IT Outsourcing is becoming a more and more common practice and like with everything else the outcome can be very positive or quite disappointing. Especially if you have no experience in outsourcing, it might be intimidating where to start and what to do exactly. But even if you already have worked with remote teams for software development, there are always mishaps and failures bound to happen.
Read on to find out the most common IT outsourcing mistakes and how to prevent them.
You didn’t do enough market research
Hiring is always a risk so proper market research is crucial, especially when hiring a whole offshore team. Take the time to do your research, see what other companies are doing, look into the specifics of the IT market in different countries. This will help you estimate the eventual risks and opportunities.
You do not have clear vision and requirements
It does not matter how good your developers’ team is – if you do not provide the complete information and clear requirements for your project, the result can be disastrous. If you want to be satisfied, make sure that you state your expectations in the best way possible beforehand. Describe your ideas extensively and include all necessary details, and do not forget that timely communication is key for the successful delivery of your project.
Your selection process is not optimized
While doing your market research, you will eventually come to a selection of potential outsourcing candidates. Make sure that you have a clear plan and not only select companies based on the cost as it can lead to a failed project.
You hire workers from anywhere in the world
When hiring a remote developer team you can save significantly on costs. But you have to think carefully where you are outsourcing to – consider cultural differences, education background, specific experience, time zones. Everything can turn out to be a problem later and result in disappointment and unexpected expenses.
You do not pay attention to time difference and zones
This might or might not be a problem depending on your project. If you are looking for fast reactions, or if your in-house team is also working on the project, you will not want to have more than 4 hours of time difference. This way you will be able to plan and schedule accordingly and will be easier to have real-time meetings and conversations with your remote team.
You choose the biggest company there is
Bigger companies might come with an established name, a lot of experience, and great professionals on the team, but they also work on a lot of equally big projects so yours might not be their first priority. They might also be a lot pricier. Depending on the scope of your project, a smaller company might be the better choice where you will get the same quality of services at a more reasonable cost.
You do not judge the specific niche skills
When selecting the IT outsourcing company, look for specific experience in your niche. If a company has little experience or is specialized in a narrow field, this might mean that it will need more time to deliver results. Look at the previous cases in their portfolio to see if they have worked on projects similar to yours.
You do not have an Account Manager
As stated before, communication is key to a successful development project. To avoid any mishaps in communication, misunderstandings, and eventual delays, your remote team must have an Account Manager or a Project Manager with the necessary skills and knowledge.
There is no tech assistance on your end
Even if the remote team is going to be the one responsible for all the work on the project, there should not be a total absence of tech support on your end. Having your own IT specialist involved in the project will result in better communication and implementation.
You are outsourcing for the short turn
When IT outsourcing, you want your remote team to be fully dedicated – so treat them as part of your business, not as temporary workers. Choose a company with a reliable reputation and rich experience, so that you can continue working with them in the future.
You are outsourcing the wrong tasks
You might want to outsource as many activities and tasks as you can but this is not the best approach for successful IT outsourcing. Analyze your requirements, needs, and tasks, evaluate the pros and cons and consider what can be done in-house and what exactly needs to be outsourced.
Your in-house staff is skeptical and resistant
If you see some resistance or skepticism in your in-house IT team, make sure that you communicate with them clearly why outsourcing is the best decision in this particular situation. They might be worried for their position in the company, or that the results will not be good. In any way you want to have an open discussion to ensure that your in-house team is fully on board and supports the project.
You are ignoring personal and technical differences
When you are outsourcing, especially offshore, you will most likely be working with people from different cultural background which might include different business culture as well. In order to avoid negative effects on your outsourcing project, make sure to communicate clearly any sensitive topics and differences, include additional rules if necessary, and discuss all systems and technologies that are going to be used.
You are not being transparent
You need to protect your business, but without understanding of the processes and specifics of your organization, your remote team might not be able to meet your requirements fully. Try to be as honest and transparent as possible, and if needed, sign NDAs to protect sensitive information.
You are not fully committed
Commitment and trust from both parties involved in the offshore development project is crucial for the successful result. If you want to avoid delays and losses, make sure that you are you are 100% certain about your expectations and needs when signing the contract, and that your remote team is equally dedicated.
You do not pay attention to rights and ownership
Do not get confused about who owns the rights and ownership to the intellectual property – sign an NDA to protect your information and data and ensure that final code and IP of the app belong to you.
You do not have an exit strategy
It is important to have an exit strategy as you can never be sure if for some reason you will need to terminate the cooperation before the end of the contract. Make sure that your contract includes clear conditions on renegotiation and termination to avoid loss of time, money, and reputation.
You forget to reward the job well done
As with your in-house team, approval and praise work wonders to keep your remote team enthusiastic and motivated. Make sure that they know their work is valued and appreciated.
Remember that even if outsourcing one single project, it will have long-term effects on your business. Make sure that you follow the best practices and avoid making these mistakes to ensure the best outcome from your IT outsourcing.
