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In this Issue
Dedication Group Dedication Group are IT experts with an emphasis on business outcomes, not just systems and programming. We work with companies to deliver software development projects with lower risk and higher software quality. Contact us today to find out how we can help you! Flying Solo This article first appeared in the online magazine for solo business owners www.flyingsolo.com.au
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Welcome to the Dedication Group Newsletter for May 2008 We are very pleased to provide you with the May 2008 Dedication Group Newsletter. The article Six ways to reduce outsourcing risk appeared recently in Flying Solo, Australia's online community for solo & micro business. We hope you enjoy the read! 'Til next time! Greg Pritchard Six ways to reduce outsourcing risk Outsourcing can provide an array of strategic and life-balancing benefits to soloists. But there are risks in having a third party take on our business functions. This article provides six tips for reducing your outsourcing risks. 1. Set progressive milestonesBreaking projects into phases or distinct interim deliverables gives you clarity over progress. This then enables you to guide a wayward project back on track before too much damage is realised. These phases can be tied in with the payment schedule to ensure you are paying for tangible results. The longer a project continues without checkpointing, the higher the outsourcing risk to you. Try sampling services first. It may be more expensive in the short term, but you gain invaluable insight into how the provider operates before you lock yourself in to more. 
2. Define what quality means to youEnsure you clearly understand and have documented, both qualitatively and quantitatively, what a successful outcome is for you. For projects, these take the form of Quality Guidelines, and for ongoing engagements; Service Level Agreements. Use these to monitor and control your provider's deliverables. 3. Seek references and testimonialsIt is standard to seek references when hiring staff and it should also be the case when outsourcing. The two most important questions you need answers to are: Would their customer use the provider again? If not, why not? 4. Don't just buy the cart when you need the horse too!To ensure long-term business continuity, obtain copies of the files and inputs which created the end product. This applies particularly to software, websites and design, but can be applied to many other fields such as architecture or accounting. In the example of software, get copies of the software source code, even though these files may be unusable to you in its current form. In the long run, source code for custom-built software is actually worth more to you than the compiled application. For example with accounting, it’s the MYOB or Quicken files containing all your data, not necessarily the BAS submission, that's important to you in the long term. If your supplier goes out of business or you choose to go elsewhere, you will be able to engage another firm to take over quickly and painlessly. You can lower your risk further by structuring your engagement to provide you with the raw files progressively. 
5. Own the products of the engagementLegally in Australia, copyright of work is automatically granted to the person who originally created it. Your agreements must ensure that legal title of all works is transferred to you upon completion, payment or some other event. If you don't own the copyright to the works created, you may be liable to pay ongoing royalties or financially settle the transfer of ownership separately. Talk to a lawyer if you're not sure. 6. Protect your business with Non-Disclosure AgreementsConfidentiality or Non-Disclosure Agreements (NDAs) are critically important when your business relies on trade secrets, proprietary knowledge or the development of a not-yet-launched product. Any agreement put in place needs to cover all staff, vendors and third parties involved in the project or service. Don't leave it to chance, after all your competitor may be closer than six degrees of separation away from the supplier. Have a pro-forma NDA drafted by your lawyer. Have a think about current or forthcoming outsourcing arrangements – are you managing the outsourcing risks as well as you could? Security Tips - courtesy of GISG 
Enterprise Security Tip Do your staff, external contractors need to use USB Flash Drives on your desktop computers? USB Keys are a great way to transport files, but they are also a hole in any corporate security environment. If you're concerned with your data and trade secrets walking out with your people at the end of the day; talk to an IT Security expert to lock down your PC's. |
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