We are living in the modern age of technology, wherein the traditional idea of workplaces has been decentralized and with effective IT systems, we can create teams outside the office or outsource the systems and resources from third-party vendors. This concept is called as nearshoring or outsourcing the IT software development project. This article involves how to outsource IT software development projects. In nearshoring, companies can guarantee that the third-party vendors who are taking care of the back-end and front-end tasks can perform effectively as they are within reach geographically.
What Procedures Involved To Outsource Any It Software Development Project?
The third-party vendor companies can easily find common grounds, as they are bound by similar financial and legal constraints. Also, the companies which are at the small time-zone difference and fewer cultural differences will make nearshoring a better option, so any concerns can readily be negotiated and solved. The actual meetings can take place as online meetings since the nearshoring companies would be at the reachable place and it reduces the travel expenses and other accommodation expenses easily.
Better to Choose The Right IT Supplier
There involves lots of risks in IT Offshoring. In order to manage that there is a need to carefully select a very good and reliable IT supplier and it is necessary to check whether their performance, capacity, and all other special skills are in place to the partner’s goals. To do this, one has to ask for a Request for Proposal (RFP) which finalizes the project, Request for Information (RFI) that involves information sharing regarding the requirement, and also IT Supplier Evaluation.
The RFP should be comprehensive and transparent enough for both the partner and to the vendor to decide and make a good projection as to the estimated workforce, resources requires and its costs involved, the general idea of the contract, and possible risks involves and how to mitigate them seamlessly.
The RFP related document is just a part of the first step on how to outsource any IT development project. After considering RFP into account and, hopefully, finally selecting an IT vendor, the partner may proceed to the next steps on how to outsource an IT project.
How to design the Contract Procurement and Risks during This Phase
The most vital stage is the contract procurement stage is as equally important as other stages. Contracts are extremely important for both the vendor as well as the partner, as they will allow parties involved to foresee all aspects of the job, hoping it will help in the empowerment of the project. It is important to well define a contract then the partnering vendors can avoid risks and eventually avoid poor IT outsourcing operations.
There are common failures that may happen in this stage are as follows:
- It is important to prepare contract documents thoroughly. This failure in preparing good document may be a fatal error.
- Important to understand the requirement-failure to negotiate with questions and solutions in the contract.
- Cordial relationship between the vendors and the stakeholders-relationship problems among several providers may arise.
- Unexpected Changes-Changes in the agreement may suddenly arise.
- Break-in Trust-There might also be a breach of trust in one of the parties with one of them selling the software to another company.
- Exposure of confidential information. the unauthorized disclosure of confidential information
Transition of the services
Once the above risks are met and solved, to achieve the operational performances, the client may decide to make the service transition where all the documents and the resources can be shared from the old team to the new team. The old team may e referred to clients who decide to outsource their service to a new team. This phase requires a lot of careful planning to accommodate the new company or vendors in the process and, at the same time, avoid any disruption and break in normal operations with customers and the business in general.
This phase also involves and comes along with corresponding risks that every client and partner vendors must consider. This might involve inadequate knowledge and skills transfer may occur. This may happen because the company has overlooked the gaps in the operations. There might also be an unwillingness and disinterest of staff members to share their knowledge, or simply, the new supplier may not have enough access to certain skills required.
Problems may be complex and may result to degradation of service quality, unbaked interpretation of service, project delays, additional costs may involve, and inharmonious relationships among workers.
Outsourcing IT software development projects could be the best answer that one may look for so that the company can expand or move on to achieve higher goals. However, it involves careful planning, a clear foresight to understand the risks, and effective backup solutions and mitigating the gaps. Even in the RFO/RFI stage, the client and other parties involved should work hand in hand in expecting the risks and finding solutions to address them.
They may also seek the services of other vendors and experts for further advice and assistance. By following and keeping in mind all these factors, it will be easy to complete a project end to end from scratch from development to the completed stage. All the risks involved have to keep in mind to make a flawless product and smooth exit of the application.