Have you ever wondered how important it is to find a right Outsourced Product Development (OPD) Partner?

Let’s take a quick look at some of the hazards a company may have to go through if it comes across a wrong OPD partner.


Have you ever wondered how important it is to find a right Outsourced Product Development (OPD) Partner?

Let’s take a quick look at some of the hazards a company may have to go through if it comes across a wrong OPD partner:

  • Process Repetition
  • Time consumption
  • Increased Costs and failure to miss targets
  • Risk of Data Breach
  • Decline in On-Time Delivery Performance
  • Friction in relationship with customers, employees, and other stakeholders
  • Delays or Interruptions in Products/Services delivery


According to The Gartner Group, 25% of outsourcing contracts will be renegotiated or canceled.

Recent research suggests that more and more organizations are now considering or willing to terminate their outsourcing relationships, although this could bring about a great loss to an organization’s resources and shareholder value.

On the contrary, in today’s highly competitive and dynamic business environment, outsourcing is such an option that businesses just can’t do without, if they intend to improve performance and enhance quality while maintaining costs.

Outsourcing is not a matter of chance but choice. Hence, the trick for organizations is to meticulously choose their outsourcing partner to derive a win-win relationship and generate optimal value from the outsourcing arrangement. Following are the parameters on which an outsourcing partner should be evaluated:

Clarity in company goals and objectives

There should be harmony in vision between the company and the prospective OPD partner. Analyze the business philosophy of the vendor which include short-term, mid-term, and long-term goals, their mission statements etc. This will be beneficial in determining vendor’s focus.

Product Engineering - Core DNA

The OPD partner should bring experience of building multiple products across technology stacks. They should have been through the journey of creating a basic prototype to scaling it and then sustaining product(s).

Open communication with affected stakeholders

Good communication has to be regularized and maintained throughout the project duration. There should be regular meetings with the developers and project managers on pending tasks, and benchmarking the project status against schedules, so that any deviation is identified early on and corrective actions can be taken.

Senior leadership support and involvement

In case of offshore outsourcing the importance of senior leadership involvement cannot be overlooked. A clearly defined and professionally followed project management system must exist in the vendor’s development unit. This may include parameters like Project planning, risk management, regular communication, and proper reporting system.

Relationship Management

Customer satisfaction plays a crucial role in assessing the stability of a business. A vendor should be highly committed to ensuring customer satisfaction and who has a stable business/strong financials or fundamentals. This can be done by checking on the company’s history and speaking to existing customers.

Properly structured subcontract and vendor agreements

Clear and flexible contract terms should be spelled out. The contract needs to have milestones, project deliverables and deadlines for each release, clearly mentioned. The agreement should define standards that need to be met to measure development performance like acceptance test criteria, coding standards, etc.  A clear limit on the duration of the contract, start date, end date, Pricing should be set.


To ensure continuous progress of the project along expected lines, it is essential to find out whether the vendor’s infrastructure set-up like server specifications, telecom bandwidth, secure network facilities for unhampered interaction, backup facilities, Internet connectivity are all robust enough.


Quality is the most significant and prime factor in offshore outsourcing as it deals with satisfying customer requirements. To improve and maintain competitive advantage in the OPD industry, some key parameters are to offer better services, more focused customer orientation, guaranteed quality in the end product, and reliable delivery times by abiding to industry quality standards.


The organizations share valuable information about their products with lot of reliability. The OPD has to ensure that it safeguards the customer’s sensitive and confidential information. They should not duplicate or misuse customer’s product information for their own company. In addition, providing a secure networking system should also be in the priority list for OPD.

These critical factors must put a big and a positive impact on your decision when evaluating an OPD vendor and if at all there is a one-stop solution that meets all the above parameters helping any organization in picking the right OPD which aids in achieving their objectives to the utmost satisfaction level, Faichi Solutions is a technology company that specializes in outsourced product development services and open source development. It was founded on the premise “most outsourcing services companies don’t understand products and its development lifecycle”.

Our intent is to have organizations realize 100% of value when they enter an outsourcing contract with us because we believe at the end of the day, you don’t buy an outsourcing relationship; rather it is something you develop over a period of time.


Outsourced Product Development
Product Engineering

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