With each passing year there is more demand for experienced technology talent, as users have new needs and demands that businesses must meet to remain competitive. This is why IT outsourcing providers are increasingly present in companies today, since they have been a fundamental support for the development of software projects and products.
A survey conducted by Deloitte found growth in the use of software providers by companies over the past two years: “Service providers now deliver knowledge, skills, and capability by providing on-demand access to hard-to-get talent and experience. in technology and transformation that keep up with the constantly evolving business”, they commented in the report.
Likewise, 57% of the executives consulted in the survey affirmed an increase in the budget for managed services and 32% assured that the budget for contracting traditional outsourcing services was increased. Both figures are evidence that the IT outsourcing market has only grown in recent years and it is a trend that continues to rise.
Delegating an IT project to an outsourcing provider can be a great way to gain additional resources and skills for your company. However, there are common mistakes that can lead to problems and delays in the execution of the project. In this article, we are going to discuss the most common mistakes when delegating your project to an IT outsourcing provider.
One of the biggest causes of problems in outsourcing IT projects is the lack of a clear understanding of the project requirements. Before delegating the project to a vendor, it is critical to have a clear understanding of the project goals, customer requirements, and project details.
Before hiring an IT outsourcing provider, the company must have a clear vision and deep understanding of what your project needs, they indicate in an article in the CIO business magazine.
“Outsourcing best practices require determining the right scope, financial framework, and risk profile for your company and its objectives, goals, and culture,” said Marc Tanowitz, manager at consultancy Pace Harmon.
Communication is the key to a successful relationship between the company and the outsourcing provider. Lack of clear communication can lead to misunderstandings and delays in project execution. Therefore, it is important to establish clear and regular communication with the supplier to ensure that expectations are understood and deadlines are met.
Companies should never “assume” that their internal and outsourced teams will be a perfect fit from day one, as the communication codes and culture of both teams need to mesh, which can be a gradual process.
“Significant relationship skills are required to work with a third party: some people can learn them, others never will. One difficult team member can ruin the work of many thoughtful people,” says Steve Hall, president of the Information Services Group technology firm.
Communication must always be active and honest, focused on addressing and solving the problems and needs of the team, seeking efficiency in the processes.
The lack of clear objectives and deadlines can lead to the outsourcing provider not meeting the expectations of the client. It's important to set clear goals and timelines for the project early on and make sure the vendor agrees to them.
It also affects the fact that the teams, both internal and outsourcing, do not have defined roles.
“Make sure each of the key members of your team, including managers and service delivery officers, as well as process owners, have clear and defined roles and responsibilities. And, in fact, encourage your client to do the same for your organization”, they recommended in an article on The Office Gurus portal.
The best thing is that, in the service contract, there is a clear description of the roles of the teams, so that those responsible for each task and each of the delivery of results are determined.
Before selecting an outsourcing provider, it is important to research and evaluate several potential providers. Lack of research can lead to selecting a supplier that is not suitable for the project, which can result in delays and problems.
“Many small companies that are short of funds will quickly look for a cheap software provider that matches what they can afford…unfortunately for these companies, this can do more damage in the long run. While it's true that one merit of outsourcing is that it should help you save money compared to hiring a full-time employee, that doesn't mean it has to be cheap. The lowest rates often come at a high cost: poor quality", they explained in an article in Inc.
It is important to set quality expectations for the project early on. The lack of quality expectations can lead to the outsourcing provider not delivering a quality final product.
In conclusion, delegating a project to an IT outsourcing provider can be a great way to gain additional resources and skills for your company. However, it is important to avoid these common mistakes to ensure that the project is executed effectively and deadlines are met. It is critical to have a clear understanding of the project requirements, set clear goals and timelines, establish clear and regular communication, research the outsourcing provider, and set quality expectations.
Do you need an IT Staff Augmentation team to develop your software project? At Rootstack, we have +10 years of experience supporting companies in their digital transformation. Contact us!