Tuesday, April 26, 2005

Application Outsourcing

Application software are the software which are particularly build for a particular application.It can be attributed as the oldest form of outsourcing. There are still many pitfalls, although the path to success is now well trodden.
Although it is too old but even then it involves a range of issues. For example: What about the existing warranties transfer to the supplier? What for the documentation, operation procedures, etc? How will company wide processes, procedures, and so be addressed? Etc.
These factors tend to be critical and need to handled carefully, and steps to address them included in the transition plan, the SLA and the outsourcing contract.
The main point to be considered for the application outsourcing is that the management must be very clear with respect to what the product will deliver. The application must be efficient enough so as to explain what the product does and what are its limitations.
An important and efficient measurement tool we can use for the application is by comparing it against the old or the existing application. This will provide an up to the mark and a good idea for the performance of the application.
By evaluating for the performance we can easily determine the appropriate cost for the application developed. The cost evaluated can be again compared against the cost being incurred for current service. Essentially, a picture is being built, as to what the application developed will be able to deliver and whether it will be suitable for outsourcing.