The Software Outsourcing customer should formulate a need specifications checklist and with minimum it requires to cover all the functionality and technical requirements, performance and quality exceptions with deployment time schedule within Offshore Software Outsourcing process.

Ambiguity parts are very likely to manifest as conflicts with the Software Outsourcing vendor at the time of ending the software project. Selecting the right outsourcing vendor for the job is to make sure the organization has expertise in the respective area, and that is capable enough for the financial stability, and also capable enough to give sufficient attention. Do not engage with the organization unless one has some sort of understanding & synergy with the management. With the setting-up for compensation, penalties and incentives, it would be thinking of locking in the right outsourcing team to avoid some issues from resource management if the Software Outsourcing vendor is too busy. With the consideration of a pilot software project before engagement the budget and time partition is the best way to test and then selecting of Offshore Outsourcing vendor.

While outsourcing is the way for saving of valuable management bandwidth, many software projects fail due to relation management, which has not been properly defined or staffed by the customer. The Relation Manager requires having an appropriate authority from the customer’s side, understanding the business needs, be prepared to communicate with the software service vendor frequently, and have resources allocated for acceptance of deliverables.

The idea of Software Outsourcing should be well articulated and sold internally. Even the best-managed software projects are rarely done on time and with the budget. With allocation of funds in advance and some adjustment of expected delivery date for internal purposes, most software applications being outsourced today are might not challenging and most Offshore Outsourcing vendors are technically capable. These technical problems are usually discovered during the testing and integration while performing phases. It would be specifically clear what the Software Outsourcing vendor’s responsibilities are in those development areas. For software projects using latest technologies and high degrees of complexity, selection of vendor is important with the experience and research & development that use the prototype approach before commitment.

Generally, Software Outsourcing vendors looking to steal the Intellectual Property rights or run away with the initial amount of money, so however there are some best practices that should be observed. So it would be better to not do Offshore Outsourcing of core competence and mission critical issues, do not engage with any contract until establishment of trust relations with the Software Outsourcing vendor’s management.