This article provides insight into the general concepts you need to consider when preparing to engage in a contract to outsource product development (PD) - however, it is not intended to prescribe legal advice.  The concepts presented are general and may not cover all details or legal implications appropriate for all types of PD outsourcing efforts.  However, what is presented will allow you to start 'at the top' and drill-down to whatever level of detail is pertinent for your situation.  Then you can contact the appropriate agents (e.g., legal counsel, outsourcing professionals and representatives) to solidify your outsourcing program and legal contract.

The items discussed in this article are:

• What is PD?
• What is outsourcing?
• Why would you want to outsource PD?
• What is needed when outsourcing PD?
• How do you select a PD outsource partner?
• General requirements for a PD contract.
• Things to know - from experience.
• Conclusions.

What is PD?

Product development is an extensive course of business activity covering the planning and execution of taking a product (or marketable process or knowledge) from conception to market.  The route of PD starts at ideation and winds through product/market/business definition, product design, product and market development, validation and compliance, preparation for production and product support.  In this article PD includes the notions of New Product Development (NPD), old product improvements, existing product improvements, product updates and upgrades.