4 common mistakes in IT outsourcing – and tips to avoid making them

?? by Jeroen van der Horst , Co-Founder of PROSHORE ?? ready-to-code dev teams

As companies seek to reduce operational costs, IT outsourcing has become a popular strategy for businesses of all sizes. It offers several benefits, including access to a wider talent pool, cost savings, and increased efficiency.?

But there’s a world of difference between IT outsourcing which leverages the benefits of external expertise and expensive outsourcing which overruns and potentially damages customer relationships, and your business reputation.

To increase your chances of a successful outsourcing experience, here are some tips to avoid common mistakes businesses make, based on my experience as a co-founder at Proshore.

Mistakes to avoid in IT Outsourcing

Sometimes companies, have an idea, or they have a project – so they throw it over the fence and hope it will be right. That approach often ends in disappointment.

1?? Choosing the wrong IT outsourcing partner

The most important decision you will make when outsourcing software development is choosing the right partner. There are many factors to consider, such as the provider's experience, expertise, and communication style.?

It is important to find a partner that has a proven track record of success in developing similar projects. You should also make sure that the software development provider has a team of experienced developers who are familiar with the latest technologies.?

Finally, it is important to choose a partner that you can communicate effectively with. Here are some tips for choosing the right IT outsourcing partner:

• Do your research: Read reviews, compare quotes, and talk to other businesses that have used the provider's services.
• Define your needs: What are you hoping to achieve by outsourcing your software development? Once you know your needs, you can start looking for a partner that has the expertise to meet them.
• Communicate clearly: Make sure that you can communicate effectively with the provider's team. This will help to avoid misunderstandings and ensure that your project is completed on time and budget.

2?? Not setting clear expectations

If you’re not properly organized, your management efforts are going to be much greater than the results you’re gaining from outsourcing IT.

Once you have chosen an outsourcing partner, it is important to set clear expectations for the project. This includes defining the scope of work, the timeline, the budget, and the deliverables. It is also important to agree on communication protocols and how you will track the progress of the project.

Here are some tips for setting clear expectations for your IT outsourcing project:

• Create a detailed project plan: This plan should outline the scope of work, the timeline, the budget, and the deliverables.
• Define success metrics: How will you know if the project is successful? Be sure to define success metrics that are measurable and achievable.
• Communicate regularly: Communicate with your outsourcing partner regularly to ensure that everyone is on the same page.

3?? Not establishing a communication strategy

Communication is essential for the success of any outsourcing project. It is important to establish a communication strategy that outlines how you will communicate with your outsourcing partner.?

This strategy should include the frequency of communication, the preferred method of communication (e.g., email, video conferencing), and who will be responsible for communication on each side.

Here are some tips for establishing agile communication processes for your IT outsourcing project:

• Define the frequency of communication: How often will you communicate with your outsourcing partner?
• Choose a preferred method of communication: What is the best way to communicate with your outsourcing partner?
• Designate points of contact: Who will be responsible for communication on each side?

4?? Ignoring integration challenges

It’s about relationships. We’re not just doing a transaction. When you have a good working relationship with an offshore development company, you get the right developers with the right mindset.

~ Dr Vivek Bhandari, Chief Technical Officer, Powerledger

Successful IT outsourcing goes beyond technical expertise. No matter where your outsourced team is located, for your collaboration to work, you need to ensure you share the same core values. They won’t be familiar with your company culture – unless you onboard them.?

All too often, outsourced software development teams are seen as an additional piece and not an extension of your team. They might be working remotely in another part of the planet, but if you want them to help build great software, you’re going to need to build great relationships.?

Here are some tips for circumventing cultural differences and integration challenges:

• Conduct proper onboarding: It’s essential to onboard your outsourced team and in-house team with new ways of working alongside each other.?
• Embrace flexibility: Be ready to make changes to the project management process, new software, and even strategies for working around different time zones.
• Invest in building trust: Take time to build trust with your outsourced team to keep them motivated. This involves understanding their work culture and fostering a sense of mutual respect.

Getting IT outsourcing right with Proshore

For successful software development outsourcing, you can mitigate the risks by avoiding common pitfalls. It is a risk worth taking in exchange for cost-effective, streamlined, and expedited software development that accelerates your product launch (and iterate it once it’s there).

With 15 years in IT outsourcing, Proshore can be your perfect software development partner. Our ready-to-code agile teams are:

• adept in communicating across borders
• quick to onboard, and most importantly,
• understanding of your business goals.

Additionally, our teams have worked across industries and tech so you don’t need to worry about expertise. Get started with our 60-day trial period – build your outsourced team with Proshore today.

Proshore was bringing a whole solution. Not just the ability to augment our staff with individual developers, but actually expressing the willingness and desire to take on that ownership, and partner with us in a more active way.

~ Faith Peterson, Product Manager, Interviewstream