{"id":15178,"date":"2022-04-21T08:27:16","date_gmt":"2022-04-21T08:27:16","guid":{"rendered":"https:\/\/innotech-vn.com\/?p=13812"},"modified":"2024-06-04T15:30:39","modified_gmt":"2024-06-04T08:30:39","slug":"7-common-risks-software-development-outsourcing","status":"publish","type":"post","link":"https:\/\/innotech-vn.com\/vie\/7-common-risks-software-development-outsourcing\/","title":{"rendered":"Top 7 Common Risks Of Software Development Outsourcing\u00a0And Tips"},"content":{"rendered":"
Software development outsourcing has become a key business strategy for both small and large businesses nowadays. The question is are there any risks<\/a> when it comes to outsourcing? Plus, choosing the right outsourcing company is always a challenging question.<\/span><\/p>\n \u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n Naturally, outsourcing comes with its own risks. Companies all need to thoroughly consider these risks\u00a0before looking for a software development outsourcing company.<\/span>\u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n First, it is normal to worry about the safety of companies’ intellectual property when they delegate its execution to an outsourcing company. After all, these people come from a third party. This risk is easily eliminated by signing NDA\u2019s or other non-disclosure agreements, which now is a fairly standard practice in such companies.<\/span>\u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n <\/p>\n Second, as a rule, software development outsourcing developers are working remotely. This can be difficult for those CEOs who have little experience with this model of co-working. However, in 2022, there are many channels for continuous communication that will make up for this shortcoming such as video calls or corporate chats.<\/span>\u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n Third, finding contact with a software development outsourcing team from the outside can be very difficult. They are employees of another company, and in general, are newcomers to the business owner. The issue of establishing clear communication falls on your shoulders and this jeopardy cannot be underestimated.<\/span>\u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n Fourth, finding a good developer is hard. But finding a good developer who meets specific narrow requirements is even more difficult. The company’s success here largely depends on the complexity of its project.\u00a0Therefore,\u00a0it can be a risk that companies won\u2019t find a match among a pre-maid list of coders in a specific team.<\/span>\u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n Next, there is a misconception that outsourced developers care less about projects because they joined much later and don\u2019t care about their success. Naturally, this is not so. The strict execution of projects for such employees is a priority since their image, payment, and portfolio depend on it. Therefore, their dedication to the project will not be much inferior to the in-house team.<\/span>\u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n Difficulties with delegation of authority can arise for any leader, especially for someone who loves control. It is difficult to get used to the fact that some unfamiliar employee is doing work for your company and it is tempting to contact the contractor every minute and check the progress of the work.<\/span>\u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n Finally, the hidden cost is an issue usually associated with software development outsourcing. They include costs to find a vendor and contracting, properly transitioning to the vendor. If the project is not done on time and it\u2019s not specifically mentioned in the contract, the cost of prolonging the hire. <\/span><\/p>\n \u00a0<\/span><\/p>\n However, this can be avoided by competent drafting of documents and a contract, but for first-timers, this can be a problem.<\/span>\u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n See more: HOW MUCH DOES SOFTWARE DEVELOPMENT OUTSOURCING IN VIETNAM COST?<\/a><\/p>\n <\/p>\n \u00a0<\/span><\/p>\n There are a lot of things to consider when it comes to a successful <\/span>software development<\/span> outsourcing project. But simply put, below are some brief tips to ensure the success of the outsourcing project: <\/span><\/p>\n \u00a0<\/span><\/p>\n <\/p>\n <\/p>\n And most importantly, choosing the right outsourcing partner is a very first step of a successful project that all businesses can not overlook.<\/p>\n <\/p>\n \u00a0<\/span><\/p>\n Here are a few steps to choose the right suit outsourcing company for a business.<\/span>\u00a0<\/span><\/p>\n <\/p>\n \u00a0<\/span><\/p>\n It is a significant step because you can\u2019t go anywhere if you don\u2019t know where you are going. Before reaching out to the software development company, business owners should define the goal\/goals that they want to achieve in business terms.<\/span>\u00a0<\/span><\/p>\n <\/p>\n For example, build a better\/new management system for the enterprise, add new ideas to the software product to boost business profit, integrate the IT\/technology to improve service quality, or optimize the business processes.<\/span>\u00a0<\/span><\/p>\n <\/p>\n Besides that, some other aspects of in-house developers like the experiences, competencies, and technical skills also have to be examined. It will provide some ideas such as what technical skills are needed, whether the in-house team can handle the project or not, and how many software developers might get involved\/added to the project.<\/span>\u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n Whether choosing onshore, nearshore, or offshore outsourcing, each of those will have advantages and disadvantages. The decision has to be based on internal resources and the careful consideration of other factors such as:<\/span>\u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n After deciding on types and models of outsourcing, now is the time to look for potential partners. Shortlist at least 5 to 7 prospective software development outsourcing companies. There are multiple ways to do this. <\/span>\u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n For instance, companies can check social media tools, especially LinkedIn and Twitter. Or they can ask for referrals or recommendations from friends or partners if they were in partnership with a software outsourcing company. Furthermore, approaching B2B companies<\/a> might be another choice. These will at least provide some ideas and options to sort out.<\/span>\u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n The next step is to check the company’s background. The following questions and criteria will help to select the right software development outsourcing company.<\/span>\u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n Typically, when having a list of\u00a0software development outsourcing\u00a0companies in hand, business owners can go forward to contact the software outsourcing company. Of course, this list must be the outcome of careful research and consulting from trustworthy sources. However, this step is not redundant. It will reassure the company and help figure out who is handling the project.<\/span>\u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n At this point, after completing the research, the clients can contact potential outsourcing partners. Then, arranging a meeting to discuss the project further. Explaining the problems\/expectations of the project would be helpful. References from previous projects and clients can also be a trustworthy source at this critical moment.<\/span>\u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n Finally, if that company fits the expectations and requirements, the business owners are on the right track. And if everything is going well, let\u2019s wait for the results and see how quickly the business grows.<\/span>\u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n Further reading: SOFTWARE DEVELOPMENT OUTSOURCING: 6 STEPS TO MANAGE IT SUCCESSFULLY?<\/a><\/p>\n <\/p>\nI – Risks Of Software Development Outsourcing<\/strong><\/h2>\n
1. Intellectual Property And Security Issues<\/span><\/b>\u00a0<\/span><\/h3>\n
2. Lack Of Experience With Remote Developers<\/span><\/b>\u00a0<\/span><\/h3>\n
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3. Poor Communications<\/span><\/b>\u00a0<\/span><\/h3>\n
4. Matching Requirements<\/span><\/b>\u00a0<\/span><\/h3>\n
5. Involvement And Dedication<\/span><\/b>\u00a0<\/span><\/h3>\n
6. Less Control And Handleability<\/span><\/b>\u00a0<\/span><\/h3>\n
7. Hidden Costs <\/span><\/b>Of Software Development Outsourcing<\/strong><\/h3>\n
II – Tips To Successfully Outsource Software Development\u00a0<\/strong><\/h2>\n
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III – Tips To Choose A Reliable Software Development Outsourcing Company<\/strong><\/h2>\n
1. Define Goal\/Goals Clearly<\/span><\/b>\u00a0<\/span><\/h3>\n
2. Decide The Type Of Software Development Outsourcing Services<\/span><\/b>\u00a0<\/span><\/h3>\n
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3. Make A List Of Potential Companies<\/span><\/b>\u00a0<\/span><\/h3>\n
4. Do Thorough Research On Their Background<\/span><\/b>\u00a0<\/span><\/h3>\n
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5. Contacting Potential Partner<\/span><\/b>\u00a0<\/span><\/h3>\n
Conclusion<\/span>\u00a0<\/span><\/h2>\n