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Top 5 Tips and Tricks for Successful Software Outsourcing

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Top 5 Tips and Tricks for Successful Software Outsourcing

Software outsourcing is turning into a common practice and the one that slowly but surely changes the face of global business. The global outsourcing market has already exceeded $ 524.4 billion back in 2015 with IT outsourcing being its biggest sector. And according to Deloitte’s 2016 survey, there are some additional benefits to IT outsourcing apart from cost reduction. The company cites enabling focus on core business, solving capacity issues, enhancing service quality and being critical to business needs among top reasons why companies outsource.

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Software outsourcing has long been an effective way to do business, especially if it’s the tech industry. One can never take part in any activity whether it is small or big without a good plan/strategy. In a study written by Cody Miller (Portland State University), the top three challenges in outsourcing a product are changing management in an organization; poor project management on the software development outsourcing partner side and poor quality of delivered software product.

To avoid those three and many other risks, there are various types of strategies that are suggested to apply in software outsourcing business and your decision may depend on your company’s core goal, for example, money-driven, product-first, user-first, etc.  However, thanks to its adaptability, the outsourcing-life-cycle process model developed by Sara Cullen here will help you a lot in planning detailed steps, foresee risks and opportunities during the procedure.

Last year, the global outsourcing market reached profits of $85.6 million. Software development outsourcing is a fantastic way to save your company money and still get a great, well-polished product.

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Set Expectations Early

To make sure your software development partner meets your customers’ needs, set guidelines for the project as soon as possible.

Make sure that both parties are on the same page and that they’re able to deliver a product of the caliber you’re after.

Draw Up a Contract

To ensure the project meets your expectations, have your legal time draw up a contract. Within the document, outline:

  • Previously agreed upon expectations.
  • An explanation of the software’s purpose.
  • Who owns what parts of the software.
  • Your pricing agreement.

Communicate Effectively

Trusting an outsourcing partner requires full, constant communication. To pull off a project, both teams should communicate with one another on a constant basis.

You may also need to work around language barriers and time zones, so plan for these variables accordingly and establish a channel to send documents in a secure manner.

Check Progress Often

Communication is important, but it’s even more crucial that you see tangible evidence of the project’s progress along the way.

Every few weeks, gather both teams and assess how the project is coming along. By doing so, you’ll not only have an opportunity to check progress, but you can adjust the project’s scope as needed.

Assess Your Needs

There are hundreds if not thousands of potential outsourcing partners across the globe. But not every team is right for the job. To ensure a company is a good fit, consider what you will and won’t outsource for the project.

Some companies choose to only outsource small portions of a project, like the general design or interface, while others may wish to outsource the entire project altogether.

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Tips for before investing in application

Before you even start considering outsourcing software development, put your ideas into writing. Stories of failed products often cite not making assumptions about the market, product, and competition as one of the reasons. When you have a clear vision of your product, you can concentrate on the technologies and requirements aspect when searching for a software service provider.

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Don’t strive to solve everyone’s problem. By trying to tap into the needs of every user, you end up attracting none. Have a clear vision of the need. You can save yourself from miscalculated decisions, uncertain performance characteristics, and unrealized business values. All of which in their turn lead to a higher cost, wasted resources or lost business opportunities.




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