Risk Four: Differing Internal Processes

Sometimes the vendor's processes could be a lot different from what Client is using for executing their internal projects. If these differences are not discussed beforhand, they could become a risk and cause project delays.
_____________________________________

Each vendor will have somewhat unique processes and methodologies that they follow when developing a project. It is important to evaluate how this differs from your in-house processes, and how the two differing approaches can best be “meshed” together during a development project.

It is best if a development project is guided by a well-defined, common software development and project management methodology. The best vendors follow industry standards, such as CMMI and ISO 9001 QMS (as Hanu Software does). This common methodology should cover libraries, tools used, version control and quality assurance processes, as well as security metrics for each project.

Once the process is agreed upon and established, it is equally important that monitoring is in place, to ensure that these processes are being properly followed. Clients should have each project milestone clearly defined, including what deliverables are planned during each phase, with specific deadlines for the completion of each. The client should also have a clear understanding of what their obligations are in regards to reviewing and approving each delivered product, including the requirements documentation, the system design, test cases, and any test issues that arise.

In general, the more involved your company is with the project, the more smoothly the project will go. This is why it is important to have a designated contact within your firm, whose role is to communicate with the vendor project manager and/or development teams. This person, as well as key stakeholders in the project, should be available to review progress reports, review finished deliverables, and be available for telephone conference. If the vendor has questions related to your firm’s products and applications, which require answers in order to continue development, your designated company contact is responsible for arranging for the proper technical resources to provide answers.

Painless Merging of Methodologies

- Agree upon a consistent methodology based upon industry “best practices” that your firm and the vendor will follow prior to starting the project

- Monitor compliance with the agreed-upon standard

- Set up specific times to clarify and answer questions, especially at the outset of any project or outsourcing relationship

Your company’s project manager or designated contact will need to review the status of any deliverables as well as any testing done, and be available to communicate frequently with the vendor project manager. Most project problems occur to infrequent or poor communication between the firm outsourcing, and the vendor. But the “no news is good news” approach is rarely true; in fact, the opposite will often occur. One of the easiest ways to reduce this risk, and to catch problems early on, is to initiate frequent communication, with regular times specified for project reviews.

Differences in development methodology can occur, if one firm prefers an RUP approach with exacting specifications, while another firm prefers agile methodologies. One firm may have a preferred tool in place for source code control, or for coding standards, or for testing builds. These issues can often be worked out by communicating the reason for each approach, and then choosing a consistent methodology. Most frequently, you will ask the offshore team to adopt your in-house methodologies, but you may be surprised to discover that they have methodologies or tools that equal yours, especially if they have significant experience in a technology. This is where teamwork, and communication between the project and development team managers is critical.

Related to methodologies are evaluating how the firm being outsourced to handles sudden requests for large volumes or rapid delivery. Check on how flexible and scalable your vendor is, and whether they have processes in place for hiring additional staff as required for larger projects. This includes having sufficient project management staff in place to ensure adequate monitoring and communication with your firm. Ask them: “What is the smallest project you have worked on? The largest project?” to help determine whether they can scale to meet your needs. You will also want to check references for projects that are similar to yours.