Top 6 considerations when selecting app dev providers in 2022

Agile methodologies have been with us for about two decades, and over the past years, organizations have innovated how these capabilities are sourced, scaled, evaluated, and managed. This post covers six quick considerations to get more out of your application development engagements.

1. Agile development: Outsourced, in-house, or hybrid?

In Softtek's report, Sourcing in the Agile Development Era, we asked this question to a group of influential development leaders and found more than 75% of large companies outsource at least a quarter of this kind of work. Half the companies in industrial, communications, media, and entertainment industries say they will increase their outsourcing demand, and a whopping 78% of those in banking, healthcare, and insurance. Companies see the benefits of in-house and outsourced development and are very active in determining which projects are best suited for both.

2. Outsourcing and business growth: Are they related?

Softtek's report also found a correlation between revenue growth and the percentage of development work outsourced. Companies that outsource a larger proportion of Agile development work also experience higher growth rates compared to those that outsource less or develop everything in-house. Specifically, 71% of the slowest growing companies outsource less than half, while 64% of the fastest growing respondents outsource more than half. Companies that master this hybrid approach can access the expertise and time to market improvements of a vendor, all while bringing their own internal capabilities to the table. 

percentage of agile development needs supported by 3rd parties

 

3. Emphasize outcomes over cost for true long-term value

Chances are, if you're reading this, you're already outsourcing a significant proportion of development work. But how satisfied are you? In our report, we found the happiest clients are those aiming to improve time to market and take advantage of service provider experience. While cost savings are crucial, holding vendors contractually accountable for business outcomes is worth paying for and makes long-term value more attainable. 

4. Finding "the one": Blend your capabilities with those of a provider

When we asked our survey respondents about their vendor and sourcing management strategy, 60% said they are actively exploring new Agile development services, with 27% of them specifically looking for more specialized, Agile providers.

Specialized services or products

5. Use analyst firms for vendor shortlisting

Transparent methodology and thorough research make analyst groups trusted sources for considering purchasing options, and The Forrester Wave™: Modern Application Development Services, Q3 2022 is no exception. Using an extensive list of key criteria, it evaluated and ranked what it describes as "the 14 providers that matter the most." Along with the report, it also published a shortlisting tool where buyers can see how vendors stack up under their own weights and priorities. The image shows the rankings as published with default criteria weights. 

Picture1

6. Hand-pick your criteria for application development services from a comprehensive list

Given how modern application development touches almost every aspect of business and operations, the list of criteria from Forrester's report is rather expansive. Buyers are advised to consider each variable, then pick their own priorities based on business needs. 

current offering criteria

Given the amount of effort in onboarding new partners, looking at factors that will ensure long-term value is also wise. Here's a list of criteria Forrester considers for a vendor's offering strategy, including investments in innovation, partnership ecosystem, and effective commercial models, among others:

offering strategy criteria

One of the most fascinating aspects of Agile work is that since systems are evolving rapidly, it's not enough to think in terms of modern applications. The emphasis should be put on modern ways of working. The job isn't fully finished if further improvements could help you win more market share, more customers, and more business value. Modernization is less of a thing that happens to assets, and more of a thing that happens to us. 


Speeding up software delivery with Softtek

As the leading provider of distributed Agile development services, we understand the importance of a product-centric approach. Combined with our solution accelerators, Agile methods, automation platforms, and low-code/no-code expertise, we can slash time to market, optimize development cost, and maximize code quality. 

Softteks distributed agile delivery tenets

We hope you find this article interesting and would be happy to explore ways in which we could improve your current program, outcomes, and product-centric capabilities. If you'd like to learn more, visit our services pages, or reach out to us via our contact form. 

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