REDUCING RISK WITH PROPER TECHNOLOGY PARTNERS
Creating custom software that is delivered on time, on budget, and performs as intended is an enormous task. But rather than take on the challenge in-house, many companies today rely on software outsourcing to meet demand. Unsurprisingly, however, outsourcing comes with its own hurdles, and choosing the wrong development partner can prove costly. For this article, we will discuss several ways to reduce your risk.
As the client, you should begin the evaluation phase by learning as much as possible about each potential partner. Rather than ask how they can help you, your time is better spent uncovering basic information about each company. We suggest you start by asking the following questions:
HOW LONG HAS THE COMPANY BEEN IN BUSINESS?
The length of time a company has been in business can help gauge the quality of its service. Software shops that have been open for a decade or longer most likely got there by continuously producing excellent code. Typically speaking, a company with a toxic culture, bad management, and lackluster service finds itself bankrupt within a few years of its founding. So while not the be-all and end-all, longevity tends to suggest good management, culture, and service.
HOW HAS THE COMPANY GROWN OVER THE PAST DECADE?
Steady growth is difficult in any industry, let alone one dealing with a talent crisis. Seek out companies that have demonstrated an ability to thrive despite the industry's talent shortage. A provider that has been able to evolve and adapt over the past decade will likely continue to do so going forward.
WHAT DOES THE NEXT 5 - 10 YEARS LOOK LIKE?
Companies with a clear, narrow vision of the future are preferred. It's not uncommon for a development company to lose focus, using its resources to launch its own products instead of developing custom software for clients. Having a clear understanding of a company’s future aspirations can help you avoid those with "wide-eyes."
HOW MANY CLIENTS HAVE YOU SERVED OVER THE PAST 5 YEARS?
This question helps to weed out companies that are overly reliant on a small group of clients. On the surface, such partners seem preferable; however, a small client base could mean greater financial volatility. If just one or two clients leave, the company's income could take a severe hit, impacting all facets of the business.
HOW MANY INDUSTRIES HAVE YOU SERVED OVER THE PAST 5 YEARS?
Clients should seek out companies that serve a wide variety of industries. Firstly, diversification limits financial risk, should any particular industry take a dive. Secondly, solving a challenge in one industry can lead to innovation in another. For example, Auto-Tune - a hugely popular pitch correction software used in the music industry - was initially developed by Exxon for oil exploration.
If your organization has decided it's time to outsource its software development responsibilities, consider Techtonic. Based in Boulder, Colorado, we are an onshore vendor specializing in commercial-grade software development, QA, testing, product management, and talent generation.
In 17+ years of business, we have established a reputation for helping clients tackle challenging software projects. Whether you're operating a multinational enterprise or bootstrapping a startup, strategically offloading development can prove immensely lucrative.
AUTHOR - Nate Aswege
If you're interested in learning more about Techtonic please CONTACT US today! Techtonic is the premier partner for developing onshore, commercial-grade software. We've also developed a unique method to simultaneously close the talent gap that exists within technology, by tapping into a new and highly diverse workforce. Our model is pioneering the way clients develop and hire top talent, and we'd love to work with you!