In the previous articles of the Outsourcing Challenges series, we've covered the best practices of hiring an effective offshore software development team. You can also find out how to choose an optimal team composition and transfer your knowledge to the new team for a smooth start and trouble-free project delivery. Check out the links below.
However, to ensure your outsourcing project is a success, you need to set the things up correctly from the very start of the cooperation. Failing to notice red flags in your software development contract can put your organisation in a bind. The main takeaway is that you need to make sure your software development agreement correctly defines two critical aspects:
If your contract doesn't provide clear answers to these questions, you risk being charged a substantial amount in additional fees with no legal recourse.
A software development contract consists of legal documents that contain specific details of what your organization is expecting from a vendor. Types of arrangements can vary depending on the engagement model you choose for your project. These models typically fall within three types:
As a first step, potential vendors shall undergo the due diligence process to ensure the selected company has the skillset and integrity necessary to become enduring and trusted partner, says Andrii Volos, Legal Counsel at ELEKS.
Red flags may pop up when the agreement isn't specific enough or when it lacks transparency. Here's the extended list of the potential issues you need to be aware of:
Are you looking to outsource software development for a project or long-term service? The experts at ELEKS can help you deliver your most complex software requirements. Contact us today to learn more.
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