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How to Avoid Software Outsourcing Risk


20 Mar, 2010
Written by Effie Sha
Beijing RayooTech Co., Ltd.


More and more business companies accepted software outsourcing business model and gained the benefits from software outsourcing services. Software outsourcing business model assists hosting companies to provide software talents, manage software development team and reduce cost.


Finding the Right Software Outsourcing Company


Software outsourcing business starts from finding a dependable software outsourcing company. How to find a dependable software outsourcing company? The best way is to find software outsourcing companies by referral from colleagues, friends or business partners who have experience working with them. And you also need to check if these software companies have qualified certificate to undertake your projects. There are other resources to find software outsourcing companies, such as search engines, trade associations, software outsourcing communities, etc.


Preparing Before Outsource Software Projects


The first thing you need to do is identify the background of the potential software outsourcing company. Are they qualified software outsourcing companies? Do they have software outsourcing experience and how long? How many assets do they have? How many employees are there in the company? Do they have ability to cover various software outsourcing risks? Do they have large talent pool to provide software project development experts? How about their software project’s quality? … There are lots of questions come to your head and you have to figure out to make sure that the software outsourcing company which you choose has ability to satisfy your request and your projects.


It is important to know a software outsourcing company’s experience and reputation. You can obtain this software outsourcing company’s references or tack records from Internet, friends or business partners. Make sure that you select right software outsourcing company.


Smart people will not just look at short term relationship, instead of it, they also concern about the long term collaboration. Probably, you will make some requirement changes or add extra functions after software outsourcing project delivered, or long term projects maintenance. Professional software outsourcing company should have ability to provide longer term after-sale support.


You should select an efficient way to communicate with software outsourcing company during software project development is necessary. As hosting company, you should know every step of your project during your project development process. Generally, software outsourcing team will submit weekly and monthly project reports to their clients. So read the reports carefully and ask questions to avoid the misunderstanding between development team and your side. You can select email, telephone, online chat, or visit software outsourcing side.


Once you list several software outsourcing companies which you would like to work with, you can ask them to provide demo or similar projects that these software outsourcing companies have completed as examples. However, due to the agreement of Intellectual property, some project examples may not show to the third party.


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