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    Eliminate Risk
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    Results that Save Your Money

How Do You Know That Software Outsourcing Is Right for You?

Executive support. If you have neither executive support nor the support from your team, it would not be a good time to outsource now. Everybody in the organization must agree that the outsourcing is beneficial for the organization. Support, commitment and understanding from the team are required. Employee morale is important.

Management and processes. Make sure you have proper management resources and processes in place. Are they ready for outsourcing? It might take you some time to make these work in the outsourcing environment. In case you do not have processes in place outsourcing will only magnify the problems, and bring you more headaches. Define clear processes, define communication channels between you and the vendor on all levels and between departments, define roles and responsibilities, before outsourcing these processes.

Time lag. It takes time to make outsourcing work, so if you need to cut costs now, outsourcing will not help you. It might take several months to effect some cost savings. You need to invest first (especially into the resources in your organization). It will take some time to deliver the results. Make sure your vendor is ready to move quickly, to make this period as short as possible. If the processes and communication are in place everything goes smoothly and the tangible results are delivered faster.

Risks. You must be prepared to take some small, calculated risks. Check if you or your organization can tolerate or accept some level of risk (especially if this is a completely new venture for you).

But also look for risk elimination strategies. Make sure you have a guarantee in place: ask for references, use small pilot projects to test the vendor.

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