Many risks can be reduced even upfront the Custom Software Project starts.



Outsourcing pitfalls can be avoided by negotiating deals between companies. The terms of a Software Development contract should cover situation of Custom Software Project failure and penalties shall be stated to be imposed in order to compensate customer’s losses.

Other problems can be caused different country’s regulations and laws, its political stability and even language barrier. Such territorial risks can be reduced in the process of choice of Software Development vendor when as more information concerning this area and the company itself as possible should be thorough studied.

John Nayman, Alex Development Corp. specialist, “Checking Software Development provider’s process firm, Software Product development approach, quality assurance and testing procedures as well as implementation, acceptance and deployment plans is very useful. In firms with Cmmi or ISO certification the risk of this group are much lower than in firms without certificates. But still, they say ‘Trust but check you must’.

The average estimated cost-saving from offshoring is only 10-15%. Early in the 1st year or two, and may rise up to 30-40% after three years when process becomes well-established".

So risks should be considered from the first steps before venturing in this new sphere.

As a high level guide to avoid outsourcing pitfalls the following portal outsourcing-pitfalls.com could be suggested. Here are presented useful articles on such themes:

Risk Management Basics, BPO Or ITO, Software Testing Basics, Management Of Relationships, Software Project Planning, Choosing Provider, Outsourcing Risks, Offshoring, History Of Outsourcing, EXtremal Testing, When Outsourcing Is Feasible, Agile Approach Review, Offshore Destinations, Outsourcing Models.