Why Software Outsourcing Failed? How To Prevent The Failure?

Reasons Why Some Software Outsourcing Projects Fail

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Table of Contents

  1. Failure to Hire a Reputable Firm
  2. Failure to Detail Project Requirement
  3. Failure to Fine-tune The Contract for The Project

Software Outsourcing is considered to be one of the best way for startups to cut on their operational costs. Through outsourcing, these companies can outsource some aspects of their operations to companies offshore thereby allowing them the convenience of centering all their energies towards perfecting their core competencies. If software outsourcing is such a wonderful way to cut cost and get projects done, then why does some projects fail?

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Here are some of the reasons:

Failure to Hire a Reputable Firm

The success or failure of any Software development project is premised on the qualifications of the software development company. You decide to outsource the project to. It is highly advised that you shop around before settling on a preferred firm. There are certain characteristics or qualities that you should look for in a potential hire. It would be a big mistake rushing to hire a company without doing your own due diligence. Due diligence requires that you research the service provider and check for ratings and if possible also interrogate some of the past projects done by the service provider. This will give you a general feel of what to expect from the service provider.

Failure to Detail Project Requirement

Every project has its own requirements. You must make sure that you detail your requirements so that the software outsourcing company will be able to come up with a product that fits your specification. Some companies take this task very lightly and some overlook the whole issue and this often leads to the development of software that cannot solve the problem that the company had thereby forcing the company to incur more cost (wasted time and money) redoing the whole project.

Failure to Fine-tune The Contract for The Project

The contract for the project is a legal document detailing what each of contracting party is expected to do under the contract. A failure to include all of the relevant items under the contract can lead to disputes which can easily be avoided by ensuring that the contract covers all of the important aspects of the project. The contract must describe issues that include duration of the contract, ownership of data and information, ownership of the final product, communication structure and frequency among other things. The software outsourcing services provider and the outsourcing firm should also agree on how to deal with warranties.

Having seen why some companies fail in their outsourcing projects, it is, therefore, important to highlight ways in which you can ensure that your outsourcing project does not join the list of failed software outsourcing projects. You can ensure that your project succeeds by

  • Hiring a qualified and top software outsourcing company.
  • Ensure that all the details of the project are provided to the firm you have outsourced your project to
  • Work with a legal expert who is well versed in matters that have to do with contract law to fine-tune your contract and seal all loopholes.

Happy software outsourcing, best wishes from Saigon Technology!

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