Successful outsourcing of software development projects can yield exceptional results regarding cost saving, improved time to market, etc.
However, the inherent risks of an unsuccessful outsourced project can compromise the anticipated benefits. How do you minimize those risks?
You can keep risks at the minimum by following every step of the process and treading with caution through each one.
- Define Clear Objectives
First and foremost, you need to define the clear goals of your company. Assess the current needs of your company and list them down. Your objectives will state the reasons for opting for outsourcing and highlight the business value.
- Set Realistic Expectations
After you have finished assessing all the specific requirements of the software project and establishing goals, the next step is to revisit these and ensure that they are is indeed achievable.
This is because setting unrealistic goals and expectations can lead to spoiling outsourcing engagements. By enlisting a cautious and realistic set of goals, you are ensuring that you have continuous support from the outsourced partner.
- Evaluate Every Expense
With extensive pressure from higher-ups to cut down on any unnecessary expense, it is quite common to overlook hidden costs. There are certain expenses that companies tend to overlook:
- Choosing the right vendor
- Transitioning between business processes
- Letting staff members go
- Dealing with cultural differences
- Assessing and Managing the Risks
If you want to ensure a successful outsourcing experience, then you need to have a thorough risk-mitigation strategy in place.
It does not suffice to simply do your homework and be aware of the things that might go wrong. You rather need to take a proactive stance–aggressively manage your risks and take measures to prevent the risks from taking form. Be sure to keep senior management involved in the risk management process.
- Measure and Track Benefits
As tempting as it may be to assign unrelated benefits to your offshore strategy, you shouldn’t even think about doing it. Let the numbers speak for themselves. If the benefits land short on your expectations, then you need to be able to take corrective action immediately. In case the performance is exceptional, don’t go for moderating those results either.
- Use an Effective Outsourcing Model
Outsourcing models are as complex and diverse as the companies that employ them. Typically, an outsourcing model has many variables. The dominating ones are the distribution of responsibility between the company and the offshore vendor, and the scope of the outsourcing endeavour.
- Select Complementary Business Partners
Now comes the time of choosing a business partner to have your software project underway. You must resist rushing into things and getting the deal signed as soon as possible. Be sure to keep your strategic objectives prioritized and made those objectives central to your evaluation of a possible business partner.
- Build Gradually
Don’t be fooled by the captivation of achieving an enormous return on your very first software project. Consider it a long-term investment that will open the doors to future outsourcing benefits for you and your company. Tread lightly by starting off with a single, well-defined project that will serve as a pilot.
- Monitor the Progress
It is vital to keep track of the progress you’re making on the software project to comprehend the relative success or failure of your overall strategy.
- Ensure That the Collaboration Isn’t Robotic
It is true that straightforward processes ensure consistency in performance. However, it is the people that make a commitment successful after all. Like in-house or on-shore software projects, offshore software development also needs flexibility in terms of features and deadlines.
Don’t compromise the objectives that are critical to the project’s success. But if some goals appear unattainable, you should move on. You can always address the shortcomings in the next version of your software project.