Mitigating Scope Creep with Offshore Development Teams: A Guide for US Companies.
Outsourcing software development to offshore vendors has become an increasingly common tactic among US companies trying to reduce costs, tap into global talent, and work around-the-clock. Yet, one of the most consistent hurdles that companies run into with this model is the plague that is scope creep. Scope creep occurs when project objectives and deliverables gradually expand without a commensurate increase in resources or time, causing budget explosions, delayed timelines, and potentially distrust in the client-vendor dynamic. In particular, this article will cover strategies to reduce scope creep while working with offshore development teams, developed from an arsenal of industry best practices and expert insights.
Understanding Scope Creep
Scope creep is a huge problem – it means when new functions, features, requirements, or tasks are added to the project without the corresponding increases to time, budget, or resources. The reasons for this may vary, such as:
– Deficient Initial Requirements: When the project requirements are not well stipulated from the beginning, there is a space for doubts and follow-up demand.
– Changing Needs From Clients: Sometimes as the project progresses, clients may want something different or realize they need more functionality.
– Poor Communication: Misunderstandings or miscommunications can occur between the client and the development team.
– Inefficient Change Management: Without an effective change management strategy, the simplest change request can become much greater than the original scope of the project.
Controlling Scope Creep
Step 1: Define Your Project Requirements in Relevant Detail
At the heart of every successful project is the definition of clear, detailed requirements. It includes:
– Conducting exhaustive requirement gathering sessions with all stakeholders.
– Drafting a comprehensive project scope that lists all deliverables, timelines, and expectations.
– Using user stories, use cases, wireframes to visualize requirements and make them clear.
The Project Management Institute advises that defining your requirements is a powerful tool against scope creep. Open-ended creep causes many problems, and the defined answer is a great frame to measure the project by.
Step 2: Establish Clear Communication Channels
Effective communication is important while working with offshore teams as geographical and cultural nuances can make interventions slightly challenging. This includes:
– Setting up regular meetings via video conferencing apps like Zoom, Microsoft Teams.
– Using collaboration platforms like Slack, Asana, or Jira to keep everyone up to date.
– Making sure that communication is tracked and in a place where it can be reviewed quickly.
In one study by Deloitte, clear communication was highlighted as a key success factor in offshore projects.
Step 3: Create a Strong Change Management Process
All projects go through some level of change, but controlling it successfully is necessary to avoid any form of scope creep. This includes:
– Creation of a change request process where all changes are documented, reviewed, and approved by all stakeholders.
– Evaluating how changes may affect scope, time, budget of the project before implementing them.
– Clearly communicating the changes with all our team and updating our project documentation.
The importance of a structured change management process in managing scope creep has been highlighted by The International Journal of Project Management.
Step 4: Use Agile Methodologies (Scrum, Kanban, etc.)
Agile methodologies (Scrum or Kanban) encourage adaptability and incremental work advancements and hence provide an upper hand to handle any changes made to project scope in a better manner. Advantages include:
– Modularizing the project in terms of the sprints also known as iterations.
– Providing periodic inspection and feedback, for changes to be at a slower pace.
– Prioritizing features and items so the test team can concentrate first on the most important parts.
Agile projects have less scope creep, according to research performed by VersionOne.
Step 5: Manage Expectations from the Get-Go
One of the most important things you can do for clients is to manage their expectations from the outset. You can do this by:
– Providing project plans and timelines.
– Defining what can be done given only 24 hours in a day, tight budget, and limited resources.
– Keeping clients posted on progress and any problems.
According to a report by McKinsey, clear and prescribed expectations can deliver substantial risk-mitigation against scope creep.
Step 6: Monitoring and Tracking Progress
Onsite monitoring and tracking of project progress helps in recognizing any scope creep at an initial stage. Tools and techniques include:
– Managing tools like Trello or Asana or Jira for tracking these tasks and milestones.
– Organizing weekly status calls to discuss progress and troubleshoot any potential missteps.
– Creating KPIs to track progress on a project.
Scope creep was observed least in projects that leverage long-standing tracking and monitoring processes, according to research by Standish Group.
Step 7: Create Team Collaborations
Having a good team relationship with the team offshore can help you make them understand and collaborate. This includes:
– Encouraging open communication and feedback.
– Understanding and dealing with culture.
– Spending money on team activities in hopes of trust and bonding.
According to a Gartner study, the single most effective risk mitigation to scope creep is strong team dynamics and collaboration.
Case Study: Quashing Scope Creep
A US software company decided to outsource development of its new mobile app to an offshore team in Vietnam. Having followed the strategies mentioned earlier, they effectively managed to control the scope creep:
– Detailed Requirements: They went through a detailed requirements gathering phase by involving all the stakeholders to avoid any ambiguity and alignment.
– Communication: Regular video calls, a single PM tool for the entire project, and clear documentation.
– Change Management: A separate formal change request process was set up, and each change was evaluated for its possible impact on the project.
– Agile Methodology: Sprints were planned for every two weeks for completing the project in milestones, so if anything went wrong, it could be reviewed and updated sooner.
– Realistic Expectations: The client was made aware of when items would be delivered, how long the process would take, and timelines were met.
– Monitoring and Tracking: Project management software was used to identify any issues early on.
– Work Environment: Team-building and cultural sessions helped the project meet the client’s scope, delivered on time and within budget.
Conclusion
Now, mitigating scope creep is still going to be a huge challenge when you work with offshore development teams, but it is not harder to overcome. By properly scoping projects, establishing strict communication paths, executing proactive change management, utilizing Agile, setting realistic goals, monitoring velocity, and promoting a collaborative teaming environment, US companies can effectively plan on and control for the occurrence of scope creep. They help in delivering projects on schedule and budget and improving the client-vendor relationship throughout, producing a positive outsourcing experience.
References
1. Project Management Institute. (2021). PMBOK — Project Management Body of Knowledge.
2. Deloitte. (2020). Global Outsourcing Survey.
3. International Journal of Project Management (2019). Change Management in a Project.
4. VersionOne. (2020). State of Agile Report.
5. McKinsey & Company. (2021). Why Client Expectation Management is Essential.
6. Standish Group. (2021). CHAOS Report.
7. Gartner. (2020). Team Dynamics and Collaboration in Project Management.