Organizations rich in ideas but deficient in resources and implementation capability entrust their product development activities to another company who is capable of accomplishing this goal effectively with their resource and expertise. This scenario is termed as Product development outsourcing.
Success of Product development outsourcing depends on following conditions – effective communication, collaboration between peers, proper planning, precise management and resources experienced in analyzing software feasibility and defects.
Product Development Outsourcing requires a close connected loop between all the stakeholders viz., senior management and technical team. A slight leakage in this model can lead to flaws in the product or increase its time to market.
Steps That Are Followed:
- Envisioning the core idea and utility
- Understanding what is the pivotal elements within product
- Prepare a mockup/prototype of the product before actual development
- Analyzing all the potential risks
- Crafting the product
- Testing the product
Advantages of Outsourcing Product Development are as follows:
- As the work gets outsourced company staff can be better employed in product marketing and outreaching strategies.
- Entrusting work to the development experts saves time and resources making it a cost effective deal.
- Shorter product development lifecycle
- Organizations are relieved of employee management and similar hassles
- Saves the overhead on deploying technology infrastructure and its maintenance which might turn obsolete after sometime.
- It is truly proving to be cost-cutting
What Led Organizations to Outsource Product Development?
The markets in general are very competitive nowadays. This forces companies to periodically release new products or updates for survival. And consequently majority time and resources are deployed after one product. This is time consuming and deviates the organization from performing other activities like promoting their business and devising important strategies.
Therefore for launching products quickly with finite resources and budget constraints it is important to delegate work. Outsourcing all the development hassles to another company relieves you of a big headache and turns out to be a mutually symbiotic arrangement.
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