Considering outsourcing software development but unsure of where and how to get started? Use our quick-start guide as an introduction to evaluating outsourcing solutions, selecting the right partner and setting your project up for success.

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Quick-Start Guide
for Outsourcing Software
Development
Best Practices for Launching an
Outsourcing Partnership

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Quick-Start Guide for Outsourcing Software Development
2
What you’ll gain by outsourcing:
• Improved quality
• Increased ROI on development
• Added skillsets — quickly!
• Faster ramp-up to value contribution
• Upgraded development methodologies
Why Outsource Software Development in the First Place?
What you’ll solve by outsourcing:
• Capacity limitations
• Skillset gaps
• Stale methodologies and processes
Unlock Benefits for Your Enterprise. Overcome Common Challenges for Your
Development and DevOps Teams.

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Quick-Start Guide for Outsourcing Software Development
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…Accomplishing These Goals
Requires the Right Outsourcing Partner
But…

4. How to Start the
Outsourcing Process

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Quick-Start Guide for Outsourcing Software Development
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Outsource an Isolated Project
vs. Build a Partnership
Factors to consider:
• Startup and overhead cost-to-value ratio
• Ramp-up time
• Time to achieve predictable and optimal velocity
on development work
• Total potential value an outsourcing partner can
offer your team
Consider Your Options1

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Quick-Start Guide for Outsourcing Software Development
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Column A Column B Column C
Item 1a Item 1b Item 1c
Item 2a Item 2b Item 2c
Item 3a Item 3b Item 3c
Think of the Big Picture
Operational considerations:
• Lack of communication has been found to be the
number-one cause of software development failures.1
• Organizational, personal and cultural work style
disparities can be costly sources of friction.
• The benefits of optimal communication and work styles
can be mitigated if partners’ development methods
and processes misalign.
Local Contractors Offshore Partners Nearshore Partners
Offer closer proximity to
the enterprise + a quicker
ramp-up period = lower
overhead costs
Offer lower hourly rates
but potentially higher
overhead costs due to…
• Time-zone
discrepancies
• Communication and
cultural barriers
Offer a unique
combination of benefits,
including…
• A broad array of
skillsets
• Well-practiced
methodologies
• Higher “realized
productivity” metrics
• Time-zone
compatibility
1Marques, R.; Costa, G.; Silva, M.; & Gonçalves, P., 2017. A Survey of Failures in the Software Development Process. Proceedings of the 25th European Conference on Information Systems (ECIS), Guimarães, Portugal, June 5-10, 2017 (p. 2445).
http://aisel.aisnet.org/ecis2017_rp/155 (accessed October 4, 2017).
Financial considerations:
2

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Quick-Start Guide for Outsourcing Software Development
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Realized Productivity
A metric used by enterprises to measure an
outsourcing partner’s true potential value to a project.
Elements used to calculate realized productivity:
• Technical ability
• Agile process (skill/experience level)
• Culture
• Employee loyalty (attrition)
• Collaboration (time zone/language)
• Partnership governance
Financial considerations Realized Productivity Compared
(Enlarged on the next page)
Think of the Big Picture2

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Quick-Start Guide for Outsourcing Software Development
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Key components of Sprint 0 Readiness:
• Roles and responsibilities
• Infrastructure
• Process standards
• Technical requirements
• Development planning
Interested in exploring the Sprint 0 Readiness
process in more depth?
Check out our listographic,
“Five Components of an Effective
Sprint 0 Readiness Process.”
Set Up an Effective
Sprint 0 Process
3

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Quick-Start Guide for Outsourcing Software Development
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These steps help set your outsourcing partnership up for an
effective quick start, but remember — your greatest
advantage throughout the outsourcing process is insight.
Get the insights you need to refine and enhance your
outsourcing approach in our comprehensive guide,
How to Outsource Software Development.
It’s Time to Refine Your
Outsourcing Approach

11. About Velocity Partners
High-Quality Nearshoring, Plain and Simple.
Velocity Partners provides nearshore (Western hemisphere) expertise in
software development services using a distributed Agile model that
provides accurate delivery and optimal business value. Our team is
composed of talented leaders from the software development
community, and we offer cost-effective solutions for any size company.
For more information about Velocity Partners’ nearshoring services,
visit www.velocitypartners.net or contact info@velocitypartners.net.