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Jun 30, 2021

8 Challenges of IT Outsourcing and Their Solutions: How to Outsource Without a Trouble

Find out what outsourcing problems you can face, how to meet challenges, and how to resolve issues in the process of IT outsourcing.

Marina Sharapova

Outsourcing of web development in recent years has become a very popular model both among corporate-class companies and in the small business segment, and even more so among startups. The obvious benefits of outsourcing in the form of smart resource consumption, process optimization, and access to the best IT expertise and experience are attracting more and more companies to find an outsourcing partner.

But along with the advantages, there are certain fears, and what is even sadder are the failures in organizing work with this concept. Let's look at the main reasons for possible failures, as well as the fears a business has when starting an outsourced development. We’ll discuss what we can do to avoid risks and accept the challenges of IT outsourcing.

Problems with outsourcing can be caused simply because you don't need it

The popularity of a model does not mean that absolutely everyone needs it. If you have enough internal resources in the form of a strong in-house team with the right experience and enough time to work on a project, outsourcing development may not be the best solution, simply by virtue of the fact that your internal specialists already know the specifics of your business better. Take time to analyze and compare your plans against opportunities, calculate the key metrics of your business, and make a decision based on them.

If you want to combine the work of two teams - internal and remote - take care to monitor the correct distribution of tasks to avoid conflicts and project downtime.

Uncertainty about goals and vision will lead to uncertainty on the project

Without your good preparation for the project, the work is unlikely to go smoothly. Of course, the team you hire should be professional and independent and help you as much as possible in product development. But without clear input, serious problems of IT outsourcing can arise. Be sure to clearly formulate business goals and vision for the future product, think over the requirements, and determine the timing and possible budget framework.

Choosing the right team is one of the top challenges of outsourcing

Again, finding the right remote team takes a lot of work. As you know, ideal products are born with competent cooperation, and therefore it is worth looking for a partner with whom you coincide as much as possible both in the vision of the product and in the processes of organizing work.

The real problem with outsourcing starts with poor work organization

Before starting work, you should discuss and fix the development process in detail. It is best when you understand exactly how the process works in a team, what methodology they use, what stages they go through, how teams are formed, how tasks and time are tracked, how reports are generated, and how invoices are issued.

At the same time, the process should be unambiguously transparent and accessible to you as a client. If you are given access to all the working tools with which the project is managed, you can be sure of the reliability of your partner and a responsible approach to the project. And this is really important because the remote team does not sit with you in the next office.

Clear communication will save you from issues with outsourcing

Another important task is to establish perfect communication with the team. So that issues are resolved quickly and the project moves exactly according to the planned sprints, it is worthwhile to clearly define the schedule and methods of communication. In this case, you should be familiar with the entire project team, and not just, for example, with the manager. If you have taken care of an additional internal developer or in-house team, then they should be connected to the remote team. In general, communication methods should be clear and convenient for everyone. And the communication itself should take place as needed.

Insecurity can be risky

If your project involves the use of confidential data, think about security in advance. You can directly ask the outsourcing partner what data integrity control methods they use. You can also get the opinion of previous clients on this matter and conclude well-thought-out and rigidly fixed agreements.

Messy payments can lead to hidden costs

At the planning stage of a project, only a preliminary estimate of the required budget can be made. Therefore, it is of course important to avoid fixed costs and be flexible if possible. But this does not mean that you have to be in constant uncertainty about how much money you will have to pay from month to month. Any changes in the budget must be agreed upon, and the formation of payments must be justified by the hours spent. At the same time, the partner at any time can provide you with reports from a time tracker or another confirmation format with an assessment of the work done in real time.

Similar values, culture of communication, and building good relationships contribute to a successful result

Transparency in relationships, adherence to ethical standards, respect, and trust not only motivate the development team but make the process of work as pleasant and calm as possible. Remember that the tone and manner of communication you can set will benefit everyone and will be one of the steps on the path to successful cooperation.

Final Thoughts

The process of organizing outsourcing development, of course, has its own characteristics, but in general, it has the same set of aspects as any business process. Therefore, a conscious approach to dealing with problems of outsourcing and an emphasis on the advice we have described will help you succeed in developing your products. If you want to know more about our custom projects, see our portfolio or contact us.

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