OutsourcingRisk Management

6 Steps to Avoid Software Engineering Outsourcing Risks Effectively

Software engineering outsourcing is commonplace now but still poses a lot of risks if not handled carefully. Companies outsource to reduce operational costs and improve quality by leveraging external skills. To continue maximizing the benefits, follow the 6 steps by Daniel Alcanja in this Hackernoon article to avoid outsourcing risks.

Software Engineering Outsourcing Risks to Be Aware of

Though it is a norm now to outsource work, the collaboration between companies does not work all the time. Not following best practices can result in cost overrun. Following are the 6 steps to avoid software engineering outsourcing risks effectively:

Setting Vague or Idealistic Expectations: Outsourcing risks increase when you have not created clear expectations from the arrangement. It is worse when your expectations are not fact-based or realistic. Go over every estimate with your team. Discussing in person or video conferencing helps project managers track progress more effectively. They also can communicate more clearly with the outsourced software engineers.

Bad Communication: Bad communication is by far the most worrisome challenge any outsourcing team could face. Inadequate details and delayed delivery of client requirements lead to outsourcing risks. The engineers need comprehensive details and the right contact person to solve their issues. For successful deliverables, you must constantly be in touch with them.

Unforeseen Costs: When you go for the cheapest rate, several outsourcing risks crop up. You do not have access to the source code, nobody maintains the documentation process, etc. This results in bad product quality. To make things correct, you might end up paying another consultant. So, distribute your budget to get work done with efficiency.

Poor Technical Skills: Without checking past work samples, hiring someone is irrational. So, before you draw up a contract, ask for previous work references and examples. Check if the skill and experience level of the team or individual is appropriate for your work requirements.

Inefficient Project Leadership: One of the major outsourcing risks is inefficient project leadership. Project managers are supposed to be clear about their expectations and feedback. They should know how to clear doubts and communicate client requirements.

A Threat to Intellectual Assets: Merely signing an NDA or confidentiality agreement cannot assure the safety of your intellectual assets. You should also constantly update your security framework and protocols to prevent accidental or intentional data leaks.

To view the original article in full, visit the following link: https://hackernoon.com/6-software-engineering-outsourcing-risks-and-how-to-avoid-them-8q2g30fw

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