20% to 25% of all outsourcing relationships fail within two years. Within 5 years it’s up to 50%. One major problem is that the outsourcing manager has no clear overview of what’s going on at the other end of the deal. We help You overcome this problem and establish a trustful relationship to the outsourced development team.
Our reports help You understand how Your resources are deployed and used in a project and how this influences delivery. With our help You finally get an answer to Your most common questions:
Why am I billed for engineers that worked less on my project?
What skill have the engineers that are working on my software?
How is the development workflow of the team?
With the help of Jonny Git outsourcing Your software development is no longer a blackbox!
To learn more about how Jonny Git can help You with outsourcing teams, check out our website: https://jonnygit.com/managing-software-development-outsourcing/
Top comments (2)
I can see you want to publish yourself here so... I would like to see the source of this percents but apart from that, the main reason for outsourcing failure is the cost. It is much cheaper to hire devs by your own than outsourcing the service at mid term, so when the companies grew enough to maintain it's own IT team they simply fly for it.
The differences on how and what to implement goes through a contract so... Specially when the client wants things without the proper analysis (almost always) they feel unattended by the company that runs the outsourcing team so they hire devs just to torment them with contradictions and useless stuff just to lose time, then the devs burn down and go to work for a company that rules outsourcing services instead working on a company with useless and it-ignorant bosses.
It's ok that you publish "spam" here but back your posts with current verifiable information, otherwise you'll be criticised here and wherever you go. Simply expose your features and the expected benefits and back your posts with third party verifiable data. Make your own studies and let third party to peer review it, then you'll be trusted with your project :)
Hi and thank you for noticing my post, which is definitely not the best academic piece of work but should definitely be just an eye-opener to the fact that you can do more to improve vendor relationships and increase the likelihood of success.
The percentage you talk about is from a study by Deloitte from 2016 (a bit old, I know) stating that only 22% of the respondents from a variety of fields are not happy with their outsourcing provider. This is though not the point that I would like to make.
Companies all over the world and in all areas are increasing their budgets for outsourcing especially in IT with the main reason being cost-cutting (70% of all respondents of this study Deloitte Global Outsourcing Survey 2020).
At the same time, and I quote from the same study:
"A few of the clients we talked with expressed disappointment that providers were not delivering the necessary value. Some of them are responding by bringing the work back inhouse. While this approach may work, in some cases it is a step too far. Investing in strong service orchestration is key, as it will help ensure organizations realize maximum benefits from their service provider ecosystem, resulting in comprehensive accountability for action and reduced value leakage."
The bringing the work back inhouse statement highly relates to your comment.
I would like to make the case that for a successful management of vendors you need to better understand how they work, how things get delivered and most of all where are drivers and barriers of my time-to-market - the most important KPIs for innovative companies. The same goes when having internal and external developers.
As a startup we engage with freelancers and are very happy about it and we recommend it.