Dark Energy Software Case Study
The case study revolves around Dark energy software company which is a Swedish SME involved in producing specialized software for engineering domain. The company produces mass market software and develops customer based software on a contract based basis. As many companies who have goals of territorial expansion and increased production at a minimal cost so that they maximize output dark energy resorts to outsourcing as a way of achieving its goal. They find Zamunda as their favorable company to hire its services. They had never been initially being involved in outsourcing and as a company this was the first engagement. Our case study tries to find the problem of lack of proper evaluation and the problems that comes with outsourcing of labor outside the company (Kurilova et al., 2019). Though the advantages are that they are cheap to hire that in house building software but the problem which is do they render credible services that are satisfactory to the market demands and the companies plans. The case study also addresses the concept of insourcing and the advantages that comes with insourcing. After parting ways with zamunda they resort to insourcing services from china. This starts by sending their best staff to china. Outsourcing is a good tactic in management in software acquisition but it should be keenly undertaken with series of evaluation about companies to outsource to and their services to avoid any challenges that may come up later.
Dark energy Software Company like other software companies has a mission of delivering outstanding services so that they can win the market favor. They also want to make profits so it is involved in outsourcing services from Zamunda in a fair and ad-hoc manner. This is because outsourcing allowed to offer services to a pool of inexpensive software developers which tempted dark energy who had problems in hiring developers in Sweden. Naïve cost comparisons were made and an agreement reached. Software’s were not attaining the qualities as expected. This was because of knowledge competence problems. The issue was addressed so that a solution is reached.
According to developers in Sweden the outsourced developers did not understand knowledge in coding conventions that dark energy was used to, they had lowly informed about in coding and had no good experience and competency to work with dark energy. Also, dark energy had skilled and work force which applied informal communication techniques during development process of the software and mutual adjustments eschewing other formal alternatives for achieving software development process as compared those from Zamunda who used to work under strict supervision and excessive use of documents exhaustively and definitively defining the software to be developed (Ensslin et al., 2020). This made people at dark any energy to feel that the high turnover of employees at the outsourcing vendor did not have time to acquire the needed skills in software development process. This lead to misunderstanding among the two companies because of the difference in the way of software development process. Zamunda were not reaching the quality that was aspired by dark energy due to poor skilled developing engineers who were less qualified and lack of good methodologists in carrying out duties.
It leads to the Zamunda team due to difference in coordination to come to Sweden. They easily adjusted to how services were being offered and adhered to provided standards. But the managers thought that performance related to software development was still insufficient. This led to termination of the ties. This clearly outlines the advantages and disadvantages of engaging in outsourcing. Though it is cheap and less supervision by the sourcing company it has its negative implications which Includes production of software’s that does not reach the specifications required and taking a lot of time in development or lack of clear goal and focus on the software they are developing. In the long run it results in the software crisis on the market were many poor or substandard software’s have flooded the market.
After deciding to terminate the outsourcing relationship in 2008 dark energy decided to expand its office in china making a switch to china an attractive decision to end the engagement with Zamunda. They now approached a new relationship differently after the fall apart with Zamunda by first sending their skilled engineers who acquired and incorporated Chinese skills in software development. Problem could now be solved onsite by expatriates, this lead to faster problem solving in case of a technical issue could accrue. Software development in china was advantageous such as access to a pool of qualified developers who were more effective. They were aimed at high skills and competence (Ensslin et al., 2020). By controlling employment contracts and retaining employees for long term ensures that company can gain a reasonable return in employee training. The employees are trained by Chinese trainers who offer highly qualified skills compared to those of Zamunda.
According to the case under study, I firmly recommend that companies should make a lot of research before outsourcing vendors. This is to avoid the problem that dark energy under went after making a decision to outsource Zamunda due to nervousness and a quick rush without making consultative measures in place. This is to ensure that the outsourced companies have the developers have a good understanding and highly skilled in software development. Market requirement and customer opinions should be considered before developing any software, this will ensure the software developed matches their requirements and their opinions should be considered to know what they exactly need on the market. Cost should not be always considered to hire services from vendors and other developers but also the level of the skills needed on the market should be clearly emphasized so that no mistakes are done in hiring. Direct involvement improved methods in controlling by qualified personnel’s are needed to ensure that improved services and ensuring the software’s to be developed attain the specifications required.
Ensslin, L., Mussi, C. C., Dutra, A., Ensslin, S. R., & Demetrio, S. N. (2020). Management support model for information technology outsourcing. Journal of Global Information Management (JGIM), 28(3), 123-147.
Kurilova, A., Lysenko, E., Pronkin, N., Mukhin, K., & Syromyatnikov, D. (2019). The impact of strategic outsourcing on the interaction market in entrepreneurship education. Journal of Entrepreneurship Education, 22(4), 1-11.