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I cannot identify any clearly outsource able piece. Can I still effectively outsource product development?
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If using outsourced product
development is a strategic
priority but there is no
identifiable piece that can
be outsourced, consider
starting with remote team
augmentation. Ask your
outsourcing partner if they
can dedicate team members to
support development of
specific portions of the
code or work on an
independent module. Ensure
that the outsourcing partner
team dedicated for your work
is managed by a team lead
that is responsible for
administrative management,
so deadlines are met
promptly. Once couple of
successful projects are
under the belt in this staff
augmentation mode, the
outsourcing arrangement can
evolve to a hybrid approach.
Some finite work could be
outsourced to a team which
has been working on your
projects for a while,
whereas any additional work
could be executed in the
staff augmentation mode. |
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Such a hybrid model will
give you the confidence in
the outsourcing relationship
to ensure a seamless
transition. Yet another
successful approach is to
start small with maintenance
oriented activities. As you
build better communication
and trust with your
outsourcing partner,
specific project
opportunities will present
themselves. |
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What kind of extra documentation overhead would be involved? |
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This is an important criterion when selecting your outsourcing partner. Some outsourcing firms specialize in product development outsourcing while others are IT generalist outsourcers. IT generalist teams would be more prone to needing complete specifications before starting their work; whereas product specialists would be willing and able to work with skeletal specifications, which could be changed several times during the project. In fact, these product specialists can get your specs over informal channels such as phone, chat, teleconference, etc. and then document their understanding into a spec, which could be used in the future. |
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How will I manage my communications with the partner team? |
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Effective two-way communication with the outsourced team can make the difference between a wildly successful outsourcing
relationship and a floundering engagement.
Some items to think through include:
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Tools and Practices:
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- Communication channels: Email, Phone, IM,Web/Tele/Video-conference
- Continuously updated contact information
- Wikis for requirements, specifications and constant comments/questions
- Web based project management tool completely updated
- Common web based development environment and bug tracking system.
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| People and processes: |
| Communication
that often happens
through informal
discussions and
“overhearing” when
team members are
onsite has to be
consciously
communicated to the
off-site team
members. This can be
accomplished by
encouraging adhoc
daily communications
or daily team tie-in
meeting sessions
held at either the
beginning or at the
end of the day.
Communications
should be encouraged
at a
“peer-to-peer”level
as illustrated below
Further, insist on
weekly project
meetings and monthly
business review
meetings. Weekly
meetings can bring
milestones,
schedules, issues,
changes, and goals
at a tactical level
in front of the
project teams, while
the monthly meetings
can focus on larger
issues like company
goals, directions,
and plans. These
help glue the
offsite and onsite
teams in a more
powerful manner
especially if you
can enable a video
conference and meet
up virtually. Ask
your outsourcing
partner on your
team. Work closely
with your
outsourcing partner
during this critical
time period
discussing and
resolving issues
promptly.
communication
training received by
their staff and
share the best
practices that have
worked for you in
the past. Plan on a
“start-up phase” or
a pilot project
where you can
determine what works
best for your team.
Work closely with
your outsourcing
partner during this
critical time period
discussing and
resolving issues
promptly. |
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However one plans, timely product delivery invariably involves last minute superhuman efforts. How will this be done? |
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In our experience, outsourced
development teams can be almost
equally dedicated as your local
teams giving an arm and a leg to
make the product launches
successful. We have seen this
accomplished by consciously working
with the outsourced team members as
if they are members of your own
teams and thereby building the level
of ownership in them. Some simple
steps include:
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Tools and Practices:
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- Treat them as an extension of your team and not as a vendor. Work with every team member to get more done through careful communication and understanding individual motivations.
- In the monthly reviews outlined previously, share other business updates that can boost morale give a sense of project ownership to the outsourced team members.
- Share your sales cycles with them, so that they feel like a part of the winning team.
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When you go through these steps,
your outsourced team members will be
motivated to put in those superhuman
efforts. |
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How can I protect our intellectual property when the work is being outsourced outside the US? |
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| Your
intellectual property is one
of your most important
assets and you need to take
extra precautions to ensure
that your outsourcing
partner has similar values
and safeguards. The first
step is to understand the
corporate structure of the
outsourcing organization to
ensure that they are
governed by US laws. Ask to
see typical employment
contracts and confirm if
they include intellectual
property assignment and
non-disclosure clauses
similar to what your
employees would sign in the
US. Ensure that these are
adequately covered in the
clientcontractor agreement
as well. Ask the potential
outsourcing partner about
their information security
policy and supporting
infrastructure. Once you
have these materials ready
for review,consult with your
company legal counsel. |
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How do I select the right product development outsourcing company to outsource my work? |
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Selection of a product development outsourcing partner is a crucial business decision. Eventually this has to be with people you are comfortable working with and the following checklist will help you review all factors that can impact the long term success of the
partnership.
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Clearly mark your goals and set standards:
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Depending on your product-to-market plan, it will help to evaluate goals and standards for the vendor to achieve, within set time frames.This gives both the parties the right level of commitment.
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- Does the prospective partner meet your Intellectual property protection criteria?
- Do they have an acceptable Security policy?
- Do they have a product development focus or are they an IT Generalist?
- Does this team have the capacity to put in superhuman effort when needed?
- Do they have the experience and understand the importance and nuances of communication in outsourcing relationship?
- Is the partner flexible to provide the range of engagement models that can be needed to ensure success?
- Do they have the financial strength and stability?
- Do they have prior experience with the product development outsourcing methodologies that have worked well?
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