Outsourcing product development is one of the hottest trends, almost all companies follow today. It is possible to benefit from outsourcing product development but only when you keep key competencies in-house. Traditionally, organizations used to outsource their non-core activities for cost cuttings. But today, different organizations from start-ups to MNCs, outsource even their core activities in order to reduce costs. And also to focus more on business by outsourcing to external companies who have access to world class competencies. To get one’s product developed fast and in a good quality, one should check the management system, stability, history of the company, etc. Presenting here, the checklist one should follow while choosing a product engineering vendor.
Tips for Choosing a Product Engineering Vendor:
#1 Verify the Background of the Product Engineering Vendor
When you go through the vendor’s website, you will find a list of executive leaderships, customer testimonials, case studies, success stories, awards, alliances, vision and values, etc. Go through each of them and know the quality of services and solutions the company has been providing till date. See, Listen, and verify each document they showcase as their past work.
#2 Check the Company Governance
Know how long is the company’s history of product delivery by visiting the company and meeting its management team. A good company governance ensures faithful relations between the company and its customers. To check the governance, find out the kind of experience, expertise and behaviour the members of the management team carries.
#3 Judge the Skillset of the Product Engineering Company
Product development involves number of stages like concept development, detailed design, design analysis, coding, testing and verification, and documentation. For accomplishing them, you need people with different skillsets like designers, pattern analyzers, software developers, testers and efficient technical writers. The vendor you choose should obviously have employees carrying these skillsets. The vendor at the sametime should be using updated technology which matches your product specification requirements.
#4 Check for Certifications
Check if the outsourcing partner you choose has got certifications that assure good quality product delivery. Always opt for a vendor which has got accreditation like CMMi and ISO. Employees holding certification of NPDP(National Product Development Professional) is an added advantage for a product development company.
#5 Be Conscious about your Budget
With a good budget, you will be having plenty of options in your hand. But if your budget is not that high, make sure you go for companies that are ready to work with a lower budget but simultaneously give you the kind of service you are looking for. After meeting those product engineering vendors, take your time, consider your requirements and come up with an ultimate decision. Once you make a decision, try sticking to it. Beforehand, take an effort to know the back-out policies, because situation might come where something goes wrong and you might have to change your outsourcing vendor. But following the above tips, you will unlikely make a wrong choice.
Outsourcing is no more about cost reduction. It is all about how to get things done faster and more proficiently and how you can come first in the competition. The tips mentioned above will assist you in finding the perfect product engineering vendor and make you stay ahead in the competition.