IT departments are challenged to remain agile and responsive to business needs. IT product development teams must be able to quickly develop and maintain new software applications without sacrificing quality. Organizations looking to improve agility, ensure quality, and reduce risk often look to outsource software development to help them keep their competitive edge.
IT Product Development Challenges
Software development projects, unfortunately, have a high rate of failure due to several factors. The problem is typically rooted in project execution issues stemming from larger developer and organizational challenges.
Finding developers to join teams is a major obstacle for many organizations looking to scale their business. Right now, there just aren’t enough people to fill these critical roles. According to US Government Data, the industry will need to hire more than 300,000 additional software developers between 2016 and 2026 and the App Association found that there are already 223,000 unfilled software developer job openings.
The demand for software developers is outpacing the graduation rate of computer science majors.
Developer Skills are Lacking
Even when organizations are able to find and hire talent, many software developers lack the skills and expertise required to execute the types of projects needed. Data from Standish suggests that this skills shortage is having a significant impact on the rate of IT product development success. Between 2011 and 2015 38% of projects that hired highly skilled/gifted people were successful, but 60% hired unskilled people and experienced challenges, while the remaining 23% failed completely.
Organizational and Budget Setbacks
Of course, developers are not the only ones to blame. Organizational and budgetary challenges also impact the success of these projects. In the same study, Standish compared the success outcomes across various geographic regions based on being on time, on budget, and on target. Based on these metrics, projects were most successful in the US (31%), followed by Europe (25%), and Asia (22%).
Standish ascribed these better outcomes to emotional maturity in the development organization, which in turn allowed for better managed expectations and the ability to reach a consensus among team members. Successful projects also typically had a skilled executive sponsor working with the IT product development team.
And of course, as with any project, allocated budget is also a factor. A survey of 200 IT decisionmakers found that 19.7% of respondents pointed to limited budget as the number one obstacle to project implementation.
Successful software development is about more than skilled developers, it requires the right company culture, managerial structure, and budget.
The Solution: Outsource Software Development
Outsourcing is a reliable way to enhance your chances of IT product development success. By having the right people on your team at the right time, you can avoid the common project execution problems that plague organizations.
Outsourcing software development is a reliable way to enhance your chances of project success.
And it’s not just outsourcing to a team. Every new project requires team management. If your team doesn’t have the right manager or a manager who is stretched too thin – it will negatively impact the entire project. As your number of projects increases, management attention spans often suffer. By utilizing an outsourced team, you can not only get the developers you need to create the project but attentive managers who can oversee the entire process and ensure it is done right.
Have a Project You Want to Outsource?
Have a project in mind that you are ready to outsource? We offer teams-as-a-service (TaaS) to help you build powerful digital products for your company. Contact us to let us know what we can help you with.
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