If a company requires a unique software solution or an application, sometimes the best way is to develop in-house. However, this can lead to huge costs. One such solution for these companies is to outsource their projects internationally to countries where the cost of outsourcing will be a fraction of what it would be if you were developing in-house.
However, if your company plans to outsource, then there are few practices to follow to get effective results.
The first step is to always research. It is always better to know what kind of people and companies you will be dealing with and whether they are capable to handle the task. Ask the development firm for their financials, a list of references, history of their company etc. Randomly select few past customers and enquire them about the firm’s work and especially the parts where things went wrong.
- Look for a firm with a local contact
When you dealing with firms abroad, it is important to have effective communication at all times. Many software companies understand this need of the outsourcing company and establish a local office where information can be exchanged continuously. The employees will have a good knowledge of IT work and will be well-versed with local and native country’s language so that the communication chain does not break.
- Execute a non-disclosure agreement
NDA protects your intellectual property rights. Thus, it is important to sign a NDA agreement before starting the work. It will prevent your work from being duplicated. Hire a lawyer who can write an agreement which will be equally binding on your company and the company your work is outsourced to.
- Legal representation
Another important thing to bear in mind is to have adequate legal representation in case things go south. Consult a law firm which has an experience in international law or a lawyer in development firm’s country.
- Establish a staff lead for the project
Assign a lead person from your staff and from the development firm to coordinate the project. This will assure that all the communications and information is passed through these central contacts and will add ease in making decisions.
- Include software documentation in your agreement
At the end of the project, you don’t want to receive just the finished piece of software. Prepare your software documents such that your staff is able to maintain and enhance the software. Make sure all the documentation is written in your language.
- Ask for early proof of concept
If you are working with the software development firm for the first time, ask for an early proof of the concept model of the software in your contract. This will give you an idea of how the actual model will look like and whether you are both on the same page.
- Maintain leverage until the end of the project
Reserve at least 1/3rd of your payment till the end of the project. This will give you enough leverage if there are any issues with the applications and will assure quick fixes.
There are many other practices you will follow with experience. However, it is important to take control of your outsourced project to keep any issues in check.
For any consultation on outsourcing internationally, it is best to rely on the services of Ignite Outsourcing to get optimal returns on your investment.