Outsource Product Development – So, do these guys do exactly as what is needed?

With the idea of building a new software product, comes a number of questions on building it the right way. One of the major questions that pop up in the minds of a core product development team is about Outsourced Product Development. What is expected out of these outsourced product development companies and how to select the best outsourced product development vendor? Come, let’s have a closer look at this phenomenon.

While we decide to outsource the software product development to an OPD company, we need to keep in mind the key considerations related to market demands such as,

• Time to Market
• Scalability and
• Of course, minimal cost

Achieving the above objectives through outsourced product development requires a keen understanding of the demographics that these OPD companies belong to. Among the universal set of countries that provide Software Development Outsourcing services, India rules the roost with the highest number of OPD vendors. India is flooded with diverse settings of OPD vendors that just could provide anything and everything in software business.

So now it’s time to drill down to the choice of the right city and vendors. Of course, there are many cities competing to be the best in providing OPD services but just few could accomplish that and the best amongst them is Chennai.  Chennai City is renowned as the largest city, housing a large number of outsourced software development providers with multiple clients across the world.

Making the right choice in vendor selection depends upon the business needs of any organization. Let’s dig into detail on the main factors that could be challenging in this Outsourcing business.

1. Plenty of companies, but are they really experienced enough?
2. Employee retention and job attrition rate
3. Domain and Technical expertise
4. Communication
5. Project Management

An ideal OPD vendor would

• Have 15+ years of experience in the outsourcing industry.
• Have a low job attrition rate and high rate of employee retention.
• Have sufficient experience in business providers’ domain and technical expectations.
• Have defined an effective communication methodology.
• Have an excellent process and project management methodologies.

The above selection criteria are the basis for the time tested and proven strategies in outsourced software development. Companies planning to outsource their software development to OPD vendors should ideally look out for

• Technology House
• Staff Augmentation House or
• An entity which would work at low costs

A heedful consideration of the factors discussed above would help companies looking out for Outsourced Product Development vendors to build the best product that help achieve a company’s long-term goals.