Outsourced Product Development Services for UK Companies: Why, When, and How

Do you run a UK-based business? If so, you’ve likely faced challenges in the product development process that have made you consider outsourcing. And it’s no surprise at all since 70% of UK companies outsource key operations to third parties, with IT support and outsourced product development services accounting for 34% and 21%, respectively.

The UK is known for its creative prowess and ranks among the world’s most innovative nations. Its rich talent pool and business-friendly ecosystem have birthed countless innovative companies, which turn to external teams for their specialized skills to sustain their reputation and deliver new ideas to market faster. Yet, the decision to outsource product development requires careful thought, as the quality of services varies greatly.

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Perhaps you even tried to work with external teams but were left frustrated with unexpected delays or quality issues, and now you hesitate to entrust your project to a third-party company. As an IT outsourcing services company that delivered 200+ software solutions for clients worldwide, we know that not all software houses can provide equally quality services. That’s why we want to discuss how to select the right development partner for your UK company. We’ll also share the advantages of this business strategy as well as practical tips for hassle-free outsourced product development management. 

What is Outsourced Product Development?

Outsourced product development (OPD) is the practice of contracting with an external organization to manage some or all aspects of new product creation. Businesses often opt for OPD to reduce time-to-market, access niche skills, and manage costs more effectively. Whether the third-party team is local or based overseas, they provide the expertise and flexibility you might lack in-house to meet specific business goals. 

While the external team handles the technical work of product development, your team can concentrate on what they do best. So, OPD lets businesses tap into global talent, play to their strengths, and achieve greater agility in their development strategies.

As one of the most influential figures in management theory of the 20th century, Peter Drucker said: “Do what you do best and outsource the rest.”  

Services Included in Outsourced Product Development

The beauty of outsourced software product development services lies in their flexibility! Here’s a breakdown of the many services you can leverage to take your product vision to life faster :

• Ideation & Strategy: Brainstorming sessions, market research, and competitor analysis to lay the groundwork for a truly transformative product.
• Design & Prototypes: User interface (UI) and user experience (UX) design, along with interactive prototypes to refine your product’s look and feel.
• Development & Engineering: The creation of the core functionality of your product, from frontend user interfaces to backend infrastructure.
• Quality Assurance (QA) & Testing: Different software tests are performed to identify and fix bugs and ensure a seamless user experience.
• Project Management: The entire development, supervised by the external service provider, will keep the project on track and within budget.
• Deployment & Launch: Get your product out there, whether it’s an app store launch or website rollout.
• Continuous Support & Maintenance: Make sure your product continues to operate smoothly with bug fixes, updates, and performance optimization.

Advantages for UK Companies

The UK is considered a hotbed of innovation, but even the most brilliant ideas can get bogged down in the challenges of in-house development (limited skillset, high investment, recruitment, etc.). Relevant’s experience demonstrates that a partnership with an outsourced company for product development rather than recruitment benefits business owners a lot. Today’s businesses that want to lead and stay ahead should be agile and ready to change with the market. The IT outsourcing model helps with that. There are also some other weighty reasons why entrepreneurs decide to hire external teams.   

• Cost-Effectiveness

To build an in-house team, you have to invest in salaries, infrastructure, and skills improvement. Outsourcing allows you to access top talent at a fraction of the cost and free up the capital for other strategic initiatives. 

• Access to Global Talent

The UK boasts a deep talent pool, but outsourced product development software opens the door to a world of expertise. Find specialists with the exact skills you need, regardless of location, to create a truly world-class product.

• Faster Time to Market

Competition waits for no one. Software development outsourcing accelerates the development process and lets you tap into experienced teams and established methodologies. You can get your innovative product to market quicker and capitalize on short-term opportunities.

• Focus on Core Business Activities

Don’t get stuck in the technicalities of the new product development process. When you outsource a part or all of the software development, your in-house team will have time to focus on what they do best – manage core business activities, develop marketing strategies, and build customer relationships.

Selecting the Right Outsourced Product Development Partner

The choice of the right partner for outsourced product development services can feel like a high-stakes game of chess. One wrong move could send your project into a tailspin. So, how to decide who deserves your trust with your precious ideas?

Criteria for Selection

A good outsourced partner should feel like an extension of your team. The company should ideally share your vision and business values, then the collaboration will be smoother and more fruitful. But there are some other critical aspects to take into account once you decide to opt for outsourced software product development services: 

• Expertise and Experience

You want a partner who understands your industry inside out and has delivered products in a similar space before. So, check their history of success to make sure they can help you turn a concept into a profitable product. Look for case studies, client testimonials, and references to get a clear picture of their capabilities.

• Communication and Cultural Compatibility

When it comes to collaboration, communication, and culture can make or break a project. Can the partner understand your vision clearly and adapt to your work style? Make sure their team speaks your language and values transparency to ensure ideas flow smoothly and problems are swiftly tackled.

• Quality Assurance Practices

If you want a flawless product that meets industry standards, you should look for a partner that has established quality assurance services. Acceptance, performance, security, and usability tests, both automated and manual, are all critical components of good QA. Also, issues caught in the early stages of product development will save you time and resources. 

• Intellectual Property Protection

Without proper safeguards, an outsourced project could leak critical details to competitors. Check that your potential partner has strict IP protection policies in place and respects confidentiality throughout the engagement. Contracts should clearly state who owns the work created and how sensitive information is handled.

Steps to Find the Best Partner

Outsourcing your software development to offshore or nearshore developers might be a simpler alternative to in-house team management. There’s no need for you to micromanage or direct the developers’ daily workflow. Nonetheless, you’ll still have to oversee the outsourced team, track their progress, and give feedback.

To make the right choice, check our guide on In-House vs. Outsourcing Software Development, which provides a more detailed comparison of these two options.

So, here’s a quick guide on how to find your outsourced development partner.

Step 1. Conduct Thorough Research

Don’t jump into the first collaboration that comes your way. Use online directories, LinkedIn, and recommendations from trusted contacts. Once you’ve come up with a list of potential candidates, explore their services and who they typically work with to see if their experience is relevant to your project needs. Take a look at their previous projects and read through customer reviews to get an idea of their reliability and ability to deliver successful outcomes. It’s also smart to check out their industry reputation and check their presence in relevant professional networks, and any awards or recognitions they’ve received. 

Step 2. Evaluate Previous Projects and Client Testimonials

Actions speak louder than words, so take a close look at what they’ve accomplished. Scrutinize the potential partner’s past projects to see whether the company has relevant experience in your field and worked on similar projects – don’t forget to ask for references and case studies. Regardless of the company’s level of experience, reach out to past clients for feedback on communication, quality, adherence to deadlines and other aspects critical for fruitful collaboration.

Step.3 Assess Technical Capabilities and Infrastructure

Do they have the technical muscle to develop software solutions as complex or large-scale as you need? Evaluate their team’s skillsets, experience with relevant technologies, and access to the latest tools. A visit, virtual or in-person, to their operation site can provide a firsthand look at how they operate and whether they have the resources to meet your needs. A robust infrastructure ensures smooth development and efficient communication.

Step 4. Discuss Engagement Models and Contracts

Software development vendors often provide several collaboration models to help businesses of all sizes and with different levels of in-house expertise achieve their product goals. Discuss different outsourcing models (fixed cost, time-and-material, or dedicated team) to find the best fit for your project scope and budget. Take into account your budget, timeline, and the complexity of your product development software to understand which model will suit you best. You should also clarify your expectations and timelines and make sure all this, along with deliverables and intellectual property ownership, are clearly defined and included in the contract. 

Step 5. Nearshore Outsourcing

If you search for skilled talent at lower prices but with better control over the project, nearshore software development will be that sweet spot. This is a model where you outsource IT services to neighboring countries. As we talk about the UK, outsourcing to Eastern Europe and particularly countries like Ukraine and Poland are some of the popular nearshore locations. This model offers the convenience of similar time zones, easier communication, and, often, cultural alignments that can streamline collaboration.  

Best Practices for Managing Outsourced Product Development

You’ve found and hired the perfect outsourced development team and that’s the first hurdle cleared. The second part of the successful outsourced product development strategy is the establishment of clear communication and the creation of a productive collaboration framework. Our extensive experience in product management lets us share some best practices that will help you manage teams with ease.

Setting Clear Goals and Expectations

Imagine you finally launch your dream product only to discover it doesn’t quite hit the mark. Outsourced product development services are a fast track to innovation, but without well-defined goals, your project can veer off course. Both in-house and outsourced teams should understand the project requirements and expected outcomes to reduce the risk of misalignment and wasted efforts. So, here are the key elements you should define if you want to achieve successful outcomes from outsourcing:   

• Project Brief. This document outlines your product vision in vivid detail, from the target audience and functionalities to the overall user experience. The more comprehensive the brief, the less room there is for misunderstandings.
• Milestones. Every epic journey needs checkpoints, and your outsourced development project is no different. Milestones are achievable goals that mark key stages of the product development life cycle. Examples of milestones could be completing a core feature or achieving a specific user experience benchmark. These mini-victories keep your outsourced team motivated and on track for a successful launch.
• Deliverables. For each milestone, clearly define the deliverables – the tangible outputs your development team will produce. This could be a functional prototype, a comprehensive test report, or a fully-fledged feature. When your team knows exactly what’s expected at each stage, it keeps everyone accountable and focused. 

Effective Communication Strategies

Good communication is the backbone of any successful outsourced product development software. Information flows freely, deadlines are met, and no confusion is the result of effective communication strategies! Here’s how to bridge the distance between nearshore software developers and in-house teams and ensure a smooth, collaborative development process.

Relevant tip 1. Schedule regular meetings – weekly check-ins, bi-weekly status updates, or daily stand-up calls for complex projects. A consistent communication loop helps you keep everyone informed, fosters transparency, and allows for quick problem-solving.

Relevant tip 2. Meet with a purpose. Don’t let meetings become monotonous affairs. Set clear agendas, encourage active participation from both teams, and utilize video conferencing to build rapport and enhance comprehension.

Relevant tip 3. Any software development team should certainly utilize platforms for task management (Asana, Trello, or Jira), file sharing, and bug tracking at a minimum. These tools make it really easy to track project progress, see who works on what, and share all project-related info.

Relevant tip 4. Maintain clear and up-to-date documentation throughout your project. This includes project briefs, user stories, meeting notes, and code comments. Comprehensive documentation captures every detail so anyone can quickly get up to speed, understand project decisions, and effectively pick up tasks, regardless of when they join the project or need to reference past information.

Quality Control and Feedback Loops

Needless to say, quality control is what needs to be in place to deliver a high-performance, flawless application that delights users. Good quality assurance practices will help you ensure every aspect of the product meets strict industry standards and delivers on customer expectations. So, what will let you achieve a decent level of quality control is:

• Agile methodology. This iterative approach breaks down your project into smaller, manageable sprints, after which you and your development team discuss progress, gather feedback, and refine your approach. Thus, you will build features with quality in mind and allow for quick course corrections, which minimizes the risk of major issues down the line.
• Continuous testing throughout the development process. To make quality control continuous, implement automated testing tools that run tests regularly to catch bugs and regressions early on. The earlier you identify and fix issues, the less rework is required, which ultimately saves time and resources. Also, make user testing and feedback from your real users central to software development. This will let your team find areas for improvement that technical tests might miss and understand whether your product aligns with their needs and expectations.

Our Successful Outsourced Product Development Projects

With over 10 years of experience in outsourced software product development services under our belt, we can safely say that communication is the cornerstone of a successful project. That’s why collaborative environments where our developers work closely with your team are our strength. To show you that this is more than just our claim, here are a few examples of our successful partnerships with UK-based clients from our portfolio of case studies.

OnLadder

We helped OnLadder, a major equity loan tracking and payment platform, streamline their core functionalities and enhance user experience. Due to our team’s expertise in fintech development and user interface design, we built a user-friendly platform for OnLadder’s clients. It’s equipped with data visualization tools and intuitive dashboards so clients can easily track their equity loan performance and monitor key metrics. As a result of our tight collaboration with OnLadder, we managed to build a new platform that perfectly meets their business needs.

Optimum Pay Group

Optimum Pay Group, a global payment processing company, reached out to Relevant experts to develop a secure and scalable payment gateway solution. Our team’s expertise in PCI compliance standards and strong security protocols came in handy when we worked on the solution for Optimum Pay Group. Close and seamless cooperation with their team led to an easier integration of a payment solution with their current systems. Thanks to this solution, our client expanded their global reach and now is able to process payments across borders. 

My Theory Test

We collaborated with Splink Industries to develop a mobile application, My Theory Test, that provides learners with a convenient way to study for their driving tests. The primary focus here was on the intuitiveness of the UI so that learners can easily find the information they need and generally navigate through the application. The app also features gamified learning elements such as quizzes and achievements to make the user experience more interactive. 

Outsource your Product Development to Relevant Software

Outsourced product development continues to be the preferred hiring model for businesses that value agility and cost-effectiveness. When you outsource product development to nearshore developers, you save mone, time, and gain access to a vast talent network. Most importantly, outsourced product development services let you build and launch your product faster without the overhead of in-house development teams.

The crucial moment when you opt for outsourcing is the selection of the right technical partner who will understand your project needs and provide a collaboration environment that will fully meet your expectations. At Relevant, we try to keep the mark of an easy-to-communicate and flexible vendor that offers product development services to UK companies. We are quite aware of all the ins and outs of operating in the UK market, so you can be sure of all the standards and security measures to be upheld. Contact us to check whether we are a perfect match for your next project.