After the COVID Pandemic, Outsourcing has become the new normal. Businesses irrespective of their size, industry vertical, are found trending towards the concept of outsourcing. As a result more and more software development companies have figured out a way to empower businesses and enterprises across the nation through their IT outsourcing development services. All these years, IT outsourcing has been a buzzword for decades but not anymore especially after 2019’s massive hit. I might be quite surprised if you have not even heard regarding outsourcing tips and tricks over a thousand times. However, you can be unsure whether or not it is the right option.
Table of Content
- About Outsourcing
- Smart Outsourcing Tips to Make a Better Hiring Decision
- So this is It!
1. About Outsourcing
Imagine, it’s 12 pm and your entire business IT network crashes. Sounds like one of the worst nightmares, right? I mean an entire day of work is delayed and interrupted by this technical issue. Fortunately, we have outsourcing to the rescue. Outsourcing is a business practise in which services, some part of product development process or job functions are farmed out to a third party outsourcing partner.
Businesses tend to outsource their IT and business processes third party because it’s way cheaper than having your own in-house team. Outsourcing gives access to highly trained professionals and experienced managers. In fact, keep reading to learn all of the ins and outs of outsourcing IT services and some crucial outsourcing tips to make a better hiring decision.
1.1 Some of the Crucial Outsourcing Benefits Include:
- Lower outsourcing costs
- Increased efficiency
- Variable Capacity
- Increased focus on strategy/core competencies
- Access to so many skilled engineers or resources
- Increased flexibility to meet changing business and commercial conditions
- Accelerate time to market
- Lower ongoing investment
- Access to so innovation, intellectual property, and thought leadership
- Cash influx resulting from transfer of assets to the new provider
Moving on! Let us focus on certain tips to hire an IT outsourcing company. But before that, you need to read these factors regarding IT outsourcing!
1. Security – Before you pick an outsourcing service provider, you need to determine how much information you are comfortable providing to the IT resource.
Almost all IT services require to receive sensitive information pertaining to your business’s security and data, so you should also get a clear idea of how the IT resource will protect your information. You should get this in writing and regularly make sure that the IT support company is upholding its promise.
2. Operational Control – Remember, when you outsource IT tasks, you may find that you lose a portion or much of the operational control your company has over certain business operations.
For example, if you hire an IT outsourcing vendor company to offer customer telecommunication services, you may feel as if you have little to no say over how the outsourced team is speaking to your clients. It is extremely important to determine how much control and governance you want to maintain regarding the operations you will be outsourcing and then make this clear with the company or contractor you hire.
3. Communication Barriers – Most of the IT outsourcing agency especially the ones that fit your budget will be located overseas. This means there could be language barriers as well as different time zones and cultures to consider. By going into the relationship with your IT support company open-minded and willing to work through all barriers, you can establish clear agreements and solutions to overcome most communication or other issues that may arise.
So these were the benefits of Hiring IT Outsourcing Company. Now it’s time to consider tips and tricks that will result in better hiring decisions.
2. Smart Outsourcing Tips to Make a Better Hiring Decision
These outsourcing tips and practices will hopefully save you time and energy and shield your business from the sort of mistakes that could bring your efforts undone.
2.1 Outsource the Right Activities
IT Outsourcing has become pretty common these days but that doesn’t mean you have to take it lightly. One wrong step or one wrong decision can wreck you to a great extent. So be very careful that you do not end up giving up your company’s competitive advantage.
Retain control over aspects that make you unique or define your business. If you’re already a leader in price or service levels in an area, don’t outsource it. While you need to have a good grasp on an element to be able to effectively manage it, it’s important not to change the parts of your company customers appreciate the most.
Now you think for every high demand, you need to outsource. If yes, then make sure to choose IT outsourcing service providers who are already performing well makes sense. As you don’t need to spend extra time in training newcomers.
On and all, don’t allow any department of your company to moan that they just don’t have time to keep up with all the work?
2.2 Reduced Labor Costs and Overhead Expenses
Most small business companies will agree with the fact that hiring or training staff could be expensive at times. Cost is an important factor in any outsourcing decision. But when you outsource, you end up converting fixed labour costs into variable costs, meaning you only pay for the services you consume. This gives you staffing flexibility that just doesn’t exist with in-house employees.
With outsourcing, you can tailor your service consumption to your needs. You only pay for what you use and can seamlessly scale your consumption when business picks up or slows down.
It’s like you only pay for the service you consume but retain the reliability of a dedicated employee. This could create massive savings!
2.3 Outsource to a Company that Relates to the Corporate Culture
Companies these days often outsource keeping budget in mind and neglect the fact that offshore teams might have a completely different corporate and social culture.
Every company has a different work ethic and culture. So, it is important to value their culture to build successful relationships. Always look for an IT outsourcing company that is fluent in English.
When you have shortlisted a few companies, make sure you have a close look at their culture. If the offshore team doesn’t have good work ethics, they’ve got to go!
Never work with an offshore team that is extremely demanding. This is because it results in employees that either do the bare minimum or completely disregard projects.
2.4 Pick the Right Help
Of course selecting vendors or tech partners is a time-consuming process. So you need to end up choosing the one that fits you best. It is also quite normal to resist picking the first party you contact.
Even if they end up being the right decision, take the time to compare and contrast their strengths with other providers. Also, spend time shopping around on outsourcing sites. Choose a company that specializes in just what you need – you want their strengths to line up with your goals.
Apart from these, there are several factors to keep in mind when choosing who to start dealing with. Of course, a quality product and great price will factor into your decision, but that isn’t all that’s important. Has the provider shown consistent improvement during its time doing business? Are they well-established in their field? You’ll want to take experience, location, flexibility, tax laws and language or cultural barriers into account.
2.5 Communication & Collaboration Capabilities
This is one of the best outsourcing tips I have come across! You know one of the core aspect of a successful outsourcing venture? It’s when you are able to communicate keeping transparency in mind. So make sure you have a clear plan in place. You and your outsourcing company should identify primary and secondary points of contact for different areas of the operations for seamless collaboration.
Once you start outsourcing, you will see that daily iteration are pretty difficult to manage of course, due to time differences. Hence, agile communication and continuous collaboration becomes an essential element in your business relationship and will ensure that your projects remain on track.
Depending on the time duration of the project, the daily or weekly status of the project depicts real progress so taking feedback is also important.
In addition to this, there should be clearly defined escalation processes as well.
2.6 Consider Reviews and Feedback
In today’s digital era, You may be hiring a contractor on a website that lets you view other users’ feedback or reviews. Read these carefully, and take them into account when weighing one contractor against another. If a member with a substantial amount of positive feedback will be a bit more expensive than a member with negative or no feedback, it’s probably worth it.
In other situations, the best reviews come from other business people or your friends. Ask them if they’ve had experience with any companies in the area you need. They may have tried-and-true suggestions that will make the whole process easier.
3. So this is It!
I hope the following post serves you right and assists you in focusing on increasing productivity, quality and reducing outsourcing costs. After all, that’s the point?