Software Testing Strategy

Software Engineering Outsourcing

What You Need To Know About Software Engineering Outsourcing

Software Engineering Outsourcing

Software engineering outsourcing is a process of selecting allocating the software engineering process to a company who is either more specialized or can add significant value in terms of time or cost saving. The importance of this process requires the company looking to outsource to run critical due diligence checks for appropriate skill and strategic fit with the organization. Engaging a company to perform the software engineer outsourcing process requires the company considering this option to ensure that their software engineering (SE) activities are strategically oriented and are adding real value. Because of the importance of the software engineering process, the company performing this duty should be considered more of a "strategic business partner" than a company that is engaged in the simple provision of a service.

The best drawn software development specs and cleverest development strategies can be ruined beyond recovery if they are not engineered in an optimum manner. Many companies that engage in software engineering outsourcing do so on inconsequential mandates or fail to properly assess whether the process is adding significant value. A successful software engineer outsource partnership has to allow for built in flexibility and accountability that creates a win win outcome for both companies. Such a partnership requires a focused and dedicated approach to ensure that the operations of both companies are strategically aligned to the original perceived benefits when the outsourcing decision was made.

Software Engineering Outsourcing

There are several options available to a company that engages in software engineering outsourcing. These include hiring sub-contractors, outsourcing entire projects or setting up offshore development centers. Each has its advantages and disadvantages and the solution under consideration must be assessed against the company objectives. In the case of hiring sub contractors, this is the same procedure as hiring a full time employee. Consideration needs to be given to the potential lackluster commitment, exposure to confidential, commercial or competitive sensitive information can have on the hiring company.

Entire project outsourcing gives rise to a separate set of considerations. If the nature of the contract is simply the fulfillment of a designated service at an agreed to price then any necessary project changes mid course can create conflict. If the supplying company is required to assemble a new team and has no previous experience, this can result in the supplying company walking away at the completion of the project with important strategic information and newly acquired know how to compete with the original buying company in future transactions.

The setting up of an off shore development centre to perform software engineering outsourcing can add value by acquiring specialized labor at a reduced price. This creates a situation where the staff is effectively yours but not yours and is on someone else's payroll. If the contributing staff members are unmotivated, the original perceived value of this method can be severely reduced.

In order to determine the best way to perform software engineering outsourcing, a company needs to investigate the options and make an informed decision. Cost savings should not be the primary motivating factor.

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