In the world of IT development, data protection is a top priority.   Data faces many of the same risks when sent to a global sourcing provider as it does when kept in-house.  Intellectual property is one of the greatest assets an organization can possess and proper security measures should always be implemented to protect it.  Problems with security can be avoided when an outsourcing company takes precautionary steps before sending work to a global sourcing provider.

When searching for a vendor, there are certain criteria that are considered when choosing a company.  One of the main factors that should be included in the decision process is the vendor’s data security policies.  There should be clear, enforceable policies in place and the access controls should be identified.  Many of the larger vendors will have certifications showing that information security practices are upheld.   Some firms will have obtained the ISO 27001 certification, which means the company documents and follows information security practices and controls.

It is important to find out how the vendor enforces access controls and how these controls are updated when employees change jobs or leave the company.  Some vendors will offer to provide development on a dedicated data server, which will include audit control access. Once a vendor is chosen, IT managers must make sure the company follows the outsourcer’s industry best practices and compliance guidelines of the home country.

Whatever policies and access controls that are discussed should be outlined in detail in the contract.  A signed non-disclosure agreement, non-compete agreement and no solicitation agreement can provide additional protection for the outsourcing company.  If a vendor refuses to include data protection information in the contract, it would be wise to consider a different global sourcing provider.  Even after the initial terms are agreed upon and the contracts are signed, an outsourcing company should perform regular audits to ensure that data privacy policies are being followed and enforced.

Only the information that is crucial to the project should be shared with the global sourcing provider.  The outsourcing company will have to carefully evaluate the propriety data and technology that are needed to successfully develop the outsourced projects.  In-house employees should be aware of what information is acceptable to share when talking with the global sourcing provider.

By being aware of the potential challenges associated with data protection and taking preventative steps, an outsourcing company can reduce the associated risks.  A&E Consulting can help you evaluate data protection issues when global sourcing and will oversee the first outsourced project. 

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Quality assurance is crucial with IT development.  Even the most knowledgeable, experienced developers can create code that has errors or “bugs.”   If a defect is not detected until the point of construction or maintenance, it can cost the company significantly more to fix it than it would have cost during the initial creation process.  Companies involved in IT development generally have a system for quality assurance. When IT managers decide to global source part of the development, they need to ensure that the vendor has similar quality assurance testing in place. 

Quality assurance testing will confirm that all functionality, security and scalability issues have been addressed based upon the system requirements.  This testing should be done for every process that is developed through global sourcing or in house.

The most common causes of code errors have to do with the IT vendor.  The vendor may have lacked its own quality assurance team or assumed the outsourcing company would handle quality assurance testing in house.  The project could have had a tight deadline and the vendor rushed through a quality assurance check or may have skipped it all together.  Vendors also may misunderstand the system requirements, which would lead to inadequate testing.  Whatever the reason, poor quality assurance can greatly impact a project.

Before signing a contract with a global sourcing provider, it is important to find out what type of quality assurance system has been established.  Is there a quality assurance team?  What processes are set up to correct code errors?  How is the software being tested and does it include the end-user experience?  Another key fact to uncover is whether the quality assurance testing done by the vendor is comparable to that of the outsourcing company.  Many vendors have quality assurance teams that work with the developers to test the software. 

It would be ideal for the global sourcing provider to conduct regular inspections of the software as it is developed.  Inspections can be done at every stage of the development process and can include technical peer reviews of software designs and implementations.  By conducting these inspections, schedule delays can be avoided and costs can be better controlled because problems would be detected early.

When choosing a global sourcing provider, take the time to review its quality assurance system.  By carefully evaluating a vendor’s quality assurance processes, outsourcing companies can avoid waiting until software is released to discover it has code errors.  A&E Consulting can help you choose a global sourcing provider and will oversee your first outsourced project.

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