Software Partner Audit and Benchmarking

Benchmarking is one of those words that gets used a lot, often without much clarity as to what it means or its goal. Benchmarking allows a company to measure its performance or processes against other companies' best practices, usually within the same industry. The goal is to identify areas for improvement by understanding what good looks like and how to achieve it. 

Where and how do you start? You have to gather data and then compare/contrast the two entities. Most likely, you’ll be comparing a potential software development partner to general industry standards, to your own internal team or to previous partners… potentially some combination of the above. 

Start by taking a look at the following data. 

• Your Internal Practices: If you have a history of software development, critically analyze it. Document:
  • Coding standards and style guides used
  • Project management methodologies (Agile, Waterfall, etc.)
  • Tools used for testing, deployment, and version control
  • Key Performance Indicators (KPIs) tracked (e.g., defect rate, on-time delivery)
• Potential Partner's Practices: Request detailed information to compare about their:
  • Development philosophy and standard processes.
    Quality assurance protocols and code review mechanisms.
  • Communication channels and frequency preferences.
  • Tools and technologies they specialize in.

Note: If they show any reluctance to provide any of that information, that’s a huge red flag. A quality partner sourcing company will have done a lot of that legwork for you. 

Industry Standards

• Code Quality: Look into:
  • Guidelines from sources like OWASP (Open Web Application Security Project) for security best practices.
  • Language-specific style guides and linting tools for code clarity and maintainability.
• Development Methodologies: Become familiar with Agile, Scrum, Kanban, etc., and how they impact timelines and collaboration.
• Communication: Research expected norms for reporting, meeting frequency, and issue escalation within the industry.
• Project Timelines: Gather industry data on average project durations for projects of similar size and complexity.

Benchmarking Against Others

• Previous Partners: If you've outsourced before, analyze:
  • Their strengths and weaknesses across different areas.
  • Where communication or process breakdowns occurred.
  • Success metrics compared to your overall project goals.
• Internal Teams: If you have in-house capabilities, compare:
  • Costs of in-house development vs. outsourcing.
  • Timelines between internal and external development.
  • Capabilities in handling specific technologies or project types.

This in-depth benchmarking exercise helps you:

• Set Clear Expectations: Avoid misunderstandings by establishing concrete standards with your outsourcing partner.
• Measure Success Objectively: Data-driven evaluations of the partnership against your benchmarks.
• Continuous Improvement: Identify areas for optimization, whether in your internal processes or the partner's services.

Securing data and information within offshore development centers is paramount due to risks of data breaches, intellectual property theft, and compliance violations. These centers often handle sensitive corporate information, making them targets for cyber threats and malware. Implementing robust security measures such as encryption, access controls, and regular security audits is crucial. That may seem like common sense, but never assume that your ideas of exceptional security are the same as the partner you’re auditing. Make sure you are fully aware of all security measures that any potential outsourcing partner has in place and benchmark those carefully against industry best practices. This is not an area you want to inadvertently overlook. 

Do a deep dive into their procedures and policies: What firewalls are in place? Encryption levels? What are the rules for remote workers accessing sensitive data from home networks? 

Additionally, make sure they’ve established clear data protection policies and train all team members on security best practices.It’s in your best interest - and theirs. A best-in-class partner sourcing company will investigate physical and data security measures as part of its standard vetting practices. 

Future Planning and Documentation: Plans to document and solidify the discussed concepts into a structured format for future reference and implementation.

Use of Technology and Resources: Talks on utilizing resources effectively and ensuring they align with the company’s standards and policies.