8. 8
Prototype/MVP
P100K (3 months)
Phase 1
P400K (6 months)
Phase 2– Full product
P700K (1 year)
1. If you can, do a small-scale version of your product first. Avoid committing
to a larger, longerprojectunless…
9. 9
2. Make sure you have good exit strategies.
• Processes
• Contract
• Working relations
Ask them to save project files in your repository
Create your own Github account. Have them commit code there regularly as they progress through the project. Make backups regularly
If you and your provider agree to using a project collaboration tool, insist that you use your own account
8. Negotiate ownership of work up front
For any type of outsourced project, make sure that you are clear about who owns the resulting work product and any important components of that product.
Make sure the service provider understands how you intend to use the deliverables that they are agreeing to provide. For example, the development of a custom software application for your personal use would be substantially different from the development an application that you intend to package and re-sell.
An offshore software development company should be treated like a business partner. They should know what you are looking to accomplish with the software project. A clear understanding of your business goals will help them to prioritise and plan things accordingly. An offshore development partner should take complete ownership and responsibility of the deliverables. When the responsibilities are well defined, then it creates a stronger value proposition for both parties.
“This does not entail endless training sessions and lengthy document exchange [but] sharing the important elements of your business, your customers, your business processes, your people,” says Fountain. “The more of these elements you can share effectively, the more likely your outsourcer will be aligned [with your business goals and be able to] create real value.”
7. Tie payment to clearly defined project milestones
Just as you should be clear about project scope, make sure that you define a work plan for your outsourced project with clearly defined milestones. Having scheduled checkpoints where you review the status of the project as it works toward completion—is an easy way to ensure that you meet your final deadline and that the final product meets your standards. Tie the vendor’s payment to these milestones.
A good guideline for IT and software development projects is to pay no more than 20% to 30% of the total project price up front, with the rest of the payments awarded based on the completion of 3 or 4 milestones.
A good offshore team will always bring true value. They will not only dig deep, research and execute the planned deliverables, but also come up with alternate ideas on how things can be done. It is like working with an extended team. When you’re open to feedback and inputs from the offshore team, it can enhance the quality of your product/service drastically. Look for signs of creativity in the past projects and their communication.