Contract Loopholes: How To Avoid Mistake In Software Outsourcing?

how to avoid contract loopholes in IT outsourcing

3 Most Popular Types Of Outsourcing Contracts

Fixed Price Contract

  • Perfect solution for short-term projects
  • Consumer and vendor agree on a steady ‘fixed price’ for the service
  • The price is estimated by outsourcing company based on the well-defined scopes
  • However, there is little flexibility under this contract

Time & Materials Contract

  • Ideal for long-term cooperation
  • The customer pays the outsourcing partner for work time and used materials
  • On the other hand, it allows a great level of flexibility in development

Dedicated Team Contract

  • Usually used for long-term projects with changeable conditions and scale
  • The whole team is in one place, no delays to begin, no misunderstanding and cost savings
  • Being highly motivated, offshore developers quickly react to any issues and changes

How To Avoid Contract Loopholes In Software Outsourcing?

Estimate Overall Cost

Put Enough Emphasis On Security

  • Are the outsourcing company’s services compliant with good data protection?
  • What are the security measures in place to prevent abuse of data?

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AgileTech Vietnam

AgileTech Vietnam

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A quality outsourcing/offshoring company in Website/Mobile Apps, Blockchain services, AI - big data services. Visit our website: https://agiletech.vn