| The numbers vary depending on which study is cited | | | | testing and whether they are building what you asked. |
| and what definition of failure is used. But executives | | | | When they deliver an increment, test it yourself right |
| initiating or in the midst an IT outsourcing relationship | | | | away. This means you need an in-house test team. |
| must be constantly sobered by the fact that, from a | | | | Make sure this is included in your costs. |
| purely statistical viewpoint, their deal stands about as | | | | This kind of project management may be more than |
| much chance of failing as of succeeding. | | | | most companies want to deal with. Unfortunately, you |
| Managing IT outsourcing is hard. It doesn't pay to | | | | can't just turn over the management of the project to |
| pretend otherwise. Deloitte Consulting LLP's study | | | | an offshore company. |
| "Calling a Change in the Outsourcing Market" found | | | | Buyers and software providers need to analyze the |
| that 70 percent of participants have had significant | | | | risks and consider the costs associated with mitigating |
| negative experiences with outsourcing projects. | | | | them. Management usually assumes that by giving |
| Let's define failure for offshore software projects and | | | | away software development to another company |
| explore some of the reasons for the high failure rate | | | | they also give away the risk, not realizing that they |
| of outsourced software development projects. | | | | keep the primary management responsibility and most |
| I think that not getting software which meets the goals | | | | of the risk. The project manager will face all of the |
| of the buyer is the first element needed to define a | | | | challenges of an in-house development plus many |
| failure. The next would be cost, either exceeding the | | | | additional ones. The outsourced employees are part of |
| expected costs or exceeding the cost that onshore | | | | another company with its own goals that are not the |
| development would have been. Not meeting schedule | | | | same as your company's goals. They're not right there |
| is another problem with these projects. Another | | | | with you to ask or answer questions. They have their |
| element would be a lack of relationship with the | | | | own managers they must listen to. |
| developer which enables changes to be made easily | | | | You may want to seriously consider onshore |
| and functionality added as the project proceeds. | | | | development for your project unless you have the |
| Language and cultural challenges, the time zone shift, | | | | following: |
| and the distance between you and the faces of the | | | | Solid specifications |
| development team are all stopping points to the | | | | A sound project manager on site |
| development of your offshore project. Since offshore | | | | An experienced team in India or China with senior |
| outsourcing often results in failure of one kind or | | | | developers |
| another (quality, schedule, cost), companies are | | | | A good QA team |
| rethinking this strategy. | | | | U.S. software companies can find reasons not to |
| The fact of the matter is, offshore software | | | | outsource software development and coding to |
| development requires that the buyer carefully develop | | | | offshore sites, such as these:they can do background |
| a plan for the development and then manage the | | | | checks on U.S. Citizens |
| project as it unfolds. Check on code quality and | | | | Eliminate the language, culture and time zone barriers |
| conformance to standards and validate progress | | | | They prefer to help the U.S. economy |
| when you take a look at the code. If you specify | | | | The draw of outsourcing is cost savings, but most |
| incremental deliveries, be sure that they have | | | | companies find that outsourcing has many unexpected |
| organized their development so this can occur. When | | | | costs that, when weighed against the savings, negate |
| an operational portion of the code can be tested early, | | | | the benefits. |
| you will be able to see how well they are doing unit | | | | |