5 Major Risks In Outsourcing Software Development... And How To Avoid Them

April 29, 2016 2379 Views
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Outsourcing Software Development


Software development outsourcing works for every domain of business. And if you know that the time has come to start or enhance your own business with a software product, IT outsourcing may be the most obvious choice in terms of both quality and cost. Just like any other business, there are risks in software development projects. They can be ignored, prevented, delegated, or subdued after an undesirable scenario occurs. Let's outline five simple but relevant common risks in IT projects and see how to deal with them.



Risk issue #1: you don't receive the software product


There is a number of reasons why the owner might not receive the software product, from running out of budget to incompetence of the team. When looking for a custom software development company, pay attention to experience in your business domain and creation of similar software products. Check the portfolio and get a brief initial consultation regarding your software project. An expert company will provide you with adequate communication and advice, tell you about the most common problems and risks involved during the software development process, considering your project specifics.


It is possible to identify the majority of risks—including technical risks—before development, or at its starting point. In cases of innovative, sophisticated, unique apps, the software developer can investigate and see whether your project is technically viable, supported by the current technologies.



Risk issue #2: the software product is NOT what you wanted and expected


To avoid this scenario, it is not enough just to establish communication with your software developers. Collecting requirements for a project is essential. You need to document and share all of your ideas and the vision of your product. This will reduce the risks of getting not what you want. Keep a watchful eye on results and achievements on each iteration of development. Well, you are sure to do it anyway.



Risk issue #3: the software product is problematic in use


Software development process is followed by quality assurance. That's where your software product is tested in various ways on various devices to ensure proper work and software quality in general. Some software product owners involve external QA services additionally. That's how these problems can be prevented. And if they show after the launch of the product, they are discovered by users (make sure that users are able to send feedback on issues) and support (for example, updates and server monitoring). Many software developers offer support services.



Risk issue #4: the software product is unpopular with users


To be popular, a software product must have a clearly defined purpose and a well-targeted audience. It must have an edge over its rivals; that is why you should know your competition. It must fully satisfy precise needs of end users. It is necessary to form a minimum viable product to fix the requirements more or less precisely, and to get the preliminary estimate for development. Your software development team must be able to assist you with expert advice. The rest might depend on your promotion strategy.



Risk issue #5: you spend more resources than needed/expected


Here everything depends on your approach and the resources you have. If you are sure not to exceed some precise amount, that's one approach. Possibly, a fixed price for your MVP can be suggested. If you are product-oriented and ready to invest additional resources in case of need, that's a completely different approach. Keep in continuous touch with your software development team, maintain control over the process, and be demanding not only to the team, but as well to yourself.



IT outsourcing doesn't bear considerably more risk issues than any other business. Risk management is an essential part of any software development project, and your team must make it completely transparent.

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