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Five Steps to Create Your Software Product with Outsourcing

By Steve Mezak

By Steve Mezak Many executives and investors are skeptical that software products can be developed using outsourcing. Even more skepticism is expressed at the idea of outsourcing version 1.0 of a product. Yet Accelerance clients are using outsourcing to create their products right now. What is the secret to using outsourcing to successfully develop a software product?

Many people believe outsourcing is useless when you are in the Fuzzy Front End - that fuzzy zone between when a market opportunity is known and when serious software development can begin. They think you need to slog through the Fuzzy Front End by coding a prototype of your product. If so, you need the development team here, not several oceans away.

Another false assumption is that you need to write a comprehensive specification for your software during the Fuzzy Front End. Many companies use a very formal product definition process, optimized to remove as much "fuzz" as possible. How long should it take to design a software product before development can begin?

Obviously time is of the essence when developing a new product, but before the development process can begin you must have some idea of what your software will do. It is best to find this out from your prospective customers. But how can you involve your customers early and often in a collaborative process, when both of you are not sure of what they need or want? And what does that have to do with outsourcing?

According to Steve Blank, founder of several software startups and now lecturer at the Haas School of Business at Berkeley, you don't need a product development process. You need a customer development process. You need a process to discover what ornery problem your potential customers have that will cause them to part with their hard-earned money to solve that problem by buying your software.

The first step of Blank's customer development process is Customer Discovery. Here are his steps of customer discovery:

Create a product (or product demo)
Meet with customers and answer these four questions of customer discovery:  
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