Thinking of reducing your software development costs? Be smart and do it right the first time.
Imagine your Monday morning. You arrived at work early, your voicemail already had several messages on it, and your inbox was flooded. As you scan the messages you see two from the VP of Engineering. The two of you have discussed the shrinking application development budget, and now you are in a bind about what to do. You estimate that you will need at least a 20% greater budget to feel comfortable about accomplishing your goals. Worse still, the rumor mill has started that non-essential staff will be outsourced. Morale is down, as your coworkers discovered you have been talking to some Indian company about outsourcing jobs. You feel uncertain, under pressure and frustrated. Could this be you someday?
To avoid the above scenario, managers can rely on five guidelines for successful outsourcing.
Outsourcing To Do List:
- Identify an area where costs are growing rapidly or where you want to win a competitive advantage. Hint: Do not outsource a mess, and select some long term goals both financial and operational.
- Communicate your goals to your internal team. Hint: Your colleagues and subordinates probably feel strongly about outsourcing; it need not cost them their job if it makes the company more competitive.
- Identify the right partners. Hint: Never rely on a single vendor. Make sure they have growth potential, stability and the corporate culture that matches your own. Always ask for references and a US office location.
- Select a meaningful test case. Hint: Test them on flexibility and communication, the technical skills are a given. After the test case be ready to ramp up or select a different vendor. Do not make excuses for your vendor; make the best decision for your company.
- Address the relevant risk factors. Hint: Is the country at risk of terrorism? Does the company have a US corporate entity? Can it expand to fit your needs?
The traditional view that only non-essential services should be outsourced no longer holds true. Strategic outsourcing provides an opportunity to gain competitive advantage through lower cost of development at a higher speed and quality. As an IT Manager you can add increasing value by identifying the processes eligible for outsourcing. Managers face the challenge of ensuring that outsourced processes and their costs are clearly understood and their costs can be capped even as the processes evolve. This applies to telecommunication behemoths as much as high growth start-ups.
Somotsoft is an American company that serves clients in a number of sectors. Our focus on quality, communication and flexibility has earned us the trust and transparency US corporations require. We will help you outsource the right process, from tactical projects to strategic dedicated teams. We help companies identify the outsourcing opportunity and remain flexible as the project needs change. We provide a low risk environment. Our engagement starts before the pilot project is selected. We work with you to understand the process that can be addressed through outsourcing and help you communicate that to your organization. From the pilot project onwards, our team is a flexible resource that can be dedicated to you full time. We take your risk concern seriously and that is why we offer several outsourcing centers in different locations. Separate centers allow you to separate testing from development and avoid engineering bias and isolate country risk.
Contact a customer service representative to find out more .