The Factors of IT Outsourcing Success

In the recent years, there has been a remarkable increase in the field of outsourcing. From driving down costs, improving efficiency to expanding the horizons of service delivery, the various benefits that outsourcing provides is significantly helping organizations excel and have an edge over competition. In fact, effective outsourcing has helped companies bridge a 21% skill gap in the IT sector. Moreover, the popularity of this global trend is quite evident from the fact that an approx. of 62.5% of small and medium enterprises outsource their IT services to concentrate on their core business while saving ample amount of time and money. However, in order to successfully leverage the benefits of IT outsourcing, there are certain factors that must be kept in mind. Take a look at these critical factors and pave new avenues of development for outsourcing success.


Be precise and clear about your outsourcing needs: Every company’s goals, vision, and objectives are different. Hence, you should be very clear about the processes you need to outsource while focusing on core competencies. Also, incorporating well-defined and objective key performance indicators (KPIs) can help keep you a track of the work progress by measuring customer satisfaction, costs incurred and time invested, thereby accelerating your productivity and efficiency to an altogether new level.

Select a competent outsourcing service provider: Selecting an outsourcing provider that best suits your requirement is imperative for your outsourcing success. Hence, in order to leverage the most out of an outsourcing service provider, you must have a clear picture of their capabilities and resources. Outsourcing should not be taken as a one-off transaction. In fact, it would be better to treat it as a life cycle and pay attention to factors like transition, selection, engagement, and management.

Create a detailed outsourcing contract: A detailed and thorough contract facilitates outsourcing success to a great level. It doesn’t only lower the risk factors but, also assure the outsourcing of impeccable IT talents with access to high-end IT infrastructure. In addition, it also helps in evaluating the whole outsourcing process along with its quality in accordance with the contract.

Update the technological infrastructure: Access to high-end technology is vital for outsourcing success. Since, outsourcing is all about remote working, the availability of seamless communication channels like emails, chats, robust internet, Wi-Fi, video calls along with round the clock electricity availability is important for flawless management of work. Hence, both the outsourcing service provider and the company looking for outsourcing should update their technological infrastructure with the latest technology.

Be in sync and promote coordination: Outsourcing works through a virtual workplace and have IT talents from across the globe with different time zones. Hence, it becomes important to coordinate with them in a well-defined way and be in sync with a detailed documentation of plan. This would make sure that your outsourced IT workforce is available round the clock and the continuous flow of work is managed properly.

Embrace and execute the transition seamlessly: A company witnesses a lot of transition while outsourcing. So, make sure your transition process is smooth and is not done poorly. In this context, developing a plan beforehand by analyzing the requirements and creating, testing and deploying each stage of the plan can facilitate a seamless transition.

Build a sustainable relationship with your outsourcing company: Since outsourcing your IT resources leads to changes in the internal management of your company, it becomes imperative to involve your in-house resources, employees, IT executives in your decision-making process and work as a team with your outsourcing service provider. It wouldn’t only make your outsourcing process smooth but, also build a long-term, trustworthy and sustainable relationship with your service provider.

Leveraging the above-mentioned factors can prove critical for your outsourcing success and can help you survive in the long run of intense competitive business while generating ample return on investments.

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