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Application development outsourcing offers organizations potential cost benefits, an expansion of IT skills, and a higher level of flexibility with IT resourcing. However, outsourcing projects commonly run over budget, fall off-schedule, or deliver poor quality if the project is not properly prepared for and managed.
In order to adequately prepare for an application development outsourcing engagement, follow these four steps:
- Select the project.
- Choose the outsourcing method.
- Prepare internally.
- Negotiate the contract.