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A Recipe For Outsourcing Your Software Development

Admin — Fri, 10 Apr 2009 19:25:51 +0000

By Steve Mezak

Outsourcing your software development can save you time and money if you know what you need. Too often US companies attempt to outsource without a good understanding of what their software should do, and this is the biggest cause of outsourcing failure. It is unreasonable to expect your outsourcing team to have a menu of software, pre-prepared, so you can just select the items you want.

Ever go to a restaurant with a picky eater? They tell the waiter in excruciating detail how they want their food prepared. And heaven forbid that the food arrives different from what was requested! Back to the kitchen it goes to be “fixed” to make the picky eater happy.

Sometimes US companies hire an outsourced partner as if they were going to a restaurant. They select the cuisine based on the flavor of the technology they require. Chinese .NET or Indian Java? How about some Russian C++? Unfortunately there is rarely a menu for the exact items you might like to order from an outsourced team.

Are you approaching outsourcing your software like you are walking into a restaurant? Are you expecting the outsourcing team to advise you, like an attentive waiter, on the way your software should look, be prepared and presented to your customers?

Instead, bring your own recipe when you start work with an outsourcing team. Unlike your dining experiences, you cannot ask for the daily special. You have to provide a specific description of what you would like to have, and how it should be prepared. Without such a recipe, your outsourced software development efforts can be starved for success.

Poorly specified software is often the result when “subject matter experts” are involved. Subject matter experts, or SMEs, know a lot about a particular subject, like IC design, business process workflow, inventory management, etc., but very little about designing software. SMEs can struggle to get their ideas encoded in the software. They need to work with someone that knows the best way to design and develop software.

Sometimes, there is a fear of getting bogged down in the details. Since some software executives are great with people, they feel much more comfortable hiring a person to handle the details. They know how to manage a person here, better than they can manage an offshore team of programmers in a remote offshore location.

One Accelerance client is in this situation. The CEO wants to outsource the development of a new software product. But there is no specification. In this case Accelerance is acting as a virtual CTO, responsible for the design, and development of the client’s software.

The client is essentially saying, “Design the software for me, and I’ll tell you if it matches what I am thinking.” This can work because the cost of outsourcing is so low that rework and multiple design iterations are affordable.

This type of arrangement only works when paying on a Time and Materials basis. There is no way to offer fixed pricing because the end product is not defined.

Of course, not having a specification may not stop you from asking for a fixed price bid! In this case, you can outsource the creation of a specification that defines your software for a fixed price. Then the resulting complete design specification is used to create a second fixed price bid for writing your software.

Another factor comes into play when you pay a fixed price amount for a software design specification. You usually have to pay at least half up front. This is to protect the outsourcing company from delivering a specification for creating the software and then not getting paid.

Because software design often occurs at the beginning of a relationship, both parties seek to minimize their risk. You minimize your risk by selecting an outsourcing team with a proven track record and great references. The outsourcing team reduces their risk by getting partial (sometimes full) payment before starting.

There are multiple deliverables that should be produced during the design phase of creating your software, whether you do it yourself, or outsource the design:

Marketing Requirements
Storyboard Demo
Functional Specification
Multiple Release Milestone Schedule
Detailed Task Schedule for First Release
Detailed Design Specification (optional)

Unfortunately, software development has not progressed to the point where ready-made modules are available to order and combined to create your software. There is not yet a menu of choices available to anyone that is hungry for new software. Instead, you must provide your own recipe for what you need. The good news is low cost outsourced software design and development resources are now available to create your custom software to meet your exact specifications.

About the Author: Steve Mezak is a successful Silicon Valley entrepreneur and international outsourcing expert. Get your copy of his free report now on “The Seven Deadly Dangers of Outsourcing Your Software Development” by visiting http://www.Accelerance.com

Source: www.isnare.com

Five Steps To Create Your Software Product With Outsourcing

Admin — Fri, 10 Apr 2009 19:13:02 +0000

By Steve Mezak

Many executives and investors are skeptical that software products can be developed using outsourcing. Even more skepticism is expressed at the idea of outsourcing version 1.0 of a product. Yet Accelerance clients are using outsourcing to create their products right now. What is the secret to using outsourcing to successfully develop a software product?

Many people believe outsourcing is useless when you are in the Fuzzy Front End – that fuzzy zone between when a market opportunity is known and when serious software development can begin. They think you need to slog through the Fuzzy Front End by coding a prototype of your product. If so, you need the development team here, not several oceans away.

Another false assumption is that you need to write a comprehensive specification for your software during the Fuzzy Front End. Many companies use a very formal product definition process, optimized to remove as much “fuzz” as possible. How long should it take to design a software product before development can begin?

Obviously time is of the essence when developing a new product, but before the development process can begin you must have some idea of what your software will do. It is best to find this out from your prospective customers. But how can you involve your customers early and often in a collaborative process, when both of you are not sure of what they need or want? And what does that have to do with outsourcing?

According to Steve Blank, founder of several software startups and now lecturer at the Haas School of Business at Berkeley, you don’t need a product development process. You need a customer development process. You need a process to discover what ornery problem your potential customers have that will cause them to part with their hard-earned money to solve that problem by buying your software.

The first step of Blank’s customer development process is Customer Discovery. Here are his steps of customer discovery:

Create a product (or product demo)
Meet with customers and answer these four questions of customer discovery:

Have you identified a problem customers want to solve?
Does your product solve these customer needs?
If so, do you have a viable and profitable business model?
Have you learned enough to go out and sell?

Change your product to reflect what you learn
Iterate until all questions can be answered positively

Is there a way to shorten these iteration cycles? The Accelerance answer is, don’t code up your product or prototype at the start. Use an HTML editor to create screen mock-ups. Then link them together to tell the “user stories” of your software product. They show the major use cases of your product. Demonstrating the use cases this way is like putting your product requirements in motion. It simulates how the real product will be used.

HTML is easy to edit and requires no programming. You can make quick iterations before committing your product ideas to code.

Here is the five-step Accelerance formula you can follow to successfully design your product:

Describe your product idea and its benefits.
Create a demo of the major use cases showing the biggest benefits of your software.
Perform the Customer Discovery steps described above, iterating until you & customers are satisfied.
Write an MRD using screen shots from your demo as illustrations.
Develop and test your software.

In modern business, you should focus on your core competency and outsource the rest. In the Accelerance five-step process, the first 4 steps of defining your product idea, completing the customer discovery process and documenting the requirements must be part of your core competency. The last step is not.

Anybody can develop software. But only you can figure out what your customers will buy. And that makes your software development a non-core process. Use this five step formula to take advantage of low cost outsourcing as an effective way to get your product developed quickly.

Source: www.isnare.com