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How to Make IT Outsourcing a Success in 2019?

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Hari Krishna,Chief Operating Officer

These days every other company in the neighborhood is doing ‘IT Outsourcing’. If we take any one country in particular, like India, we can see that there are thousands of such outsourcing companies. IT outsourcing projects are their bread and water. For clients, outsourcing is an alluring prospect. 

So, how can make sure that your IT outsourcing becomes a success in 2019? How can you avoid some common yet costly pitfalls in vendor selection? It begins with choosing the right IT outsourcing company! 


Key Steps in Making IT Outsourcing a Success in 2019

Choose the Right IT Outsourcing Company 


1. Identify their Core Competencies 


Once you have confirmed on your IT requirements, the next task is to shortlist outsourcing service providers based on the vendor selection criteria. Identifying core competencies is a major vendor selection criteria for successful offshore outsourcing. 

Every service provider has a niche area of expertise. If some are good with digital transformation services, then the others might be good with staffing augmentation. Choosing the right service provider for the right role makes all the difference. Otherwise, we know that a jack of all trades is a master of none. 

To begin with, you can utilize IT analyst platforms such as Clutch, GoodFirms, etc., to learn more about their core areas of expertise. If the shortlisted IT outsourcing partner has more focus on mobile application development, then you will identify a pattern involving more mobile app projects. Look for patterns like these in Clutch or other research platforms and understand their core competencies. 


2. Analyze the Resource Pool 


India is well-known as the house for a rich pool of talented software engineers. The universities in India have high educational standards. Hence, finding an adequate resource pool is never a problem while outsourcing your Information Technology needs to Indian software development companies.

During the evaluation stage, analyze the team’s educational qualification, experience in the domain, and expertise with the required technology stack. Communication skills is a priority along with the other skills. At the end of the day, there should be an understanding among both the parties and this will not be possible without proper communication. 

Also, look for the number of similar projects and clients handled. It is also ideal to analyze the chosen IT outsourcing partner’s reputation among the existing clients. On a similar note, aligning cultural and work ethics are also important. These values strengthen the outsourcing relationship between the client and the company.


3. Understand their Service Delivery Framework


First, you need to have a clear understanding of the service or part of the service that you are planning to outsource. Then, ensure that both the stakeholders are clear on the responsibilities to be transferred and outcomes to be delivered. This step ensures that the chosen service provider is clear on the requested IT outsourcing services by the stakeholder.

The next step is to analyze and review the shortlisted IT outsourcing company’s service delivery framework. If they follow a productive and transparent service delivery framework such as Agile Scrum, then consider them a notch higher. This is primarily because software delivery frameworks such as Agile is one of the best methods to establish transparency and agility of business processes. 

Maintain an Outsourcing Engagement Model 


1. Document all Expectations Explicitly


Business is not done over the phone. There should be explicit documentation detailing every engagement. While choosing an IT outsourcing company, check their proficiency with documentation. The documentation capability directly indicates their level of professionalism. 

How does it matter? It is often seen that business stakeholders rush with short contracts to begin the project at the earliest. They end up believing that certain processes might be included in the package and kickstart the project without thinking further. It is fairly better to spell out all the expectations rather than moving ahead with impromptu outsourcing engagement. Otherwise, it can lead to misconceptions and complications, delaying the project progress.

When you are outsourcing your IT project, you are giving them access to your confidential systems. Sign a Non-disclosure Agreement (NDA) to ensure that your confidential business data is safe and secure. In such a scenario, the likelihood of losing control over your confidential data is impossible. Both parties would be easily responsible for safeguarding the data. 


2. Nurture the Relationship 


Try learning more about their background and speak frequently with them. Improve the outsourcing engagement through fruitful ways. Understand their ability to handle an outsourcing relationship. 

Prior to getting started, try nurturing the relationship to see their outsourcing engagement outset. Periodically, speak to them over emails/calls/chats. Sometimes, a big enterprise might not be able to give you adequate attention. A startup might not have the required depth of experience in handling outsourcing projects. 

However, we are not talking about micromanagement here. A restrained team isn’t what you should be building with your outsourcing decision. Instead, focus on the outcome and the value brought to the table. Finally, do not indulge in typical vendor management practices. IT outsourcing needs a pinch of salt more than other vendor-stakeholder relationships. 


Bottom Line


In today’s booming business world, IT outsourcing services are major life saviors. It helps to transfer a major portion of your time-consuming IT tasks to an efficient service provider at much lower costs. You can manage and utilize the benefits of an extended team working remotely on your projects in the comfort of your office/home. 

But before you share your confidential business strategy and system details with a third-party, analyze the risks. Always have an exit strategy in hand for emergencies. Both the stakeholder and outsourcing company are responsible for the success of the project. There should be a mutual understanding and respect among both the teams. Hope these tips help you with better decision making!

If you want to know further about the nuances of IT outsourcing, feel free to speak with our team