Agile Development Outsourcing: Best Practices for Success

Agile development is a strategic approach to software development that focuses on flexibility, effective collaboration, and rapid iteration. It adapts as projects evolve, making it ideal for startups and growth-oriented businesses.

For companies that are outsourcing, the agile model offers a dynamic way to stay engaged and responsive—even from afar. That said, it requires a well-structured and proactive approach.

This article walks you through agile development outsourcing and the best practices for implementation. We’ll also cover strategies to overcome common challenges and list some trusted software development outsourcing partners to help you get started with confidence.

Why Agile Methodologies Are Vital in Outsourced Projects

The adoption of agile methodologies has grown significantly in recent years. This is particularly true among software development teams, which increased adoption from 37% to 86% from 2020 to 2021.

Its surge in popularity should come as no surprise, given the many strategic advantages that agile offers. Here are some of the top reasons why the agile approach is essential for outsourced software projects. 

Enhanced flexibility and adaptability

Agile’s flexibility allows teams to adjust priorities, address feedback immediately, and pivot as needed. This adaptability is invaluable for outsourced projects, where teams must often accommodate changing project requirements without jeopardizing progress.

Partnering with a specialized software developer recruitment agency can help you find agile-experienced developers who are skilled at managing evolving project needs. 

Improved collaboration and communication

A key component of agile is its emphasis on clear communication. It keeps everyone on the same page with daily check-ins and open discussions.

Structured communication is especially crucial when working across time zones. The best countries to hire remote developers, like Argentina, India, or the Philippines, often have professionals well versed in agile practices who are quick to adapt and keep project objectives on track.

Faster delivery and time to market

The iterative nature of agile enables faster development and delivery times, as features are developed and released in short cycles. It allows you to collect early feedback and refine the product continuously.

This approach offers a major competitive advantage, as it maintains momentum and leads to a faster time to market so that you can seize opportunities faster.

Higher quality and continuous improvement

Tests and continuous feedback are integral, helping outsourced teams identify and resolve issues early, leading to a more reliable final product.

A continuous improvement approach refines the quality of work with each iteration, creating a stronger, more dependable solution at the end of the software development project.

Best Practices for Implementing Agile in Outsourced Projects

You must follow certain best practices to make agile development outsourcing as effective as possible. Here’s what you should do: 

Choose a provider experienced in agile methodologies

First off, take your time and research to ensure a successful partnership. Consider choosing a software engineer staffing agency with a strong track record in agile that understands its demands and core principles.

Partnering with an agency that has specialized knowledge in this area will cut down the amount of time and resources needed in your search while providing you with tech talent with the right skills.

Establish clear communication channels

Agile’s success depends on transparent, regular communication, so setting up dedicated channels is a must.

Schedule regular meetings and ensure that everyone knows where and when to connect. Effective communication eliminates misunderstandings, helps maintain alignment, and keeps projects on course.

Define roles and responsibilities

In agile, everyone needs to be fully aware of their roles and responsibilities right from the start. Clearly define positions for developers, product owners, and project managers.

Having clearly defined roles prevents overlap and maintains smooth task management. With this, all your team members know exactly what’s expected of them.

Foster a collaborative culture

Smooth collaboration is the key to any agile project’s success. Encouraging team members to share their own ideas, address challenges openly, and celebrate progress fosters unity and ownership.

A collaborative company culture motivates everyone to actively contribute, regardless of where they’re located, making for a more cohesive and productive team dynamic.

Focus on continuous delivery

Agile promotes a continuous development process, where code and features are released in regular increments. It allows you to see real-time development and respond to changes as needed.

In outsourced projects, continuous delivery keeps things moving forward. This, in turn, prevents last-minute changes or rushed implementations.

Prioritize quality assurance

Agile relies on ongoing tests for quality assurance (QA). It involves incorporating testing, reviews, and feedback loops into each sprint to identify and address issues early on in the software development process.

When you consistently evaluate quality, the project benefits from gradual improvement. This practice ensures that the final product meets high standards and client expectations. 

Use agile tools and techniques

Implementing agile methods is much more manageable with the right collaboration tools. Collaboration platforms like Jira and Trello help track tasks, sprints, and deadlines, giving everyone—local or remote—a clear view of project progress.

These project management tools enhance workflow management, keep the team aligned, and build accountability across the board.

Conduct regular retrospectives

Retrospectives are meetings held at the end of each sprint. The team reviews what went well, identifies areas for improvement, and plans actionable changes for future agile sprints.

In agile development outsourcing, retrospectives are used to refine processes, clarify project goals, and create a smoother workflow with each iteration. 

Top 7 Agile Outsourcing Partners

To get you started with your agile transformation, we’ve put together a list of seven top providers. Listed here in no particular order, they include outsourced software development companies and recruitment agencies skilled at finding agile-focused talent.

Near

At Near, we connect businesses with talented remote developers, recognizing the exceptional skills Latin American (LatAm) talent brings to agile projects.

Unlike larger firms that assign you any available developer, we help you source, interview, hire, and onboard a remote developer to become part of your team. Our strong ties across both the US and LatAm give us a solid understanding of the local market, helping us find the best LatAm developers tailored to your unique needs.

On top of that, the labor costs associated with LatAm talent are significantly lower than in the US—you can expect cost savings of up to 70%.

Tata Consultancy Services

Tata Consultancy Services (TCS), headquartered in India, is a major provider of IT services, consulting, and business solutions.

TCS delivers agile software development through its “Location-independent Agile™” delivery model. It is also noted for taking proactive stances on global issues, leading to recognition in various sustainability rankings.

FPT Software

Based in Vietnam, FPT Software has built a solid reputation in agile development with technical expertise across industries like finance, healthcare, and manufacturing.

FPT’s focus on agile has allowed it to serve client organizations effectively in a variety of sectors. As a business with exceptional talent, it’s known for a strong commitment to client success.

Capgemini

With over 50 years of experience, France-based Capgemini has long been a leader in consulting, technology, and engineering services.

Its human-centric approach allows it to partner with clients across industries to address core business challenges through agile transformation. Its broad range of services helps organizations achieve digital efficiency.

Win-Pro Consultancy Pte Ltd

Singapore’s Win-Pro, a trusted IT support and consulting provider since 1993, has a strong focus on agile solutions and project management.

It has helped many SMEs achieve business success. With a longstanding commitment to customer growth and technological advancement, Win-Pro is a reliable partner for agile projects.

Sourcefit

Sourcefit, an outsourcing partner based in the Philippines and with operations in Armenia, the Dominican Republic, Madagascar, and South Africa, specializes in offshore staffing and agile team building, with a particular focus on startups looking to scale.

Known for its robust systems and strategies, Sourcefit provides seamless operations through strong disaster recovery protocols and infrastructure redundancy.

10Pearls

10Pearls is a US-based outsourcing partner that emphasizes product innovation and agile development, with specialized expertise in emerging technologies such as AI and IoT.

With a “double bottom line” mission, 10Pearls is driven by both business success and positive social impact, making it an ideal choice for companies that value purpose-driven development.

Overcoming Challenges in Agile Software Development Outsourcing

Agile development outsourcing brings great benefits but also presents specific challenges. Here are some common obstacles and their practical solutions:

• Finding skilled agile providers: Not all providers fully understand agile principles and practices, leading to potential misalignment. So, be sure to research thoroughly to ensure your potential partner has proven agile experience.
• Implementing agile practices remotely: Distributed teams may struggle with daily stand-ups and sprint reviews. Utilize tools like Slack, Zoom, and Jira to support seamless collaboration and maintain regular meetings.
• Maintaining quality and accountability: Quality control can be challenging when agile is outsourced, which is why you should establish clear metrics and expectations for each sprint, along with regular reviews.

With the right strategies and tools, you can effectively overcome the unique challenges of agile outsourcing.

Final Thoughts

Agile development outsourcing offers incredible opportunities, but the key to success lies in choosing the right agile software development partner and adhering to best practices.

By focusing on clear and continuous communication, consistent QA, and selecting an experienced partner, you can maximize the benefits of outsourcing agile projects.

At Near, we help clients hire top agile developers from LatAm. Book a free consultation call with us to explore how nearshore hiring can save up to 70% in overhead costs, fill positions in under 21 days, and bring your agile projects to life.