Today, with the economy driving towards globalization, a lot of companies and business organizations are hard bound to acquire a competitive advantage through cutting their costs, provide great customer service and optimize efficiency. Outsourcing software development has been proven time and time again to be a huge success for most organizations all over the world. The process would reduce internal costs while enabling a company to focus on its core responsibilities. In a rapidly moving technological world, it is not likely that a firm could design an entire spectrum of technical software, thus it makes a lot of sense to outsource software requirements.
Nevertheless, the process does not work all the time. There have been several instances of failures. However, it is still a very viable option, particularly for small and medium enterprises. That is why there are several points that should be taken into consideration in order to avoid outsourcing software development disasters.
1. By using proper method and techniques:
These days, software products need the principles of agile product development as well as adaptive PLM. Moreover, choosing the right partner must not be done hurriedly. It is important to meet the directors of the company if possible and do research on the service provider. It is also important to ensure that the company has the right support structures and there must also be a culture-fit with the organizations.
2. Determining the exact goal and technique for the project:
Before entering into any outsourcing agreement, it is vital to determine the extent in which the local law protects one’s IP. It should be ascertained that the outsourcing agreement contains a bullet-proof, well-drafted intellectual property provision that establishes clearly the ownership of the IP in existence during the agreement entered into. The prospective outsourcing partner should write a high quality proposal, comprehends the requirements and has presented them accurately.
3. Professionalism must apply in the development of the software:
The best form of engagement is for the vendor or service provider to take ownership of project delivery. In this situation, make sure that the vendor has all the credentials, design processes, supporting infrastructure, technologies and most of all, the software engineers or computer scientists should be academically qualified. Similar level of engineering professionalism must apply in a design and delivery of software, particularly if it is vital to one’s business.
4. Organization should insist on owning the source code:
Not unless a solution is truly pre-packaged and supported, an organization should insist on owning the source code and make sure that this is stipulated in the agreement terms or contract. Moreover, it also important to make certain that the right technical documentation is delivered or handed over and written in such a way that it could be maintained by an alternative team of developers if required.
5. Insist to get fixed cost of the project:
In order to mitigate risks on a software project, it is preferable and highly recommended that the software vendor commits to a fixed price that is basedon delivery of certain milestones. For larger systems, an initial ‘paid for’ audit is conducted, with the outcome as milestone-based pricing, functional specifications, project plan and an app level architectural design.
An organization should never assume anything regarding the working practices, language grasp and technical knowledge of the software vendor. It is always important to pry, test and remain vigilant from start to finish.