NEXT Biometrics has outsourced its software development to GlobalLogic. The news comes courtesy of CEO Peter Heuman, who shared the rationale behind the decision in the second in a series of Insight posts on the company’s blog.
In the post, Heuman explained that NEXT had been handling all of its software development in-house when he arrived. Unfortunately, the revenues that the company was generating at the time did not justify the high cost of doing so. Outsourcing software responsibilities to a software specialist like GlobalLogic has allowed NEXT to focus on its core competencies, including its patented thermal sensor technology.
GlobalLogic officially took over NEXT’s software development responsibilities on July 1, 2020, following a knowledge transfer process that took several months. The Silicon Valley-based company has software hubs all over the world, and has previously collaborated with other biometric providers to create solutions for smartphones, PCs, and other devices.
That experience was a major factor in NEXT’s decision. Heuman is hoping that the renewed focus will make NEXT more cost-efficient, and make it easier to scale as its core business grows.
Heuman took over as NEXT CEO on September 16, 2019. The company has since announced several cost-saving measures to reduce annual operating expenses by as much as $6.2 million, despite a slight revenue increase in the first quarter of the year.
The GlobalLogic decision would seem to be in keeping with those restructuring efforts. In the meantime, NEXT has received a $1 million loan through the COVID-19 relief program in the US.
September 15, 2020 – by Eric Weiss