34 most common outsourcing questions asked by a potential client

The ICT outsourcing services are seen as a rentable investment to achieve a high level of efficiency in the business. The reason for such a huge interest in nearshore outsourcing is the overload, high demand on in time delivery, expertise, and experience that outsourcing companies may complement their clients.

62% of large organizations are outsourcing at least a portion of their application development work. (Computer Economics study, IT Outsourcing Statistics 2014/2015)

Considering that DAS Solutions is using and is integrating the latest technologies, we thought it would make sense to address the questions we hear the most from customers. The purpose of these answers is to simplify the perfect IT outsourcing service provider selection process and give you insights on how to gain trust. Likewise, for companies that are in the selection of the right development outsourcing partner, to know the right answer could be helpful in the selection process, avoiding some of the most expensive pitfalls.

59% of companies outsourced work to reduce costs. (Microsourcing)

A business owner could save around 60% of overall costs with outsourcing. (Outsource Accelerator)

Outsourcing can increase productivity by 10 to 100 times. (Economist)

Continue reading this article, discovering surprising and unexpected juicy details about which you probably did not even know.


Recruitment and Project Management

1. How do you recruit specialists to work on the project? / Where do you find your candidates?

When we have talents available in house, we offer their CVs to the customer with whom we have concluded the agreement. After a detailed examination of all provided CVs, the client invites the chosen candidates to interview, having the right to refuse or to select the best candidate/s.
Once the client needs a specific specialist while is not available in our team, we resort to multi-stage recruitment. It gives us a hand to meticulously review applicants’ backgrounds. The stages of recruiting that we rely on:

CV screening – we analyze the candidate’s expertise;
Technical interview – we exam talent’s English-language competence, his vision, values, experience and we offer tasks which should be completed, verifying the candidate’s technical skills;
Discussion with the CEO.

2. What do you look for when hiring new developers/candidates?

Our primary focus during candidates’ selection is skills and ability to solve problems, here we refer to the solution-oriented value. Likewise, for us, it’s important how they act in different situations, for which we follow multiple approaches. We are delighted to say that a big part of our experts is qualified, certified, and highly experienced.

3. How skilled and researched is your development team?

Many of our specialists are constantly developing their skills and knowledge. Moreover, all personnel undergoes training, certification at a certain time.

4. What is the size of the team that will be involved with my project?

Following the audit and the advanced analysis, we come up with recommendations on the number of talents for each position needful to successfully develop the product. It depends on the project-specific requirements, expected delivery time, and the team configuration that would assure the best result possible.

5. Could one employee handle multiple functions?

Some of the candidates who are involved in providing ITO are trained to handle multiple tasks efficiently. This might be the case for the full-stack programmers, who are able to work on the back-end and the front-end of the project or applied to the golden team of DAS where our Seniors may perform as System Architects/Team leads and regular developers.

6. How do you deal with the rotation of people in projects?

To ensure maximum effective work of developers, we have a backup professional/s who is/are up to date with the project and other useful information, otherwise, we do agree with clients on the recruitment process to ensure that all positions are covered.

7. Will I have to train your employees?

Our experts constantly develop their skills and knowledge, being well trained and coached. The client can train employees at the initial stage, if there are more specific nuances such as particular processes, workflows, management systems, etc.. This training is requisite to align us and avoid misunderstandings in the future. See more details and recommendations in our blog article.

8. Will I have to supervise your employees?

For faster product delivery, an efficient and effective step, avoiding misunderstandings and mistakes, we suggest you get actively involved in the product development process. Online meetings through a dedicated communication channel 2-3 times a week are king advice from our side. In our experience, this method is the most beneficial to save customer’s and provider’s time, effort, and resources, providing a quality product.

9. How will I get to know that your team is working or not?

To ensure the implementation of tasks at the most effective level, we organize daily meetings and monitor the evaluation of tasks. Likewise, the time that is worked by each person is monitored by a special tool predestined for such processes. We also offer a weekly / monthly report of the tasks performed and the worked time by each developer.

10. Will the developers assign to my project work on any other project at the same time?

Every expert who is involved in product development is dedicated at the highest level only to this project and in none other than it.

11. Will the same people be assigned to my project for the length of the development effort?

In order to deliver an excellent client experience in time, we strive to proffer a long-term contract according to the client’s needs in the development and maintenance phase. We understand how important this aspect is.

12. How easy will it be to scale a team by 1/3/5 developers? How much time do you need?

It takes about up to 2-4 weeks to scale a team by 1/3/5 developers, depends on the needed number. If the client felt the need for this, we recommend to communicate as soon as possible.

13. How long does it take to start a project? / Where do I start?

Once we made a deal with the client, usual the kick off takes two to four.

14. How will you manage the project?

In order to manage the project, namely to estimate the implementation time of the activities, it is indispensable to have as much information about the company as possible.

15. What collaboration tools do you use during projects?

All communication with the client takes place through a dedicated communication channel and corporate email, protecting business data by Transport Layer Security (TLS) and Secure Real-time Transport Protocol (SRTP).

16. What is the client’s role in the project, and how much time is needed from the client?

The experiences we’ve had, show that the more the client gets involved in the project and our collaboration, the more successful the result is. Why does it work like that? As a result of the permanent communication, we simply understand the client’s needs. On the other hand, the client is always informed about what is happening with his project and at which stage it is, providing feedback when he deems it necessary. So, we get the final result in the desired time.

17. How do we communicate during a project to surface the progress, plans, and problems?

A regular schedule of online meetings, 2-3 / week, will provide a clear vision of the current situation of the project and problems. During these meetings, both sides will come up with solutions, ideas, and with the next steps of the activities.

18. Do you use decent technology?

We use the latest in regards to technologies, databases, tools, etc.


Documentation and Partnership

19. What are the first steps of cooperation?

Depending on the client’s need, we analyze in detail the requirements, materials, and documentation. Consequently, we offer qualified experts (developers/project managers/quality assurance engineers/business analysts, etc.). Additionally, we prepare the action plan and confirm it with the client.

20. How do you deal with partners in different time zones?

Analyzing our experience with overseas clients, we realize that we have never had problems with the time zones’ difference, while at the same time our experience is not that big with this, our 90% of our clients are from Europe.

21. How do you structure the partnership roles to be efficient and successful?

In order to avoid delays in project delivery, it is essential to discuss from the start the development processes and the attributions of each part that will appear.
Working with the client contains:

  • ultimate transparency;
  • maximum involvement;
  • sincerity and straightforwardness;
  • dedication and availability.

22. How do you ensure software quality?

To guarantee the code’s quality, we rescue to the frontend, backend, and infrastructure code audit. We pay special attention to this stage, accomplishing it in several ways:

  1. Automated code study through scanners that check the code for various parameters for each pull request. Plus, we’re checking issues typical of a particular programming language, for instance, Java often has problems with garbage collection and memory leaks. These language-specific issues should also be monitored during the code audit process.
  2. One more step in code review is based on the examination of code quality, architecture, optimization, the functionality of the code following compliance with the customer’s requirements.
  3. Our QA Engineers conduct stress and security tests, unit and integration tests. These validate complex scenarios and usually require external resources, like databases or web servers, to be present.

23. What will be the cost of my product?

There is no straightforward answer to this question because the final price is affected by many factors, including both your specific requirements and external market factors:

  • project type and app complexity;
  • team;
  • design and UX;
  • technologies;
  • testing;
  • target group size;
  • maintenance and others.

Get in touch with us for an appropriate estimate.

24. How do you support security compliance?

From the outset of the product development, developers are informed related to the client’s policy and regulations. In such a way, only the professionals involved in the project have access to the code, adhering to all standard security and encryption procedures in the process. Therefore, we protect customer data, ensure security compliance, and deliver proper security documentation that includes:

  1. features and components with firewall configuration;
  2. vulnerability patching;
  3. incident response;
  4. intrusion detection systems;
  5. demilitarized zones;
  6. intrusion prevention systems and more.

Once the experts work remotely, we use VPN, so only some people have access to production servers, where they can make changes.

25. How much access should I give to your team?

Usually, in order to get into the essence of the project and to fully understand the client’s needs, values, is necessary to offer:

  • technical requirements (as comprehensive as possible);
  • business process documentation (step-by-step description);
  • mockups.

26. Do you subcontract your services?

Yes, sometimes, though prefer to keep all the work in-house. We cooperate with reputable companies in a similar field. Our understanding has been friendly for many years. When recruiting, we turn to our partners, sometimes subcontracting their talents.

27. Do you provide a service-level agreement (SLA)?

Of course. To ensure a 100% beneficial collaboration for both parties, both customer and provider, we certainly use the service-level agreement (SLA) which includes the list of assistance actions, end-to-end program management, and deliverables.

28. How flexible is the SLA?

Depending on the project’s needs, the number of needed professionals and other resources will change. In this way, the SLA is as flexible as possible.

29. Who will own the source code?

The client is the sole code owner with all the intellectual property rights.

30. Do you provide technical documentation?

Definitely. We offer technical documentation which contains the road map, code, and methodology of the project.

31. What is your reporting process?

The reporting process, which we provide, contains the standard set of reports, a work timeline where is mentioned the date of delivery of each report, we use a well know reporting system.


Experience and Practice

32. For how long are you in the outsourcing business?

We have 8 years of experience in delivering the IT Outsourcing service. During this period, we have successfully helped companies across Europe to find the right IT experts for their projects.

33. What kinds of companies do you typically do work with?

Since 2013, DAS Solutions has gained the recognition and trust of more than 40 customers globally from the following industries:

  • Insurance;
  • Finance & Banking;
  • Ecommerce;
  • Telecommunications;
  • Healthcare and Pharmaceuticals;
  • Transportation;
  • Travel and Booking;
  • Business Management;
  • Retail;
  • Real Estate;
  • Agriculture.

Our team has put a lot of effort into creating, implementing, successfully carrying customers’ projects of different levels.

34. Why are you better than other software houses? What makes you special?

During 8 years of work, in any situation, we remained customer-oriented, offering quality and justified costs. DAS Solutions is a company that has won the trust of customers through receptivity, open mind, dedication, and appropriate actions in stressful situations. We can certainly say that we are among the TOP in the region IT Outsourcing providers.

Wrapping up

We have listed some of the most frequently asked questions in the context of IT outsourcing, whose goal is to help companies reduce their costs and increase their productivity by working with the right customer to win the customer’s heart. Of course, the topic is broad and there are still many questions that others are looking for answers to. We’d be glad to arrange a call to begin answering any additional questions. Contact us, we may be the outsourced IT partner you were looking for.

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    KYC – the gatekeeper against insurance fraud

    The insurance industry is increasingly exposed to fraudulent practices and is more vulnerable, susceptible than ever, motivated by insufficient resource allocation for attack prevention and good security, but still less than the banking industry. When customer data is stolen, it also implies fraud.

    “The insurance field is composed of more than 7,000 firms that collect over $1 trillion in premiums annually.” (Federal Bureau of Investigation of the US government)

    In such a way, authorities worldwide are doing their best to impose a series of sanctions to combat money laundering. As an example, European regulators require insurance companies to comply with appropriate Customer Due Diligence (CDD) measures or in other words Customer Identification Program (CIP) to prevent and protect against fraud. This process/method is vital and underlies the prevention of fraud by the insurance industry, and which is part of the process of KYC (Know Your Customer).

    The KYC’s goal and what is it eaten with?

    KYC is a fundamental part of any financial, banking, insurance company’s game plan. It’s the process of verifying the identity of a customer in a timely and secure manner, being at the same time part of the Anti-Money Laundering (AML) regulations framework. It takes place before or during a client’s onboarding and authentication, perfectly by electronic identity verification.

    KYC’s main goal is understanding better clients and their financial transactions, thereby effectively managing risks. More importantly, used by various companies in many sectors for fraud detection, customer viability testing, or market segmentation purposes. KYC is a way to protect companies and individuals to save money and avoid losses or different fraudulences.

    Referring to the modern-day fraud types, among them are the following:

    • Money Laundering;
    • Fake Accounts;
    • Stolen Identities;
    • False Insurance Claims;
    • Application Fraud.

    Its policies are an extremely global tool that fights against money laundering, corruption, fraud, financial terror, illegal transactions, and other similar situations. If you do not use this special tool, obtaining information about individuals and legal entities can be time-consuming, and the quality of the data obtained is not guaranteed.

    “The whole market for KYC solutions is evaluated at $ 5.6 billion with a yearly increase rate of 16%, with a forecast size of $ 11.8 billion in 2022.” (Office of War Information (OWI))

    Insurance Due Diligence

    Considering that insurance companies are increasingly neglected by money laundering and other types of fraud, the due diligence comes to the rescue, helping to classify risks, find out their levels and check the details of each client thoroughly.

    KYC addresses two main areas of concern:
    business’ Customer Identification Program (CIP);
    Customer Due Diligence (CDD).

    Undertaking due diligence, useful client’s details like names, social security numbers, birthdays, and addresses, and others, the identity of the client is rigorously checked, namely, if s/he is not intricated in corrupt, illegal activity, suspected financial crimes, or money laundering, bribery, continuously monitoring his/her profile by suspicious activities. Fulfilling this customer data collection, the client remains to be protected following GDPR regulations.

    In this process, companies also neglect the Anti-Money Laundering (AML) Compliance Program, which helps prevent financial attacks.

    Based on this, the AML and KYC platforms simplify the activity of not only the business, but also the client.

    Thus, in addition to collecting customer data, the company checks the customer’s level of trust by following the Customer Due Diligence process. Due to the fact that in many cases the initial half-year analysis of the client is not enough, insurance companies constantly monitor, namely, the transactions that they do on the basis of an adequate system of internal control and monitoring, Money Laundering Regulations.

    IT and its benefits in preventing insurance fraud

    e-KYC is the base of todays’ modern insurance security process and takes the KYC to the next level. A part of this is, the trending comprehensive customer authentication solution, called “Video-Based Identification Process (VBIP)”. Through this, the company receives a real-time audio-video authentication connection or live photos with the help of which the company can continuously monitor all the client’s actions and at the same time easily detect suspicious procedures. Beside this, the location tracking of the client is also mandatory, using Geotagging, which consists of the live investigation of his/her location via Google Maps.

    e-KYC simplify digitizes the insurance industry, offering a series of benefits such as:

    • Speed;
    • Accuracy;
    • Cost;
    • Adaptability;
    • API Integration;
    • Analytics, auditing, tracking, and reporting;
    • Customer Experience;
    • Efficiency.

    Nevertheless, the solutions of companies developing KYC products are used by businesses, governments, and non-profit organizations around the world. Banks such as Bank of America, Royal Bank of Scotland (fingerprint), Barclays (fingerprint), HSBC (face), Wells Fargo (either voice and face, or vascular) have already successfully used remote identification eyeball) and Citibank (by voice).

    What is the benefit for customers? Very simply, the client lifecycle becomes secured, offering long-distance access online activities, all electronically, and is protected against fraud, this is great, isn’t it?

    “Already Australia, Brazil, Canada, Europe, India, Mexico, New Zealand, South Africa, and the UK are implementing such methods.” (KYC laws around the world)

    Modern and efficient SOLUTION

    Today, there are many companies and tools that provide innovative solutions to prevent insurance fraud. But the question is that you need to use one solution, effective and at the same time simple.

    “21% of insurance plan to invest in IT in the next two years.”(Coalition Against Insurance Fraud)

    DAS Solutions creates custom KYC and identity verification platforms for insurance firms, offering behind-the-scenes protection to clients from various malicious schemes. Thus, your company will increase the productivity and safeguard of your business thanks to a scalable and automated omnichannel solution. If you plan to optimize processes and allow employees to work more efficiently, then the coolest solution is DAS Solutions.

    Recap

    With advanced technologies and innovative analytics, identity verification, monitoring, and screening, the entire process becomes fast, simple, reliable, and secure. Smart KYC onboarding and monitoring reduce human error where possible and, ultimately, helps insurers prevent fraud while avoiding costly non-compliance penalties.

    Contact us today and protect your business with a scalable method and automated way, while saving time, money, and resources. We will be glad to customize the right KYC answer for your company.

    Interesting Stats

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      Dedicated Development Team – Efficient work & Motivation

      There is no company in this Universe that would like to be left behind using outdated solutions for the production process.

      Therefore, to cope with changes and trends, even big software engineering players, like Skype, GitHub, and Slack, opt for outsourcing over other models of cooperation.

      A dedicated team helps to get specialists who will be completely immersed in the specifics of the client’s business. In addition, the team is flexible to customer requirements and can scale up if the need arises.

      THE BENEFITS OF A DEDICATED TEAM

      The advantages list can continue days and nights, but we’d like to highlight how our clients took advantages of such a model working with us:

      full involvement in the requirements and methodology of the project;
      adjustment of the work time in accordance with the client’s time zone;
      opportunity to interview all specialists;
      full control over design processes;
      detailed reports and constant collaboration;
      rapid growth and replacement of resources;
      the long-term value of the project due to the accumulation of expertise and preservation of knowledge;
      cost-effectiveness;
      high work efficiency;
      direct communication and monitoring of the team;
      process of software development controlled and managed;
      flexibility in planning and managing changes;
      team scalability;
      transparent pricing system;
      the most reliable model of all.

      By hiring a dedicated team, most clients are not just looking for additional resources for testing, they are seeking to get motivated and interested in the project professionals who will be proactive and will do everything possible to ensure that the final product is perfect. The client needs experts with whom he can communicate, who will be “on the same wavelength” with him. Therefore, the personality of the team members is very important.

      59% of companies believe outsourcing as an effective cost-cutting option.

      For example, we have a team that has been working with a client of us for 6 years. This confirms that a dedicated team really means “dedication” – dedication to the project and dedication to solving problems. From our experience, we realized and noticed many times that in addition to the involvement of the team, there is another main advantage of this model that attracts customers, and now I am talking about the transparency of the process. This gives the client the ability to monitor the progress of work and quickly scale the team.

      WAYS TO MOTIVATE YOUR OUTSOURCED TEAM

      It’s nice to have a dedicated software development team, but the question is: “How to maintain expert motivated during the long-term projects, at the same time contributing to the development of skills without decreasing the efficiency of the work?”. Let’s discover in detail.

      • Communicate clearly. Make sure that you have laid all the cards correctly, that the people on the other side clearly understand what you are planning. In addition to the kick-off document that you submitted at the beginning, additionally, come out diagrams, designs, examples, and requirements. Provide as much information as possible and always ask if extra materials or explanations are needed. You are the leader of this team (PO of the product) and should be involved as well as the rest of the members.

      57% of projects fail due to breakdown in communications.

      • Respect them as professionals. The cause why you chose them, firstly, is due to their knowledge and skills. Consult them about process improvements, request their opinion, ask for suggestions. A dedicated team is not just a team of engineers, communicators, or managers. Beforehand to start a collaboration with you and your business, they were groomed as consultants.
      • Appreciate them as knowledge workers. Considering the opinions of employees, especially regarding organizational issues, serves as an additional incentive for conscientious work. In addition, a fresh perspective will help identify the company’s strengths and weaknesses. Another way to use feedback for motivation is to invite employees to independently choose the criteria by which their work will be assessed, and based on opinions, form an individual KPI system.  Plus, the staff can become a “bank of ideas”, where the management can draw hints and non-standard solutions to problems. It is important to listen to each employee without rejecting the initiative at the very beginning. This method of non-material motivation will give an additional impetus to the development of the team and the company as a whole.
      • Recognize their achievements. A simple “thank you” or “well done” – and now your team member/colleague smiles and does his task in a good mood, and the rest of the employees are imbued with loyalty to you. Plus, it is a simple way to show the employee the value of his work. Gratitude is always appropriate and, as a form of motivation, does not require any expenses.
      • Pay for extended working hours and working shifts. In addition to a good salary, you have to pay for overtime hours, which is a well-known practice across the IT industry. Plus, the employee will feel that by his time and work there is respect and responsibility for the fact that he divides all the work to instill quality and on time.
      • Respect their time. Each of us has a private life, which requires our attention and time. Since it takes 8 hours to work per day and to sleep the same number of time, we have about three hours a day left for us and our loved ones, if we do not consider the time for the trip to and from the office, for preparing before leaving home and various basic little things. Thus, we have very little free time for ourselves and for important things, and accordingly, this time is very expensive and sometimes it is simply priceless. And do not forget about the weekend, there must be a balance in everything. So winning respect for the free time of employees is one of the key factors in motivating a team.

      The essence of motivation is to give people what they most want to get out of their work. The more fully you can satisfy their desires, the more chances you have of getting what you need, namely: performance, quality, service.

      By hiring a dedicated team, you are, in a sense, hiring a well-coordinated organism that is inspired by your goals, follows your directions, and will not leave you halfway there if something goes wrong.

      Contact us and we will show you how a dedicated team can boost your product/project.

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        9 steps to make a “marriage in Heaven” with your IT customers

        Have you ever wondered how your customers comprehend your joint projects? It’s a useful exercise to experiment with both sides of vision since most issues appear because everyone sees things from their own point of view and fails to observe the situation from other angles. 

        This article is about some of our golden rules which offered us in years agility and open relations with our clients. Follow the white rabbit!

        • STEP #1 Do not miss the start check-up

        Confirm with your client the purpose, value, and objectives following the how, why, and what questions. Thus, you will have a firm answer that will ensure the 100% truthful basis of your project. Ask the client for a formal confirmation.

        • STEP #2 Hold a kickoff meeting and plan out key activities, milestones, and approval loops

        GO for a realistic, achievable, and detailed enough timeline for product development as a comprehensive road trip, to effectively monitor the project’s progress. Without clearly defined tasks, you will waste your resources, just like going on a trip on an unknown road and wasting fuel.

        The project implementation schedule should coincide as much as possible with the control schedule. That way, you will not lose time and effort. Use Gantt Charts for better project planning and tracking short-term and long-term tasks.

        If you control the project every two weeks in Agile Sprints style, then the development schedule should provide the ability to detail up to 2 weeks. The best way out is to “cut” the project into smaller iterations. As a golden rule, always update this plan.

        • STEP #3 ALWAYS work collaboratively

        Communication is the groundwork of any human relationship, regardless of its nature. Proper and efficient communication can ensure our success both professionally and personally. Therefore, by having regularly short stand-up meetings a few times weekly, your relation will not be like a blame game, but on the contrary, it will become more friendly, avoiding moments full of arrogance, disagreements, negativity, high tones, ingratitude, etc. Create an agenda of your meetings in advance for the next several connections.

        Working proactively, everyone will know what stage the project is at, and will have a clear picture of its tasks. Furthermore, there will be fewer technical errors related to the project and the probability of retaining the project will be much lower.

        • STEP #4 Be friendly but don’t do not cross the personal line

        Add a little “air” to your relationship, but don’t go beyond the personal area. Simple things like congratulating on birthdays, having small talk during meetings/calls about life in general, sharing a joke or two, having a good laugh together, telling stories, and also listening to their stories and other stuff like this can help build bonds that can never be achieved only with working relationships.

        • STEP #5 Ask for weekly feedback

        Confirm with the client the weekly work. Request a full answer to all your questions, sending him a friendly form with easy check answers (yes/no, rate from 1 to 10, and other options). Most clients are lazy or do not have enough time to complete the long feedback surveys. Put yourself in their shoes.

        • STEP #6 Taken into account each detail

        From the very beginning, determine together with the client the milestones, budget, priorities in the smallest details, such as detailed budget by categories, and so on. Always, listen actively and understand what the client is talking about. It’s a key factor.

        • STEP #7 Keep your client informed

        Every time when you have changes, update data and make sure that your client is aware of them, providing access to them and communicating via email in the weekly status report (budget burn, timeline, blockers, requirements, risks, and questions).

        • STEP #8 Foresee potential risks beforehand

        Make sure in advance that there is a “backup” manager in all project negotiations, who could take the reins into his own hands in the event of an unforeseen situation like staff leaving. Use to be notified about tasks moving from one stage to another. Prepare with your team some outstanding alternate control measures, list all types of risks, and course of action plan “B”.

        • STEP #9 Prevent the change directions mid-course and cost overruns

        By providing tasks’ implemented time and cost for each one from the start, the client will have a clear decision and will understand the value of your resources. Invite the client to planning sessions and backlog refinement. Here s/he will understand the volume of work, that things happen interactively, will be aware of the time of implementation of the tasks, and the value of both human and financial resources. Do not be shy to explain that adding tasks to the scope is changing the estimated time of delivery.

        Considering the tips listed above, your projects will always be implemented successfully and with fewer problems along the way. You tend to have a fruitful relationship full of collaboration with your customers.

        Meet us and we’ll be glad to show you how the perfect project match is done.

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          The danger of legacy

          Today, software development takes place in a highly competitive environment. This introduces several significant risks that may affect business performance and one of the most dangerous is excessive efforts to maintain legacy technologies. Although businesses may be hesitant to make investments in new technology, the true cost of legacy technology far outweighs the investment. Because legacy applications cost more to run and maintain, they make the business highly inefficient, increases operational costs and system downtime. Legacy technologies are also extremely vulnerable, because many of these outdated systems are no longer supported by the manufacturer. Another problem with using outdated technology is that most legacy systems are incompatible with newer systems.

          Risks

          However, scrapping legacy systems and replacing them with more modern software involves significant business risks. Most managers try to minimize risks and therefore do not want to face the uncertainties of new software systems. Replacing a legacy system is a risky business strategy for a number of reasons. There is rarely a complete specification of the legacy system. The original specification may have been lost or not written in sufficient detail. Therefore, there is no straightforward way of specifying a new system that is functionally identical to the system that is in use.

          New software development is itself risky so that there may be unexpected problems with a new system. It may not be delivered on time and for the price expected.

          Keeping legacy systems in use avoids the risks of replacement but making changes to existing software usually becomes more expensive as systems get older. There are several reasons that lead to an increase in the complexity of system maintenance. First of all, different parts of the system may be implemented by different teams. There is, therefore, no consistent programming style across the whole system. Replacement of developers is a completely normal business process, but it is necessary to strictly adhere to the code style and follow the architecture guidelines.

          Optimization

          To eliminate the risk of obsolescence of a programming language or framework, it is desirable to divide the application into separate services with a minimum number of dependencies. If necessary, any of these services can be rewritten using new technologies and this will in no way affect the functionality of other parts. In addition to dividing into separate services, the use of modular architecture and the CQRS principle allows you to divide functionality within a service.

          During the development process, it is necessary to allocate time for creating and updating the documentation so that it does not become outdated. All documentation should be structured and it is advisable to use specialized tools for writing and storing documentation. All business processes should be described in the form of UML diagrams.

          The system may have been optimized for space utilization or execution speed rather than written for understandability. This causes particular difficulties for programmers who have learned modern software engineering techniques and who have not been exposed to the programming tricks that have been used. In the long run, clear and easily modifiable code is always preferable to an optimized but overcomplicated solution.

          Adherence to uniform standards, division into independent services, timely updating of documentation allows you to gradually develop the product without the need to rewrite it completely.

          Drop us a line if you have legacy code/systems, we have the right experience to help you to make the right decision on it’s future.

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            Moldova as an IT Outsourcing destination

            There are a number of reasons companies choose to outsource to Moldova. While among the most obvious are the moderate costs, skilled professionals and top-quality project delivery, there are many other factors at play too. To make it easier to understand why to outsource to Moldova and why this destination is bound to be among the top IT industry trends in 2021, I invite you to go through those reasons.

            I love to start with the nutshell cause:

            Highly Qualified Professionals

            Moldova has an impressive educational tradition especially having a very strong IT through industry academia agreements which allows the graduates to experience and strengthen their technical concepts.

            Moldova has a number of technical institutions that provide quality education, creating professionals who have strong foundations and practical knowledge. The Technical University of Moldova and State University of Moldova, among others, are top-ranked universities. They produce talented engineers and developers every year. Most Moldovan professionals are fluent in 2 to 3 languages at least, the most common being English, Russian, German and French.

            International giants like Hewlett Packard, Intel, Microsoft, and Oracle, offer IT certification and other programs that contribute to Moldova’s vibrant IT ecosystem. These certifications allow Moldovan companies to cater to a large list of clients from North Europe, Western Europe, Benelux, North America, and other regions. From the IT outsourcing perspective, Moldova, therefore, provides a huge variety of talent, while offering cost-effective solutions for a large diversity of IT needs.

            Almost 80% of the ~22,000 IT specialists are software engineers, data analysts, software developers, and project managers, according to the IDC CEMA Research. This makes Moldova the perfect destination for those looking to access the talent pool for data analytics, UI design, development of software, application, mobile software development, and even data visualization. It also provides services to those looking at very industry-specific niches, and enterprise application development.

            The Geographic Reason – the one that stands out Moldova from the crowd of outsourcing destinations

            Moldova is located in the Eastern part of Europe, and is well-positioned from a geographic point of view to operate for western customers even with overlapping working hours. The UTC +2 time zone makes it convenient. In addition, it is only 2 to 3 hours away from the major European hubs. Citizens from over 100 countries, including all those in the European Union, have visa-free entry available.

            Even pandemics does not affect this since business trips are allowed and the development process was never stopped.

            In addition to the stated above, Moldova is the bridge between the eastern and western markets. With ICT services and product development increasing over 20 times since 2006, the rate of growth is on a rise in Moldova.

            If the Well qualified reason is my favorite…our clients adore the Competitive Prices we offer

            For regions with traditionally high operational costs and significant payroll costs, Moldova is a great destination with respect to the cost. It allows our clients to collaborate with a larger talent pool but keeping the costs at the level they would love to see. It is feasible to simultaneously optimize business strategy and better manage overall costs.

            This is a surefire way to get ahead in this competitive market.

            With cutting edge technology and an ever-growing workforce available for a very competitive cost, Moldova became the best option for IT companies benefiting from a unique tax policy of 7% from the turnover. This tax has replaced: Corporate Income Tax (CIT); Personal Income Tax (PIT); social security and medical insurance taxes; local and real estate taxes.

            Global Recognition for Moldova

            Moldova has been gaining popularity with companies seeking to outsource their IT projects. It has also gained global recognition for many of its initiatives, including the ease of setting up business and using the talent pool. With a very good technical education system and liberal rules and taxes, it is no wonder that Moldova is rapidly becoming the primary choice for companies looking for options to outsource.

            The World Trade organization places the volume of it and telecom export growth to be from $58 million to $188 million over nine years.

            Moldova has a network readiness index position of 77, and stands at 5th place for broadband availability, making it a prime destination to access talent from without the worry of connectivity issues. It has a Global Innovation index of 33, and a Network Readiness Index of 4 out of a maximum of 7. Their Current Ease of Doing business score is a 74.4, with a standard 1.03 percent growth per annum.

            All this makes Moldova a popular IT hub for companies. You can get great employees who can work remotely without any issues, and can provide services regularly due to the convenient time zone and liberal laws, along with cost-effective work models.

            Our company was founded in 2013 and since that time DAS Solutions builds perfect teams for our clients. We are a software powerhouse that is committed to providing the best IT outsourcing services and developing software products. With dozens of satisfied customers onboarded, we can handle your IT needs, be it eHealth, mobile software, or needs from the fintech industry. With our team of more than 50 software developers, managers and Q&A specialists, we have catered to 32 clients so far, and have successfully delivered 40 projects.

            You will find a fully agile system that enables you to make the best of the tech powerhouse that Moldova has to offer. Contact us right away, and witness the start of a beautiful business partnership that will help you grow.

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