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How to effectively coordinate with software outsourcing company

Coordinating with your software outsourcing company is never an easy task. In this article, Saigon Technology Solutions helps to point out 4 solutions for that.

NEW YORK, NEW YORK, USA, August 6, 2017 / -- Most companies would like to outsource their IT functions to a reliable software outsourcing company. However, some of these companies are reluctant to do that because of some concerns that include ownership of proprietary information, software licenses, service level agreements among others. Following is a brief discussion of some of the outsourcing issues that firms must deal with to ensure that their outsourced projects are successful.


As an outsourcer, you need to ensure that you have adequate public liability insurance which will cover you and the outsourced engineers during the course of the project.

Ownership of data and information

In some instances, outsourcers overlook this all-important aspect of the project when engaging in outsourcing with software outsourcing services providers. This can prove to be costly especially in the event that the contract between the IT firm and the outsourced firm becomes terminated. Disputes might arise something that would have been avoided if the parties defined how to deal with data and information on the contract.

Contract duration

The contract needs to define this metric to ensure that all the parties involved are aware of this. The software outsourcing company must guarantee its client that it will abide by the terms of the contract. Understanding the duration of the contract is important because it will give you sufficient time to prepare for the transition. It might be required of you to ensure that your in-house IT staff are trained to operate the new system once the project is handed over to you.

Service Level Agreements (SLAs)

Service level agreements are included in the contract defining the minimum level of service that is expected from the software development company. These serve as the yardstick which will be used to measure the vendor’s performance. Some of the areas of service that will be covered by the SLAs include quality standards and system availability and response times. When it comes to measuring and monitoring SLAs, you can analyze the performance data and also use tools such as user satisfaction surveys.

Intellectual property indemnity and warranties

It is important for the contracting parties to indemnify each other against claims of intellectual property infringement that might arise in the course of the project. Since the project might require that the two parties use facilities and resources that are protected by IP rights, it is therefore important that they indemnify each other against potential lawsuits. Similarly, appropriate warranties need to be provided and they should include service quality warranties, performance warranties and warranty for compliance with specifications.

Paying keen attention to the five elements discussed above will save you a lot of heartaches that accompanies failed outsourcing projects. Always ensure that you have a legally binding contract which details the expected performance by the two contracting parties. Do not gamble by assigning your IT outsourcing project to a firm that does not have the requisite skills and expertise needed to deliver the project on time, within budget and in the expected quality.

Thanh Pham
Saigon Technology Solutions
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Distribution channels: IT Industry