Software outsourcing and creating the right incentive

Recently I had several interesting conversations each touching upon the interests of the outsourced parties and whether it is at all makes sense to perform (long-term) outsourcing.

So the basic idea is that unless you buy a ready-to-use product or a product that can be customized to your needs you end up with a piece of software that you need to improve by a party that in fact does not have any incentive to improve it! Actually the opposite is true – the more ‘work’ the outsourcer gets in a form of bugs, fixes, ‘redesigns’, etc the better is it to him, but not at all for the client. In this ‘vicious loop’ if the outsourcing party is doing their job ‘too good’ they run out of work. Oops, that’s not good. And of course not completely true, as there is always a lot of work and you don’t actually run out of it, you may only run out of money to do it all. And of course you run slower out of money when you get somewhat cheaper workforce… but do you?
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As the amount of business information piles up it is time to share and start fruitful discussions on the topics of software development, project management and last but not least software outsourcing. We hope this information provides useful insights and experience that will help your business.

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