Table of Contents
Table of Contents
Are you a rookie start-up founder ready to grab every opportunity that comes your way?
And these days you are planning to consider outsourcing so that you can grow your business in the best way possible.
In this world where technology and immediacy are the need of the hour, IT outsourcing is increasingly getting popular stead.
It has come as a blessing for every company regardless of its size. But the businesses that operate with limited resources are the ones getting the maximum benefit.
Breaking into the tech industry in a big way has now become an affordable, proven go-to strategy that provides relief to companies seeking to harness the best of digital technologies and deliver superb customer service.
But often, most of the companies are struggling to make outsourcing successful as they are unable to negotiate deals and have a long-term healthy relationship with their partners. Initially, outsourcing might seem like a gamble and it does have potential pitfalls, especially if it’s your first time outsourcing.
Here are the best outsourcing tips that will vanish all your fears so that you can easily unlock IT outsourcing best practices and make your business tick.
Outsource the Right Activities
Outsourcing Software Development is a huge step. This is why many companies get confused regarding which activities to outsource and which ones to keep in-house.
Be careful that you don’t give up your organization’s competitive advantage. By that we mean that never outsource a task or project that your company is exceptionally good at.
Never outsource something that your customers appreciate the most. If you’re already a leader in price or service levels in an area, don’t outsource it.
Retain control of the aspects that make you unique or define your business. Have a good grasp on the projects that the offshore team is working on.
If your acquaintances are already working or have previously worked with an offshore development center team take feedback from them.
And if everything went well, why not hire them. Working with someone who has delivered amazing results previously does make sense, plus you’ll save time training newcomers.
Never outsource any areas of your business that will directly impact customers. Although some companies do that eventually it is a very risky affair. Well, small businesses or companies in transitory stages can’t afford it.
Does one of the departments in your organization moan that they just don’t have time to keep up with all the work?
Are you up late at night working on something important when you should be sleeping so you can make smart decisions the next day?
If your in-house staff is feeling overburdened and you are getting multiple projects then outsourcing is a natural decision.
Make sure your inhouse staff. Either way, outsourcing this element of your company can reduce stress and help you meet customer demand.
Outsource to a Company that Relates to the Corporate Culture
Companies that outsource do so keeping budget in mind and forget that the offshore team has a completely different corporate and societal culture.
Every company has a different work ethic and culture. So, it is important to value their culture. 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 does the bare minimum or completely disregard projects.
Specialization & Technical Expertise
Have you heard of the ‘old-adage’-“Jack of All Trades and Master of None”.
Always look for an IT outsourcing firm that specializes in servicing a particular industry.
Make sure they have previously worked with Fortune 500 companies and delivered exceptional results. If their services apply to your company, they are worth your time.
When you are evaluating the technical abilities of the offshore development company, compare it with the skill sets that may be deficient in your company and those that align with your project needs.
If you are planning for a long-term partnership and outsource multiple IT projects,, then a broader range of skills may fit your business needs in a better way.
When assessing your client’s technical expertise, it may be prudent to go over the certifications of the offshoring staff.
Many outsourcing agencies promise to provide faster delivery of high-quality services at a genuine price, employees with long tenure can often be complacent.
One of the best ways is by checking what certifications they hold and how old they are. It may also be useful to know what the company does to keep them current with the latest tools and techniques.
Customer Satisfaction Management
Besides blindly following your instructions, an ideal offshore team will anticipate your requirements by watching how your customers utilize your services.
And also providing customers upsells, and other conversions. These offshoring tips will help you in the long run.
They should know what are the exact requirements of your customers and work accordingly to reach company objectives.
Outsourcing to a reliable company works because they already have an incredibly computer literate workforce, which knows how to handle your customers’ 24/7/365 needs.
Consider All Outsourcing Costs
Most of the companies outsource their work keeping cost benefits in mind.
Well, you can see the results from the very beginning. Particularly in the first several months of a partnership, plan to save about three-quarters of your projected amount, due to adjustment, time loss, and other factors.
Hire professional developers and negotiate the price engagement model so that you get the best quality work at a great cost.
Make sure the company has no hidden cost. Drawing up a contract in some instances can carry legal fees, and continuing the relationship will have costs in time.
Choose the Right Help
When it comes to business process outsourcing, it is obvious that selecting service providers that best fit your needs is quite challenging. So, resist the urge to hire the first party you contact.
Even if you end up being the right decision, don’t forget to take out some time to compare and contrast the strengths of the outsourcing companies.
Pick up a company that specializes in just what you need – you want their strengths to line up with your goals.
There are plenty of factors that you should consider while choosing IT outsourcing and who to start a business relationship with.
Of course, a quality product and great price will factor into your decision, but that isn’t all that’s important.
What do you think about next?
Has the outsourcing agency shown consistent improvement during its time doing business? Are they well-established in the industry?
Well, you’ll want to take experience, location, flexibility, tax laws, and language or cultural barriers into account.
Consider Reviews and Feedback
You may be hiring an outsourcing company that promises all you have expected but what if they don’t deliver as per your expectations?
To make sure you get what you want make sure you check the feedback and reviews of these companies on different platforms.
Read the testimonials carefully and take them into account when weighing one contractor against another.
If an outsourcing firm 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, you get the best reviews from other business people or your acquaintances.
Ask them if they’ve had experience with any outsourcing companies in the area you need. All of them are tried-and-true suggestions that will make the whole process easier.
Local Presence with Global Delivery
No matter where your company is placed, it is advisable to choose an outsourcing vendor that offers exceptional delivery.
Although technology has enabled seamless digital communication, it is not that a local company that shares your cultural context is better placed to understand your industry better.
There is a big plus when you hire an outsourcing company that is overseas and can directly interact with your global sites and be available across time zones.
Outsourcing companies that also provide delivery from offshore will save you money.
Communication & Collaboration Capabilities
This is the best outsourcing tip.
Outsourcing is never successful if communication is not transparent.
So, it is important that 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.
This is very important as there will be scrum, meetings with the in-house and outsourcing team.
Actually daily iterations are difficult to manage 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
Besides the aforementioned, here are a few more tips that will help grow your business successfully.
More Outsourcing Tips to Grow Your Business Successfully
- When the economy is suffering from a downturn and the demands for products and services touch the lowest level and cost is skyrocketing, outsourcing acts like a savior.
- Almost all the companies look forward to cost-effective solutions to run the business operations with effectiveness and maximizing the performance of an organization during the period of recession.
- It is a possibility that the cost of hiring takes a toll on the profits of a business. In these tough times, you definitely want that outsourcing helps you in increasing productivity. Also, you will end up saving substantial costs.
- When you are finding an outsourcing partner, you get a grasp on the strategies that can make your business run in a seamless manner.
- For example, having a positive relationship with customers requires strategic skills. This can further become effective with the assistance of a genuine outsourcing services provider.
- When you outsource your project to an offshore company in a different geographical location, the aim is to access a better workforce that can handle your tasks with a different approach. This will definitely act as a turning point in business. There are some businesses that try to do everything on their own without realizing that it is a counter-productive step.
- Whenever you have planned to step further and grow your budding business, it is important to look at the bigger picture. Rather than getting into the realm of trivial tasks and taking proper steps can make all the difference.
Things to Remember
- The best you can do is to outsource a small project first. If you get good results, then move forward with the outsourcing company. This actually helps you in finding out the style of work that the company follows and the ability of the workforce to complete the task within the desired time frame.
- The next thing is to hire an offshore development team that utilizes the latest collaborative tools and software for their work. The outsourcing company which is conversant with the recent tools and technologies that are implemented in this field makes sense.
- No one wants to stay behind their competitors in a bid to hire cost-effective services from your outsourcing partner.
- Even if you are a layman and not a techie, it is important that you review the benefits of outsourcing. You will have to make serious efforts to understand what outsourcing is all about and whether your business will benefit from the services or not.
- Furthermore, you can get all your queries answered before you partner with an outsourcing firm. And make sure they do resolve them.
- Have a healthy discussion with the dedicated offshore team and make time for meetings that can be conducted throughout the development process.
- It is important for the outsourcing company to know that you are aware of the services and the level of quality that a reliable company offers to the clients and expect to get the best from them.
- If you are a startup, you should know about the risks of outsourcing, pitfalls, and myths before you move ahead. Therefore, justifying the credibility of the outsourcing service provider is necessary to get services in the hour of need.
- Set a realistic budget especially when you hire the services from a company that is located outside your country as the time frame is likely to extend beyond the schedule.
- Terminating the contract at the beginning can save you time and money. Rather than finding out later that the company is not going to meet your requirements and is not good.
So, go ahead, make a splash and win!