Four Tips When Considering Offshore Software Development

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When determining if outsourcing software development to offshore partner, I suggest careful analysis of the following:

1) Is Lower Labor Cost Really Lower?
There is no doubt about obtaining lower hourly rates from an offshore provider.  However, you must analyze the required skill set.  For example, a talented programmer might require 1 day to complete a particular task while another programmer requires 2 weeks. 

Make sure to thoroughly research a coder’s reputation, online marketplace rating, previous work experience, communication when possible.  If it not is not possible to determine a majority of this providers attributes, move on and do not outsource with this provider.

Require bids to include timelines with milestones. 

Keep in mind, it is possible your research will determine only some or none of your project will have a lower labor cost on the worldwide market.

2) Importance of Reliable and Effective Communication
Software development projects are difficult enough even with everyone speaking the same language.  Do not underestimate the importance of language skills.  In addition, good communication means nothing if dialog is untimely.  It is frustrating having to wait for someone or something. 

You need to ensure your project contacts will respond in a timely and effective manner.   The best way to determine the communication level is to email, instant message, talk, etc. as much as possible before entering into a software development agreement.

3) Crystal Clear Project Requirements, Design Specifications, Deliverables, Timelines
There is no doubt that poorly defined project plans are a top reason for failed offshore software development plans.  Do not enter a project with project deliverables and requirements nearly complete with the idea that other project details will be determined later; during development.  Break projects up into parts if possible. 

4) Protection
I have completed many projects with people I’ve only met online.  However, that doesn’t mean every project has been entirely smooth.  Developing a network of reliable providers takes time, effort and patience.  Make sure to have a protect plan that includes all or some of the following: payment escrow, arbitration settlement, trade secrets and confidentiality agreements.  Here’s a place for contracts –link.  Also, I recommend using Open Source whenever possible to mitigate risk.

Conclusion:

Let’s be real - most of these tips can be applied to any type of project.  These tips include basic fundamentals of software development management.  They are listed because it is often easy to point towards the positive or negative aspects of offshore software development and ignore one’s own responsibilities.  Hopefully, these tips remind us to examine factors within our control when involved in offshore software development.

 



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