How To Successfully Outsource Software Development (Without Compromising Quality)

Assume your company decides to outsource its software development. Now you’re wondering: Will outsourcing affect the quality? Simply put, the quality of your software depends on the provider you hire. When you choose the right provider, it shows.

In my 30-plus years of IT experience, I’ve seen many companies make the wrong software outsourcing choice. And I’ve watched this cost their software and companies dearly, including time, money, delays, glitches, security issues and other problems. As an example, almost three-quarters of mobile apps ship with as many as 10 bugs, according to the 2015 Mobile Development Survey of more than 500 software developers from Evans Data Corporation. Some estimates go as high as 50 bugs, calling into question some developers effectiveness in testing and quality assurance (QA). So making the right software outsourcing choice is vital.

I’ve found that when you work with a great developer, they not only adhere to standards to ensure quality, they focus on your overall objectives and intended results. Meaning the right team is more thoughtful in its approach versus quickly slapping code together. My recommendation: Never make a decision based on a quick Google search. And don’t simply choose the least expensive developer.

Quality From Experience, QA And Testing

If you decide to outsource, everyone must share the goal of creating high-quality software to grow your company. Ideally, the right vendor or developer will bring vast experience from working on software across different industries. As a recent post from Salesforce says, “Outsource partners can leverage their collective experience to help overcome otherwise difficult challenges. Because they often work with many companies on a variety of projects, outsource partners can quickly interject critical skills and expertise to any product or software development.”

Indeed, outsourced teams use their collective knowledge to solve problems and innovate. In fact, many software outsourcing companies hold regular meetings, where team members share information on what they’re working on – their development successes, challenges and creative solutions. They share these insights and cross-pollinate information that can benefit the quality of each developer’s work. One provider may have 50 to 60 different developers in a meeting, which means you inevitably get all of that experience applied to your software.

Tip: When you interview potential providers — whether that’s an individual developer or an outsourced team — ask them about their portfolio of work and their successes across different markets. Ask for references that can substantiate that work. Ask how they apply those experiences to creating software.

Also, when you’re evaluating your shortlist of outsourcing partners, make sure you evaluate their potential for success – in-person, if possible. Meet with the potential teams or individuals to better understand their strengths. Learn about their processes. Are they Agile? Are they focused on DevOps? Are they aware of the latest technologies and standards? Is security a priority? What procedures do they have in place to ensure business continuity? Are there safeguards, if a situation arises, to keep your software development on track? When you gain this insight, you’ll be better prepared to select the right partner that’s focused on quality and the success of your software.

In addition, ask potential partners about QA and testing. Will they use a variety of tests to confirm quality? Ensure they’re proficient in this area by discussing it early on. Common tests to ask about include: regression testing, static testing, dynamic testing, white- and black-box testing and visual testing. The key is to ensure your provider makes QA/testing a priority.

Source: Forbes- How To Successfully Outsource Software Development (Without Compromising Quality)

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Cost Saving Opportunities for the Global Network Management Services Market

According to the latest procurement intelligence report from Technavio, the global network management services market is expected to grow at a CAGR of 9.4% over the next five years, primarily driven by demand from large organizations to improve network performance.

The global network management services market is expected to grow at a CAGR of 9.4% from 2017-2021.

The research report titled ‘Global Network Management Services Market: Procurement Intelligence Report 2017-2021’ provides an in-depth analysis of category spend, best procurement practices and cost saving opportunities, aimed at helping organizations achieve superior business performance. The report also provides insights on pricing, supplier positioning and top companies, enabling sourcing professionals to improve their competitive advantage through procurement excellence.

“During the forecast period, the network management services market is driven by the increase in demand from expanding organizations to improve network performance and support mission-critical applications,” says lead Technavio procurement specialist Angad Singh for category spend intelligence. “In addition, growth in the need for secure networks and server traffic management from various sectors such as telecom, IT, healthcare, and BFSI, will also drive the market,” adds Angad.

Cost saving opportunities in the network management services market

The adoption of various cost-optimization levers helps buyers of network management services to realize direct cost savings and enhance category management and value benefits (including a reduced procurement complexities).

Technavio procurement experts have segmented the cost saving opportunities in the network management services market into the following value-enhancement opportunities:

  • Adoption of technology
  • Supplier Competition
  • Adoption of negotiation strategies
  • Optimization of procurement practices
  • Bundling of services

Adoption of technology saving aspects

Technologies such as network performance monitoring tool, network configuration manager tool, IP address manager tool, user device tracker help to collect performance data, track and secure the networks. The adoption of these technologies can minimize costs to the extent of 7%.

Buyers prefer suppliers that adopt a proactive approach to prevent network non-availability issues before application performance problems arise. They want suppliers to use sophisticated network management systems that provide the end-to-end visibility required for RCAs, fault isolation, and performance restoration across networks.

Adoption of negotiation strategies saving aspects

Network management includes continuous configuration changes, add-ons, and upgrades to be performed on networks across network sites of organizations. Buyers prefer suppliers that provide frameworks for consistent network implementation across business locations and aid in continuity of business operations. They expect suppliers to provide dedicated and specialized services with more predictable and economical cost structures by taking advantage of their economies of scale.

Bundling of services saving aspects

One of the most opportunistic strategic cost saving levers in the global network management services market is the need for bundling of network management services with storage and application management services.

Buyers want suppliers to provide a standardized network management process and implement best practices across business locations. This helps buyers maintain consistency in network management services across organizations. Suppliers must constantly invest in new technologies to better align networking capabilities with new business requirements.

Source:  businesswire.com-Cost Saving Opportunities for the Global Network Management Services Marke

Why Lloyds Bank is ‘outsourcing’ IT services to IBM

Dive Brief:

  • U.K.-based Lloyds Banking Group plans to move almost 2,000 staff members to IBM as part of a £1.3 ($1.59) billion, seven year IT outsourcing deal, the Lloyds Trade Union announced this week.
  • Staff will be outsourced to IBM, and then over a four-year period the work will be “offshored,” The Stack reports. Though 1,961 staff members — including permanent staff, third parties and contractors — will transfer to IBM, after four years, just 193 staff members will remain working on the Lloyds contract.
  • Through the deal, Lloyds is looking to save £760 ($938) million in costs, make IT more agile and streamline the business, according to The Stack.

Dive Insight:

Earlier this year Lloyds suffered a distributed denial of service (DDoS) attack that caused the bank to shut down for two days. Though the bank said no accounts were compromised, it was certainly a wake-up call. Cyberattacks are a huge risk to the finance industry, and concerns have been growing significantly in the wake of attacks and near-misses.

The deal will start by outsourcing staff to IBM, in what is basically an “as a Service” model. Outsourcing IT labor no longer means companies are simply going to bring in foreign labor to do technology work at a cheaper rater.

Rather the outsourcing model is being turned on its head as companies rely on as a Service models, creating an entire spectrum of outsourcing. On one end, it’s labor arbitrage. On the other end, it’s a software or infrastructure-driven model that is far more sustainable and profitable. In this case, relying on IBM’s networks with its vast pool of resources can also increase security and systems reliability.

The Deal

Lloyds Banking Group is to offshore nearly 2,000 IT jobs as part of its shift to IBM, according to the Lloyds Trade Union.

In a recent presentation, Morteza Mahjour, the group’s Chief Information Officer, confirmed that Lloyds will outsource large parts of its IT estate to IBM in a deal worth £1.3bn over seven years, the union said in a newsletter.

Staff will be outsourced to IBM, and then over a four-year period the work will be offshored, the union told members in an update yesterday.

As exclusively revealed by The Register earlier this year, under the deal IBM would pay for the data centre assets, transfer them to its balance sheet, and then charge Lloyds for the ongoing management.

Project Aurora was due to be announced in January but negotiations with IBM are taking longer than originally thought, said the union.

The Windows, Unix, Linux and IBM I-Series platforms will form the bulk of the estate being outsourced to IBM. That will include 2,000 of the 3,200 applications currently used by Lloyds Banking Group.

The union said it expects the deal to be announced in the next few days.

Earlier this year Lloyds was hit by a cyber attack which led to a two-day outage. The mega-bank said that no accounts had been hacked or compromised.

According to the union, Juan Colombas, LBG’s chief risk officer, confirmed that cyber-attacks were the biggest risk to the finance industry.

The union said: “The question is whether security is better managed by systems that are run by [Lloyds Banking Group] or by a third party whose staff are based offshore?”

A spokeswoman from Lloyds said: “As we have said to our colleagues, we are considering options to extend use of cloud technology in pursuit of the Group’s aim to be the best bank for customers.

Source: ciodive.com- Why Lloyds Bank is ‘outsourcing’ IT services to IBM

Image credit: Thinkstock

Capgemini Recognized as an Advanced Thought Leader in Global Insurance IT Outsourcing

Capgemini, a global leader in consulting, technology and outsourcing services, announced today that for the second consecutive year it has maintained its position as a leader and star performer in Everest Group’s IT Outsourcing in Global Insurance PEAK Matrix™ Assessment. Capgemini achieved this recognition by demonstrating strong insurance business growth through multiple new domain-focused solutions and continued investments in its global network of Applied Innovation Exchanges (AIEs)1.

In the report, Everest Group analyzed the capabilities of 24 Applications Outsourcing (AO) service providers specific to the global insurance sector and selected Capgemini as one of five Star Performers. Star Performer distinction is awarded to service providers that demonstrate the strongest forward movement over time on PEAK Matrix™ characteristics of leaders on the AO services’ matrix including: continued domination in the insurance AO marketplace with differentiation through a large-scale, global delivery model, extensive consulting capabilities, a comprehensive solutions’ portfolio, and being cited by clients as preferred vendors for change management and large-scale transformation projects. Capgemini’s Wellness Active Risk Management2, eUW applications3, Digital Attending Physician Statements (APS)4, and All Channel Experience (ACE)5 proprietary solutions were highlighted as key to its success.

Everest Group cited Capgemini’s acquisition of IGATE as giving it the ability to grow some of its key accounts, which demonstrated strong insurance business growth momentum. Capgemini was also named as an advanced thought leader and early adopter of next-generation technology themes.

The insurance industry is at an inflection point, where technology disruption and new business models are fundamentally reshaping the current landscape,” said Jimit Arora, Partner, Everest Group. “Focused investments in R&D initiatives, domain-focused partnerships, an enhanced delivery presence, and strong growth momentum in its insurance application outsourcing business helped Capgemini secure its positions as a Leader and Star Performer on the 2016 Everest Group Insurance AO PEAK MatrixTM.”

“We are delighted to be named as a Leader and Star Performer in IT Outsourcing in Global Insurance by the Everest Group for second year in a row,” said Jack Dugan, Executive Vice President and Global Head of Insurance for Capgemini’s Financial Services Strategic Business Unit., “This is a strong validation that our investments in domain and innovation are generating significant value for our clients and partners.”

Please find a copy of the report here.

Source: businesswire.com- Capgemini Recognized as an Advanced Thought Leader in Global Insurance IT Outsourcing

What Trump Doesn’t Understand About Outsourcing

The Trump era promises to reverse a multi-decade outsourcing megatrend in a noble quest to bring jobs back to America. The question is, is that really what’s best for the economy, our companies and our workers? I argue that it’s not.

While I do believe that regulatory, tax and trade reform – key tenets of Trumponomics – are needed to unleash economic growth and prosperity, swinging the outsourcing pendulum back the other way will likely have the opposite effect.

If that makes the hair stand up on the back of your neck, you can thank the politicians for all the public confusion on the subject. Let’s break it down.

The management strategy now known as outsourcing was the brainchild of the father of modern management, Peter Drucker. In a pivotal 1989 Wall Street Journal op-ed called “Sell the Mailroom Opens a New Window. ,” Drucker described the many advantages of “unbundling” various “clerical, maintenance and support” functions.

The concept of “doing what you do best and outsourcing the rest” has become so ingrained in business culture that we take it for granted. What Drucker proposed was not some nefarious notion to boost the bottom line, but the only plausible way to improve the nation’s productivity and the upward mobility of its workforce.

As virtual monopolies, internal service functions offer minimal incentive to improve efficiency and even less potential for individual promotion. Someone who cooks or cleans for a company will never end up running the place or even becoming a manager. Outsource the same function to an independent contractor and everything changes.

That same individual can now become a manager, executive or even CEO of a food or cleaning service business that specializes in performing that function for dozens or hundreds of companies. Since they compete in a free market, vendors are incentivized to maximize efficiency to win and keep customers, which improves the bottom line of the customers they serve. That’s the definition of a win-win.

The same concept has since been extended to a broad range of fields, from IT consulting and product design to supply chain management and a host of administrative functions. And contracts with outside firms can be dialed up or down as a buffer to mitigate the impact of cyclical markets. In other words, fewer layoffs.

Not long after Drucker’s revelation, FedEx (FDX) and UPS (UPS) began offering supply chain management and logistics services to corporations. And many, if not most, of FedEx’s drivers are in turn independent contractors who work for agencies or themselves, just as today’s Uber and Lyft drivers do.

The internet is only partly responsible for leveling the playing field and enabling a generation of young entrepreneurs and startups to compete with big corporations. The outsourcing megatrend is the other part. By outsourcing HR, IT and finance functions to any one of dozens of consulting firms, startups can scale faster than ever before.

Startups and small businesses also outsource product fulfillment and cloud capability to Web service companies like Amazon (AMZN). The ecommerce giant in turn grew Opens a New Window. from 230K employees (excluding contractors) in 2015 to 341K last year. And Snapchat parent Snap, which is planning a March IPO, outsources its entire cloud platform to Google (GOOGL).

That’s as good a place as any to stop and take a deep breath. As is often the case in business and in life, you can take a good thing too far.

The Journal reports that Google parent Alphabet has about as many outside contractors Opens a New Window. as full-time employees. And Indian-based consulting giants Tata, Infosys and Wipro, as well as Cognizant and Accenture, have figured out how to game the H1-B visa program and grab a disproportionate number of limited foreign worker grants.

Clearly, we have our work cut out for us. And I do believe that President Trump’s policies will incentivize corporations to do right by American workers. But keep in mind, this is not us against them, good people against evil corporations. As Drucker proved, the right strategies can benefit both, and avoid the usual unforeseen consequences.

Source: foxbusiness.com – What Trump Doesn’t Understand About Outsourcing

Global Healthcare IT Outsourcing Market Analysis

This report provides an analysis of the global healthcare IT outsourcing market for the period 2013 – 2023, wherein the period from 2015 to 2023 comprises the forecast period and 2014 is the base year. Data for 2013 is provided as historical information. The report covers all the major trends and technologies playing a major role in the growth of the healthcare IT outsourcing market over the forecast period. It also highlights various drivers, restraints, and opportunities expected to influence the market growth during the said period. The study provides a holistic perspective of the growth of the healthcare IT outsourcing market throughout the forecast period in terms of revenue estimates (in US$ Bn), across different geographies, which include Asia Pacific (APAC), Latin America (LATAM), North America, Europe, and Middle East & Africa (MEA). The report provides a cross-sectional analysis of the global healthcare IT outsourcing market in terms of market estimates and forecasts for all the segments across different geographic regions.
Obtain the Sample Containing the Upcoming Market Analysis of Healthcare IT Outsourcing at: www.transparencymarketresearch.com/sample/sample.php?flag…

As a result of the increasing IT outsourcing in healthcare industry, the quality of individual care has increased with greater access to latest means of healthcare IT administration technologies. With the ever-growing patient base across the globe and also due to limited human resources for personalized patient care and rising operational costs, IT outsourcing plays an important role in improving the productivity and quality offered by healthcare providers/payers. With the implementation of customized and advanced outsourced IT platforms, healthcare organizations can focus on their core responsibilities without dedicating their resources to manage IT infrastructure. IT outsourcing also encourages a data driven approach with advanced patient data management and analytics. Large amount of data generated in the healthcare industry is well managed by outsourced IT service providers. The growing demand for affordable care and rising government compliance are supporting factors for the growth of the healthcare IT outsourcing market, globally. As a result of enhanced competition among technology vendors, the standards for healthcare administration are increasing. With growing technology partnerships, the healthcare industry as a whole offers ample opportunities for implementation of high-end IT infrastructure, advanced care, and cost effective administration, which would collectively result in a better healthcare ecosystem worldwide.

On the basis of applications, the healthcare IT outsourcing market is categorized into care management, administration, and IT infrastructure management. Healthcare IT outsourcing market by end-use is categorized into healthcare providers and healthcare payers. The report also includes competitive profiling of major players associated with the healthcare IT outsourcing market. Important business strategies adopted by them, their market positioning, and recent developments have also been identified in the research report. The companies profiled in the report include Accenture Plc., IBM Corporation, Cognizant Technology Solutions, L&T Infotech, Tata Consultancy Services, Infosys Limited., Allscripts Healthcare Solutions, Inc., McKesson Corporation, HCL Technologies Ltd., and Wipro Limited. Healthcare IT outsourcing vendors are focusing on increasing their market presence through strategic partnerships and development of low-cost advanced solutions. Analytics and cloud are key focus areas of outsourcing service vendors currently.

Read Current Market Status of Healthcare IT Outsourcing at: www.transparencymarketresearch.com/healthcare-it-outsourc…

Source: satprnews.com – Global Healthcare IT Outsourcing Market Analysis

Global Recruitment Process Outsourcing Market to Grow at a CAGR of 18% Through 2021

Global recruitment process outsourcing market to grow at a CAGR of close to 18% during the period 2017-2021.

The market study covers the present scenario and growth prospects of the global recruitment process outsourcing market for 2017-2021. The report segments the RPO market by services into blended RPO solutions and multi-country recruitment process outsourcing (MCRPO), of which the blended RPO solutions market accounted for over 58% of the market in 2016.

Request a sample report: http://www.technavio.com/request-a-sample?report=56288

Technavio’s sample reports are free of charge and contain multiple sections of the report including the market size and forecast, drivers, challenges, trends, and more.

Technavio ICT analysts highlight the following three market drivers that are contributing to the growth of the global recruitment process outsourcing market:

  • Increased usage of neo-sourcing
  • Emergence of nearshore outsourcing destinations
  • Moving up HR value chain and compliance

Increased usage of neo-sourcing

Many companies are trying to integrate business with technology solutions to reduce costs and improve productivity and innovation. The integration of IT outsourcing and BPO, termed as neo-sourcing, is an evolution of BPO models offered by outsourcing companies. Neo-sourcing is the combined management of back-office operations and technology for process reengineering, which would result in business transformation and optimization.

“Benefits of neo-sourcing technology include process optimization, cost reduction, access to the best global practices, improved productivity, increased employee morale, and reduced cycle time. Suppliers visibly shift toward automated BPO operation, allowing service providers to improve their sustainability in the market,” says Amit Sharma, a lead analyst at Technavio for IT professional services research.

Emergence of nearshore outsourcing destinations

Companies in Europe prefer outsourcing their business process to BPOs in the same region. Outsourcing to nearshore destinations allows the companies to leverage the similarities in culture, time zone, and languages, helping them deliver better services. Furthermore, European companies focus on protecting their outsourced businesses and on minimizing socio-economic risks through similar kind of currency and regulation systems.

Accessibility to certain key technologies such as recruitment software, cloud computing and domain experts in HR and industry-specific business processes has encouraged organizations to outsource the business process to other locations to gain a competitive advantage. Knowledge-based outsourcing is popular in companies located in Eastern Europe.

“A business process that can help improve the quality and efficiency of their core business is frequently outsourced, and contracts are given to those BPO providers that have expertise in that business processes,” says Amit.

Moving up HR value chain and compliance

RPO providers are extending the HR value chain to offer a robust structure and significantly increase the ROI of the buyers. With the commoditization of outsourcing services, the global RPO market is alleviated to the higher end of the value chain. In this scenario, RPO has transformed itself as an enabler of innovation, simultaneously driving operational enhancements. Its strategies are being considered as the next-generation business value propositions. Although costs remain the foremost priority, clients are looking at innovations and seeking value elements, such as enhanced functionality in their recruitment processes.

The constant changes in the labor laws and employment regulations have led employers to remain abreast of the latest amendments that affect the workplace. Changes in payroll, recruitment, employee benefits, and grievance procedures have increased the pressure for HR professionals. They outsource HR service audits and maintain company practices and policies as per the interests of the organization.

“Therefore, to prevent major lawsuits and legal hassles, organizations outsource their whole recruitment cycle to ensure compliance with new laws and regulations,” says Amit.

Source: businesswire.com-Global Recruitment Process Outsourcing Market to Grow at a CAGR of 18% Through 2021