Nonetheless, to stay on edge, an outsourcing provider has to prove that it could deliver quality software products, could efficiently communicate with its clients and ensure privacy and security of customer information. A study revealed that twenty-five percent of the reasons why outsourcing failed are because of poor communication. This expected however, particularly when the parties have different cultures, languages, backgrounds and live on different time zones. The key here is communication.
It is extremely important to establish with the other party or the service provider the communication channels that will be used, like emails, instant messaging such as Skype and video conferences among others while taking into account the differences in time. One must delegate and present the key people who will represent the two organizations and would be the contact persons. Another effective communication approach is using standardized formats, for instance in emails so the most vital information is easy to understand. Examples are periodical reports that would keep the customer informed on the latest trends about software development processes on a weekly or monthly basis.
Creating a quality software product means that it is easy to use and stable and meets end user requirements. To be a good outsourcing provider, it means also being a good consulting company, offering expert advice, viable solutions, reviews and approaches for each issue that may come along the way and clearly communicating these to the customer for a final decision. It’s true that the process could make the client vulnerable to privacy and security issues because confidential company data, information and access to private areas are provided when the task is being outsourced. Nevertheless, with the right security regulations like secure infrastructure, data storage policies and information sharing policies, the threat could be prevented easily. An ISO 27001 security management system certification is a type of tool that proves the vendor with a certification is capable of preventing security risks inside and outside the firm. Moreover, it will also permanently monitor the process and do regular risk assessment to prevent and treat any problems that could affect the stability of the product.
To be ahead of the competition, there should be an effort to ensure a strong cultural fit between both parties. This involves the country of origin of the outsourcer and one’s own corporate culture. There has to be an environment that encourages people to take an initiative, inspires original thinking and is guided by user and data experience, has a flat management hierarchy and willing to take risks and be innovative.
Outsourcing, when done well, could result in the client organization receiving benefits they would have otherwise been unable to achieve by doing a project in-house.