Software development outsourcing is the most relevant industry on the global platform. Countries like the UK, the US, Canada, etc. outsource the most for their IT requirements. Outsourcing is done predominantly to make the project more professional, error-free, and cost-effective. While the UK and the US are known as the customer countries, Canada provides outsourcing services to various countries. Therefore, software IT outsourcing Canada is not a new thing, but even Canada needs assistance occasionally. Outsourcing is something that has gained immense popularity over a period of time, and it will only grow in the years to come. So, it is important to identify a genuine IT offshore outsourcing company from a fake one. In this article, we will talk about all the aspects one needs to keep in mind before hiring an offshore outsourcing company.

 Research, Research, and More Research

Offshore outsourcing is quite risky for the number of companies that are functioning right now. You may find someone running an offshore software outsourcing company even on the rooftops. If they are genuine, then the space doesn’t matter, but if they aren’t, then the customer organization will be at high risk. Offshore software development in Canada can bring a lot of money to the outsourcing company. The same goes for the UK and US. Therefore, many outsourcing companies would contact and try to make a deal with them. 

Before falling into any of the advertisements, the customer organization must do thorough research. As it is an offshore outsourcing deal, going to the outsourcing company’s office space is usually not possible. As a result, it is critical to look for their works and clientele. Once their client information is collected, the company that has the requirement can easily approach the clients on the list and ask about their experience. Taking a look at the client’s work by the outsourcing company can help add credibility to the findings. 

 Signing the Agreement Documents

Every outsourcing deal starts with an agreement from both sides. This is a seal of trust between the two companies and, hence, it has to be kept on the priority list. Outsourcing development in Canada is governed by certain laws and regulations that one needs to follow. Signing an agreement can ensure the authenticity of the project and outsourcing. The agreement must include: a list describing the services; levels of service; details on the fees and payment; duration of the contract; indemnification policies; product ownership; intellectual property rights (IPR); data protection; Payment Card Industry Digital Security Standard (PCI DSS) compliance; performance monitoring and audit provisions; dispute resolution; business continuity and disaster recovery (BCDR); and termination and exit management. 

The customer company must ensure that the service provider they tend to hire has no hesitation in signing the agreement. An outsourcing company that does not abide by the agreement is undoubtedly a fake one. This agreement will stop them from abandoning the project midway or asking for an illegal payment hike.

Credibility in Contact Details

Communication is the key to offshore outsourcing and, hence, credible contact details are a must. If the service provider doesn’t have an official email address, has no website, isn’t active on social media platforms, and does not encourage video conferencing, it is definitely not a trustworthy organization. Also, if their response time is longer and they are often inaccessible, then it is a red flag that cannot be ignored. 

It is immensely imperative that both parties have constructive communication. Requirements, plans, implementation, and everything related to the project can happen only through transparent communication. If the outsourcing company does not meet all the requirements, then it is better not to proceed with them. Hiring an offshore team can be extremely risky if they don’t have the proper modes of communication and other aspects. Software IT outsourcing in Canada is quite normal and many big companies in the country rely on other outsourcing companies from different countries.

The Payment Structure

A genuine offshore outsourcing company will never ask for full payment in advance. Out of all the outsourcing services, a software developer is paid the most in Canada. Therefore, software IT outsourcing in Canada will be very profitable for software developers. Experienced software developers can make up to $105,000 per year. Therefore, the risk factor can soar with the lucrative payment. Customer organizations must agree only to a decent amount in advance. Once the work starts, the required amount can be paid accordingly. The billing of the amount paid must also be documented to avoid future disputes. 

Some companies prefer payment in installments, and some take half the amount in advance and the rest once the project is finished. It is upon both parties to decide the payment structure that is feasible on both sides. A customer organization should never agree to full payment in advance. 

These are the pivotal aspects that a customer company should look into before hiring an offshore outsourcing company. Notetech Software is an experienced company that has assisted organizations from the UK, US, Canada, and other European countries. Notetech has been relevant and successful since 1998 and provides a peerless team of experienced, qualified, and highly skilled software engineers and developers. You can give your business a new life and sustain success by collaborating with Notetech as the approach implemented is an integrated one in the most cost-effective manner. Write to us at and never look back. 

By Notetech - Content Writer

Published : June 14, 2022