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Multiple businesses nowadays rely on outsourced development for a good number of reasons. The ability to get access to world-class engineering gurus, extending in-house talents, or pursuing a strategy of reducing costs with a high-quality outcome. No doubts, the benefits are obvious, but how to secure all guarantees for your company since carrying on any business and establishing partnership relations entails a certain level of risk. Well, let’s find out.

outsourced development

Making a decision in favor of outsourced development can add positive value to companies of all size and structure in terms of time efficiency and cost savings.

Numerous succesfull startups were built with outsourced development

For startups and small businesses in the first place, outsourcing technology implementation of creative ideas is a great way to raise productivity and validate their ideas with minimum viable product (MVP) or proof of concept (PoC) at comparatively low cost. Instead of allocating resources, or hiring own team, outsourced development enables owners of startups and small businesses to focus on other non-technical but quite important tasks like finding investors or marketing their products or services.

For bigger businesses or enterprises, outsourced development means new blood with new level of productivity, releasing time for scaling business up or fostering innovations and technology researches within an internal team.

The time is of the essence, but do not rush with the decision. Consider some of these key factors before engaging with outsourced software development. Taking notice of the following facts will definitely serve you a good turn on every stage of the potential technology partnership.

Elaborate Contract

outsourced developmentIt cements expectations at the outcome of the relationships, and serves as a record to refer to from then on. A contract should outline specifics about payment, creative and other rights, expectations and roles, as well as cooperation strategy. Lawyer review is vital prior to signing any contract.

If the vendor isn’t meeting your established quality expectations during a specific time period, the contract should provide you with the option to terminate your agreement. Setting a date when the contract should be up for renewal so that you can consider whether to continue or not.

It is better to consider the following risks in your legal documents before you proceed with technological implementation:

  • Delays or inability to complete declared services
  • Not meeting the service levels
  • Performance interruption or cessation
  • Violation of laws by the service provider that impact the customer
  • Intellectual property infringement or abuse
  • Failures in communications between the parties

Under NDA

outsourced developmentIndispensable, vital, must-have, and required – all these epithets can truly describe the importance of a non-disclosure agreement for a software project.

An NDA is signed for protection of the client’s intellectual property and to prevent issues that might appear around original ideas that might potentially bring profit if transformed into software. It is important to carefully consider the definition of confidential information in an NDA.

Moreover, a reputable software development company usually have their own NDA policies and lawyers. So you’ll be offered a bilateral agreement. Such an agreement is needed in case of highly confidential corporate information that will be disclosed by the contractor to the client and is only a significant mark of mutually beneficial and respectful further cooperation.

However, with all due respect to NDAs, it should be asked for only when there are items worth protecting. First of all, it is considered mauvais ton to put a slightest cooperation details under NDA. Second of  all, it’s so true that reputable companies rarely have any interest in stealing an idea or competing with clients due to at least several reasons: both have different businesses and target audiences and would never ruin reputation they’ve earned for years for vague perspectives.

Safeguard Intellectual Property Rights

outsourced developmentNot less important than NDA provisions are ensuring that all rights to your software including all associated intellectual property rights, are assigned to the appropriate individual or entity.Therefore, intellectual property matters should be undertaken before going on any outsourcing plan to protect your company’s intellectual property, while determining which functions are better to be kept in-house or outsourced.

Code of Ethics as an Implicit Agreement

Although there is no official code of ethics for the software developers like in case with doctors, there is a subset of engineering ethics and professional ethics rules applied to the design and development of software systems. Verifying whether company software-vendor has its own software engineering ethical code will guarantee developers in your potential team will respect you, respect the entire industry, and your customers. Here is a list we believe must be obliged:

  • Protect and backup data
  • Work under client value development approach
  • Protect witten code by NDAs
  • Write maintainable code
  • Do not use illegal software to perform development tasks
  • Taking responsibility for our actions
  • Self-awareness and honesty about your own code quality

Trustworthy as Synonymic to Transparent

outsourced developmentTrustworthy software business partners must be completely transparent with their potential and existing customers. In this case transparency mens being very open, having no hidden intentions, and stand by their given word, without promising impossible.

Talking with all the stakeholders in a company you are looking at as an outsourcing partner will help to evaluate the internal integrity a company cherish or lack. Clear and straightforward language and answers will prove you are addressing a right company to become your reliable partner in future.

Keep Control over Outsourced Development

It is critical to constantly supervise the elements of your business you’re outsourcing. The best way to achieve the necessary rate of supervision but not impeding working of your new team is to have designated roles overseeing the customer-vendor relations. The responsible employees should be skilled managers who understand your corporate vision well and can monitor the outsourced activity to be sure it’s in line with what your company expects.

Final Steps to Follow

Shape your expectations, focus attention on really critical matters, and make your final decision. Feel confident moving forward building long-term relations with a software service provider, clarify the following information:

  • Relevant outsourcing experience If the potential partner has relevant experience with remote relationships and can provide you with corresponding references – that is a big plus. Also, pay attention to best practises of communication and reporting.
  • C-Level executives You’re looking for a technology experts, aren’t you? It is  important to consider whether the company has someone who drives technology or product in-house such as a CTO, Director of Engineering, or Head of  Product Development.
  • Flexibility of HR Powerful Human Relations department with professional management are no less important than technology expertise within a modern software company. Ability of the software supplier to scale up and adapt to your exact requirements is very important for an outsourcing partnership.
  • Local presence Financial and legal aspects of work matter especially in the early stages of the outsourcing relationships. This will be greatly aided if the software development company has a local presence, registration, or an office in your country. Being ready to send specialists on site would be additional advantage a software development partner can provide you with.

Delegating authority and control over present and future of your business is a demanding task but with due attention to the factors mentioned above, establishing strong relations and finding a reliable partner will be only a matter of time.

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