The CEO wants to outsource the development of a new software Rosetta Stone V3 product. But there is no specification. In this case Accelerance is acting as a virtual CTO, responsible for the design, and development of the client's software.The client is essentially saying, "Design the software for me, and I'll tell you if it matches what I am thinking." This can work because the cost of outsourcing is so low that rework and multiple design iterations are affordable.This type of arrangement only works when paying on a Time and Materials basis. There is no way to offer fixed pricing because the end product is not defined.Of course, not having a specification may not stop you from asking for a fixed price bid! In this case, you can outsource the creation of a specification that defines your software for a fixed price. Then the resulting complete design specification is used to create a second fixed price bid for writing your software.Another factor comes into play when you pay a fixed price amount for a software design specification. You usually have to pay at least half up front. This is to protect the outsourcing company from delivering a specification for creating the software and then not getting paid.Because software design often occurs at the beginning of a relationship, both parties seek to minimize their risk. You minimize your risk by selecting an outsourcing team with a proven Rosetta Stone Greek track record and great references. The outsourcing team reduces their risk by getting partial (sometimes full) payment before starting.There are multiple deliverables that should be produced during the design phase of creating your software, whether you do it yourself, or outsource the design:Marketing RequirementsStoryboard DemoFunctional SpecificationMultiple Release Milestone ScheduleDetailed Task Schedule for First ReleaseDetailed Design Specification (optional)Unfortunately, software development has not progressed to the point where ready-made modules are available to order and combined to create your software. There is not yet a menu of choices available to anyone that is hungry for new software. Instead, you must provide your own recipe for what you need. The good news is low cost outsourced software design and development resources are now available to create your custom software to meet your exact specifications. This will prevent the document from being passed around or distributed illegally since it can't be opened Rosetta Stone Portuguese V3 unless you are authorized.3. It should have some method to revoke or cancel access for refunded or fraudulent users.



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