Key Concepts For Effective Software Projects Outsourcing

In its most basic form, outsourcing involves making a contract with an outside resource to complete a specified amount or type of work. This contract can be initiated with a company or an individual. Some clients turn to software projects outsourcing for assistance with technical work where the requirements can be clearly outlined and the software requires skills commonly found in the market.

There are many types of outsourced projects which can be pursued. A single skill or resource may be contracted. This is applicable for short term work. The other end of the spectrum involves hiring a consulting firm to handle all aspects of an implementation. This could be a multi-year project encompassing many individuals.

Recent surges in outsourcing are related to an effective business model where specific tasks have the potential for being performed more efficiently and quickly by a service provider. This work can be done by a local or regional provider, or by numerous offshore companies. The ultimate driver is finding a cost effective way to get work completed.

When considering software projects, tasks typically include things like programming or developing applications in a particular computer language or system. Companies who specialize in an industry other than technology are not interested in spending money and resources to train their own people as experts in programming or a specific technical discipline. Instead they look to hire this skill from an outside provider.

Another consideration is a project requiring extremely specialized skills. Suppose the effort needs someone with detailed knowledge of a certain product or platform, or someone who has managed similar implementations. Again, companies who are not in the technology industry, like a financial services firm or oil company, are not equipped or funded to train their own people for this purpose. For this type of initiative, the outside service contractor basically provides a specific skill set for a period of time.

There are important considerations when evaluating project objectives and their application for outside contractors. The work at hand must be defined clearly. The scope of work as well as technical requirements and expectations should be documented for complete clarity between parties. Service level agreements are needed to make sure both sides have a clear grasp of what is expected. This is critical for getting the greatest return from an outsourcing investment.

The client must have a method for effectively managing the outsourced work, keeping in mind that contract employees may be located remotely. The client and service provider need to have a good relationship where they can communicate and negotiate as needed. Both must have a good understanding of the conditions of the contract. It is advisable to schedule regular reviews so that progress may be evaluated and potential issues can be proactively addressed.

Companies who use software projects outsourcing can benefit from speed of implementation and quality of work which ultimately results in cost savings. Proper planning, requirements, and management are key components for ensuring this type of investment will contribute to the success of the project and the bottom line.