Product Development Outsourcing - Making the choice and making it work June 28, 2007

Outsourcing has become a necessity today for ISVs today and is no more a matter of choice as the advantages far outweigh the drawbacks of it. Most ISVs are realizing that outsourcing is not just a matter of cutting costs and optimizing efficiency, it is about growth and productivity through the harnessing of talents. Considering that you feel that outsourcing is the way to go, it still becomes imperative that you need to assess your outsourcing initiatives by seeking answers for these questions.

Do you have the right reasons to outsource?

Do you have internal buy-in from your management towards outsourcing?

Are you willing to invest time, effort and money for outsourcing?

Have you identified the roadmap towards outsourcing?

Have you chosen the right model to outsource?

How are you planning to handle the internal insecurities of outsourcing?

Do you have plans in place to evaluate an outsourcing vendor?

Are you with the right vendor?

What are the best practices to follow?

What are the Pros and Cons of captive center outsourcing?

What is it that you have to be careful about while outsourcing?

Getting answers to these questions would allow you to decide whether you are ready for an outsourcing engagement. After all, outsourcing is all about business transformation.

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