How to Choose the Best IT Outsourcing Partner?

After the massive COVID Hit, outsourcing has become the new norm worldwide. People are no longer being territorial. In fact, more and more businesses have started choosing the less chosen path. Now the idea of outsourcing IT service can be quite scary and fascinating at times. As an individual you exactly know what needs to be done and how to manage things but when it comes to picking a partner, there are tons of things to keep in mind (which we will discuss later in the post) but before that let’s get on the basics of outsourcing partner.

Table of Content

  1. Outsourcing Partner – A Basic Intro!
  2. How Can a Tech Partner Be Beneficial For Your Business?
  3. Tips to Keep in Mind Before You Start Looking For Outsourcing Partner
  4. Conclusion

1. Outsourcing Partner – A Basic Intro!

Let’s say you are a startup or a high-level enterprise willing to capitalize on an opportunity and establish a market presence. So what’s stopping you?

  1. This could not be the best time to commence a business
  2. Due to COVID, unprecedented opportunities might come up that startups could not be able to capitalize on

So, is there something you could to have an edge over potential competitors in such a scenario? Choosing the right Outsourcing partner could be the masterstroke for a competitive advantage in the long run.

What’s More…

Outsourcing is all about creating a successful partnership. Choosing a company to outsource to is very different from choosing an ordinary supplier. You’re embarking on a long-term, contractual relationship, so take time to carefully examine potential service providers. Your outsourcing partner is expected to involve a range of operations, from the entirety of the IT function to discrete, easily defined components, such as disaster recovery, network services, software development or QA testing.

For a company to effectively outsource roles and responsibilities; it’s crucial to focus on the business partnership as much as the logistics. Outsourcing focuses more on managing relationships than service-level agreements and is a partnership, not a purchasing project. Today, businesses tend to outsource IT companies simply keeping the lower costs in mind. However, that’s not it!

Before we unveil other crucial benefits of outsourcing, let us take a bit of detour and get to know certain important terminology before choosing an outsourcing partner.

1.1 Outsourcing Terminologies

  • Software outsourcing – Software outsourcing is a practice in which a company delegates software development functions to a third-party vendor. The qualified software outsourcing vendor carries out the programming services and related functions by using in-house talents and resources.
  • Project Outsourcing – This is an approach where a client fully transfers the responsibility for the product of the vendor. Project outsourcing is more like delegating either just tech team management or software development and team management to a vendor.
  • Outsourcing Information Systems – This term of outsourcing means that the business delegates the data storing to a third-party vendor. A company can consider outsourcing information systems to reduce data storage costs and ensure data security. Data storage centers located in outsourcing destinations charge lower prices for managing, configuration, and actually storing data which makes outsourcing information systems one of the popular approaches in the tech sphere.
  • Outsource Staffing in IT Outsourcing – Outsource staffing in IT outsourcing for startup usually refers to practice when a company externally hires talents to fulfil some crucial functions. The main benefit of outsourcing staffing here is that a company can save on expenses without losing the high quality of work.

Now what are the most commonly outsourced services, you may ask? Web development, hosting, software and application development, website/application maintenance and management, technical support, database development and management, telecommunications, infrastructure and so more.

2. How Can a Tech Partner Be Beneficial For Your Business?

The countries of Eastern Europe are pretty famous for strong and experienced developers and talented designers, for our ability to think and share ideas and concepts to improve the overall customer’s strategy, for our flexibility and reliability. And countries like Ukraine, India, the Philippines, Vietnam are considered some of the best IT outsourcing destinations for the moment with dozens of powerful teams mostly offering a world of possibilities to a client:

2.1 Cost-Effective

Most outsourcing providers offer clients with strongly qualified teams including web and mobile developers, project managers, QA, DevOps (all you need to get a successful project) at a lower rate than in the US, UK, and Western Europe.

Paying for an outsourcing service reduces the cost of having an open vacancy, thus increasing productivity and, above all, potential revenue. In addition, a specialised company in the sector has the expertise required to improve the quality of the talent that is provided for the projects. In this way, the costs associated with staff rotation are also reduced. Likewise, at BETWEEN, we offer added benefits such as substitute technicians who cover periods of leave and holidays, which guarantees both the continuity of the service and the business’s productivity.

2.2 Customer-Centric Approach

There are times when business elements aren’t constrained by the contract made by the two parties. Human behavior also plays a crucial role here. The main objective is to have a customer-oriented approach so that the business relationship is not hampered. Even though the outsourcing service providers are tech gurus using the latest technology – the vital focus should be on customer service. Hence, they should be well acquainted with the technological knowledge of their customers so as to deliver them the services which they can understand well. Avoid an outsourcing partner who is tech-savvy but is not customer-centric in nature will hamper your business to a great deal. This point is equally applicable for insourcing as well. 

Read more at – Insourcing vs Outsourcing

2.3 High-End Productivity

Outsourcing a specialist who has relevant experience and expertise in developing a specific kind of product is the best thing to do. In fact, whatever team you choose make sure they do offer an advantage. In addition, they must be great in regards to performance.

Moreover, turning to the third party is a win-win decision when your IT specialist (or a team of specialists) has a high volume of work to perform. Outsourcing secondary tasks allows focusing on the essential objectives of a company as well, without getting distracted by small tasks, and, in addition, managing working time properly.

3. Tips to Keep in Mind Before You Start Looking For Outsourcing Partner

3.1 Define a Clear Scope of Work

First and foremost even before you start reaching out to a new and potential outsourcing partner, make sure you have a clear scope of work document at hand. Deciding upon your business goals is something that you must be responsible for. Sit back and think for a while, what is that your business needs the most? Are there any possible ways that can help you in achieving the desired outcomes?

There are several businessmen who find defining the scope too technical. So what needs to be done is ask a couple of questions to yourself.

  • What is your exact need?
  • Is there any best possible solution available for the current problem?

By answering these two simple questions, you will be able to identify the issue and will be able to discuss it with your team and create a relevant roadmap. Now many of you have this misconception that outsourcing is more kind of a plug and play proposition. Well, it’s actually not! It’s more kind of an approach a positive approach taken by your business for becoming successful.

Also, one shouldn’t expect an outsourcing partner to have the same familiarity as you of your business.

3.2 Check For Proven Track Records and Ask For References

Now, this is something that needs to be done by hook or by crook! Of course, you have to keep an eye on the potential outsourcing partner. After all, it’s your business you will be sharing; everything right from the clients to competitors, share all the crucial information with the partner.

There should be no room for any assumptions or goof-ups. You must be able to trust your outsourcing partner completely. And this can only be done by checking their previous works and contacting their clients. Find out more about the experience of your outsource partner, the different kinds of customers that they have provided services for and the number of projects that they have completed. Before finalizing on an outsource partner ask for references from your offshore partner.

Organizations by doing this can find more not just about the quality of their service but their working process such as do they offer timely deliveries or customer support services. . In addition, make sure that your outsourcing partner is financially secure, as this is a critical factor in business. And it turns out to be beneficial for you as well as your clients.

3.3 Offshore Partner’s Objectives

It is said that choose an outsourcing partner that matches your wavelength. Now how is that possible to determine, especially in one go? As a business, you need to check whether you and the other organization have the same objective. Check if your business aims and the business objectives of your outsourcing partner match with each other. Try to convey more about your organization, especially in regards to the business objectives. Also simultaneously, make sure that both the partners understand each other well. Understanding your outsourcing partner’s objectives can help you decide if that particular offshore partner is right for your business.

3.4 Infrastructure and Technology

It doesn’t matter whether you are a techie or not, you need to establish strong communication in such a way that the organization itself reveals about their infrastructure and technology. Also as their client, it’s your right to know.

God forbid, If the infrastructure, including hardware, software, and systems are not reliable, you’ll be in for a lot of frustration. Make sure that not only are infrastructure and technology in place but also that backup plans are ready to go in case of any technological breakdown outside of the outsourcer’s control.

In addition, do look around for crucial data security certifications, like those provided through ISO, and don’t be shy about getting the onsite security procedures and training protocol your provider uses. A reputable organization will be happy to show you how they ensure data privacy and keep your information safe.

3.5 Is There Any Cultural Compatibility?

Another crucial thing to consider when looking for tech partners is strong communication and cultural compatibility. Outsourcing partners or offshoring development companies can sometimes be an unnecessary barrier.

Ensure that the outsourcing partner that you choose speaks your language. Finding an outsource partner who can understand your language and communicate with you efficiently can help you understand their business objectives. Good communication can assure you about the outsourcing relationship. In addition to the communication considerations mentioned above, it is important to evaluate the geographical location factor: a huge time difference can make communications much more difficult and create delays.

3.6 Review Legal and Security Aspects

You must prioritize your initial discussions, so you understand the terms of the prospective agreement BEFORE going too deep into negotiations as a client for your project or product needs.

As a client, it is very important to ensure that your tech provider upholds high-end security standards that are on par with or better than what your business or industry is subject to. And speaking about security, priority; it must be given to the safety of the premises and the protection of the IP and source code.

3.7 Find Out If Your Outsourcing Partner Provides Post Development Support

Do you think outsourcing is a one-time process? Nope, it’s a never-ending process so before finalizing or even you began looking for companies around. Find out if your partner would provide your organization with support services, after the completion of a project. Post-development support from your partner can help you resolve any issues that you might be having after your project has been implemented.

4. Conclusion

So this is it! On and all, outsourcing is the most effective way to boost productivity and efficiency, if done correctly. Invest time upfront learning how to choose the right outsourcing partner, and you can ensure that the decision produces real, measurable results.

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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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