Outsourcing application software development

Due to the complexity of technology, the range of options and the number of service providers available, companies are, more than ever, focusing on core competencies and looking at outsourcing non-core functions.

But as the scope, speed and scale of outsourcing increases, companies should ensure they adopt the right outsourcing partner to reduce risk and ensure projects deliver the anticipated return on investment.

One area that is increasingly outsourced is application software development. The reasons for this vary, but most companies agree that the difficulty and risk involved in focusing on this 'non-core' business function is high, and that managing it incorrectly could be detrimental.

As far as outsourcing is concerned, choosing the wrong partner could end up being even more costly. But choosing the right partner - one with a proven track record - can realise a number of key benefits, including improved delivery, reduced project risk and more efficient business processes.

But there are some key things to consider in choosing a partner:

Staff turnover is a serious problem, and with it comes the risk of losing priceless knowledge and skills. The right outsource partner will not only enable you to leverage outside expertise, but will also help recharge your employees' skills to adapt to changes in the technology climate, enabling you to create and retain the correct skills needed within your organisation.

This yields two benefits - you will ultimately have the capabilities to do the work in-house and retain the domain knowledge that is key, and your team will at any given time be kept abreast of leading technology as required by your organisation.

Software development is complex, ever-changing and risky. It is thus essential to look for a partner with tried and tested methodologies, one that provides a comprehensive solution, proven international best practices and professional services.

Your partner should also be able - and willing - to manage the risk associated with the project to ultimately deliver real value.

By granting one partner the exclusive right to your business ensures that this partner understands your business really well. But having this knowledge means nothing if resources are poorly managed.

It is crucial that your outsourcing partner stays up to date with technology and development issues, or you run the risk of having projects run over time and over budget... you even risk non-development.

At the end of the day, outsourcing offers benefits to an organisation in terms of cost, service levels, resources and access to talent. That is, if you make the right choice upfront.