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5 Factors That Determine the Success of Software Development Outsourcing Engagements

Competent businesses have always acknowledged the true worth of outsourcing their non-core activities and the value they derive from it. For non-IT businesses (even most IT firms) that want their business software solutions, software development outsourcing emerges as the best option owing to its slew of advantages over in-house development. However, success isn’t guaranteed just by delegating the task to an outsourcing firm. There are various aspects which must be analyzed and compared before hiring a company providing outsourcing services and to ensure their success. The commitment of the client right from selecting an outsourcing partner to overseeing the development process until the product is delivered has a direct bearing on the outcome.

Here are the five most critical factors that should be addressed duly to ensure success in any software development outsourcing engagement. Complete analysis of such factors can benefit companies providing such services as well as organizations availing the same.

Hire the right partner

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For any business organization looking for a company providing outsourcing services the most crucial aspect is the selection of the right service provider. Don’t fall blindly for big names only because they boast of the latest infrastructure and the financial stability to carry out IT projects of any size. Although these are important for the success of the partnership, your company’s compatibility with the partner firm can’t be overstated. One was to go for the quality of services provided rather than the name and organization has created. A new organization with no past track record can be services with better efficiency. Also, never hesitate to ask the right questions and carry out a thorough and insightful background check of the firm to gauge its worthiness and capabilities. Corroborate their tall claims with their past clients and amass genuine information about their adherence to timelines, quality standards, and budgets. This can help in the selection of the best service provider based on their past reviews and expertise.

Price shouldn’t be the only deciding factor

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Albeit cost-saving is one of the primary reasons for outsourcing software development tasks, don’t make price the only yardstick to select or reject any firm. Though an organization may think of the cost associated with hiring a particular service provider but the benefits which an organization may receive upon hiring their services can make all the effort and cost worthwhile. Experts hold the opinion that one should straightaway discard the lowest and the highest bids for the work and go with one that offers the perfect value-for-money services. Bear it in mind that a business charging a higher price may not always deliver the best results. One should focus on the type and quality of services rather than the selection of a company that provides services at a low-cost. The cost and quality of services should go hand in hand.

Decide on the work ownership upfront

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If not addressed before striking the deal, ownership conflicts certainly have the potential to negate all the efforts and investments of both the sides in the project. It’s imperative for your side to categorically brief the vendor on its responsibilities and limitations regarding the progress and the assets of the engagement. The creation of a well-designated contract consisting of the necessary details along with the responsibilities of a service provider is very crucial. The contract should delineate how the client is going to use the deliverables at the end of the project and both sides should agree to it. This can help in creating a complete demarcation concerned with the responsibilities of an outsourcing firm whose services have been employed for better productivity and reduced effort.

Focus on clear communication

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A company with clear communication channels is the one which one must rely upon. Stay away from any business that hesitates to share information about the work and tends to work in isolation. This can harm the organization and its overall workflow of operations. Unhindered communication in the form of real-time updates and a two-way flow of relevant and critical information is a cornerstone of successful IT outsourcing projects. Decide whether you are going to use emails and the general spreadsheets or some custom tools to stay on top of the developments. The vendor must be in constant contact with your in-house team and keep you informed of the work status. The establishment of clear communication channels is very crucial. Comparing and selecting a company based upon their efficiency concerned with the provision of timely updates and information is what makes this process so time-consuming but worth it.

Ask for an exhaustive plan

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The creation of an exhaustive plan providing all the necessary details is another respect that must be kept under consideration. This should be done in the proposal stage itself. Once you share the product plan and expectations with the vendor, ask for the blueprint that it would follow to ensure project success. Get finer details such as the number of individuals involved and their experience, the tools and methodologies they plan to use, etc. and don’t be reluctant to renegotiate any point that you are unsure about. This can help in the selection of a perfect outsourcing software development company like XB Software providing all the desired services with quality and professionalism.

With greater involvement in the software development outsourcing project, you can support the vendor whenever there’s a need and steer the development process in the right direction. Providing them with necessary information when required can help them in providing designated services with better efficiency ineffectiveness. The overall process of receiving outsourcing services is improved without causing any obstruction to the normal workflow of the business. You, as the client, must take care not to interfere excessively in the vendor’s daily operations but keep a close eye on the proceedings to ensure the best outcomes. This can provide a smooth flow to the speed and direction of operations. Minimum interference with their regular operations but keeping a close look at the type of services provided can benefit organizations as well as companies providing such services.

About Suzan Vega