The pressure of traditional software outsourcing continues to grow. However, the question is whether the conventional model could survive the rise of cloud development and services in other new significant technologies. Aside from the technologically driven changes, the extent of the financial advantages of outsourcing IT for both suppliers and clients continues to be challenged.
Controlled outsourcing is a mature approach that is perfect for customers lacking a product engineering team, such as start-ups or companies with established products and services and a growing need to support these. Despite the increasing use of good practices to control the internal business, the sourcing field often is still managed in accordance to the willingness of an individual. The lack of a structured repository creates an area of tension between any quality expectations and management professionalism.
Both parties must seek to exercise appropriate dominance levels over certan aspects of the IT outsourcing project, which could be a negative control exercise, like the ability to block the other party from doing something or not doing something. Neither must allow the will of the other to result in a loss of the control over the software outsourcing project, which could be dangerous for the parties. Lack of adequate control could lead to possible exposure to under-resourcing, spiraling costs, inappropriate risk allocation and more.
Full and proper assessment of any issues that stakeholders are facing at the moment is important. The client and the vendor could only gain insight towards which aspects of the process they should each be exercising greater dominance over if main stakeholders have input into the process and detail their specific needs. The organization should consider for instance, whether some issues are too complex to outsource and must be resolved being handed over to a third party vendor.
Unlike other contractual agreements, a software outsourcing should involve a high degree of collaboration and cooperation between the parties. Moreover, the client and the vendor's staff could be working together regularly, perhaps on a daily basis. Exercising more control on an outsourced IT project means that the organization could be involved in the replacement of key personnel since they will be vital to the ongoing success of the sourcing relationship. Nonetheless, the client should be realistic when it comes to the service provider's staff who want to progress their careers or move jobs within the vendor's organization.
Data security and protection issues are paramount at all times. The software sourcing contract must clearly state that both parties would adhere to the provisions of the Data Protection Act in the usual manner. The business should be stated as the data controller and the supplier as the data processor. The business enterprise and the provider should be aware that each contract is different and so one size does not fit all. The parties would require legal, commercial and technical input at each phase. In addition, each of these teams should be careful to avoid working in a way that could lead to a contract being drafted in a manner that it becomes unenforceable and unworkable.
Controlled outsourcing is a mature approach that is perfect for customers lacking a product engineering team, such as start-ups or companies with established products and services and a growing need to support these. Despite the increasing use of good practices to control the internal business, the sourcing field often is still managed in accordance to the willingness of an individual. The lack of a structured repository creates an area of tension between any quality expectations and management professionalism.
Both parties must seek to exercise appropriate dominance levels over certan aspects of the IT outsourcing project, which could be a negative control exercise, like the ability to block the other party from doing something or not doing something. Neither must allow the will of the other to result in a loss of the control over the software outsourcing project, which could be dangerous for the parties. Lack of adequate control could lead to possible exposure to under-resourcing, spiraling costs, inappropriate risk allocation and more.
Full and proper assessment of any issues that stakeholders are facing at the moment is important. The client and the vendor could only gain insight towards which aspects of the process they should each be exercising greater dominance over if main stakeholders have input into the process and detail their specific needs. The organization should consider for instance, whether some issues are too complex to outsource and must be resolved being handed over to a third party vendor.
Unlike other contractual agreements, a software outsourcing should involve a high degree of collaboration and cooperation between the parties. Moreover, the client and the vendor's staff could be working together regularly, perhaps on a daily basis. Exercising more control on an outsourced IT project means that the organization could be involved in the replacement of key personnel since they will be vital to the ongoing success of the sourcing relationship. Nonetheless, the client should be realistic when it comes to the service provider's staff who want to progress their careers or move jobs within the vendor's organization.
Data security and protection issues are paramount at all times. The software sourcing contract must clearly state that both parties would adhere to the provisions of the Data Protection Act in the usual manner. The business should be stated as the data controller and the supplier as the data processor. The business enterprise and the provider should be aware that each contract is different and so one size does not fit all. The parties would require legal, commercial and technical input at each phase. In addition, each of these teams should be careful to avoid working in a way that could lead to a contract being drafted in a manner that it becomes unenforceable and unworkable.