Finding the Right Outsourcing Partners
So, you've decided to outsource, but now what? It's time to find the perfect partners to work with. But, where do you start? And how do you know you're picking the right ones?
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In this article, I'll give you some tips on how to research and select outsourcing partners that are the best fit for your company.
First things first, you'll want to make a list of your outsourcing needs and requirements. Determine what tasks and functions you need help with and what kind of partner would be best suited for those needs. Are you looking for a partner with specific expertise or certifications? Are there any specific industries or regions you're interested in working with?
?The good places to look for a potential partner and check their reviews are:
●?????Clutch (https://clutch.co)
●?????Good Firms (https://www.goodfirms.co)
●?????Wadline (https://wadline.com)
●?????DesignRush(https://www.designrush.com)
●?????Ask your peers! Yes, I know this is old-fashioned, but it could be a very effective approach
When shortlisting potential vendors, consider the following factors:
●?????Experience in outsourcing software development services shared by a vendor on their website, in case studies, etc.
●?????Vendor collaboration experience shared by third parties in testimonials, reviews from independent research agencies, etc.
●?????Location (onshore, nearshore, offshore), time zone differences.
●?????Language and cultural proximity.
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●?????A vendor’s development infrastructure (hardware, network, bandwidth, etc.).
●?????The maturity of project management, quality management, and security management processes
●?????Compliance with industry standards and regulations you need to follow (HIPAA, FDA, PCI DSS, etc.).
●?????Pricing options offered (fixed price, T&M).
●?????Software maintenance and support options available.
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In terms of costs, the following breakdown is typically correct:
1.???Asia is affordable. This includes India, Pakistan, China, and other South Asian countries. The quality varies wildly, and generally, finding a good partner here is a trial-and-error process. The disadvantage of this region is the timezone difference from the US.
2.???Asia is followed by Eastern Europe. The further west you go, the more expensive it gets, with the Czech republic being almost as expensive as Germany. Quality is typically good and roughly the same in all Eastern European countries. Tech people here typically have good English. The disadvantage of this region is the timezone difference from the US.
3.???Western Europe. In general, it is more or less the same as Eastern Europe in terms of quality, but much more expensive. It doesn’t make much sense unless there are specific reasons (e.x. regulatory) to outsource to this region.
4.???Canada and the US. Costly options, but good if you want an outsourcing team working onsite at your location. Otherwise, it doesn't make much sense.
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Once you've narrowed down your list of potential partners, it's time for some face-to-face or virtual meetings. This will give you an opportunity to get to know the partners better, see their facilities, and ask any questions you may have. Never hire anyone without at least an online meeting and avoid people that refuse to turn their cameras on!
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When choosing a software company to partner with, prioritize their commitment to understanding and meeting your specific business needs, rather than simply highlighting their own capabilities. An ideal partner is one who actively listens and engages with your goals, challenges, and objectives. While technical skills and a proven track record are important factors, also take into consideration the company's real-life examples and methods, including their experiences with successes and failures.
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Additionally, evaluate the company's mission, vision, and values, as these can offer insights into the culture and the character of their employees. Engaged employees tend to be more productive and drive higher profits, thus look for a company that has high employee engagement. Strive for companies that have similar values as it will lead to smooth and productive cooperation between in-house and external teams.
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During the interview process, assess the potential outsourcing partner's communication preferences, methods, and attitudes, and their level of involvement during the ideation and building phase of the project. As the earlier they are involved, the better the chances of success.