What business risks can fail your software development outsourcing project?
Dec 18, 2018
Software development outsourcing is a strategy known to all IT departments and embraced by many companies to accomplish their business goals. Regardless of industry size, lots of companies struggle to outsource software development successfully. The root issues were neither systemic to the process of choosing the right outsourcing firm nor caused by the outsourcing partner, but rather due to internal factors of the company which ultimately prevented success.
Defining and mitigating business risks will help company proactively remove barriers to successful software outsourcing. When it comes to software leadership, every business needs to recognize these three dimensions:
- Business: Not all risks to a software development project lie within the domain of IT department. In fact, they are within other areas of the company where business takes them lightly.
- Management: Risks when management fails to take action to ensure that software development goals are pursued as planned.
- Technology: Despite of the choice of an outsourcing partner, risks are introduced by flawed elements of the technology architectures, tools and frameworks.
Here are 15 business risks in each dimension that InApps – The leading outsourcing company in Vietnam have collected from CIO.com source in order to help you get your business back on the right track and maximize your software outsourcing project.
- Undefined metrics
Business and IT must be clear on the company success-thriven. Mission statement should be tied to expected outcomes which can be gained. The software development targets should also have clear alignment to those metrics.
- Inconsistent priorities
Which elements (capability, functionality, components) of a software solution matter the most? It is imperative to have a sequence of work product which is shaped by priorities the business areas have endorsed.
- Few executive champions
Leaders set the tone for their teams and are ultimately the “culture keepers” in order to ensure the commitment in teamwork.
- Lack of team engagement
Sometimes a third party is set up for failure because they are not engaged by your company employees in necessary ways to accomplish the tasks assigned by you.
- No partnership contract
Your software outsourcing vendor is an extension of your internal team’s capabilities. Their success is YOUR success. Companies should embrace the mindset of “covenant” rather than “contract”. Business partners are in an agreement together striving for a common goal.
- Unrealistic expectations
Reasonable parties working together can usually find a palatable compromise, but unrealistic expectations can derail the relationship.
- Unfocused leadership
Sometimes the right leader – based on knowledge or skill – are assigned to a project, but the assignment does not take into account the need for properly focused attention to the project.
- Unclear milestones
Without clearly communicated milestones, businesses and other parties might create unnecessary confusion if a software release is not as expected.
- Lack of team interaction
Good communication has always been important in software development projects. Processes and collaborative technologies must come together supportively to ensure the workflow is seamless and low risk.
- Weak processes
Technology can never overcome bad process in a software development project. The roadmap and methods to be used by the project must be fully understood by the company and the outsourcing vendor. Furthermore, each side must be fluent and diligent in the use of the methods over the life of the project.
- Inadequate skills
Business needs to confirm that the project team has the requisite skills and experience to be successful.
- Undefined operations
Adding a software development outsourcing partner into the mix is an effective means of getting work done, but it also adds complexity. Ask your business these questions: Who is responsible for hosting? How will the software be certified for the intended target platform – and who will do it?
- Ineffective design
Do the design elements of the system properly address the business goals? For example, will this beautiful new web application be a bust on day 2 of go-live when users try to launch it on mobile devices? Or does the solution require so many pages of data entry that shoppers will become frustrated and abandon the purchase? Misalignment of design and business objective is a huge risk factor to be avoided.
- No quality assurance
The speed of development and the opportunity to deploy code to production rapidly may create a temptation to overlook or minimize the necessity of good quality assurance. Moreover, some software outsourcing companies may not have proper QA control module. Therefore, IT department of business should also focus on QA checks.
- Technical debt
The risk in the form of technical debt must be addressed in radical ways: accelerated change through leveraged outsourcing partners, “leapfrogs” of functionality or technical platforms, for instance.
As a Top 10 software development outsourcing company in Vietnam, we encourage every business leader to carefully address your business, management and technology context with critical eyes and be on the alert for these 15 risk areas, before outsourcing your software development project. Technology is not an expense, but rather an investment for the business opportunity. Mitigating or altogether avoiding these 15 risks will help ensure that your investment of time and money in a software outsourcing relationship yields its highest ROIs for your company.
If your business is in need of advice, we are positively open for a discussion. We are InApps – Your trustful software development outsourcing partner. We’re in promotion from 12/12/2018 to 01/30/2019
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