Outsourcing Mistakes: Negotiating Terms (Estimate)

In this video, we’ll talk about the common pitfalls associated with the valuation you receive from your future software development outsourcing provider.

The problem is not discussing the issue thoroughly enough. And this leads to inconsistency with the scale and approach to implementing your future product.

Consequences:

• Additional costs
• The wrong approach to implementation

The most common mistakes are:

1. People don’t ask for a complete evaluation of the entire solution.
2. People cannot analyze the received information. It is crucial to make sure that the resulting score is not just a number, but that it is broken down into tasks. And for each task, there are efforts and their costs.

A few tips:

• Study the estimate line by line, and make sure everything is clear.
• Check if all the requirements discussed are included.
• Discuss changes in task timing with the vendor – control what is done.

A good way to provide the vendor’s estimate is a few voiced numbers (optimistic, realistic, and pessimistic forecasts).