7 Sins of IT Outsourcing
Many companies need IT products to work with — from mobile applications to CRM systems for sales management. However, most firms without their own in-house development teams are rather wary of the outsourcing — they fear for the confidentiality of information or doubt the quality and profitability of development.
By the way, IT outsourcing isn’t that scary and complicated to mess with, as it seems. Let’s figure out what fears are associated with outsourcing and how to prevent your business from them through the specific examples from SimbirSoft practice.
#1. “I won’t be able to control the developer”
IT outsourcing company uses the accumulated experience to make all processes flexible and understandable even for those who have never ordered software development before.
The work on a project begins with the business talks between involved persons of the companies: the main subject and terms of development are being discussed and the team is being planned. Sometimes we begin our work on a project with a visit to the client’s office in order to better understand the business tasks and optimize the processes. If it needed, we create roadmaps for our projects. They include all the tasks, stages and deadlines. Several systems of its monitoring could be used: Redmine, Confluence and other widespread tools. If the roadmap is not necessary, we provide a complete plan to the client with the major stages and the terms of its implementation.
We often conduct our work on the Scrum basis – iterative methodologies that have long proven their effectiveness. We divide tasks – for example, creation of the mobile app screens – on short intervals of 2 – 4 weeks. At the same time, daily meetups with the project experts involved help us to control results and address any problems arise very quickly (for example, receive additional business data).
Such an approach allows us to bring a product to the market rather shortly without sacrificing its quality. For example, we managed to release SKB mobile bank app just in 100 days, including all the fintech requirements and features. The bank needed a more user-friendly application that will allow the company to get competitive advantage in the market and raise its positions in the Markswebb listing. Following the road map, we focused our attention on the functions that are most important for users and reduced Time to Market — a period of time when the product is going to be released. Read more about Time to Market in our special article Time-to-Market Experience. As a result, SKB mobile bank app entered the TOP-5 according to Markswebb.
Depending on the objectives, our team usually consists of several experts with the specific experience: Project Manager (PM), Account Manager (AM), Quality Assurance Specialist (QA), Team Leader (TL), developers, analysts.
#2. “The developer won’t do what I want.”
When you order a software development, it is tempting to add a lot of functions at once, regardless of the budget and timing. For the developer such a client is a gift of fate for sure. But there are certain risks in the way of reckless implementation of all features. For example, you can lose priorities and design a completely wrong product as a result, or yoг can miss the deadline.
From practice: we worked on a mobile offline guide to the city which needed to be released within a month. It was a rather simple and clear product, but designing the functions it was necessary to take into account terms and requirements: geolocation issue, what maps to use and how to build routes and etc. To resolve these issues correctly and forget about them we relied not only on our client’s personal opinion, but also on the opinion of the experts involved. For example, we carried out an analytical research. Having focused on the most important functions, we issued the mobile guide in time and kept a possibility to add any functions required in future.
#3. “The developer does not care about my business”
If you already have a ready action plan in which the desirable solution is designated, then the developer can go in two ways:
- The first way is to design the required product, without delving into the business objectives of the client.
- The second way is to find out the purposes of the future IT product. Such laborious approach may be very useful, because the IT-system does not end in itself, it means to an end. It is important to know not only all the technological capabilities of the product, but also to be able to use them for business development.
One our foodtech client – Japanese food restaurant – addressed us for its mobile application upgrade. We developed three design mockups for that app and tested their convenience in focus group. We also implemented other useful functions: visitors of the restaurant can now use the app without logging in, automatically select the nearest restaurant for delivery and calculate the delivery cost before placing an order.
#4. “I will have to be responsible for the outsourcer’s work to management and investors”
Sometimes the initiator of the project does not know how to suggest the idea to the management correctly and how to realize it. Therefore the IT-company helps to create something unique, to estimate its volume of work, the budget and terms.
From practice: an HR specialist of client company wanted to create the internal application where it would be convenient to work with KPI, plans and bonuses of each employee. For this purpose we described all business processes, chose one significant functionality, and worked it out. After the presentation of the model of a product and the its development plan, the idea got an approval, and the initiator of the project was promoted.
#5. “What if the developer will deceive me and steal the source code?”
Such business is always legally protected as the outsourcer signs NDA – non-disclosure agreement – and bears full legal responsibility. It is a common practice. Besides, usually the software is developed without access to real data. For example, we create the application for the clinic, but we have no access to real medical data.
Software development is ordered by medium and large business most often, which has its own support service and IT infrastructure. It is convenient when the IT company comes to your corporate infrastructure and creates or tests everything strictly within the task given. At the same time you control all processes and have the source code, even in case you cease to cooperate with this or that contractor within several years.
#6. “We will communicate in different business languages”
Even if you have your own IT department, there are situations when you just can’t handle without skilled outsourcer. To keep up with the market, sometimes it is simpler to work with the outsourcing team for one project, than to create the internal IT-company from scratch. The outsourcer can quickly join your business processes and will work in infrastructure at those terms which are used by your company.
#7. “As soon as the project is completed, there will be no one to take care of its further development”
In order to bring the result, the software product has to be in dynamics. Therefore, it needs support, but it is not enough. We consider a right approach is not only to give support, but to develop a full strategy of development for a product. We connect experts-analysts to the projects who carefully investigate business processes and propose the stage-by-stage solutions of the strategically important tasks in the mildest terms.
After completion of the project many clients address us with new ideas. For example, since 2017 we cooperate with in-house team of QIWI payment service provider over niche products which demand fast start. Together we realized more than 10 products since than.
How to Control the Quality of Development?
Speaking about quality control of information product, it is important to understand that this concept includes a set of factors, each with its control methods. For example, for quality check of the code or architecture you can order audit services – Code Review – from external experts.
At the same time you should not forget that the quality of development processes is estimated taking into account life cycle of tasks and iterations planned, and the quality of communications – taking into account communications between the client and the account manager from the IT-company. What quality factor you will place first – depends on specifics of your tasks. Anyway, the outsourcer can provide you the criteria of quality control even at start of the project.
Here is something for medical and pharmacy company owners:
How to Boost Average Purchase Size in Your Pharmacy by 30% just Adding Some IT
How to Improve Medical Сare Through IT Systems
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