How to Outsource Development Team with Ease and Manage It Effectively?
Oct 18, 2024
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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 AI Summit Seoul & Expo 2026, Asia’s largest AI event, taking place at COEX in Seoul from August 19 to 21, 2026.
About AI Summit Seoul & Expo 2026
Held annually in Seoul since 2018, AI Summit Seoul & Expo brings together experts from global enterprises, research institutions, and academia to explore the intersection of AI and industry.
Now in its ninth year, the event will focus on AI agents, agentic AI, physical AI, and the latest strategies for AI adoption across industries.
What LTS Group Will Showcase
AI is evolving into a vertically integrated ecosystem connecting data, models, infrastructure, and applications. As agentic and enterprise AI gain momentum, businesses need strong software engineering and data capabilities to integrate AI into real-world operations and run it reliably at scale.
At AI Summit Seoul & Expo 2026, LTS Group will introduce a comprehensive range of solutions supporting enterprise AI adoption and advancement:
AX Consulting
AI Software Development
AI Data Solutions
BEACON – Enterprise AI Solution, featuring a live on-site demo
Our team will also be available to exchange market insights, introduce our technologies, and discuss how AI can support your business.
Event Details
Date: August 19–21, 2026 | 10:00 AM – 5:00 PM
Venue: Hall B, COEX, Seoul | Booth I100
Visit the LTS Group booth to learn more about our Enterprise AI Solutions, AI Data Solutions, and BEACON platform.
To arrange a meeting in advance, don’t hesitate to get in touch with us using the details below.
LTS Group is pleased to announce our participation in Intersekt 2026, taking place on September 3–4 at Crown Promenade Melbourne, Australia.
Representing LTS Group at the event will be Mrs. Xuan Phung, CEO of LTS Group, and Ms. Joyce Nguyen, Regional Director of Business Development. They look forward to connecting with fintech leaders, financial institutions, technology providers, and innovators from across Australia and beyond.
About Intersekt 2026
Hosted by FinTech Australia, Intersekt is one of Australia’s leading fintech gatherings. Now in its ninth edition, the event brings together more than 1,000 fintech founders, banks, investors, regulators, policymakers, and industry leaders to exchange insights and explore new opportunities across the financial services ecosystem.
As the flagship event of Fintech Week Australia, Intersekt 2026 will feature industry sessions, roundtables, workshops, networking activities, and discussions focused on emerging technologies, market trends, policy developments, and the future of financial services.
Connect with LTS Group at Intersekt 2026
At the event, our two representatives will introduce LTS Group’s AI-powered fintech software development capabilities and engage with businesses seeking to build, modernize, or scale their financial technology platforms.
Our fintech experience covers digital banking, payments, lending, trading and investment, and financial analytics. We provide advanced data analytics, AX solutions, and legacy system modernization for lucrative AI adoption, combining domain knowledge with engineering and quality assurance capabilities to support each client’s business requirements and user needs.
Mrs. Xuan Phung and Ms. Joyce Nguyen look forward to meeting industry professionals, exchanging perspectives on the evolving fintech landscape, and exploring potential technology partnerships at the event.
Event details
Date: September 3–4, 2026
Venue: Crown Promenade Melbourne
Address: 8 Whiteman Street, Southbank, Victoria 3006, Australia
If you are attending Intersekt 2026 and would like to discuss your next fintech initiative, connect with the LTS Group team to arrange a meeting in Melbourne.
It is with great pride and deep gratitude that we announce that LTS Group has once again been recognized as one of Vietnam’s Top 10 ICT Companies at the prestigious annual program run by the Vietnam Software & IT Services Association (VINASA). This honor marks our third year in a row, after wins in 2023 and 2024, reaffirming our steadfast commitment to quality, innovation, and global digital services.
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About the Award Celebrating Vietnam’s Leading Tech InnovatorsA Three-year Streak That Reflects Our Core ValuesEmbarking on the Next Chapter of Innovation
About the Award Celebrating Vietnam’s Leading Tech Innovators
The VINASA Top 10 ICT Companies program has long been one of the most prestigious awards in Vietnam’s technology industry, spotlighting enterprises that drive digital transformation and deliver impactful tech solutions.
The ceremony held on October 9 in Hanoi honored a total of 169 enterprises that had been verified and reviewed across 23 technology sub-sectors and 5 main categories of digital service.
Uniquely this year, the event also debuted the “Vietnam Digital Technology Enterprise Map 2025”, a comprehensive mapping of 257 enterprises occupying 389 positions across the digital-tech ecosystem in Vietnam. The program stands as one of the country’s most prestigious recognitions in the tech sector, spotlighting companies that deliver transformational digital solutions, command scale and revenue, and help shape Vietnam’s drive toward an innovation-led economy.
A Three-year Streak That Reflects Our Core Values
Starting as LQA, Vietnam’s first independent quality assurance firm, LTS Group has grown into a comprehensive provider of end-to-end technology solutions, offering software development, software testing, data annotation, LLM data training, and HR solutions.
With a strong presence in Japan, the USA, and South Korea and a client network spanning more than 11 countries, we take pride in delivering tailored solutions that help businesses worldwide achieve sustainable growth. Our 97% client satisfaction rate stands as proof of the trust and long-term partnerships we’ve built with global enterprises.
Being recognized for the third consecutive year in the Vietnam Top 10 ICT Companies Awards is more than an honor; it’s a reflection of our people’s dedication and commitment to setting new benchmarks for global IT services excellence.
Embarking on the Next Chapter of Innovation
This recognition reminds us how far we’ve come and how much potential still lies ahead. As we grow, LTS Group will continue to do what we do best: deliver reliable technology solutions, strengthen our presence across key markets, and expand partnerships with clients who trust us to bring their ideas to life.
We would like to thank our clients, partners, and colleagues for being part of this journey. Your trust keeps us moving forward, one project and one breakthrough at a time.