Most Companies strive to develop and as per customer requirements and product exactly what customers want and when they want to. This also has to be done faster and cheaper than their competitors. Product development is can get complex given customers changing preferences and this has led to segmenting of many product categories.  Not surprisingly, then, studies have found that timely and reliable knowledge about customer preferences and requirements is the single most important area of information necessary for product development.

It has become necessary for all companies to phase out the old products and these end-of-life initiatives are often motivated by internal economic requirements like rebalancing resources in a product portfolio, reducing support costs, moving customers to the latest product version and removing products that can no longer pay for themselves. Product development services basically refer to engaging the services of a vendor to develop a software product and are the latest emerging trend in IT services. It is a target market for those companies who want to manage their lifecycle as a solution to a demand.

As product development is complex and unpredictable, it is necessary to be realistic. Activities like supplier delivery times, etc. cannot be directly controlled, it is therefore not reasonable to expect an outsourced service to control them any better than you can. Product development services can be a success only when the goals and the capabilities of the partner are understood. The first step to ensure compatibility is to understand what your short and long term goals are. Once these are agreed upon, the next thing is to select the development partner who will help you meet those goals. It is therefore essential to focus considerable effort on the quality interaction with the vendor. With communication being of vital importance, the service provider must fundamentally be able to communicate clearly and articulately, through both written and verbal means.

With the right service provider, organizations can build near-term capability, meet increased resource needs, reduce costs and bring a new development project perspective. Most of these service providers also offer product line management services that can provide opportunities to boost revenue growth. It undoubtedly makes good business sense to outsource either a complete or partial product development process.

By outsourcing product development services, companies can shorten time-to-market, increase number of releases, obtain additional expertise and put together additional resources thereby ensuring a successful revenue optimization.

Related links: Agile lifecycle management, Mobile application development

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