Why Agile Methodology is Key to Successful IT Outsourcing Projects

If you’re familiar with outsourcing IT projects or have outsourced projects yourself, you know how things can change quickly during development. Maybe in one moment, everything is on track, but in the next, requirements change, resulting in delayed deadlines or fixing issues that take a lot of time. 

This is exactly why Agile methodology makes the most sense when it comes to outsourced projects. Instead of sticking to a rigid plan, Agile keeps everything moving and flexible. Projects are divided into smaller parts, encouraging constant feedback and collaboration, all this to help teams adapt as they go. This way, there's a high chance for the finished product to be successful, without needing much rework. With Agile, you see progress early, make changes as you go, listen closely to feedback, and plan your next steps accordingly. 

Let’s see what Agile is really about and why it makes outsourced projects thrive and helps avoid pitfalls in your development journey. 

What is Agile Methodology?

In the tech world, the word Agile is thrown around a lot, but what does it actually mean? At its core, Agile is a way to manage projects based on flexibility, collaboration, and continuous improvements. With this methodology, IT projects are not planned out 100% to the last detail, instead, they are broken into smaller pieces, delivered in short cycles (called sprints), and based on feedback. 

Let’s compare it to building a house. The traditional way would be drawing up a blueprint, getting all the materials, and months, or years later, unveiling the final result, hoping the owner will be satisfied. Agile, on the other hand, would start with a very basic structure, and by closely involving the client, making sure the design matches their expectations, and adjusting accordingly. 

So, here are the key characteristics the Agile workflow is built on: 

Iterative development: Instead of waiting to see the end results, the development team divides work into smaller chunks to keep progress more visible and leave space for adjustments. 

Collaboration over contracts: Agile is all about communication and collaboration between the whole team, not just developers, but stakeholders, and clients are closely involved as well. The main priority is to build a product that really meets users’ needs. 

Flexibility: Requirements and needs often change. And with the Agile workflow processes, this is not a problem, as flexibility is embraced by this methodology. 

Continuous feedback: During the development phase, but not only, regular check-ins are typical in an Agile environment. This helps keep everyone on track and aligned. 

Agile really focuses on building something that actually works instead of just following a rigid plan that doesn’t leave space for adjustments and improvements. And the final result will turn out to be successful. 

Agile & IT Outsourcing

There are a lot of advantages that come with outsourcing a software project: access to global talent, more affordable but still high-quality services, quickly scaling your in-house team, etc. But it’s not without its challenges, which often include miscommunication, shifting priorities, and the classic “this isn’t what we asked for” moment, which can make the whole experience a headache. 

The good news is that using Agile project management when outsourcing can help prevent many of these common issues. 

Since work happens in short sprints, you, as the client, don’t have to wait a long time to see results. With both an outsourcing team and an in-house team, regular check-ins will be prioritized to keep everyone aligned and up-to-date, so there will be no last-minute surprises. 

Working with an outsourcing team combined with Agile project management also gives the project and the team more adaptability. If you change your mind about something or decide to get additional features, that is easily doable thanks to the Agile project management’s flexibility. 

Then, there’s communication, probably the biggest challenge when working with remote teams. Agile encourages continuous and ongoing communication with your team members, not just a “set it and forget it” approach. This can look like daily standups or sprint reviews. The main goal is for everyone to stay aligned on the project’s progress. 

Better Outsourcing with Agile

Using Agile project management for outsourcing makes a lot of sense, as it helps keep everything on track, avoids miscommunication, and makes sure the results meet your needs as the client. Here’s how you can make your outsourced project more effective with some Agile practices: 

Daily Standups: These are daily short meetings that help keep everyone in sync. Even if your outsourcing team is in a different time zone, quick check-ins like this are necessary to address any issues or roadblocks along the project development. This way you'll see progress faster. 

Sprint Planning: Instead of handing a long list of requirements at once to the outsourcing team, Agile organizes work into sprints, which are usually two-week periods. Sprint planning helps each team member focus on what exactly they need to do, which reduces confusion or wasted effort. 

Continuous feedback: Regular and continuous feedback is one of Agile’s biggest characteristics. This means you don’t have to wait around for the project to finish 100%, instead you check in regularly with your team, as they present demos, and, you plan the next steps based on your feedback.

Retrospectives: Whenever a sprint closes, each team member reflects on what went well and what could be improved. When you work with an outsourced team, this will be especially useful because it encourages better collaboration.

Prioritization with the Product Backlog: Agile teams work from a backlog, which is a list of tasks or features that need to be prioritized. This way, the team focuses on the most important aspects of the project, allowing for flexibility in case priorities change. 

Automated Testing & CI/CD: With continuous integration and continuous deployment (CI/CD), the development team can catch any issues and bugs early, which ultimately helps reduce delays. Automated testing makes sure new code doesn’t break existing features. With these practices, development is faster and more reliable. 

Agile Outsourcing Challenges

Agile does make outsourcing IT projects more organized and smoother, but if you’re not prepared, it can become a bit challenging to handle time zone differences, communication gaps, or team alignment in general. The good news? These are not deal breakers, especially when you know how to handle them. 

First, it’s the time zone differences. It can be difficult to manage and work with a team that works when you sleep, but this can be solved by setting up overlapping work hours, even if only a few hours a day. Agile management tools like Jira, Slack, or Trello help keep tasks organized and communication easy. 

When working with a remote team, there’s a chance for misunderstandings or miscommunication. These can be avoided by regular check-ins, weekly, bi-weekly, or whatever works for you, and being clear about your expectations at all times. Video calls help build rapport, and tools like Loom make explanations easier. 

Teams from different countries will have some differences when it comes to culture. This can sometimes cause mismatched expectations. Agile supports a shared workflow, but make sure you’re doing your part by encouraging a culture of openness to make your team members feel comfortable to ask questions or give feedback. 

When you’re partnering with an external team on a project, it’s completely normal to worry about the quality of the work. But, with the Agile strategies in place, such as continuous testing and improvements, code reviews, and QA checks, you can maintain high quality at all times. 

Wrapping Up

Outsourcing is a great opportunity to work with talented IT professionals from around the world. It can be a real game-changer for your project, but only if it’s done right. Agile methodologies can help keep your project organized for both you and your outsourced team, help you stay in sync, and collaborate closely. Instead of rigid contracts and long development cycles, Agile offers flexibility, and leaves room for feedback and continuous improvements. 

Regular check-ins, continuous feedback, and adaptive planning make sure everyone stays aligned, no matter where they are in the world. Challenges like time zone differences and communication gaps don’t have to slow things down if you have the right processes in place.