Issues of Software Outsourcing

IT community constantly debates regarding the fact that software outsourcing being cheaper in terms of cost-reduction involved, grants access to blue-chip, real-time and specialized knowledge that are especially inviting demands from corporate management and boards.

February 28, 2007 (XTVWorld.Com) -- Now administrative bosses of multinational enterprises are considering the security practice for global network services.

The risks encompassed by the software outsourcing are higher in terms of outsourcing, whether the questions involving outsourcers can be trusted? Just the idea of delegating control of thickheaded but purely professional procedure to a third party group – is a guaranteed recipe for trouble. How to make sure that the customer is rendered the optimum set of services? The Meta tendency of this structure will certainly continue in a larger number of infrastructures with value services, meeting client's demand. Entrepreneurs must not worry if they hold thorough analysis before approaching things in a sensible manner. These security precautions are obligatory to be taken not to fall into trouble.

It is of primary importance for an entrepreneur to undertake a site-check to ensure that company's management is not just a couple of losers with in a rented office, testimonials, references and feedback will also be good. A company dedicated to software outsourcing must constantly get updated with the latest industry publications, magazines and a bulk of sites so that the Information Technology Outsourcing research to have sound knowledge base of the grounds of software outsourcing. An IT analyst must be proficient and in the know about the market and the trends commonly practiced by large corporations to increase their output index.

Talking over and discussion of various IT related issues will also give better notion about the general state of the business.Organization's entrepreneur should make sure that the security provider is to a high degree honest; the enterprise must make certain that it's getting both the service it wants and needs. The service-level agreement must be picked to pieces to sustain. Before the commencement or agreement execution one should carry a complete security check. Analyst used to cultivating the idea that "the threat to internal security conditioned by social aspects is possibly migrated with an outsourcer and is caused by the lack of social interaction with employees". It is essential and in some cases vital to consider the following security factors before opting for outsourcing: insurance and third party suppliers, software licenses, ownership information, contract commencement, term and termination.

The outsourcer you choose should have adequate public liability insurance against risks and loss or material liability through injury or damage. There is a barest need for an agreement which party will mediate and administer between the purchaser and other third party suppliers. A third party developer or vendor should have software licenses to render outsourced services. Contracts concluded should be maximum flexible so that licenses currently held by the purchaser and related to services provided may require extension or prolongation.In order to minimize transition difficulties, the contract commencement date should be stipulated before hand.

The contract term will wholly depend upon the nature of the offshore outsource services and the buyer's business requirements. The historical roots concerning the security procedures should encompass plenty of financial businesses outsource both its security and transportation security to companies dedicated to these services. System specification, Access and Service level agreements. One must certainly define the specification regarding the functionality, performance and availability of the system. The service level reliability much depends upon the system specification.Examination and analysis of performance data will aid in determining and managing service levels, namely a system response and job turn around times.

However these documents may be ineffective unless buyer provided practical and realistic remedies in the event of non-performance. The contract should envisage a review period to cover possible change requests and integration of new technology provided by the software outsourcer.The degree of security about the disclosed information is required to be to the extent of security used within the outsourcer organization or sufficient to protect confidential information. Illegal access to sensitive data will require severe planning, implementation and management. The last on the list but not least in value for software outsourcing service is to make sure that the documents and data will be protected and kept confidential and agree upon parties responsibilities and obligations.

Source: Software Outsourcing Library