Outsourcing Checklist

A Checklist for Those Looking for an Offshore Outsourcing Development Company

With companies often looking for cheaper and more effective ways of working and handing non-core functions to specialists, software outsourcing is now a permanent feature for every business.

But before you select any third party to run parts of your business tasks, it is worth pausing and considering some of the risk areas. Some outsourcing companies fail dramatically and even fail to deliver the benefits that are expected.

Though there is no magic bullet that can help to achieve dramatic saving and high quality solutions, a structured approach and some detailed research and experience often go a long way. This blog is intended to help you do just that. 

Though this is not an exhaustive guide to every aspect of outsourcing, but it can help to deal and understand some of the key issues.


Checklist for a Successful Offshore Outsourcing


Determining the Scope of Outsourcing:

This is the phase of the outsourcing lifecycle, the stage where the initial determination as to whether a software outsourcing company should be hired as an option or not. For this, an initial understanding of the size and the type of work that you need to outsource should be developed.

In this Assess phase, it is critical to establish the senior stakeholder expectations, both for the project as a whole and for the amount of time required to secure it. By the end of this phase, you will have a clear view of the benefits, costs and also the risks involved with potential outsourcing deals.


Identifying Suitable Partners:

This section can be described as the Prepare phase of the outsourcing lifecycle and focuses on choosing the right vendor to participate in the process and also create the Request for Proposal document.

The initial vendor selection is done through proper examination of the market and the preparation of all the essential documents of the remaining phases.

Starting with the initial long list of vendors, numerous other criteria are applied to narrow down to a short list.  This is actually based on the ability of the vendor to meet the client’s requirement and highlight the key success factors and deal breakers.


Selecting the Right Vendor:

This phase is called theEvaluate phase, which focuses on managing the question and answer process with the software outsourcing company while they prepare their responses. The overall aim of this phase is to identify the vendors and make the final selection that represent the best value for the services that are being outsourced, so that they can be considered for contract negotiations. 


Also Read: Risks Factors of Software Outsourcing and How to Mitigate Them


The approach that is adopted basically depends on the scope, complexity and value of the service that is being procured. It is here that the number of resources required, will be decided. The focus here should be on the objective decision, which will help in selecting the final vendor.


Negotiate the Contract:

This is the Commit phase of the software outsourcing lifecycle, that focuses on achieving the best value out of the deal and negotiations. This phase includes the final pre contract stages of both the external and internal activities, and this is considered to be the most resource intensive and commercially significant phase of the entire outsourcing lifecycle.


Managing the New Contract:

This section is the Optimize phase of the software outsourcing that focuses on the steady state operation of the outsourcing arrangement. Within this phase, clients need to focus on managing the vendor relationship, monitor all the contractual obligations and track the vendor charges and etc.


Also Read: IT Outsourcing Trends in 2019 That Business Owners Should Invest In



  • I do agree with all of the ideas you have presented in your post. They’re very convincing and will definitely work. Still, the posts are very short for starters. Could you please extend them a little from next time? Thanks for the post.

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