How to Hire an IT Outsourcing Company?

Every business around the world is expanding. The process of expansion has given a rise to globalization. In this digital era, every business is free to partner with every other and this process of collaboration is called Outsourcing. In simple terms, we call this process of engaging with a third party through a legal contract the process of outsourcing. Irrespective of domain, Outsourcing can be performed by all types of businesses from retail, eCommerce, manufacturing, and banking, or multiple other sectors. Specifically, if we talk about IT, IT outsourcing has skyrocketed in the past few years and has taken over the world like a storm. 

Outsourcing in IT has offered a collaborative platform for all businesses in the world to get connected via a single platform. Businesses tend to incline more towards an IT outsourcing company as a process of modernizing their business with the help of third-party companies. I know this thought has been mulling over in the minds of many business leaders why is IT outsourcing so popular within businesses. So, to bust this myth, let us start understanding the need for IT outsourcing? What types of needs are fulfilled with IT outsourcing and many more answers will be answered in this post. 

1. Why do Businesses Need IT Outsourcing?

With the evolving needs in the market, we see multiple businesses getting attracted to IT outsourcing. It has also become a common buzzword for businesses but they aren’t sure of its implications. So to answer this first let us understand what IT outsourcing is?

There is no specific definition of IT outsourcing but we can say that “IT outsourcing is a process of delegating work to a third-party business that is proficient in catering cutting-edge services with advanced infrastructural services technologies and an edge of competitive advantage”. 

Modern-day companies use IT outsourcing to help them execute one or more of their IT requirements for their business. When you outsource your information security activities, you’re paying third-party vendors or firms to perform the job instead of doing it in-house. Below are the most widely outsourced IT services. 

  • Custom Software outsourcing 
  • Infrastructure Outsourcing
  • Product development
  • eCommerce web app development
  • Web design & Web development 
  • iOS & Android Mobile app development
  • SEO management and SEO marketing
  • IT infrastructure support services
  • Web hosting

There are many ways businesses approach this method of outsourcing. If a business wants to outsource its software services then there are basically three major ways of doing it. Offshore outsourcing, nearshore, and onshore outsourcing services. But when do you think your business needs outsourcing is a million-dollar question?

2. When to Hire IT Outsourcing Provider?

Nowadays businesses around the globe know that if you want to advance your business then the only way is to collaborate. And now IT outsourcing has offered multiple ways to collaborate and get leveraged to the benefits of IT Outsourcing companies who are experts. Their specialization in certain domains can benefit your business to a large extent. 

The only way to get this done right is by contracting the right team of software developers. The right team of software developers can help you carve a successful path for your business. Today, it doesn’t matter whether you are contracting to a business located in your city or a different continent all that matters is how it can help you make your business stand out from the league. So why actually do we need IT outsourcing?

IT outsourcing can:

  • Help you focus on your core competencies
  • Enhance your existing business functionalities
  • Manage multiple business tasks simultaneously
  • Save on technology training and infrastructural costs
  • Reduce cost drastically
  • Drive gigantic enterprise changes

IT Outsourcing is capable of offering access to a specialized team of software developers, and technical mavens with hands-on latest infrastructural services. In 

3. How to Hire an IT Outsourcing Company?

It’s now time for businesses to do the most daunting task which is how to choose a company that best fits their needs. The process of IT outsourcing does not have a fixed path or a stepwise guide for businesses to choose an ideal outsourcing business partner. With our expertise in catering to the business, we have realized Outsourcing is a sure-shot solution for profitable results, We have served almost all domains from manufacturing, Financial Services, Healthcare, Life Sciences, Technology, Media & Telecomm. Outsourcing will get simpler with the right set of people, the right set of technology utilization, and finally right process execution.

Our Domain experts are skilled and experienced in developing IT or Software development services and have created a path that will guide businesses to make the right decision. With this, you can choose the perfect fit for your business needs. These are the 6 steps that we will be following in the process of choosing the right outsourcing partner.

3.1 Start by Communicating the Requirement

The initial step in the process of software outsourcing is to validate whether the chosen business would meet expectations or not? In the process of outsourcing, firstly you need to understand what is the capability of businesses. After analyzing their potency, we can now send our requirements to them. And they will analyze and address it as per their solution offerings.

3.2 Set a Standard Goal to Meet Expectations

If you don’t know what your business wants then it is a complicated process of outsourcing. Your business should know why are they outsourcing when we can do it in-house. Secondly, how will it positively impact your business? So when you outsource your business show them your desired benchmark. This will help the outsourcing company as well to deliver a qualitative and high-performing solution.

3.3 Select the Best Technology and Platform

Once you have communicated the standard expectations, now you can logically decide on the technology that would make the application robust and sustainable. Hence, as per the changing market dynamics decide on futuristic technology. We can later update it timely and can deliver the best results for your business.

3.4 Gauge the Expertise of your IT Outsourcing Company

Basically, this should be your primary step when deciding to choose an outsourcing partner. As one of the leading software outsourcing companies in India, we understand clients’ expectations, and how one application can make a difference. On contrary, if your business can visit the outsourcing companies’ websites, look at their portfolios and clients’ testimonies. Through this, you will get a better idea about IT outsourcing companies and their competency to develop leading-edge applications.

3.5 Financial Engagement Models

Before you decide to outsource, there are businesses that stick to a specific budget. Therefore it is very important for businesses to draw a plan before they outsource to a third-party company. Generally, all outsourcing businesses follow a fixed set of financial engagement models. We can further bifurcate this into three parts starting and all three are listed below:

1. Fixed Price Model– Here the client can set a fixed price and pay the same after the software solution is delivered to the client. This is apt for businesses with a limited budget.

2. Time and Material based Model-This model operates as per the time invested and the materials used. There is a periodic cycle where you can pay based on the decided price of materials and time added to the process.

3. Dedicated Development Team- Staff augmentation or dedicated development team means you can hire a set of resources as per your business needs and they will be dedicatedly working for your project all the time till the engagement lasts.

3.6 Security and NDA

We have been hearing multiple times about how businesses are unsure of outsourcing because of security reasons. There can be a data breach, confidential data misuse, or any other similar security reasons which prevent businesses from outsourcing. Software Agreements and NDA are the rescues to this problem. Creating an NDA or software agreement will protect both parties from any sort of future disputes.

4. Conclusion

From an aerial perspective, outsourcing may seem like a formidable task. Most businesses would not take this up for their business. The reasons are quite obvious security reasons, trust concerns, deteriorating quality issues, and many other similar issues. But, we can resolve this by switching to the right outsourcing partner. So, choosing the right partner will help your business accomplish its desired business results. There are a plethora of benefits that outsourcing promises to offer and to leverage that your business should take assistance from a trustworthy and reliable outsourcing partner. Now that you know how to hire the right partner, go ahead and boost your business graph.

Itesh Sharma

Itesh Sharma is core member of Sales Department at TatvaSoft. He has got more than 6 years of experience in handling the task related to Customer Management and Project Management. Apart from his profession he also has keen interest in sharing the insight on different methodologies of software development.


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    1. Sandra Cordova

      Thanks for the informative article. All the reasons explained here seem to be quite precise. Keep sharing such articles.

    2. Jimmie I. Worsham

      The article is good and explanatory. It helps non-techies like me to understand the importance of hiring an IT Outsourcing company. Thank you for sharing.

    3. Eileen D. Crow

      Agreeable post! I was pretty much confused regarding how to get the best IT outsourcing services from such websites. I am sure your post is pretty much of help especially in regards to diminishing the operating costs of my company.

    4. Greg V. Ferreira

      Hello Author, Thanks for writing this article. It equally helped me in planning my next outsourcing work. Keep Sharing more.

    5. Allen L. Cheatham

      The article has valuable content, which has helped me a lot in evaluating the hiring process of an IT outsourcing company. I think if anyone is looking for an IT outsourcing company, then he needs to go through your content for selecting the right IT outsourcing company. Thank you for sharing this information. keep posting!

    6. Megan R. Staples

      Nice and informative post! I wonder If I can get IT outsourcing services from these types of websites. It will definitely help me to reduce the operating costs of my company. Thank You for clarifying of all my queries through this blog. I am sure it will assist me well in hiring a perfect IT outsourcing company. Finally, I found something great! Thanks again, it’s a great post.

    7. Greg S. Bourque

      An excellent and detailed insight on hiring the It outsourcing websites. IT outsourcing is mainly done to diminish the cost. It helps the companies to save time as well as money by enabling them to focus on the core aspect of the business. It was helpful to me. Thanks for sharing.......

    8. Jody K. Wiseman

      Hi there, You have done a great job. I'll definitely dig it the process of hiring an IT outsourcing company you mentioned in the above article. I think it is going to help me a lot. I think you made an interesting point. It is very helpful for those including me who are planning to hire an It outsourcing company.

    9. Rebecca J. Mizrahi

      This was a very meaningful post, so informative and encouraging information about the hiring process to go through. Also, all the information mentioned is pretty crucial to adapt before you hire any It outsourcing company. Quite an informative blog post and great guidance. Thanks for sharing the awesome post.

    10. Thomas S. Hiatt

      Great Article! After reading this I think I will be able to make a decision on hiring an IT outsourcing company. All the points are well defined and the best part to read is the hiring process of its outsourcing company. All the points are explained precisely from the starting of the post till the conclusion. Very Very Helpful Post.