There are dozens of things that can go wrong at any point in time during the development of your project. A good provider will go above and beyond to fix such issues if any arise. The truth is, however, that not all software development companies are good.
According to different estimates, from 25% to 50% of all clients will be faced with the need to terminate a contract or switch providers at some point during the lifespan of their project. There are many reasons for this, including constant delays with the project’s delivery, a lack of communication, or the inability of a vendor to meet the expected quality standards.
If you have faced a dishonest service provider, it is best to end your cooperation as soon as possible. Yet, to avoid doing even more harm to your project, you need a solid project transition plan to ensure that the project is smoothly transferred from one vendor to another.
In this article, we will delve into the nuances and phases of transition management and provide first-hand advice on how to switch providers with minimum risk to your business.
Why do you need an established IT transition management process? The challenges and risks of switching vendors
According to various sources, a successful project transition plan from one vendor to another can take 2-3 months. The more complex the project, the longer the transition will take. The current stage of the project’s development also has a significant impact on the duration of the project’s transition.
In addition to the time needed for the project transition plan, there are some other challenges a business owner should be aware of when switching providers:
- The past provider is unwilling to cooperate with the new one. Indeed, the company is not contractually obliged to support the incoming provider. So, in most cases you will need to act as a mediator, transferring the project knowledge from one part to another. Alternatively, you can put a monetary reward in place at the early phases of transition management to spark the interest of the leaving party to mitigate the loss of project knowledge.
- The transition of IP rights and dealing with confidential information. Upon the termination of the contract, the provider must transfer all assets. However, there is no way to verify if every one of the vendor’s employees deleted the files related to your project or not. The only thing you can do is to make sure there is a rock-solid NDA in place, so you can press charges in case of leaks.
- Service disruption. In the last weeks of project development, after you have announced your plans to terminate your cooperation, the vendor can reassign your development resources to another project, or developers themselves can lose motivation. There is little you can do about this. Just make sure to minimize the disruption for the most vital business processes.
Yes, switching providers can be a challenging, costly, and risky process. However, if you fail to do so, you can be stuck with an unreliable provider, leading to poor quality of the end product and even bigger delays.
To optimize the effort and navigate possible pitfalls of managing a smooth outsourcing transition, follow our 3-step guide.
A software development vendor transition plan: A step by step guide to a smooth project transition plan
As a product owner, there are many things you can do to facilitate a smooth project transition plan. Namely, we recommend following the three steps listed below during the early phases of transition management.
Make sure to understand the basics
Knowing the ins-and-outs of your product specifics is a must. So, if you haven’t gotten into the details yet, it is high time you do so!
What’s your tech stack? Which third-party integrations does your project use? Where is it hosted? If you hesitate to answer at least one of those questions, do ask your current development team to provide detailed information on the matter.
Develop the knowledge transition plan for software projects
A knowledge transition plan for software projects should cover the following sources of information:
- Project specifications. Regardless of the development stage that your software project, is at, collect and provide all available requirements to the new vendor. While the latest version of the specs is a must, initial project documentation (if you have any) would be a great source of background information and will help the new team understand what was going on with the project before.
- Code documentation. Well-documented source code can speed up the transition process and help the new team feel at home with your project. Read more about “best practices of code documentation” in our article (or at least make sure the comments and code docs are in English).
- Assets transfer. Be it mockups, design files, or other assets, your current team (the one you are leaving) should hand all of the project-related documents and files over to you. To avoid any misunderstanding, consult with the newly hired team about their requirements (e.g. file formats).
- Development credentials. To get their feet wet with your project, the new team needs access to your project’s repository, CI, task tracking system, etc. Thus, you might need to create new accounts and make sure to deactivate the old ones (more on that – later). The tools and credentials can vary depending on the type of project or tech stack, so better ask the new vendor to provide a list of required information.
- Deployment procedures. Deploying updates directly to the live application is a very dangerous move. Just to be safe, make sure the new team is aware of the specifics of your project’s deployment process, if any.
- Any other technical information relevant to the project that should be included into the onboarding documents for the new team.
Establish IP ownership
Usually, any work that is conducted by a software development company is considered a work for hire, which makes you a sole owner of all the intellectual property created by your contractor. However, you need to make sure that this message is clearly stated in the agreement.
Read more about code ownership and IP rights at Eastern Peak here.
To take full ownership of the product and keep your IP safe, you will need to ask your outgoing vendor to provide the list of accounts and access credentials to a number of tools and services where the project’s assets are stored or deployed. You will need to deactivate the old accounts (or change passwords) so that the old team no longer has access to your product. Otherwise your IP rights might be at risk.
According to a standard NDA, the provider should destroy all assets and information related to your project after the termination of the contract. Make that clear with the vendor you are leaving.
IT service transition checklist. Where to start?
Our team at Eastern Peak has vast experience helping business owners make the IT transition management process smooth and efficient. Thus, we have developed our own approach to this task. Our IT service transition checklist includes the following steps:
- Initial consultation. The project transition plan starts with understanding the project’s current stage of development, the main problems that were faced by the previous vendor, how those can be solved, and how to avoid similar issues in the future. We analyze the major transition risks, taking into account the vendor’s specifics, development stage, team size, etc.
- Transition process planning. At this point we cover all the steps that you should take to start the transition process (as described earlier in the article) and prepare all onboarding documents.
- Project review and recommendations. Before jumping into action, we carefully analyze the project’s assets delivered by our previous vendor and provide recommendations on their improvement. We also can help you choose a more efficient project management toolset and suggest ways to make your product even better. If there is any information lacking, we will tell you exactly what is needed. As a result, we will be able to start the onboarding process with your dedicated development team at Eastern Peak.
The above-described process runs under close supervision of experienced product managers and software architects. In this way, you can be sure that the transition is smooth and effortless.
If you are planning to switch your software development provider, don’t hesitate to get in touch. Book a free consultation now and let us handle the rest.