Wanting access to the best developers in the IT industry has become common in the past few years. It has created a competition to obtain the best developers and be at the forefront of technological advances. IT outsourcing largely contributed to that, continuing to affect the industry in a major way.
How Outsourcing Works
The biggest thing to consider is whether the value to satisfaction ratio is even. Businesses want to get high quality work for a reasonable price. This is stark difference from past approaches where the cheapest price signified the best deal.
Choosing a vendor to take on the project is the first step. Due to the accessibility of experience available worldwide, it may be difficult to choose the right vendor. Some things to consider are:
- Excellent communication skills
- Up-to-date security measures for data protection
- Quality, experienced developers
- Solid reputation
- A combination of available services
How Much to Outsource
Acknowledging that a company needs to outsource is just as important as understanding how much work must be outsourced. It will always depend on the project. However, the skill level of current employees, time to complete the project, and amount that can be spent may play a factor as well.
Types of Outsourcing
IT outsourcing can be divided into three main categories—staff augmentation, project-based outsourcing, and delivery teams. Any companies looking to outsource should know about all three and what functions they serve.
- Staff Augmentation
This type builds onto a company’s current team. Individuals or a small team work alongside the team that is already there. They often complete tasks or attend any meetings as required by their client.
- Project-Based Outsourcing (PBO)
Fairly self-explanatory, PBO refers to the complete outsourcing of a project. It’s handed off by a company to a team of developers. The client will provide the team with an outline and any specific details. From there, regular communication should occur as the outsourced team works on the project. The benefit of this is that clients can devote time and resources to other things, though the result of the PBO may vary.
- Delivery Teams
Similar to staff augmentation, delivery teams work alongside the current team. However, this type of outsourcing is generally used when a company lacks resources or experience to complete a project. Essentially, this can fill in those gaps.
When A Company Should Outsource
Hiring and outsourcing are very different. While hiring can bring in a permanent (or occasionally temporary) individual into a company, outsourcing is almost always temporary. The question becomes—when should a company outsource?
- To fill a lack of needed, specific skills
- Projects are complicated
- Deadlines are short
- To be cost-efficient
Stepping into the world of outsourcing isn’t that easy. There are many factors in play which can negatively impact a business if outsourcing is done poorly. Know exactly what outsourcing is needed for within the company, create a plan for outsourcing and completing the project, and draft a contract for both parties to sign prior to beginning the project.