There are four situations where companies should strongly consider and investigate outsourcing the Requirements Center of Excellence (RCoE):
1. Growing very rapidly: Where a company is growing very quickly, increases in productivity translate into direct cost savings. Any improvement made in application time-to-market is critical to the organization. High growth companies can leverage the outsourcer to bring mature processes that simply could not be contemplated given the stress on the internal organization for growth.
2. Needing a dramatic productivity improvement: Certain circumstances just do not allow for patience and internal, organic change. Outsourcing can bring a more dramatic change in performance within a short time frame.
3. Gaining control of an existing development outsourcing relationship: For some organizations that have outsourced development overseas or domestically to a third-party there is both an uncomfortable relationship and a high cost to terminate the relationship and repatriate the skills. In this case, the RCoE serves to strengthen and focus the connection between the business and technology delivery organization. The win for the outsourcer is that more projects end up being completed, each project is completed faster, and client satisfaction rises. The benefit for the mutual client is that the total amount of useful development delivered for each dollar in expenditure rises dramatically while the company avoids the expense and hassle of internalizing the IT shop.
4. Maintaining regulatory compliance: The processes for requirements definition and management at a public company must be excellent or an audit will show a material defect. For companies that know their practices are weak, it is simply better to be proactive and look at outsourcing, than to have the board determine the existence of a gap and enforce statutory compliance.
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