Interviews

In-house or outsourced software?

by Mark Rowe

Mark Folmer, vice president, security industry, at the North American provider of workforce management software, Tracktik, offers a guide to the true costs of in-house software development versus an outsourced platform.

If you are a large security firm looking to elevate service quality and operational efficiency, what do you do? Automation is, for you, a given. With your resources, you may believe the obvious solution is to build your own custom-made workforce management software. Before you go down that road, take a moment to consider the magnitude and long term implications of the decision.

Dilemma

Some time ago, you adapted to the evolving landscape of the security industry by automating your security services business. Technology minimised the heavy lifting and human error of critical repeated processes. Your operation profited nicely. But now you want to take automation to the next level to better service your clients. You want to harness data to be even more efficient, make better decisions, and thus generate even better returns.

To reach this goal, you have to choose between developing in-house your own security workforce management software or licensing an outsourced solution specifically built for the security industry. That is your dilemma. To help you make a decision, the following guide will:

1. Provide food for thought regarding software development
2. Share hard-won lessons learned from two companies that took one direction and then switched
3. Offer helpful criteria for evaluating an outsourced platform; and
4. Share some facts regarding security workforce management software.

Organisations that opt to build their own system in-house seek a customised platform (that reflects their insight into the industry and all their specific requirements for doing business); ownership (a unique asset and the organisation reaps the rewards of total ownership); differentiation (a custom system differentiates the company from the competition); and control (organisations strive to control not only the end result but the development process, timelines, quality, and user experience).

Stages

Any organisation seeking to develop software efficiently has to guide the project through specific stages listed in the following pages. Based on our experience and numerous discussions with security providers, the table lists some of the considerations and questions to keep in mind at each stage.

Planning

Consider the cost and staffing needed to set up and maintain the perfect, just-for-you system. Consider what impact would over-customisation have? The offset of owning the asset is the burden of maintaining and ensuring it evolves with your needs, time, and technology innovations. Will it work? Assess the uncertainty and risk of such a major project: deliverables, timelines, and impact on client expectations. The way data is stored and secured is getting increasingly complex. Working with an external resource means you have someone to transfer that responsibility to, someone that is well versed in the subject.

Development

What does it take to build a team that can successfully run a workforce management platform? Think about System Analysts, Development, Quality Assurance, IT support. If you have started to invest, you may be tempted to continue putting money into the project in order not to lose what was spent. Consider that this can lead to a vicious circle of investment.

Client

One client we spoke to had to decide whether the company would invest further in its in-house development. He identified three main issues: development, operations/maintenance, and cost. After a thorough evaluation of the project and its potential, His company decided to use an external platform. This is what the company learned on their way to that decision.

The development stage was hobbled by both structural and staffing problems. The team discovered that poor coding at the foundation inhibited development. To remedy the problem, people tasked with innovating were assigned to fixing the bugs. Unfortunately, the quality of the fixes was questionable. Furthermore, key operating aspects were poorly evaluated. Development slowed. Finding the right staff was tough. Candidates had to be able to improve the system as well as have an in-depth understanding of the security sector. Unfamiliar with these needs, the developers created work that did not comply with industry regulations. Moreover, when experienced developers left the company, the firm had to restart the process of training new developers, which slowed project progress.

Since the developers did not fully grasp the complexities of the industry, making modifications took longer than expected. Initially scheduled at 18 months with three developers, the project took 36 months with five people. To keep up with industry standards, the company discovered it would have to hold onto staff for an extended period to update the system. When new features were implemented, they were often out-dated or did not meet industry standards. Instead of developing a permanent solution, the firm found itself on a treadmill of continuous investment to maintain and update a faulty system that was permanently trying to catch up to industry standards.

When making your decision, ask yourself whether your core business is security service delivery or software development and implementation.

About the firm

TrackTik software for security can simplify how you manage your workforce, streamline processes, and gain operational insight. Mobile and web-based, this suite of tools connects people in the field and clients to managers with real-time data. Live Dashboard displays key metrics. Visit www.tracktik.com.

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