outsourcing

Outsourcing Your IT Software Project

Outsourcing all or part of software development is common practice.

There are many different reasons for outsourcing including:

  • Specialised expertise
  • Cheaper development costs
  • Obtaining 24 hour support knowledge across different time zones

Your outsourced project needs to be monitored carefully to ensure not only cost effectiveness but also quality and  customer satisfaction.

See Monitoring Your Outsourced Project for more details.

Suggestion

Once a decision is made on the measures for the outsourcing,  provide incentives for annual improvements.

Set targets for your external service provider.  For example, a 10% productivity improvement for the first 12 months will earn them a payment bonus.  This target could reduce to a 5% improvement per year for the next 5 year period.

However, if targets are not met, impose a financial penalty.  The penalty could increase depending on how far from the target the service provider is.

isbsg resources

How ISBSG Can Help

Resources that can assist you with monitoring your outsourced projects are:

If you are considering outsourcing and need help, contact ISBSG so we can direct you to independent consultants that can work with you to ensure a successful outsourcing arrangement.