It is well-known the fact that outsourcing, as a trend, became more popular lately. This is happening because more and more companies choose to outsource their software development needs.
We can affirm with confidence that, lately, outsourcing has completely overtaken some of the biggest industries in the world.
But even though IT outsourcing has many advantages, as we presented in one of our previous articles – Advantages and Disadvantages of IT Outsourcing – we should keep in mind that 1 in 6 IT outsourcing projects has cost overruns of 200%.
That’s why it is very important to be aware of some factors when outsourcing a software project.
Software outsourcing – Here are some of the common mistakes to avoid
Lack of clarity
Incomplete project requirements are one of the main errors businesses make while outsourcing. Your final product may not look anything like what you had in mind if your development partner is unaware of your goals.
Consider specifications as the blueprint of your project. The more accurate and detailed they are, the more likely it is to succeed.
When you don’t have a clear purpose of the project and you don’t know exactly how to define it, there are big chances that your project will fail. It is very important to have a clear vision and to convey the information to your chosen software outsourcing team in a clear, concise manner.
Choosing price over quality
Choosing the least expensive option when outsourcing can be tempting, but you frequently get what you pay for. Low-cost vendors might not have the needed knowledge, deliver poor code, or create expensive delays. Price alone might not produce the best outcomes and may end up costing you more in the long run.
When choosing, not looking at previous work samples
You want to work with the best people, right? You have to see if they’ve done similar projects or if their experience is suitable for your requirements. Ask for recommendations from previous clients, in order to find out if they were happy with the team’s work.
Expecting everyone working on your project to adopt your culture
Most often, the outsourcing team will try to adapt to your situation, but it’s very important to recognize and embrace the differences.
Because people are different, they have different culture, ethics and so on.
Basically, culture, ethics, language and time constraints are the main factors that are contributing to your project’s success. Always be flexible and understand your team!
Letting the contractor do all the work
Do not ignore the importance of your project! Even though you choose to outsource the whole project, you should keep in mind that the team will perform the tasks according to the contract. They can make suggestions based on your business goals, but they have no obligation to deviate from their tasks, in order to accomplish them!
Your continuous involvement is crucial. Make sure you move in a positive direction!
Errors in IT outsourcing communication
It is extremely important to have a transparent relationship with the team that is designing your project. Pay attention to how they interact, ensure your language is spoken by the team, review the processes and procedures that they have in place.
Make sure they understand your needs, and that they will make suggestions based on your business goals.
Communicate your objectives and aspirations from the very beginning, let your new team understand they can interact with you openly, provide them with a platform where interaction can remain open (like Slack), enforce a meeting schedule and stick to it.
The collaboration across time zones
Outsourcing in a different time zone is not a bad practice, however, if the project needs thorough coordination, then it is not the right option.
Bear in mind that the team will be happy for not having them work night shifts as well. An additional problem, also related to the time zone, is regarding the language and cultural barriers.
Conclusion
Once you agree to outsource your project, try to make sure that your partner has expertise with projects and services such as those you want to outsource. Make sure that he embraces your business goals and keep the communication open.
Deciding to outsource is not simple, choosing the right collaborator to do the job is not an easy task as well, but outsourcing will help you standardize your business operations and take your business to the next level when done for the good reasons.
Key Statistics on Outsourcing in 2024 and beyond
According to Statista:
- The market is predicted to grow by 8.48% annually from 2024 to 2029, reaching $812.70 billion by 2029.
- Companies are projected to spend an average of $152 per employee on IT Outsourcing in 2024.
- The United States will lead globally, generating $197.30 billion in revenue in 2024.
