Nagarro Inc

Nagarro Helps Software Startups Avoid Costly Errors in Outsourced Product Development


San Jose, CA -- (SBWIRE) -- 05/20/2009 -- Nagarro a provider of specialized outsourced software development services for highly complex markets, will exhibit at TiECon May 15-16, 2009 in Santa Clara, Calif. to share best practices from its “Outsourced Product Development Starter Kit.” Nagarro enables software startups gain competitive advantage by bringing high-quality, well-designed software products to market quickly and efficiently. The company’s CEO, Vikas Sehgal, will be at Nagarro’s booth (#302) to talk to startups about how to avoid many of the costly errors commonly made when selecting an outsourcing partner.

The Most Common – and Most Costly – Outsourcing Errors:

Nagarro has talked to hundreds of software startups since it was founded in 1996, and has been working closely with its startup customers to help them avoid costly errors in their outsourced product development initiatives. Some of the most common mistakes include:

• Over-emphasis on pricing or hourly wages
Many startups fail to calculate the hidden costs of lower-skilled workers, such as coding and project management errors, higher labor costs associated with rework, delays in final product release leading to lost sales opportunities, and more after-sale support requirements due to product bugs and defects.

• Failing to clearly define all deliverables and include them in the project costs
Deployment, documentation, training, knowledge transfer, performance reliability testing and many other factors can add up quickly if not taken into consideration early on.

• Relying on engineering or graphic design to ensure usability
Usability is a separate, specialized function that can make or break a product’s success, yet many startups treat is as an afterthought.

• Handing too much control over to an outsourcing partner
Internal technology leadership should ensure that the design decisions made during outsourced product development are in line with the company’s long-term vision for the product.

• Falling for “bait and switch” staffing tricks
It is essential to check credentials of all team members to avoid ending up with a lower-skilled team than anticipated.

• Treating outsourcing firms purely as vendors rather than as strategic partners
This lack of alignment translates to a disengaged team working toward a project completion date – rather than a motivated partner driving toward a shared business goal.

Nagarro Helps Startups Get Outsourcing Right on the First Try:

• Nagarro’s “Outsourced Product Development Starter Kit” contains a detailed Q&A on managing distributed projects, information on properly evaluating vendors according to commonly accepted standards and an eight-part outsourcing partner evaluation scorecard. Using Nagarro’s methodology, startups can assess overall costs – and weigh the benefits of avoiding errors and delays – by rating outsourcing partners on key metrics.
• Nagarro developed the “Outsourced Product Development Starter Kit” based on its expertise in working with dozens of software startups in the U.S. and Europe. Nagarro provides software product development with core expertise in most established and emerging software development platforms.
• Unlike other outsourced product development firms, every Nagarro customer receives strategic management input to ensure core business goals are met; the benefits of Nagarro’s deep domain expertise in multiple industries; specialized engineers from the world’s most elite universities; and proven project management methodologies and tools for every customer engagement.

“For software startups, outsourcing some or all product development has become a fairly standard expectation. However, many software startups tend to put too much emphasis on pricing and hourly wages without taking the quality of work into consideration. Correcting programming errors can lead to higher than expected labor costs, and, more significantly, delay time to market. Nagarro’s aim is to help startups get outsourcing right on the first try.”
- Vikas Sehgal, President & CEO, Nagarro Inc.

“At Global E-Sourcing, we rely on Nagarro for our highest-value software development projects. Nagarro has consistently delivered on client service, availability of talent resources and superior quality work.”
- Jim Guzdziol, CEO, Global E-Sourcing

“We chose Nagarro because we needed a strategic partner with world-class technical skills to work alongside our growing development team and serve as a model for best practices. We evaluated several companies, and found Nagarro to be the most flexible, well-organized and trustworthy.”
- Jonathan Ross, CEO, CSI Software

Additional Resources: Library/WhitepaperDetail.aspx?id=53 [Nagarro Whitepaper: Outsourcing Software Development Starter Kit] [Nagarro Blog]

About Nagarro, Inc.
Nagarro finds innovative solutions for the highest-value and most time-critical outsourced software development challenges of its clients worldwide. With its software product engineering and application development services, Nagarro offers a unique combination of strategic guidance, domain knowledge, specialized technical skills and proven project management methodologies. Software startups, midsize enterprises and large enterprises use Nagarro to gain competitive advantage and meet critical business requirements. Founded in 1996, Nagarro offers onsite, hybrid and offshore software development models and has offices in the US, Germany, Sweden and India. For more information, please visit or call 408-436-6170.