OUTSOURCING CHECKLIST 70 MUST-ASK QUESTIONS TO EVALUATE SOFTWARE TEAM AUGMENTATION FIRMS © Image Freepik.com Copyright Arcanys © 2023 Long-term strategic partnerships turn out to be a dominant factor of effective IT outsourcing. To make sure you get the best devs on board for your software needs, you want to choose a trustworthy tech provider who aligns with what you expect in terms of background, skills, attitude, culture, methods, quality standards, rates, engagement model, and everything in between. This ebook gathers 70 key questions that you want to ask your prospective providers before deciding whether or not you should partner with them. Of course, before you assess any IT staff augmentation or custom software development companies, be sure to understand where you need them to fill the gap, what your broad requirements are, and have a shortlist of promising companies based on the criteria that matter to you. Not ready with these preliminary steps yet? Check these out before proceeding: 70 Must-Ask Questions to Evaluate Software Team Augmentation Firms | © 2023 www.arcanys.com 1 There are 9 areas we recommend looking into: 1 Background 2 Partnerships and References 3 Capabilities and Readiness To Deploy 4 Culture and Values 5 Talent Team Dynamics 6 Communication Processes and Collaboration Tools 7 Development: Methods and Standards of Quality 8 Engagement Model and Rates 9 Security and Contract Let’s take them in turn. 70 Must-Ask Questions to Evaluate Software Team Augmentation Firms | © 2023 www.arcanys.com 2 1 BACKGROUND How long have your company been running? Who is behind it? How many years have the founding team been in the software/web development business? What is your company management style? What is your company’s business model? What are your company’s primary values and guiding principles? What is your company’s financial condition? What sets your company apart from other software/web development firms? 70 Must-Ask Questions to Evaluate Software Team Augmentation Firms | © 2023 www.arcanys.com 3 2 PARTNERSHIPS AND REFERENCES Do you have a history of long-term cooperation with clients from various countries and industries? How many clients have you handled so far and how many active clients do you currently have? Where can I find testimonials of your existing clients? Can you describe your latest 3 client collaborations? Can you provide at least two references I can speak to (with contact information)? ๐ก In addition to providing feedback about their working relationship with the provider, these current customers may also be able to offer useful tips for the initial weeks of collaboration and even some valuable advice for the long term. 70 Must-Ask Questions to Evaluate Software Team Augmentation Firms | © 2023 www.arcanys.com 4 3 CAPABILITIES AND READINESS TO DEPLOY In evaluating shortlisted vendors for an outsourced software development project, you need to know who will manage the project from the vendor’s end. For instance, you need to know up to what level their senior management will be involved if they get your account. How many employees do you have? Provide the number of employees per position. What are the primary skills and technologies you can provide? What is your area of expertise? Can you also assist in areas like UI/UX Design, Business Analysis, QA, cloud monitoring, technical support, etc.? Do you have a CTO who can step in if needed (CTO as a service)? How soon can you build my dedicated team? What are your process and timeframe for scaling the dedicated team and resources up or down? ๐ก Communicate your growth plan with the provider so they can anticipate your future demands and see how they can grow with you over time. ๐ก The ideal partner should be big enough to offer the resources you need, but with a close-knit and approachable management team. 70 Must-Ask Questions to Evaluate Software Team Augmentation Firms | © 2023 www.arcanys.com 5 4 CULTURE AND VALUES Where can I see what employees say about your company? Please provide your social media accounts and employee review sites. What benefits and perks are your employees receiving? Can I talk to some of the developers and other employees? What kind of cultural training do you provide to your employees? What is your employee attrition rate? What are your employee retention strategies? ๐ก Check out all signs of a positive company culture here. And remember not to rely 100% on what you read online about a company — it is very often just the tip of the iceberg. 70 Must-Ask Questions to Evaluate Software Team Augmentation Firms | © 2023 www.arcanys.com 6 5 TALENT TEAM DYNAMICS What are your team composition and dynamics? What’s your team’s degree of maturity and seniority? What are their strengths and weaknesses? How do you pick and hire your developers? Do I get to choose the developers I work with? What are the educational backgrounds and previous experiences of your employees? What are the specific certifications of your employees? What training are they receiving? Where are your employees primarily located? What happens to the client when an employee leaves your company? How does your company keep up with the latest industry trends? 70 Must-Ask Questions to Evaluate Software Team Augmentation Firms | © 2023 www.arcanys.com 7 6 COMMUNICATION PROCESSES AND COLLABORATION TOOLS What are your workflows like? Can I communicate with the developers directly? What are your main tools for daily communications and collaboration? How does the team report their progress, roadblocks, etc? Do you use DevOps lifecycle tools like Github or Gitlab? How is the source code managed? How do you document issues? Can my dedicated team adopt my existing tools and processes? What is your escalation process? What are your feedback processes for developers and work quality? 70 Must-Ask Questions to Evaluate Software Team Augmentation Firms | © 2023 www.arcanys.com 8 7 DEVELOPMENT: METHODS AND STANDARDS OF QUALITY What software development approaches or styles are you familiar with and specialize in? What application lifecycle management tools do you use — i.e. for code authoring, version control, change and requirements management, estimation and project planning, source code management, and test management? Does your team use Agile/Scrum methodologies? Do you follow clean code principles? What are your testing methods? What do you think about commenting code? Do you perform peer code reviews? Are there development processes that you refuse to follow? Can you familiarize the client with your processes and methods of work, and vice-versa? Can you describe the process you went through for clients similar to us? Do you perform hours logging in the development process? 70 Must-Ask Questions to Evaluate Software Team Augmentation Firms | © 2023 www.arcanys.com 9 8 ENGAGEMENT MODEL AND RATES What are your different models of engagement (fixed price Vs. time and materials contracts)? What are your rates and what do they encompass? Are there additional recruitment fees or seat fees? Can the cooperation be tested before any major decisions are made? What is your payment schedule? Describe your time accounting and milestone management process. Do you use subcontractors for any work performed for a client? ๐ก Some providers outsource parts of the work to other firms to reduce costs or fill skill gaps, and you need to be aware of the consequences on your project. Asking these questions early in the evaluation process will help you prepare and decide on any accountability, security, privacy, and data integrity issues that you are not comfortable with. 70 Must-Ask Questions to Evaluate Software Team Augmentation Firms | © 2023 www.arcanys.com 10 9 SECURITY AND CONTRACT What are the major legal points of the contract? What are your security and confidentiality guidelines in protecting your clients’ IP, source codes, and/or other sensitive information? Who owns the code, process, hardware, licenses, and other materials required in the project? What warranties do you provide for the intellectual property and work deliverables? Do you have a business continuity plan? ๐ก Taxes and other expenses should already be included in the computation. It should be in black and white to avoid any hidden costs and excuses. 70 Must-Ask Questions to Evaluate Software Team Augmentation Firms | © 2023 www.arcanys.com 11 Conclusion With a good sense of who these companies are, what they offer, and how their teams work, it should be a lot easier for you to make an enlightened decision for your strategic outsourcing moves. REMINDER... The 9 key areas in evaluating software development firms are: • Background • Partnerships and References • Capabilities and Readiness To Deploy • Culture and Values • Talent team Dynamics • Communication Processes and Collaboration Tools • Development: Methods & Standards of Quality • Engagement Model and Rates • Security and Contract 70 Must-Ask Questions to Evaluate Software Team Augmentation Firms | © 2023 www.arcanys.com 12 About the author Fred had been working on IT and operational projects in the finance and software industry in Switzerland for 10 years before co-founding Arcanys in 2010. He carefully negotiated with and managed outsourcing suppliers as a corporate buyer on the one hand, and led delivery teams as an internal provider to operational departments at an executive level of listed companies in Switzerland, on the other. With over 20 years of experience in the industry in Switzerland, Hong Kong, and the Philippines, Fred is now leading the worldwide sales and marketing efforts of Arcanys. View on Linkedin เฟฎ CONNECT WITH OUR FOUNDERS 70 Must-Ask Questions to Evaluate Software Team Augmentation Firms | © 2023 www.arcanys.com 13 About Arcanys Enabling tech businesses with scalable software teams We are a Swiss-led software development & IT staff augmentation firm based in the Philippines. We work with ambitious companies that are ready to enhance their technology output and prepare for accelerated business growth. As a long-term strategic partner, we reinforce their software development operations by supplementing their existing teams with the top 5% of IT talent in the Philippines. With a successful placement rate of 95%, we fill positions 10 times faster, and we offer an average cost savings of 56% compared to local hiring. At our core, we prioritize talent retention, boasting an attrition rate that never exceeds 10% LEARN MORE 70 Must-Ask Questions to Evaluate Software Team Augmentation Firms | © 2023 www.arcanys.com 14
