Feasibility Studies and Software Development
Feasibility studies are conducted to assess the practicality of an idea or process; they help companies determine the usefulness of a future idea, project or system. These studies are generally performed before an idea launches to help determine the value and potential output. Decision-makers can evaluate the results based on areas of technical, economic, legal, operational, or scheduling/timing.
For development projects, feasibility studies are especially important, so that time and resources are not wasted on a potential project not fit for market. Instead of diving in and completing the development phase, a feasibility study can help predict whether or not the product will be useful for the target market. The study evaluates projects in multiple areas, and in the end, businesses receive a thorough assessment of the proposed project.
By and large, feasibility studies are conducted to help companies gain insight and understanding. When they are not performed accurately, the business can make uninformed decisions leading to failure or financial loss.
Moreover, feasibility studies must be performed correctly. Studies conducted without the proper equipment or time range can negatively affect results. Given that studies can cost anywhere from $15,000 to $60,000, internal researchers may try and cut corners to curb costs, which can hurt the results. Another option is to outsource feasibility studies for an unbiased result. Here are the reasons why outsourcing feasibility studies is a great choice.
Conducting research can be time-consuming, and one of the benefits of outsourcing is conserving time and increasing efficiency. Fundly, a donation platform, recommends that nonprofit organizations begin studies three to four months before the launch of a (fundraising) project. For busy professionals with other responsibilities, this time frame may be unrealistic.
For all industries, feasibility studies can take months, which internal teams might not have. By outsourcing these studies, however, decision-makers can ensure that researchers are fully committed to the project.
Utilize a Third-Party / Data-driven Company
While conducting feasibility studies in-house seems more economical, this may not always be the case. As with any study, bias is always a factor, but it is especially prevalent when the feasibility researcher is directly involved in the project. When considering outsourcing options, It’s best to employ third-parties that will not be affected by the study results.
Furthermore, it’s important that the study remain data-driven, which means capabilities the in-house team might not have. By outsourcing research to companies that specialize in data-driven projects, decision-makers are likely to have high-quality, usable results. Inaccurate data can skew results, not to mention if the overall data is not analyzed correctly, leading to a flawed study.
With technology in a state of flux, it can be challenging to keep up with the newest techniques and tools. As these tools advance, it can be expensive for technology and non-technology companies alike to invest in the latest and most effective platforms and applications to complete a comprehensive feasibility study. By outsourcing, companies can avoid hidden costs and ensure that research tools are up-to-date. With a set price, companies are aware of projected costs, so there are no additional surprises.
Overall, by outsourcing feasibility studies, enterprises can cut down on costs, eliminate internal biases and therefore, increase efficiency and accuracy. While recruiting in-house employees seems like a viable option, the costs can outweigh the benefits and disqualify results. Feasibility studies are designed to help avoid future issues, not cause them. When outsourced to data-based companies, executives are aware of general costs and the predicted time frame. There is value in feasibility study feedback, and companies will form a better understanding of their future projects.