When it comes to playing the role of a successful IT manager, the main concern is always the same. How to support the business activities, in the most cost-effective manner.

Outsourcing has been seen for many years as a way to get things done in a less expensive way, or at least that is the plan when the projects start. However, making the wrong choices when selecting your provider can make the project turn from the ideal result you were hoping, to a very expensive, slow and painful experience.

So here are a few tips to keep in mind when choosing that software development partner that will be side by side with you in the months to come.

1.) A reduced cost to develop is rarely the right basis on which to adopt IT outsourcing.
Other powerful reasons to outsource are:
a) Access to expertise, either to maintain a legacy technology, or introduce a new technology that your team currently does not possess.
b) Flexibility to raise or lower capacity (of any resources) depending on the fluctuations in business activity
c) Reduction of permanent headcount. There are some tasks that do not require a daily commitment but rather an on-demand necessity (once every few weeks or more). Who likes to have idle employees?

2.) Clearly define the scope and time schedule for your project.
Make sure that you prepare beforehand all the requirements of your project. Software providers will be able to provide more accurate and realistic proposals, as well as a much better experience if you know precisely what you want and for when you want it. Project schedules can have a huge impact of project costs.
Another important element to keep in mind is clearly tying payments to clearly defined project milestones.

3.) The provider's style of doing business should be similar to your own.
Most of the outsourcing contracts are typically a long term commitment, depending on the complexity of the project, as well as the clarity in which the project requirements are set from the beginning.

Therefore, aside from knowing that your provider has the required skills, capabilities and commercial added values, try to make sure that their way of doing business is similar to yours. Dont be afraid to ask questions, just as you would when hiring an employee.

This is particularly important when online meetings take place to address issues. While Different business styles may come in conflict, similar ones will allow for greater flexibility and understanding of both parts.

4.) The provider must be able to prove that they are comfortable with your business vertical.
Knowing that the provider has had previous tangible experience in your domain is a determinant factor in the confidence that you will place in the work that they will be expected to perform.
Check out their portfolios and study cases to evaluate if their previous work meets your expectations for quality and working style.

5.) Let your customers know what's going on behind the scenes.
Communications is a key factor when it comes to the tri-part relationship going on between your company, your clients, and your outsourcing software provider. If anything goes wrong along the way, from the moment you adopt the new coding strategy, the more likely your customers will be tolerant to the problems that might arise, as well as allowing more space between you and the provider to fix the mess.

6.) Prepare the skills and resources needed to manage change and stay in control.
Always be attentive of the development of your project under the provider's hands. Request for a project breakdown and plan, and follow up on all the tasks that have been agreed upon in the contract, making sure that the progress keeps up the pace with your business needs.

If you and your team are unable to lead the way from beginning to end, then your contract will very likely atrophy and you will eventually find yourself at the mercy of the providers view of what needs to change and when.

7.) Remember the post-project relationship clauses.
With technology, there's always room for something to go wrong. No matter how much you test it, there's always something that might go wrong.
It is much easier to negotiate the project warranty and post-project support clause of the contract before starting the project, than when it is completed, because certain services can be agreed upon for free technical support, where otherwise it will be an additional cost to deal with.

8.) Words are carried off by the wind, but what is written in stone shall last forever.
During the course of the project engagement, any of the different variables of the project may be subject to change.
For whatever change that might be requested during the development of the project, make sure that these are clearly communicated and confirmed - in writing- specifying that both parties understand and agree to the changes.
Also keep a file on these change requests, whether they are agreed or rejected, to protect yourself from future headaches.

With these tips in mind, your outsourcing experience will very likely be a pleasant one from beginning to end.

Author:
David Ochoa Mendoza.
Customer Relations & Projects Manager
Beijing Intechno Co. Ltd.