In an ideal world, no enterprise would want to outsource any business function, much less their own software product development. Today, however, enterprises are no longer living in a ‘know-it-all, do-it-all’ cocoon. They are expanding their horizons and looking beyond the periphery of their own organizations to forge strategic partnerships when it comes to product development.
The emergence of what Forrester calls the Product Development Services 2.0 space is happening for a number of reasons. The confluence of cost-cutting concerns triggered by an uncertain economic climate, the emergence of complex and dynamic technologies, the need to disrupt markets, the relentless pursuit of innovation, and the need to increase speed to market to gain competitive advantages are just some of the primary drivers that necessitate the need for outsourced product development.
A word of caution, though, to anyone looking to outsource their product development for the first time, or to find a new partner: Not Every Outsourcing Story is a Success! Product development outsourcing disasters like the recent ObamaWare debacle can be a PR disaster for your business or your brand. To avoid finding yourself in a similar outsourcing disaster, below are some important tips that any organization should take into consideration before outsourcing their product development to a third party:
Once you have zeroed in on an outsourced product development partner and brought them on board, set up an internal team that becomes the primary point of contact and the de facto assessment unit to evaluate the performance of your product development partner on a quarterly, if not monthly, basis. Keep in mind that in this day and age, partnership breeds success! If you stick to these steps in hiring an outsourced product development partner, you will set yourself on the road to success right from the start.