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Outsourcing application development and maintenance can have a number of benefits, such as the ability to gain access to headcount and expertise, as well as reducing costs and improving business processes. However, outsourcing also presents a number of unique challenges, as the IT department becomes responsible for managing a project that is partially or fully external to the organization. Building a solid governance model will help to ensure that application outsourcing projects are successful.
Strong Governance Leads to Success
A recent Info-Tech survey found that, regardless of the type of project being outsourced, strong governance emerged as the most important predictor of application outsourcing success. Success was defined as the ability to meet project objectives such as making resources available when required, speeding up project completion, and increasing end user satisfaction, while also encountering fewer project challenges.