Insights | How to Minimize Risk in Software Outsourcing with an Experienced Accelerance Coach

How to Minimize Risk in Software Outsourcing with an Experienced Accelerance Coach

By Andy Hilliard | February 5, 2019

Outsourcing software development to nearshore or offshore teams is a strategy being adopted by companies in record numbers to build resiliency and create a competitive edge. 

For many, it’s the only viable solution in the face of tech talent shortages on the domestic market, high labor costs, hard-to-find skills, and increasing demand for software in all industry verticals across all business processes.

Yet despite the many advantages of outsourcing, tech and business leaders sometimes struggle to achieve an acceptable return on investment. This may be due to: 

  • A lack of cultural fit with the outsourcing partner.
  • A lack of alignment with the in-house and partner team members around business goals.
  • Poor communication with or from the outsourcing partner.
  • A lack of “ownership” by the outsourcing partner.
  • Treating the outsourced partner as a “vendor”.
  • An inappropriate skills mix in the outsourced partner team.

When there are problems with outsourcing software development, clients tend to lay all the blame of a low-performing engagement on the development partner. However, a large part of software outsourcing success rests with the client. Often, issues stem from internal factors that introduce risk and threaten a positive outcome.

We’ve identified 15 potential risks in software outsourcing that every tech leader should consider before engaging a development partner. You don’t have to face those challenges alone. Drawing on almost 20 years of experience in outsourcing partnerships around the globe, Accelerance has developed a specialized management approach to help you deal with critical factors that can make or break your software’s success. 


The Four Phases of Software Outsourcing Success

Projects are at a high risk of failure if the outsourcing relationship breaks down, as a result of poor communication, lack of cultural compatibility, misaligned expectations, unrealistic milestones or a hasty start. 

We provide your company with a set of strategies for each stage of the software development lifecycle to maximise your return on investment and minimize potential risks. Our professional consultants liaise with your senior management to:

  • Prepare your organization before you engage a software development outsourcing partner.
  • Define objectives and establish costs.
  • Facilitate handover to your offshore or nearshore partner.
  • Fully realize your business objectives.

For a more hands-on engagement, Accelerance’s onshore network of management consultants can provide critical oversight and personalized support throughout the entire engagement at whatever level is required – ensuring the work stays on track, on time and on budget.

PHASE 1: Better Planning for Software Outsourcing

Most companies are unaware of the proper preparation that should take place before entering into an outsourcing engagement. Tech leaders who jump straight to Phase 2 (partner selection) overlook potential risk factors within their organisation that could derail success.

Accelerance consultants guide your company in evaluating key internal risks for software development outsourcing, across three key leadership areas:

  • Business
  • Management
  • Technology

Once the outsourcing risks facing your organization have been identified, an actionable plan will be created to help you resolve them. 

PHASE 2: Unmatched Excellence in Partner Selection

No one knows more about software outsourcing partner selection than Accelerance. We’ve reviewed more than 8000 software development and systems integration firms in 40-plus countries – and only the top 1% qualify to become premium certified partners in our Accelerance Global Network.

Certification follows a three-month due diligence process where potential partners are assessed across more than 500 criteria. The final step is an on-site visit. While this is currently curtailed due to COVID-19 restrictions, Accelerance is the only software outsourcing advisory firm that travels to personally certify software development providers and validate our research findings.

Through our personalized selection process, we can match you with the right nearshore or offshore partner in days, rather than months, tailored to meet your specific requirements. 

PHASE 3: A Confident Engagement Launch

Once the ideal software outsourcing partner has been selected, Accelerance will help lay the foundations for a successful collaboration, working with both parties to establish expectations, roles, development approach, communication and other best practices.

Software development projects have a bad reputation for missing deadlines and exceeding budgets. Our approach to achieving alignment is unique in the industry, avoiding potential pitfalls that cause engagements to fail. Because we bring you and your software development outsourcing partner together right from the start, you will gain increased productivity, control of costs, and well-managed expectations throughout the entire process.

PHASE 4: Ongoing Management that Delivers Results

Not all software outsourcing relationships that begin well stay on track. Accelerance’s programme and project management services provide invaluable ongoing accountability and healthy work rhythms between your company and development partner. 

You’ll have access to our experienced consultants for advice and support as needed. Fractional or full-time resources can also be provided on a project-by-project basis to manage the process and coordinate with your remote team.

Working with Accelerance Can Make all the Difference

No one knows more about software development outsourcing than Accelerance. Our customized partner selection process and innovative software solutions connect you to a world of IT talent – ensuring a high-quality outcome for companies wanting to step up their software and digital strategies. To find out more, get in touch.

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