Success or Failure?

Why Choosing the Right Outsourcing Partner is the Most Critical Decision You’ll Make

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2021 Accelerance Due Diligence Guide

 

Partnering with a nearshore or offshore development team offers the potential to access quality software engineering talent at significantly lower market rates. But once you’ve made the decision to outsource, the next step you take will make or break the chances for success. 

How do you tip the odds in your favor? Expert vetting through a rigorous due diligence process and management of development resources is the key to making your outsourcing engagement one of the success stories.

 

Doing your homework

Due diligence in the partner selection process is essential. You’ll be looking for technical capabilities, industry experience and a host of other outsourcing criteria – including an understanding of Western business practices and expectations.

A specialist advisory service like Accelerance has extensive experience in creating and managing successful outsourcing relationships, including key points to consider when selecting a software development company, how to assess potential partners, and what questions you should ask before deciding whether you’ve found a good match.

When we investigate a global software development team, our assessment includes more than 130 questions and reference checks, drilling down into everything from the company culture and core values to development processes and prior experience with Western clients.

Our latest Software Outsourcing Due Diligence Guide gives you step-by-step insight into vetting an outsourcing partner, including how to draw out the information you need to make an informed decision. Below is a sample of this strategic approach.

 

Due Diligence - Graphic 1 - Checklist

 

Evaluating potential partners is a complex and challenging process. A good way to start is by narrowing your focus to these six key issues:

1. Are they qualified?
First, you’ll need to prioritise the tech stacks and industry experience that are critical to your work – and explore the track record and check references of candidates with the right credentials.

2. Are they skilled?
Next, think about the technical skills your software requires and look for specialists in the field. Again, testimonials will be what counts.

3.Do they offer value for money?
Our 2021 Guide to Global Software Outsourcing Rates will help you evaluate whether you're getting a good deal. Remember, outsourcing also significantly reduces the total cost of engagement compared to the cost of in-house staffing, as shown in the chart below.

Screen Shot 2020-12-01 at 11.50.43 AM

 

4. Will they be a good fit?
The partner you’re considering might have all the tech skills and expertise you need, but how well will you work together? A compatible business culture and an understanding of the cultural differences between your company and a nearshore or offshore team is also crucial.


5. Can they communicate well?
Nothing sinks an outsourcing engagement faster than a breakdown in communication. Senior members of the development team will require a standard of English proficiency that enables them to clearly understand your requirements.

6. Will your intellectual property be protected?
Outsourcing adds a level of risk to your exposure so you’ll need assurance that you’re protected. Clearly outline specific IP protocols in your contract agreement, and confirm your partner’s cybersecurity technology is up to scratch.

 

Are you ready to take the gamble or do you want to find out more? Check out our Software Outsourcing Due Diligence Guide for Accelerance’s first-hand insights on how to find the right partner you can trust to deliver.

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Authors

Andy Hilliard
CEO, Accelerance

Rich Wanden
Senior Managing Director, Accelerance

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