Balancing Risks and Rewards for Outsourcing QA: What You Need to Know

Arpita Goala , Content Marketing Manager

March 1st, 2024

There are a few universal truths modern quality assurance (QA) teams have to acknowledge.

The talent gap for specialized testing expertise is increasing
Market demands require teams to release new features faster and more frequently
Executives expect more testing coverage without additional cost or recruitment burden

While all of these are true, the expectation that QA teams can deliver new and existing bug-free features with aggressive time and cost constraints without support is unrealistic. Additionally, several in-house teams struggle to hire and retain specialized testing expertise. As a result, many QA teams (as much as 77%, according to reports) are outsourcing their QA solutions—a trend that shows no signs of decline.

Outsourcing QA tasks to third-party specialists is a good idea for cost savings and access to global talent. However, it can also be a risky decision. It is essential to approach this process cautiously, as handing over the responsibility of quality checks to an external team involves a complex balancing act.

This article explores the potential risks and rewards of QA outsourcing.

Understanding QA Outsourcing

By leveraging outsourced teams, organizations can maintain a steady workflow and meet ambitious project timelines, all while ensuring that their product meets rigorous testing standards and market expectations.

QA outsourcing prioritizes efficiencies and offers benefits such as:

Saving Time & Resources: Outsourcing tasks to third-party teams can expand your team’s abilities and coverage, allowing them to focus on core development projects. Some outsourced teams also offer testing services around the clock, ultimately saving you time and resources.
High-Quality & Expertise: Outsourcing providers are well-equipped with advanced tools, specialized knowledge, and access to top-tier QA professionals. This ensures that quality benchmarks are not just met but consistently exceeded.
Cost-Effectiveness: Working with an outsourced team can result in significant cost savings. It helps you scale without needing to hire additional team members.
Unbiased Testing & Improvement: External QA teams can provide an objective perspective on software, presenting unvarnished truths and suggesting critical enhancements.
Adaptive Workload Management: During spikes in demand, the scalability offered by QA outsourcing can be a significant advantage. This on-demand flexible talent allocation keeps product quality and security in check, priming them for a successful market release.

4 Potential Risks of QA Outsourcing

Despite several benefits, there are drawbacks to outsourcing QA, especially if you partner with the wrong provider.

Poor Quality Testing Outcomes

Outsourcing QA can lead to mismanagement and sub-standard software due to differences in methodologies, work environments, and coding styles. Inexperienced outsourced teams amplify the risk of mistakes and misunderstandings, creating unnecessary noise and missing critical bugs in the testing process. This results in strained partnerships, unexpected costs, and an increased workload for your in-house team, defeating the purpose of outsourcing.

Lack of Control and Oversight

When a company chooses the wrong partner to outsource its QA functions, there is a risk of losing control over the testing processes and outcomes. Delegating managerial responsibilities can reduce direct monitoring capabilities, leading to misalignment with the company’s core objectives and values. The absence of immediate oversight can introduce uncertainties about meeting deadlines and maintaining the preferred levels of quality.

Overrun Budgets and Hidden Costs

Although outsourcing QA is often viewed as a cost-saving measure, outsourcing teams with little experience may introduce hidden costs. These teams might miss critical bugs, inflate testing timelines, and prioritize low-hanging fruit, resulting in significant over-budget expenses. Some providers also don’t offer a holistic testing approach, resulting in a narrow and rigid scope. With limited scope, essential features such as after-hour testing and ongoing client support can become premium add-ons that are billed separately. Additionally, inexperienced teams may underestimate the timeline and resource capacity required, necessitating additional investment to complete the project.

Data Security and Confidentiality

Trust is crucial in any outsourcing partnership, and data security and confidentiality are the keys to success. Working with unverified partners can create opportunities for external threats and hackers, leading to cybersecurity risks. When you engage external specialists, they may have access to internal projects, including systems that store critical business data, such as confidential information on employees, vendors, management boards, customers, and financial situations. Without strict security measures to protect your organization, you could be vulnerable to potential data breaches, insider threats, and other security risks.

Best Practices to Mitigate the Risks of QA Outsourcing

The success of QA outsourcing hinges on your ability to understand, identify, and mitigate risks effectively. After working with several of the world’s leading brands, we’ve identified a few proactive and recommended approaches to help you get the most value from your outsourcing partner.

Prioritize Quality Over Cost

Don’t compromise on the quality of software testing services by choosing a vendor solely based on a lower quote. To ensure that you select the right vendor, conduct thorough research by examining their experience, reviewing their portfolio and caliber of freelance talent, and engaging in detailed discussions about their approach to similar projects. Remember that quality is always more important than cost, especially when you consider the long-term impact on your product’s integrity and security.

Develop a Clear and Robust Scope

A clear scope with project milestones, timelines, and expectations is crucial when controlling your testing processes. Not having these in place may add additional tasks and charges to your agreement, leading to missed deadlines, increased budgets, financial losses, and more.

To mitigate risks, it is crucial to prioritize strategic and outcome-focused partners. These partners act as consultants and don’t have a narrow or rigid scope. Instead, they aim to provide guidance and develop a customized holistic solution to help you achieve your long-term goals as efficiently as possible. When discussing a project with a potential provider for the first time, ensure you ask how they address budget overruns or make changes to the contract as your needs evolve. This will help gauge their flexibility and ability to work around budget constraints.

Ensure Strict Security Measures

Establishing strict security and data handling processes for your outsourcing partners is essential to prevent cybersecurity and insider threat risks. Before signing any agreement, evaluate if the partner complies with international security standards, has experience working with sensitive data, and is willing to sign a non-disclosure agreement (NDA). Once you decide on an outsourcing vendor, create a comprehensive contract that clearly outlines project goals, start date, a detailed list of each party’s responsibilities, limits of confidentiality, and the consequences for violating the agreement.

Establish Transparency

A transparent partnership with outsourcing teams is important to establish long-term trust. A good outsourcing partner should provide detailed documentation and reports on testing activities and budget spent. However, you must also measure their performance regularly to ensure compliance and mitigate risks.

To keep track of their work and ensure adherence to the agreed-upon quality standards, leverage project management tools and key performance indicators. Regular assessments that focus on the effectiveness of testing efforts, the quality of defect descriptions, and the outcomes can help maintain high standards and identify areas for improvement. Ultimately, the goal is to have external teams that seamlessly align with your in-house quality expectations and contribute to the efficiency and success of your QA efforts.

Leveraging a Knowledgeable Partner for Better Outcomes

When it comes to outsourcing, you need to be proactive to protect your organization and projects. The key to success lies in finding a vendor that has a track record of success, access to vetted and top talent, and is committed to helping you achieve high-quality software releases every step of the way.

With some preparation and setting clear expectations upfront, a knowledgeable partner can help you utilize your in-house team better, reduce costs, and improve release velocity while delivering high-quality results.

If you’re looking for an outsourcing partner you can trust, schedule a call with one of our experts today!