10+ Reasons Why Outsourcing Software Development Fails

As an entrepreneur, you are spoiled for choice when it comes to outsourcing software development.

I don’t know if you’re aware but there are at least 15k listed software development companies all over the world.

This means you not only have to decide whether you should outsource or not, but you must also find a way to choose between the massive amount of options.

Fail to vet the right partner and you’ll probably face a business disaster sooner or later.

Want to see an example?

Let’s rewind to 2004.

IBM lost a major outsourcing project when JP Morgan Chase & Co. canceled the remainder of its 7-year IT contract with IBM, worth $5 billion.

The alleged reason?

JP Morgan wanted to bring its IT infrastructure management home.

Although IBM was never formally accused of failing its contractual obligations, J.P. Morgan still spent millions of dollars to reassemble its IT team.

This is not the only tale of IBM failing to see a contract through. In 2007 the Queensland Health Dept. contracted IBM to administer a technical payroll solution.

IBM initially proposed a $6 million cost with a delivery time of one year.

Can you guess how much the whole project ended up costing?

$27 million. Due to unforeseen technical challenges.

A nightmare, right?

Well, not yet.

Years went by and the platform never functioned properly with the costs escalating to $1.2 billion.

That’s a staggering 19,900% more than the projected cost.

And this not only affects big corporations.

Ask any consultant or advisor you know in the startup scene and they will all have a list of horror stories of founders getting screwed by outsourcing agencies.

So the big question is: how can you avoid your own set of nightmares?

Well, you can start by getting to know the red flags and poor decisions that usually break outsourcing experiences.

In the link below you'll find 10+ of the most common reasons why outsourcing software development fails.

http://bit.ly/2wfaVQ2