Wednesday 8 May 2013

Why your developer should be a part of the team for the long-haul

I regularly talk about the relationship between my clients and Synetec, as being one of the most critical two-way partnerships their business will ever enter into. My clients IT systems are so integral to the day-to-day operation of their businesses that they simply couldn’t exist without them. That degree of trust and reliance makes Synetec arguably even more ingrained in their business than for instance, their lawyer or accountant.

So, what happens after you cut the ribbon on your new software system?

It goes without saying that even after testing and handover, any new system needs a level of ongoing training and support. I always recommend that when you negotiate the initial scope of work with your developer, you should always insist on at least a 90 day support package. This will help you and your staff get to grips with the system at your own speed; comfortable in the knowledge that support is only a phone call, email or a face-to-face meeting (if locally-based) away.

Manage change and reduce risk
While post-launch support is important, longer-term relationships can create real lasting value. These types of support packages are tailored to the individual clients needs and provide both peace of mind and on-call expertise. At Synetec we regularly work with clients where a previous outsourced-developer has gone ‘AWOL’ or where a key member of the client’s in-house team has left after years- leaving a significant knowledge gap in the business. Having an existing relationship with a reputable developer like Synetec means that you both minimise disruption and reduce risk.

Ongoing upgrades and training for bespoke and off-the-shelf systems
Regardless of whether your software product is bought off-the-shelf and installed by you or is a bespoke system, it is inevitable that it will require upgrading from time to time. A strong customer support programme is important, not only to ensure that you receive immediate assistance when those glitches occur (often at the most inconvenient time) but that potential problems can also be proactively mapped and managed.

An important piece of advice is to remember to also take into account the number and nature of users in your company and your in-house HR or training resources. Is your IT system simple enough that it only requires basic user training? Do you have in-house training expertise? If not, your support contract should contain provision for an on-demand training programme for staff (whether new starters or existing staff) being trained on the latest upgrade.

Reduce pressure on your in-house team
Another, often overlooked benefit, is that having a support contract in place can significantly reduce pressure on your internal resources. Synetec’s bespoke support services are developed to help your business to streamline processes, reduce costs, improve performance, and remain both flexible and up-to-date. This type of support relationship reduces pressure on your in-house IT team, meaning they can focus on immediate or strategy-based projects. If like most businesses you’re trying to balance efficiency while remaining at the leading edge of your industry- engaging with specialists like Synetec could produce financial and performance benefits.

Monday 6 May 2013

Whether Sheffield or Sri Lanka your development team has to be onsite

You probably read the story earlier this year about an American software developer, who outsourced his entire job to a Chinese firm. He paid them 20% of the salary he was earning and instead spent his days sat around the office watching ‘cute cat’ videos on YouTube. Whilst one or two of you may have shaken your heads in disbelief; I bet many more applaud his ingenuity!

This type of incident is probably a one-off, but it raises the question about monitoring your outsourced developer and whether they can reasonably and responsibly outsource part of your system. Regardless of where in the world they are; do they need to be onsite in a controlled environment or can they be a freelancer sat working from a bedroom?

As a client, your decision to outsource your software development- is of-course- a strategic management decision and not just another way to cut costs. Apart from lowering costs, it enables you to achieve business objectives through operational excellence, making best use of expertise and reduce pressure on existing resources. But whether it is Sheffield or Sri Lanka; how do you ensure you’re not being exposed to unnecessary risk?

One of the things that set Synetec and other quality providers’ apart- is that we never outsource. We believe it is necessary to work closely and in partnership with our clients, to ensure the best solution. All of our development is done in our London offices and we are always available to meet in person or at the end of a phone, should you want to talk. Your data is safely and securely managed. Employees don’t go home with data; they don’t send confidential data via email and new starters and leavers are rigorously managed. This clarity is part of a company culture that encourages transparency and excellence.

Here are 6 key things to consider:

1. The importance of being there
Never under estimate the value of not only being able to keep an eye on ‘what’s going on’ but also of direct human interaction and the opportunity to share thoughts and ideas.

2. Have you considered the hidden cost?
IT ‘offshoring’ may entail extra hidden costs, including things such as international travel expenses, out-of-hour costs when working across time-zones and developing infrastructure to support off-site operations.

3. Have you done your due diligence?
If you were investing £100k in shares- I’m certain you’d research whom you were investing in. The same applies to your developer; don’t just rush to get someone in at the sacrifice of due diligence.

4. How does your contractor fit into your business?
If you don’t have a direct relationship with your developer, how do you build a relationship? If your developer doesn’t care about your business, they’re probably not going to put their heart and soul into the project. You have to accept, that a better more lasting relationship, might cost more but in return produce longer-term quality and support.

5. Does your data output meet required standards?
Whilst some financial services software may not have to comply with any regulatory standards, the system may be required to produce data that does. Are you prepared to gamble your businesses reputation on your developers’ integrity?

6. Operations and logistics
As in any contractual relationship, there is always the quality-of-service risk. Many offshore sites are characterized by high rates of employee turnover and poor starter and leaver processes. Vendors may also take advantage of poorly worded contracts or lack of technical knowledge, to try and get round deficiencies.

Conclusion
Regardless of whether it’s your HR, finance functions or software development, when you outsource any work to another organisation, there is a degree of risk. Add in a different geographic location and you cut down on the opportunity for face-to-face interaction. Take it further abroad and different socio-political environments, business cultures and ethics, all mean that risk is inevitable.

These risks can however be managed by working closely with the developers and monitoring through benchmarking and regular audits. Moreover the most powerful risk management tool is approaching your outsourcing as a long-term partnership.