How to Outsource an IT Project? Doing Things Right!

Before you outsource

Our first discussion about outsource and when it's the right time to bring in outside contractors—to prevent squandering significant funds in the long run—got me thinking about what comes next. (You can find our previous article here.) Since money and time are so often interchangeable, though it's hard to say exactly at what rate, failing to act promptly almost guarantees wasted time. In my view, time is incredibly taxing. The longer you struggle with a task without progress, the more disheartened you become, and you might even start doubting whether you chose the right approach in the first place.

Especially since choosing the right contractor can be so time-consuming—a misstep here can be costly. But, let me assure you, I'm here to help make this process clearer and outline how do you outsource an IT project? Before we get into that, I want to share some statistics on why entrepreneurs and decision-makers hesitate to outsource.

Key Concerns in Outsourcing:

• Quality control: There's a fear that external teams won’t grasp the project requirements or maintain the desired level of quality.
• Loss of managerial control: Outsourcing can mean relinquishing direct oversight of how specific tasks are performed, which can be uncomfortable for some decision-makers who prefer to maintain close control.
• Security risks: There's an increased risk of data breaches and intellectual property loss with third-party vendors, especially with sensitive information.
• Dependency on suppliers: There's a fear of becoming too dependent on external suppliers, which could potentially lead to challenges if the vendor fails to deliver, goes out of business, or faces its own set of challenges.
• Hidden costs: While outsourcing can offer cost savings, hidden costs such as legal fees and transition costs can offset these savings.
• Communication barriers: There are challenges due to time zones, language, and cultural differences affecting collaboration and potentially the company's culture.
• Legal and ownership transition: Worries about ensuring that Intellectual Property Rights are clearly defined, legally protected, and that these rights transition from the contractor to the customer.
• Team focus: The common issue of outsourced teams working on several projects, potentially diluting their attention and commitment.

(src: Clutch, Forbes explodingtopics.com, entrepreneur.com)

3 steps to finding your ideal contractor

It's understandable that the obstacles mentioned before might seem daunting and discouraging—and to an extent, this is true. However, overcoming them is not as formidable as it might appear at first glance. The solution lies in adopting simple, yet precise steps that guide you toward finding the ideal growth partner. This strategic approach enables you to find a partner and achieve win-win results.

Define clear goals and objectives

Outsourcing demands a different approach compared to collaborating with an in-house team, primarily because contractors won't inherently understand your company's culture, values, and specific project goals. It's imperative to articulate your objectives clearly before initiating any engagement with an outsourcing service.?

• Understanding your primary reasons for outsourcing
• Identifying the specific benefits you seek from this arrangement
• Recognizing any existing challenges and constraints
• Determining whether you're seeking assistance for a specific project or ongoing support
• Establishing a definite budget and timeline
• Assessing the compatibility of your company culture with potential partners
• Ensuring clarity on the level of quality, innovation and communication you expect

The scope of tasks to outsource must be clearly delineated. Outsourcing companies vary significantly in their areas of expertise — some may excel in detailed coding, while others shine in in-depth research services. Precisely identifying the tasks you need assistance with, whether it's development, support, or research, will help you to overcome possible challenges in the future.

Selection of the right contractor

Choosing the right contractor requires a detailed evaluation process. Among many potential partners, a methodical approach is key to finding the best fit. Use your networks, check B2B platforms like Clutch,?GoodFirms or DesignRush?and follow these steps:

• Reviews — Consider both client and employee testimonials.
• Operational factors — Analyze costs, time zones, cultural compatibility.
• Communication efficiency — Tools and approaches to organizing communication processes.
• Scalability potential — Expand resources in short/long-term.
• History — Success in similar projects.

Contractor test. Starting with small tasks

Companies new to outsourcing can mitigate risk by initiating a smaller, defined project. This approach offers a practical trial run, evaluating a vendor's compatibility without extensive commitments or large-scale investment. Opting for a task or a specific milestone, such as a quality assurance, parts of UX/UI design or any feature development, provides an effective gauge of the vendor's capabilities and fit.

The final piece in outsourcing mastery

Wrapping up our discussion on IT outsourcing, it’s clear that tackling the challenges head-on is key. From issues of quality and control to security, dependency, and beyond, these hurdles are manageable with a solid plan and the right partner.

Understanding the challenges small businesses face is part of our expertise. Concerns such as safeguarding intellectual property, fitting development within tight financial constraints, and ensuring the product is both reliable and scalable are top of mind for entrepreneurs.?

That’s where we step in. Once a project concludes, the client gains full control over the code and all intellectual property rights. Our development team is product-oriented, ensuring that every solution is practical and unnecessary elements are discarded. This mindset is especially critical for startups, where strategic product decisions can significantly influence success.

Curious about the cost of such focused, product-oriented development? Reach out. Our representatives are ready to provide you with all the information you need to make the best decision for your project.