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FAQ

You can get a FREE consultation from KANAR Software managers regarding the organization of work based on the outsourcing model.

If you have no experience with software development services outsourcing, we recommend that you first get familiar with the basic outsourcing organization definitions and principles provided below. We believe that this information will be of use to you when you have to make a decision whether you should use outsourcing in your company. We have emphasized the issues that we consider to be most important.

Advice

Visit the "Pattern of Cooperation" page on our website and you might find the answer to your question there.

We hope that the years of experience we have in outsourcing will ensure that you get good advice and solve your problems. We will be happy to share the knowledge, methods, and working techniques that we have accumulated over time. Feel free to send us an e-mail!

How to Submit a Question Related to the Organization of Outsourcing

	Provide a brief written description of your situation (so that we could better understand it and help you); Write down your question in English or in Russian; Send an e-mail to KANAR Software with subject CONSULTATION.
You will definitely get a reply within 1-3 days.

Software Services Outsourcing (offshore programming) means transferring tasks related to software system development, testing, or support to a third party.

Outsourcing Efficiency

Software development services outsourcing is specially efficient if your company wishes to:

reduce development costs;
increase development performance;
focus on the principal business activities (for example, selling software products).

For many companies, outsourcing is a chance to reduce costs and achieve better development performance by involving specialized companies.

One of the key arguments for outsourcing is the opportunity to optimize the development process by involving highly qualified human resources as well as reducing the project implementation period and enhancing the performance of the software products developed.

Major Supplier Selection Criteria

In Supplier (Outsourcer) selection, it is important to follow the below criteria:

the Supplier's ability to manage project implementation and establish partner relations;
similar projects experience;
the Supplier's ability to ensure successful project implementation.

It should be noted that according to the international outsourcing practice, a long-term Service Level Agreement is normally signed with the Supplier of services, whereas in the Russian market it is more common to use outsourcing for individual projects and tasks. Such projects are completed in line with project-targeted contracts that would cover a specific type of activity to be performed by a certain point in time. This partly explains why some Russian contracts with service suppliers are economically inefficient. In the context of a one-time contract, it is rather hard to achieve great efficiency because at the initial stage it takes a special effort to establish and maintain relations, which can be later compensated by saving on the development infrastructure, human resources, etc.

Risks

According to research results and our own experience, both Suppliers and Customers should pay more attention to risks management and carefully plan the communication in order to cooperate successfully.

The analysis shows that the major risks faced by the Customer are the risks related to:

project management by the Supplier;
Supplier qualification and experience.

At the same time, the Supplier has to deal with the following risks:

ambiguous definition of project goals and objectives;
insufficient formalization of project requirements and no clear understanding or description of business procedures.

Conclusions

To round up, let us note the following: as you know, successful companies are the companies that do their business in the most efficient way constantly reducing their costs and at the same time increasing the quality of the goods and services produced. Outsourcing in software development is one of the guaranteed ways to achieve such targets.

Thanks to our practical experience with development projects and distant work, we can promise you success if you choose this type of cooperation with our Company.

If you would like to discuss the cooperation procedure in outsourcing with KANAR Software, please send us an e-mail.

You can also ask questions concerned with programming.

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