Is Outsourcing Custom Software Worth The Risk?

Is Outsourcing Custom Software Worth The Risk?

Outsourcing custom software development to a third-party comes with many risks.

You might be well aware of that if you’re engaged in a project right now and regretting the vendor that you chose.

In fact, if you look at the industry statistics, well over three quarters of projects end up failing for one reason or another.

There are many reasons that this can happen, and not all of them are related to the vendor.

  • Massive cost overruns
  • Vendor abandonment
  • Project “scope” creep
  • Disappearing vendors
  • Changing directions
  • Wrong choice of technology
  • Missed commitments
  • Poor communication

Those are just a few of the common reasons I hear when we’re contacted to take over a project.

The question for you is, is it worth it?

The answer comes down to what type of value the project will create for you, and what your options are.

Here’s a story that will help you understand what I mean.

A few weeks ago, I met with a new client for the first time and heard his story.

He owns a old and well known business in my area.

He bought this company from the former owner after working there for many years.

His story was one of ups and downs. He would try to scale his business, ramp up marketing, grow, then fall back and shrink.

The ultimate problem is that if he ramps up marketing, many more requests for quotes come in, and his staff can’t keep up because all quotes are done manually.

You can see how that would hurt his reputation with his customers.

In other words, there is no automation.

He knows that his business is locked in at it’s current size until he can get a highly specialized quoting system into place.

In his field, there’s not an easy “off the shelf” solution that he can just buy and implement. The quoting process is very complex.

He told me that this is the single most important thing for him to accomplish before his business can grow.

For this client, outsourcing is a must to enable his business to become what he envisions it to be.

When you place a focus on the value that a well designed system can create for your business you begin to understand that it can absolutely be worth the risk.

In fact, there may be no other options available.

The question then becomes, how can you create the system that you need and mitigate as much risk as possible.

If you have a project that you KNOW needs to be built to enable your business to move forward, fill out the get started form and we’ll set up a time to talk.

   

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