Key drivers that influence a CEO’s Software Outsourcing

1. Key drivers that influence a CEO’s Software Outsourcing Decision Mindfire is a software service provider, with unrelenting focus on small-team offshore software development using Agile methods.

2. In a dynamic environment, new-age digital technologies are challenging the status quo in every sector. How companies react to the changes in the digital landscape could determine whether they remain relevant in the marketplace. Today, the question every CEO has to delve into is “Will I disrupt, or be disrupted?” Outsourcing has come a long way, it’s not about cost-cutting anymore, it’s about staying ahead of the curve and being competitive in the market. The digital transformation has accelerated the growth of the outsourcing industry primarily for the following reasons: - · In a competitive market, where the product life cycle is very short, the only way to stay relevant and competitive is to outsource product development and services to an Outsourced Product Development provider. · Now a day, it’s more convenient to find an outsourcing partner than hire a team. · The new-age communication tools make it easier for corporates to communicate with an outsourcing partner, enabling the latter to under the requirements of the former much better.

3. · Technical Expertise that the outsourcing partner offers enables corporates to tap into a larger talent pool and helps them keep up with the technical innovations. · Having an outsourcing partner enables corporates to work with experts who are open to change and are receptive to new ideas, which might prove a bit difficult with an existing set of employees who are used to a set pattern. In today’s corporate landscape a CEO must be able to think on his feet and be decisive to stay upfront. With the investments in Information Technology growing in number, breadth, and scope, the challenge before the CEO is to focus on tangible results to enhance shareholder value. Some of the key aspects that a CEO needs to consider while deciding on the Software Outsourcing Partner are:

4. · What will be the ROI? · Will the solutions equip me to differentiate in the market? · Will my product reach the market on time? · Can the software partner be trusted to deliver? We take a look at each factor individually to understand the decision-making process. ROI:— Any outsourcing project is initiated with a particular set of objectives and must be viewed as an end-to-end process and give the attention it needs. · A cost-benefit analysis must be done to determine the expected ROI. · Keep a tab on the costs, identify areas where additional expenses may be incurred, then either pre-empt or provision for the same. · Factor in inflation and how it will impact the ROI · Determine the value of the benefits gained and include it in while determining the ROI · Quality of service delivered

5. All in all, ROI is not just a financial number but a sum of value delivered, time saved, product innovation or differentiation delivered and a view on any competitive advantage, or IP gained or relinquished. A yearly comprehensive audit on the parameters discussed above will go a long way in realizing whether the objectives were achieved or not.

6. Will the solutions equip me to differentiate in the market? So for a CEO, it’s imperative to analyze the following characteristic of the Outsourcing partner · The kind of expertise and experience the solution provider brings to the table · Specialisation — what kind of expertise and innovations does the outsourcing partner bring to the table? · Target Audience — Does the Tech Partner have an in- depth understanding of the customers; the product will cater to. · Can the outsourcing partner cater to an organization of a certain size? · What’s the level of experience and expertise of the team of the Outsourcing partner?

7. Will my product reach on time? As IT systems are becoming an integral part of the businesses, one common feature is the cost overrun and delay in executing the project, which can easily snowball and have devastating consequences on the Company’s fortunes. To maximize the success rate of the projects and avoid pitfalls, the CEO and the management needs to do the following: - · Prioritise managing strategy and stakeholders over budget and scheduling — Successful IT projects always have been able to establish a clear strategic value of the initiative that goes beyond the technicalities. Good foresight that looks beyond the unit price is essential for the CEO to get into a win-win scenario Vis a Vis the Outsourcing partner.

8. · Mastering technology and project content by securing critical internal and external talent — in an era of specialization, the CEO must focus on harnessing the expertise that his team, as well as the Outsourcing partner, brings to the table. · Team Work — It is imperative that the CEO makes it clear within the organization, that for an IT project to be effective and efficient both the outsourcing partner and the organization need to develop a common vision, shared team processes, and a high-performance culture. · Optimise core project-management practices — By putting in place proven practices along with reliable estimates and plans, the CEO must strive to shorten the delivery life cycle to avoid wastage and rigorous quality checks to ensure the competitive edge is maintained.

9. Can the software partner be trusted to deliver? Even though the Project Scope is prepared diligently, most of the time due to the dynamic nature of the business, it becomes untenable. This leads to cost escalation, delay and can sometimes derail the project. In such a scenario, the CEO needs to ascertain if the Outsourcing Partner has the capability to absorb the impact, can they scale up, do they have the skillset to pick up new technologies, do they have the resources to hire new people and expand the team quickly. Outsourcing is the buzzword across Business sectors today and is here to stay. Smart Business Solutions are redefining the corporate landscape.

10. Thanks You Content Source: Medium Contented by: Mindfire Solutions