Best Practices in Outsourcing

Best Practices in Outsourcing

Many companies use software development outsourcing to be able to accomplish larger volumes of work with fewer expenses. The most effective strategy to achieve great results in outsourcing and implement your ideas is to choose the most skilled and affordable IT outsourcing partner. In this article we present some practices allowing to select the best offshore vendor and effectively conduct the preparation phase.

1. Clearly define objectives and scope of your project

Before outsourcing a project to an offshore vendor clearly define what result you are expecting to obtain from this cooperation. Establish your primarily corporate objectives and provide your vendor with complete information so that he could present appropriate proposals. Provide your partner with maximum information concerning your requirements and needs, and try to be realistic concerning schedule requirements.

2. Make sure your vendor understands your business goals

Evaluate how your software outsourcing provider is familiar with your business domain and projects architectural components, and understands the project specifications. Explore vendor’s operation (development process, approach, utilized tools and technologies, overall project management). Make sure this partner is compatible with your business needs and goals of the specific project.

3. Find out if your vendor has specific expertise

In order to avoid business mismatch which is caused by the lack of understanding of project goals and purposes by the development team clearly explain what you require. Take a careful look at corporate portfolio, study similar projects accomplished by the vendor. Don’t be ashamed to contact potential partner’s previous customers working in the same domain as you, and ask them for references.

4. Negotiate about ownership of work

It’s important to make sure you are the one who owns the resulting product. There are two types of developing software applications: for your own personal use and an application that you’ll re-sell later. Discuss these questions with your potential offshore vendor and include the terms into the contract.

5. Concentrate on long-term results

Consider what long term result you want to have as a result of software development outsourcing. Evaluate carefully if the partner you’ve chosen is able to maintain long-term relations and accomplish the established task effectively. Make contract terms clear and assure that your potential partner understands the commitments.

6. Don’t go for the lowest price

Experts say that the highest and the lowest-priced software development outsourcing services are not the best choice. So choose a partner with middle prices and make sure your choice wasn’t made solely on the price but including quality of the services provided.

7. Make sure your project will be supported after it’s completed

Specify warranty or support conditions and include these terms into the contract. You might need technical or consultative support in the future, so don’t miss this point during the preparation phase of the project.

8. Start from smaller pieces of work

If you are starting to work with the new software development partner start from relatively small projects and pieces of work to evaluate how fast and qualitatively it will be accomplished before trusting larger tasks.

We hope our recommendations will be helpful at your preparation stage before you start to outsource your project.

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