We all know that outsourcing as a trend is gaining a larger and a larger popularity. More and more companies choose to outsource their software development needs and in 2018, the percentage of the total IT budget being spent on outsourcing rose from 10.6% in 2017 to 11.9%. Although IT Outsourcing has its many benefits, we should also keep in mind that one in six IT outsourcing projects has cost over runs of 200%. In order to be prepared when we choose to outsource our development needs, we need to follow the best practices in the industry and also to avoid the most common mistakes. Let’s see know which these mistakes are.
1. Lack of Clarity
When you fail to define the project clearly, there are big chances that your project will fail. Many times, this mistake comes from misunderstanding the projects scope. Define your project clearly and make sure that your chosen outsourcing company has understood exactly what you are asking. A clearly defined project leads to a more accurate estimation of costs and needed skills.
2. Not Looking at Previous Work Samples Before Hiring
Ask for work samples and references. Have they done projects like yours? Is their experience suitable for the type of project you want to outsource? Were their previous clients happy with their work? Are some of them still their clients? Do they recommend them? Consider also the years the company has in the field.
3. Expecting everyone working on your project to adopt your culture
The team you choose to outsource your project to, will try to adapt to your situation at all times, but it’s important to recognize and embrace differences. People are different. Culture, work ethics, time constraints and language barriers are all contributing factors to your project’s success. Try to be flexible, understand others and invest in training.
4. Leaving all the work to the contractor
Never forget that it is your project. Even though you choose to outsource the entire project, you always must bear in mind that the outsourcing team will usually perform their duties according to the contract. Your continuous involvement is absolutely necessary. You should also make sure that your outsourcing team will put some effort in training your in-house specialists to use the systems they provide, or provide some advice on their improvement.
5. Failing to communicate
Having a seamless communication with the company that is developing your project is utterly important. Pay attention to how they communicate, make sure that the team speaks your language, check the systems and procedures they have in place. Make sure they understand your requirements and they make recommendations based on your business demands. Communicate from the very beginning your requirements and expectations, let your new team know that they can communicate freely with you, provide them with a platform where the communication can stay open, implement a meeting schedule and stick to it.
6. Collaborate Across Time Zones
There are many ways to outsource and the different types of outsourcing are related to time zones. More about the differences in this article about the different types of outsourcing. It’s not a bad practice to outsource in a different time zone, but, if the project requires detailed collaboration then it’s not the right choice. Your team will also thank you for not making them work night shifts. Also, language and cultural barriers represent an additional problem, also related to the time zone.
Conclusion
Before deciding to outsource your project, make sure that your partner has experience in projects and services like the ones you wish to outsource, make sure he understands your business objectives and keep communication open. Choosing to outsource is not easy, choosing the right partner to do the job is not an easy task as well, but when done for the good reasons, outsourcing can help you streamline your business operations and take your business to the next level.
Choose Arnia for your IT outsourcing project.
With hundreds of successfully completed projects for clients ranging from Fortune 500 to Forbes 50, spanning on 3 continents and more than 10 countries we can offer excellent software development opportunities for your business. Our services cover web and mobile applications, web design, big data solutions, database management systems, e-commerce solutions, cloud-enabled solutions, content management solutions, business intelligence and R&D.