the project management capabilities of an outsourced development team can give companies insight into how well they can plan, execute, and deliver projects.
Here’s what to review:
Methodologies: Does the team follow a structured project management methodology such as Agile, Scrum, and Waterfall?
Progress tracking: How do they monitor the project’s progress? Do they use tools like Jira, Trello, or Asana?
Project documentation: Do they document the projects well, from project requirements and plans to meeting notes and issues?
Change management: Do they have a structured change management process? Are they able to adapt to changes without any disruptions?
Delivery: Do they deliver projects in a timely and consistent manner as promised?
Step 10. Consider their cultural fit
Cultural fit is often an overlooked yet vital component of a successful outsourcing relationship, which encompasses shared values, work ethics, and attitudes.
To have a good understanding of the outsourced development team’s cultural fit, look into their work ethics, values, and approach to work.
In other words, determine if they demonstrate a strong commitment to quality, punctuality, and professionalism. It’s also necessary to check whether their core values, such as integrity and innovation, align with those of organizations. Additionally, review their working style—whether they favor a structured or flexible approach—since a compatible work dynamic can lead to smoother interactions and increased efficiency.
With the right team in place, businesses are already halfway to success! The remaining task is to effectively manage this outsourced development team. So, here’s a handy checklist to help them navigate this phase smoothly.
8 Tips to Manage an Outsourced Development Team Effectively
8 Tips to Manage an Outsourced Development Team Effectively
Align the outsourced team with product visions and timelines
Clearly communicate product vision, goals, and timeline to the dedicated outsource web development team.
Regular meetings and detailed briefs help align everyone with the project’s objectives, leading to a more cohesive development process and a successful end product.
Guarantee intellectual property and quality control with NDAs and SLAs
Protect intellectual property (IP) and guarantee quality control by implementing non-disclosure agreements (NDAs) and service level agreements (SLAs).
NDAs safeguard confidential information, while SLAs establish clear standards for quality and timelines, holding the team accountable.
Establish clear communication channels
Set up dedicated communication channels, such as email, project management tools, and video conferencing platforms.
Recommended tools for remote work are Trello, Slack, and Zoom.
Set up a leadership hierarchy and point of contact
Designate a leadership hierarchy within the outsourced team, including a primary point of contact.
This structure clarifies decision-making responsibilities and streamlines communication, making it easier to address issues or changes efficiently.
Treat outsourced software developers as part of the team
Integrating the outsourced team into the company’s culture and internal processes through regular meetings, company updates, and other team activities helps cultivate a stronger sense of unity and commitment to the project’s success.
Define and track KPIs
Set specific KPIs to assess the outsourced team’s performance, such as code quality, bug count, deadline adherence, and budget compliance.
Conduct visits and face-to-face meetings
In addition to regular video calls, organize periodic on-site visits or face-to-face meetings to confirm that the outsourcing team meets project standards.
Direct interactions build trust and allow you to observe their working methods firsthand, guaranteeing compliance to established processes and quality benchmarks.
Address any cultural differences
Acknowledge and respect cultural differences, especially in offshore outsourcing setups.
Training or awareness sessions can help bridge cultural gaps, improve communication, and enhance overall team cohesion.
Why Build an Outsourced Development Team with LTS Group?
Working with the right outsourcing development company can significantly bolster organizations’ tech capabilities. LTS Group stands out as a top-tier software outsourcing provider, offering a wealth of skilled talent across various domains, including software development, software testing, and many other digital BPO services.
Here’s why selecting LTS Group for outsourced development needs is the smartest choice:
Why Build an Outsourced Development Team with LTS Group?
Flexible outsourcing models
We offer a variety of flexible outsourcing software development models, from dedicated teams and staff augmentation to project-based and time-and-material options. This adaptability allows businesses to find the perfect fit for their project requirements and budget.
Comprehensive service offerings
We provide an extensive array of software development outsourcing services. Whether it’s web & mobile app development, software maintenance, or web & mobile app testing, LTS experts have it all.
Broad technology expertise
We leverage the best technologies to deliver exceptional results:
Web development: HIBERNATE, Java, PHP, AngularJS, .NET, and more
Mobile development: Flutter, React Native, Xamarin, etc.
Database management: MySQL, Oracle DB, SQL Server, etc.
Cloud infrastructure: Microsoft Azure, AWS, Amazon EC2, etc.
Automation testing: Perfecto Mobile, Soap UI, TestComplete, etc.
Management tools: Jira, Backlog, HP Quality Center, etc.
Client-centric approach
With over 8 years of experience collaborating with 60+ global businesses, LTS Group understands the nuances of development outsourcing. We’re committed to continuous improvement, actively seeking client feedback through detailed surveys post-project. Such dedication helps us consistently meet and exceed clients’ expectations.
Proven track record
Our competitive pricing, effective communication, and extensive experience in a wide range of development projects empower businesses of all sizes to thrive. Check out our portfolio for more details.
Don’t miss out on the opportunity to partner with a team that values reliability, expertise, and innovation. Contact us today to explore how we can elevate your development projects!
Ready to hunt for your perfect outsourced development partner?
When is the Right Time to Hire Outsource Software Development Team?
A software development outsourcing company can greatly benefit an organization in many different scenarios:
When is the Right Time to Hire Outsource Software Development Team?
Filling skill gaps: When there’s a need to fill internal skills or expertise deficiencies without the delays of traditional hiring processes, outsourced teams come in handy to offer the necessary capabilities swiftly.
Reducing costs: Companies seeking to lower expenses tied to salaries, benefits, and training that come with growing in-house teams often find outsourcing to be a budget-friendly alternative.
Meeting urgent deadlines: When software projects face urgent timelines, extra manpower may be needed. An outsourced team can provide the required resources to ensure timely delivery.
Focusing on core functions: When technical tasks begin to overwhelm the internal team, outsourcing allows them to concentrate on core business functions, boosting overall productivity.
Upgrading MVP development: For businesses with a minimum viable product that requires new features or software testing, an augmented team can bring specialized technical skills and fresh perspectives, which are integral to successful implementation.
Entering new markets with local expertise: Embarking on a new market often necessitates localized knowledge to adapt products to meet regional demands. An outsourced development team steps in to provide valuable insights into local market trends.
FAQs about Outsourcing Development Team
What is an outsourced development team?
An outsourced development team comprises skilled professionals from a software development company who are hired to execute and oversee software projects, often beyond the primary geographic and operational boundaries of the hiring firm.
Should I outsource software development or handle it in-house?
The decision to outsource software development team or rely on an in-house team depends on numerous factors, such as budget limitations, project complexity, and resource availability.
If a company’s existing development team lacks the expertise for additional projects, outsourcing can offer access to a global talent pool and specialized skills that expedite development.
On the other hand, smaller projects requiring intensive oversight might benefit from the closer integration that an in-house team provides.
How much does outsourcing developers cost?
The costs of outsourcing software developers can fluctuate based on the geographical location of outsourced team members, project complexity, required expertise level, etc.
Generally, outsourcing to regions with lower living costs—such as Asia, Eastern Europe, and Latin America—can yield substantial savings compared to hiring in-house teams in Western countries.
For example, while hiring a software developer in the U.S. can range from $62 to $209 per hour, a software developer in Southeast Asia typically costs between $18 and $71 per hour. In fact, companies in developed countries may save between 30% and 70% by outsourcing to developing nations like Vietnam.
What to look for in outsourced development teams?
When evaluating potential partners providing outsource custom software development services, businesses should prioritize technical expertise, a strong portfolio, positive client testimonials, effective communication, solid project management practices, and cultural compatibility. Additionally, it’s essential to consider their security measures and capacity to scale as project demands evolve.
Final Thoughts about Outsourcing Development Team
Outsourcing software development services has become the new norm. By collaborating with the right outsourced development team, organizations can tap into a global talent pool, reduce costs, speed up time-to-market, etc.
To select the right partner, clearly define the outsourcing project, choose the appropriate software outsourcing model, establish a budget, decide on the geographical strategy, and evaluate potential teams by reviewing their portfolios, expertise, testimonials, communication skills, and cultural fit.
As for tips to effectively manage outsourced teams, make sure they grasp product visions and timelines, secure intellectual property and quality control with NDAs and SLAs, establish clear communication channels, set up a leadership hierarchy, treat them as internal staff, define KPIs, organize visits, and address cultural differences.
Ready to outsource development team with ease? LTS Group is here to help. Contact us for a free consultation.
Meet Daisy, a content writer at LTS Group, a renowned IT outsourcing company based in Vietnam. With a passion for crafting compelling narratives, she specializes in producing long-form, thought-provoking articles that delve deep into the realms of technology and innovation. Fueled by an insatiable curiosity, she eagerly explores emerging technologies, seeking to understand their potential impact and share insights with her audience. Contact her at hangnt1@ltsgroup.tech.
LTS Group will participate in Autonomous Driving Mobility Expo 2026 (AME 2026), Korea’s largest exhibition dedicated to autonomous driving and future mobility. The event will take place from August 25 to 27, 2026, at Hall B, COEX, Seoul.
About AME 2026
AME 2026 will bring together more than 60 exhibitors across 150 booths to showcase the latest technologies and business trends in autonomous driving and future mobility.
Held alongside EV Trend Korea 2026, the event will focus on the transition to software-centric vehicle architectures built around software-defined vehicles (SDVs), along with advances in ADAS and autonomous driving technologies.
What LTS Group Will Showcase
The automotive industry is rapidly evolving as sustainability, intelligent technologies, and service-based models reshape the market. As vehicles become increasingly software-driven, automotive software development, validation, and data labeling for ADAS and autonomous driving are becoming essential to future competitiveness.
At AME 2026, LTS Group will showcase:
Automotive software development and validation for SDVs;
Data labeling solutions for ADAS and autonomous driving;
LTS AutoTCGen, an AI-powered tool that generates ASPICE-compliant automotive software test cases (live demo).
LTS Group’s CEO, Head of Automotive, Sales Director, and Delivery Manager will be on-site to introduce our solutions and discuss your automotive technology needs.
Event Details
Date: August 25–27, 2026
Venue: Hall B, COEX, Seoul
Visit the LTS Group booth to explore our automotive software development and validation services, ADAS data labeling solutions, and LTS AutoTCGen.
To arrange a meeting in advance, don’t hesitate to get in touch with us using the details below!
On September 11, 2026, Vietnam-based IT solutions provider LTS Group and digital platform TIDO officially signed a software development contract. The partnership marks the beginning of a strategic collaboration to build a unique, gamified eCommerce platform.
Unlike conventional eCommerce platforms, TIDO merges online retail with interactive entertainment. By introducing gamification mechanics, such as lucky wheel rewards, the platform turns standard purchases into engaging, reward-winning experiences. To turn this vision into a scalable, long-term business, TIDO selected LTS Group to build a robust, flexible technological foundation.
LTS Group is guiding the project with a “solid core platform first, features second” engineering philosophy. As the solution architect, LTS Group designed a modular, secure architecture focused on protecting cash flow and user data privacy. This foundation ensures the platform scales smoothly alongside TIDO’s growth without requiring structural rebuilds.
A key highlight of this partnership is LTS Group’s AI-driven software development model.
Replacing traditional, multi-month development cycles, LTS Group deploys specialized agentic AI across the entire software development lifecycle, from business analysis and system design to coding and testing. Operating under the strict supervision of LTS Group’s tech and QA experts at defined quality gates, this model dramatically accelerates time-to-market while ensuring uncompromised software quality.
Together, LTS Group and TIDO are turning an innovative concept into a market-ready product, setting a new standard for interactive online shopping.
About TIDO
TIDO is an innovative digital platform redefining online retail. Moving beyond standard eCommerce models, TIDO creates a differentiated experience that seamlessly combines online shopping with interactive entertainment and gamification.
About LTS Group
Established in 2016, LTS Group is a fast-growing Vietnamese IT service provider. Formerly a leading Quality Assurance company in Vietnam (LQA), LTS Group has now grown into a diverse ecosystem of 10 entities, delivering end-to-end technology services including AX and DX Consulting, Bespoke AI System Development, System Testing, Digital BPO, and Global HR Services.
With 4 dedicated subsidiaries in the USA, Japan, South Korea, and Australia, we serve 60+ clients across more than 11 countries with a 97% satisfaction rate. These milestones affirm our service quality and drive us toward our 2027 goal of becoming a world-class AI-first IT service company.
LTS Group is pleased to announce our participation in Tech Week Singapore 2026, taking place September 29-30 at the Sands Expo Convention Centre in Singapore.
Representing LTS Group at the event are Xuan Phung, CEO of LTS Group, and Giang Duong, Regional Director of Business Development. They look forward to engaging with cloud architects, data leaders, cybersecurity experts, infrastructure teams, and enterprise decision-makers from across Southeast Asia and the wider APAC region.
About Tech Week Singapore 2026
As one of Asia’s premier enterprise technology gatherings, Tech Week Singapore brings together over 29,000 technology leaders and visionaries alongside more than 500 leading solution providers.
The 12th edition features five co-located flagship events under one roof: Cloud & AI Infrastructure Asia, DevOps Live!, Cyber Security World Asia, Data Centre World Asia, and Big Data & AI World Asia.
With dynamic sessions across its mainstage and conference tracks, Tech Week Singapore offers a vibrant platform for industry pioneers, policy influencers, and ecosystem builders to share strategic insights and shape the future of digital transformation.
Connect with LTS Group at Tech Week Singapore 2026
At the event, our team will showcase LTS Group’s AI transformation and data solutions, offering practical insights into how businesses can build, modernise, and scale their digital platforms alongside a QA-backed engineering partner from Vietnam.
Our expertise spans AI transformation strategy, custom AI development, data engineering, and legacy system modernization. By combining deep domain knowledge, engineering excellence, and rigorous quality assurance, we help enterprises accelerate AI adoption and build scalable, future-ready digital systems tailored to their exact business requirements.
Xuan Phung and Giang Duong welcome the opportunity to meet with industry peers, exchange perspectives on emerging tech trends, and explore strategic partnerships during the event.
Event details
Date: September 29-30, 2026
Venue: Sands Expo & Convention Centre
Address: 10 Bayfront Ave, Singapore 018956
If you are attending Tech Week Singapore 2026 and want to discuss your next technology initiative, connect with the LTS Group team to schedule a meeting in Singapore.