Mitigating the IT Outsourcing Risks

Outsourcing may be the best thing in the world of technology but one cannot overlook the potential outsourcing risks associated with the process. Losing the process control as well as management may impact on the overall cost and quality of the product.

With the rapid change in IT outsourcing, numerous companies are joining this race & willing to work with an offshore development center. And this rapid change is only increasing the risk & confusion to many. Fret not, every problem has a solution.

Mitigating the IT Outsourcing Risks

There are certain ways that can mitigate the outsourcing risks involved in the process:

1. Losing Process Control & Management:

While outsourcing, you may end up losing control over the development process. Your outsourcing partner gets the upper hand in the process & manages the whole project. In short, your offshore development center will become in charge of internal staffing & other significant decisions.

If both parties are not on the same page, potential issues might knock your doors. Slowly and steadily, the risk factor will escalate & the lack of communication will lead to raising more issues. To avoid such issues, take the risk prevention steps & get control over the success of your project.

Initially, discuss your requirements, goals, expectations with your remote development team. Pen down everything & make sure to outline a process that needs to be followed. Set up a road map that includes regular updates, weekly meetings and preventive measures to tackle the obstacles that may arise in the future.

Planning is the first step, followed up by effective communication & solves 90% of the outsourcing risks.

2. Quality Matters:

It’s hard for others to understand your business as you do. Therefore, it’s very crucial for your outsourcing partner to comprehend your industry thoroughly. A thought that your outsourcing partner doesn’t understand your business may put you in dilemma.

A perfect way to mitigate this outsourcing risk is to perform a detailed background check of their working experience. While hiring, every outsourcing partner will portray an incredible image.

But how can you trust that what they are saying stands true? To ensure it, connect with at least 3-4 organizations that are/were associated with your chosen outsourcing development center.

Their opinion will help you get a deep insight into your future associate. In case, they hesitate to provide you the details, make sure get cautious at that very point. It’s a red flag!

Related Post: Why You Should Hire a Dedicated IT Development Team and How to Make it Work Remotely?

3. Hidden Costs and Risk Factor:

Cost played and continues to play an important part in the outsourcing process. IT service providers reduce the internal staffing and infrastructure based cost making the process and the idea of outsourcing a viable option.

Another reason is to manage the overhead costs involved in maintaining the hardware and IT maintenance costs. Risk assessment is a homework that has no shortcut. Hidden fees for any purpose may also be considered here.

Service Level Agreements or SLA are the only way to insure your business from potential risks. Questions with regard to after work hour’s service, the upgrade costs, the overall consulting cost include new software cost, etc. must all be addressed until satisfactory answers are provided. It decides the quality of the relationship you enjoy with your outsourcing partner.

4. The Legal Aspects:

Intellectual Property Rights is another concern when evaluating the outsourcing risks. It is imperative to protect the company from a potential software theft by the outsourcing partner.

A confidentiality agreement should be signed by both parties, to ensure that important & highly delicate information of the project is safeguarded from hackers or any such persons with mala fide intentions.

This includes the entire dedicated development team involved in the process. Though a rare incident, it is always beneficial being covered against such issues.

5. On a Parting Note: 

Risk assessment is an important part of the outsourcing process. In fact, it’s important than the process itself. Why? It’s because the process must be developed and implemented safely with high-quality standards.

You must take care of risk assessment at the initial stages to avoid such issues. Your concern at the initial stage will shape the future of your development process!

In case you already are searching for an offshore development center with a great reputation, you are just an email away from their incredible services! At Your Team in India, we believe in transparency and honest relationships. We are certain, that our satisfied clients will surely vouch for us. Just drop us a line at and we will perfect your tech story together!

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