Fintech Software Development Outsourcing

Technological optimization of a fintech app or a from-scratch product development might cost a fortune, considering the tech stack, feature complexity, and security measures, which motivates companies to search for alternative development solutions. 

In the article, we discuss why fintech development outsourcing is the optimal solution for the organization to optimize its working and development processes, as the company can assign part or all development responsibility to the hired third party. 

Why Outsource Fintech Development

The general pros of fintech outsourcing include boosting the effectiveness of the aforementioned digital solutions, reducing operational load, optimizing costs, and accessing global talents. 

Cost Reduction

This benefit relates to the aspects of labor costs, workplace space, and paid working hours. From the labor cost perspective, the organization can hire an outsourcing team to complete its project, which will significantly decrease the need to maintain in-house teams as it does not focus on the salary payment method and excludes the need for corporate gifts, training, and medical compensation. The hired team does not require a workplace space, meaning remote cooperation can complete the project without additional investment into office rent. 

Access to Global Talent

Outsourcing is an excellent strategy for integrating an international team of specialists into the project development, considering the latest US fluctuation in the IT market. According to the research from Statista, 20.8% of the respondent organizations struggle with hiring and recruiting back-end developers in 2024. These notorious statistics, however, offer businesses and startups an option to consider hiring out-of-office international teams or single specialists who can cover the organizational requirements based on the required IT specialization. 

Choosing the Right Outsourcing Partner

When choosing an outsource partner, the potential client may feel anxious about the vendor's insufficiency in the analysis. The client can contact the sales representatives of the potential outsourcing party, but they might not have a direct conversation with the people who will actually complete the required technical operations. For this purpose, it is essential to consider the factors below of how to choose a reliable outsourcing partner. 

Candidate’s Projects

The client can pay attention to the scope of the candidate's projects they worked on. Usually, there is a separate page named “Success Stories” or “Our projects” where the outsourcing company represents their key responsibilities, challenges, and achievements, which underline the level of competence and candidate’s reliability. 

Client Feedback

Additionally, to ensure the understanding of the operational effectiveness and deadline fit, the client can take into account client feedback on the working progress and their level of satisfaction. One of the alternative strategies is for the client to contact the organization representatives (that placed the feedback on the candidate’s website) and clarify the details about the technical expertise team and the overall impression. By analyzing the feedback of the previous client, the business representatives can formulate a general team they will potentially work with.

Expertise in Fintech 

The expertise in fintech factor is central to consider as the domains the company excels at can demonstrate the candidate’s practical competence and technical capabilities. For instance, the outsourcing specialist(s) who worked on the cryptocurrency wallet and can shift to the neobank development show versatility in an experience that enhances the partner’s reliability.  

How to Outsource Fintech Software Development?

Now, it’s time to discuss how to implement outsourcing in your professional setting and make it align with your corporate needs and values to achieve the maximized efficiency in product development and communicational effectiveness.

Choose the Right Outsourcing Partner 

When analyzing the list of potential outsourcing organizations, you have to keep in mind the following aspects that can help you determine whether the partner can fit your specific needs. 

What Projects Did the Company Complete?

One of the crucial elements you should consider is the projects the candidate has completed or is still working on. This will give you insights into what challenges the company faced, analyze its strategic decisions to overcome them and check its technological expertise.

Is the Outsourcing Company Trustworthy?

Another factor you should pay attention to is clients’ feedback. Outsourcing companies can either integrate those reviews to their main page or attach them to the projects completed. In both cases, you have the opportunity to check what strategic strengths the clients highlighted when collaborating. 

What is the Company’s Expertise in Fintech?

The outsourcing tech expertise in fintech is central to consider as the domains the company excels at can demonstrate the candidate’s practical competence and technical capabilities. For instance, the outsourcing specialist(s) who worked on the cryptocurrency wallet and can shift to the neobank development show versatility in an experience that enhances the partner’s reliability.  

What Methodology Does the Company Apply to Software Development?

You have to clarify the outsourcing fintech software development methodology the candidate applies as it will affect the overall approach to handling tasks, setting roles, and assigning deadlines, which will impact the time and crafting outcomes. For instance, in SDLC, the process is iterative; however, it has limited capacity for changes in requirements. The Agile methodology is iterative and divided into sprint cycles, so if you need any change at any development phase, just discuss it with the outsourcing team. 

Explore the difference between SDLC and the Agile methodology.

Requirement Analysis

Requirement analysis is a crucial step when you need to analyze the specific scope of work the outsourcing team will have to cover to align with your business needs. This step will focus on fintech development outsourcing requirements decomposition: the overall business objectives, specific product development goals for the hired team, timing, and setting the communication/reporting rules. 

• Define the Business Needs

First of all, you have to define the challenges the company experiences. These might be the lack of an in-house team, time constraints, and cost inefficiency. Then, you will have to analyze what objectives you’re going to achieve through outsourcing, like boosting time-to-market product delivery, access to narrowly-specialized global professionals, increasing operational flexibility and efficiency, etc. 

• Determine the Scope of Work

List specific assignments that should be outsourced. You might be interested in software development and/or customer support. Conduct a complexity analysis by determining the task's overall level of complexity. You have to understand whether it is a simple and repetitive task or a complex assignment that requires a decent level of expertise. 

• Underline Functional and Technical Specifications

The functional needs present the identification of roles and responsibilities the outsourcing team will take to complete the scope of work. Technical specification implies setting tech requirements, like programming languages, frameworks, and specific tools, that should be implemented to ensure a decent integration with the existing system.

Planning and Project Management

After selecting the outsourcing vendor and analyzing the overall requirements, you will have to craft a project roadmap, as it will benefit planning and managing the overall process of collaboration and product development. The project roadmap consists of the following elements:

• Phases (initiation, planning, developing, testing, deploying, and closing)

• Timeline. The timeline is based on the phases of product development. For instance, the initiation phase can take 1-2 weeks; the planning phase can take the subsequent 3rd to 5th week.

• Milestones represent checkpoints you anticipate to get completed by the predetermined time and phase. For instance, the milestone for the planning is the finalization of the technical design. 

• Assigned Responsibilities. Finally, the outsourcing team will have to complete the milestones per the predefined obligations. For instance, the outsourcing team has to develop plans and craft mockups during the planning phase. 

Development, Testing, and Deployment

Development, testing, and deployment represent the middle and final stages of the product development lifecycle. 

• Development

Outsourcing professionals start a practical process of software crafting during the development phase. The team writes code based on the technical architecture and design. The product development is decomposed into small feature crafting. Then, the team applies Agile or SDLC to deliver a ready-made feature when the cycle is over. 

• Testing

After crafting the required features, the QA specialists conduct multiple testing types to check the app’s correctness in functionality and remove potential bugs. The outsourcing team can conduct the following testing procedures: integration testing, performance testing, security testing, and user acceptance testing (UAT).

• Deployment

Deployment is the final stage of product development, as the hired outsourcing professionals deliver the fully elaborated application to the market, ensuring its usability for the end-users. The phase includes post-deployment monitoring, support, and product updates.  

Challenges You May Face With Fintech Outsourcing

Regardless of the analyzed benefits outsourcing presents, there are core pitfalls that should be addressed when hiring an outsourcing third party. 

Time Zone Differences

The barrier of time zone differences may affect the cooperation between the parties negatively as it can cause delays in the reporting or updating on the project progress or block the outsourcing team from clarifying additional details based on the time differences. 

Solution: Emergency Communication Specification

Dealing with the timezone barrier and preserving communication specifics in case of an emergency is something that must be clarified even before the cooperation starts, based on the time differences. This precautionary step can alert the concerned parties of potential challenges that may need immediate resolutions, allowing the outsourced team to reach out to the client representative through a call or text.

Privacy Concerns & Data Leakage

Another major challenge for the client is privacy as there are chances that any data leakage is possible when sharing sensitive information with an outsourcing team. The inconsistency in security may lead to data leakage, undermining an ideal safeguard of the client’s data.

Solution: NDA & Corporate Accounts

The solution to the privacy concern includes signing an NDA (Non-Disclosure Agreement) to grant access only to the required information. The solution to data leakage is to create corporate accounts to transfer data from the client to the outsourcing team and vice versa, as well as to implement SSH connection by adopting single sign-on.

Project Control Issues

Project control issue like checking the progress and identifying/resolving barriers and challenges is another issue with outsourcing as due to the time-zone differences, there might be inconsistencies in solving and reporting them to business leaders. 

Solution: KPI

To resolve the project control issue, the KPI is applied to evaluate project performances and goals to guarantee the timely completion of the deliverables. Analysis of milestones can help the outsourcing team to identify and eliminate potential barriers and obstacles. 

Why Choose Agilie?

Open-minded and aspired to excellence, Agilie is a European outsourcing organization that provides clients with time-efficient, cost-effective, and result-oriented solutions for over 14 years. 

Dedicated Teams 

Agilie benefits of providing dedicated teams include cost-effectiveness, access to the tech talent pool, and flexibility in the team range, which results in the improved efficiency of the project. Our company offers building cooperation with our UI/UX designers, DevOps, Front-end, and Back-end specialists, and QA professionals. 

Staff Augmentation

With the help of a staff augmentation model, Agilie addresses the client’s objective of a robust, narrow-specialized team for the optimization of the working processes and solving complex product needs. 

Project-Based Outsourcing

The project-based outsourcing model is beneficial, to preserve the management resources of the business organization. This outsourcing model mostly suits those companies that lack in-house team. 

Gain insights into Agilie’s software development services.

Conclusion

Outsourcing is a beneficial model of cooperation that resolves the issue of hiring talented niche specialists by offering flexible and adaptable narrowly-specialized teams to solve the issues with the speed of the project development and its effectiveness. Selecting Agilie as an outsourcing partner can bring you the strategic advantages of flexibility, complete control, and timely project submission to make your project stand out. Intrigued? Contact us in the form below.

Contact us to enhance your competitive advantage with our narrow-specialized team.