by 07 Dec 2014
Top 3 Metrics That Must Be Taken into Account in Development Outsourcing
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Top 3 Metrics That Must Be Taken into Account in Development Outsourcing

The world is a stage where outsourcing does not feel like a novel term but rather, something that companies realize is very important. Development outsourcing has often been referred to as the savior of many companies.

Without exaggerating, we can admit that when companies outsource certain parts of services, they have witnessed their management strategy become more effective. While this is usually the case, companies must always look towards both empirical and statistical data that point towards certain metrics which are considered all too important.

These metrics help in ensuring that the received development services are adequate or even exceed the expectations of the outsourcer. In this article, let us take a look at the three basic metrics, which are very important for developing key performance indicators. These include people, processes and technology.

1. People
In any given company, either a vendor or a client, it is the people that mater. When the employees or the staff is efficient, it helps to increase success of outsourcing. A number of empirical studies suggest that vendors who have a very competent workforce help to bring in results that mediocre staff cannot. Likewise, clients who have efficient employees themselves will ensure that their outsourcing projects will not go waste.

Whether an outsourcer or a vendor, the key is to focus on people involved in outsourcing projects. Moreover, outsourcing projects involve cultural differences and novel methods of management. Staff which is flexible and creative in its approach will bring success to not only specific outsourcing projects but also to both the companies involved. Thus, people are the most important metric in predicting success.

2. Processes
The success of an outsourcing process may depend on the process itself. This may sound like a rather strange situation but the crux of the matter is that processes hold the key to their own success. When a development process is outsourced, it should be a workable project that has specific and consistent goals. When the process is vague or ambiguous, its success cannot be predicted. If we are to use processes as key metrics, it is important to ensure their lack of ambiguity.

For example, a software development process must be clear about its objectives. It should focus on specificities and process managers must give clear instructions to vendors. This may alone heighten the chances of a process’ success and the eventual higher ROI for the client company. When we look at processes an important metric to predict the success of development outsourcing, we are already halfway towards attaining success.

3. Technology
Last but not the least, the technology involved from either side can prove to be a crucial metric. Whatever the process may entail, the client needs to know which technology suits them the best and what they should be looking at. At the same time, vendors must ensure that they have access to the best technology, if they must be able to provide the best of services.

On the other hand, outdated or outmoded technology can spell doom to not only the vendor or the client, but to the very process itself. Thus, companies and vendors must both go the extra mile to ensure that the technology is in place, before making contractual agreements.

Final thoughts

Development outsourcing depends on a number of factors. People, processes and technology are the most important metrics that can help one to achieve success. When outsourcing is meant to help us increase ROI, we must focus on metrics that have empirically been shown to fetch results. On that note, the more we invest in people, technology and focus on arriving at good processes, the greater our chances at increasing ROI shall be.

Furthermore, training staff and investing in the right technology will help in increasing productivity and the success of outsourcing processes. The right staff can manage processes and help you to achieve the success you deserve. Though technology changes at a great pace, hiring the right people can help you to offset difficulties that you may encounter. Focus on what is important and choose the right people, right technology and the right processes for continued growth and success.

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