Delivering value again and again
Business needs to optimize their spending and still get greater value over time with the money they spend on services. ISV’s venturing into offshore development has to evaluate their vendors with parameters that measure the value of the vendor more quantitatively. They could also use empirical methods to determine the value vendors bring onto the table. Bigger ISV’s tend to go for captive centers long term to protect their IP and reduce dependency and lock into the vendor. They also recognize the additional support staff, infrastructure required to invest. There are no tools to measure these choices to make a solid decision.
History has proven the value of services oriented organization and businesses are reorganizing to adapt to services oriented approach. When posed with a challenge of choosing an external organization that delivers business value compared to an internal org, businesses have to make a tough decision. Businesses are bowing to pressure and compromising on time to market, value to business and long terms benefits.
Software and services vendors are evaluated for certain criteria. Almost all the time, cost is the most important factor, which drives the deals in the software industry compared to any other driver.
An ISV vendor chooses an outsourcing partner by evaluating various factors.
- Competencies, skills and the history of products
- Productivity and performance
- Designed and flexibility and extensibility
- Quality deliverable’s; code quality etc.
- Secure infrastructure(networking, latest hardware, IP protection)
- Business value instead of just technical value
- Attention from Senior management, especially for small sized teams
- Customer satisfaction
- People and the processes
- Culture of the organization
- Ability to offer end to end services etc., like Usability, Performance, testing etc.
- Development process
- Maturity of people, processes and technology
Most of the ISV vendors prefer captive centers for their long term strategy. The strategy could end up leaving the vendor with resources who are not very effective. Over time the weight of the supporting organizations, logistics go up and reduce the effectiveness and productivity of people.
The ability to hire and retain top talent is number one challenge in these organizations. However, the services approach allows the captive centers to choose and demand the best from the vendors. This strategy may cost little more in the beginning and lot less in terms of total cost of ownership, if we consider intangible benefits like time to market, innovation, disposability etc.
The cost of a change goes exponentially up, when the product is in production or lives. This is very much a problem in captive centers, where they can simply assign people to fix issues. However, over time, the code quality suffers and the product becomes difficult to maintain and every change takes 3 to 6 months to get into production. The value that Product Development vendors bring in here are enormous, because of their ability to innovate and provide solutions. They do a better job of refactoring code, because better code and better quality for them means better business.
We at Imaginea deliver 150% productivity, because we have been able to operate at startup mode for every single customer we have worked with. We are able to deliver because; we have mastered the art of making software. We are able to deliver because we have been doing this for 12 years and that is our bread winner. We are able to replicate our success to small big and enterprise customers regardless of the size, the same value again and again.
At Imaginea, we provide you with an extra an edge over other vendors to beat the competition.