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Outsourcing: Maximize Your Outsourcing
Efforts,Competitive pressures have pushed many organizations to outsource
their IT and software development services around the globe. According
to DiamondCluster International's third annual Global IT Outsourcing
study,more than three quarters of the Global 1,000 plans to increase
its use of IT outsourcing this year, with software outsourcing being
a big portion.While the motivation behind this trend can vary depending
on the organization,the primary motivation is simple: cost savings.The
attraction of low-cost,high-quality labour is just too tempting to
resist for many organizations.Add to that the ever-increasing expectations
that the business places on software to achieve business goals. To
that end,
Outsourcing also offers the lure of being able to build
and maintain a greater number of applications for the same budget
dollars.On paper,outsourcing leads many organizations to believe
they can expect up to 70 per cent savings in their IT budgets.The
reality though is closer to high single or low double digit returns.The
discrepancy lies in the downstream challenges of making software
outsourcing a success.Software development is a complicated beast.It
involves not just technical skills but a general understanding of
the business' priorities and an ability to balance the tradeoffs
that continuously occur in development around spend,scope,quality
and schedule when those business priorities shift.
Giving another party control of one of your business' most
important assets and trusting that they can manage its complexity
and deliver a quality product is an important issue.It is an issue
that requires some serious planning and consideration.Below are
five questions you should ask yourself before moving forward on
an outsourcing endeavour.1. Which projects or tasks can I afford
to outsource?Before even investigating a service provider, consider
which projects are good candidates for outsourcingThere are strong
arguments for selective outsourcing. 2. What kind of relationship
do I want to have with my outsourcing supplier?Companies can choose
to pursue different models of outsourcing based on the projects
or tasks in question. Click
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