This is why your software outsourcing project is failing

June 18, 2021


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Currently, the outsourcing market is at its peak. Amounting over 88,9 billion US dollars only during 2017, according to a report made by Statista, and expected to have grown significantly during the current year.

So how is it that with so many companies from all over the world resourcing to it outsourcing services from offshore and nearshore outsourcing companies, and with over 70% of these companies stating they feel positive about this particular decision, that some people are still uncontent with their software outsourcing projects?

Believe it or not, the reason a good percentage of people and companies that have decided to outsource their IT services have failed at it, is because they make some questionable mistakes, and don’t take the time to do the necessary background research.

That is why experiences like the one Rebekah Campbell happen, and why people like Yegor Bugayenko claim that software outsourcing doesn’t really work, and resourcing to it outsourcing services isn’t a viable choice anymore.

So, if you’re wondering why on earth your project is failing, and what you can do to avoid this in a future situation, sit down, take notes and make sure to follow our advices next time:

1: Not choosing the right outsourcing partner

There are easily millions of outsourcing companies in the world, divided across the different countries, each and everyone of them representing a different set of abilities and technologies to offer to your company.

With so many options to choose from, it’s only natural that people tend to go for the very first option that comes to their way, without taking the time to do a proper scout haunting for the perfect partner.

Finding the right it outsourcing services company isn’t something that happens overnight. It requires deep research, checking for background of the company you’re thinking about contracting, running a comparison between future prospects and finally come up with the right pick.

If you skip all of these steps, chances are you will end up with a software outsourcing company that simply can’t meet your standards, and therefore will have a bad experience.

2: Going for offshore instead of nearshore outsourcing

We have multiple articles on nearshore vs offshore software outsourcing, and why nearshore is the best option available that you should definitely check if you want a deeper point of view on the matter.

It’s important to recognize Offshore outsourcing was the most popular sector of it outsourcing services yes, but not anymore, as seen on the report made by Nearshore Technology, which clearly shows how the nearshore sector has surpassed the offshore in the last two years.

This is due to the fact language barriers and dramatically different timezones can have a negative effect on a software outsourcing partnership, delaying the project due to the constant miscommunication problems.

On the other hand, choosing a nearshore company to work with, that can effectively communicate on your same language, and work at a similar time than you do, can significantly improve your experience.

Luckily for you, US and Canada based companies can work with Latin American companies, which happens to be an upcoming market set to surpass India’s outsourcing market soon enough.

3: Not giving enough importance to the legal matters

Any work relationship should be backed up by a legal agreement or contract for two main reasons: One, it gives the whole relationship a much more professional sense, and two, it serves a way to protect your company against any froud.

This concept applies when doing software outsourcing with any company (doesn’t matter if it’s nearshore or offshore). A contract or legal agreement that contemplates all the key points regarding the project ahead is a MUST, and shouldn’t be ignored.

If you wish to know how to contract an it outsourcing services partner and make sure you include all the important points on your legal agreement, click here to read our blog about it. Plus, you can inform yourself on what type of contract is the best one for you depending oh the type of project you’re embarking on.

4: Asking for more than they can give

This goes along with point number one. If you do not do your proper background research on the company you’re looking to contract, and find out if they can provide what you need, you might end up in an awkward situation.

Any serious and responsible nearshore company should be able to show you a portfolio of previous works, walk you through their whole development process and explain what they can do for you, and what solutions they can provide you.

If you find out the company you like isn’t able to provide this information for you, consider this as a red flag, and keep on searching for better options that can prove they can do what you are requesting.

5: Not checking on what technologies they are using

We understand that the reason you are choosing to outsource your software development process is because you company doesn’t have the knowledge to build such solutions. However, this is not an excuse to not be aware of what technologies your partner is planning to use.

Here in Rootstack we count with multiple technologies that we implement depending on what you need. Technologies that you can check out at any time, and as client, can ask us about them.

If your future prospect can’t do this for you, or is still using outdated technology to create your software solution, don’t be surprised then your software outsourcing experience turns out horribly.

6: Setting the record straight from the day one

Last, but definitely not least, nearshore outsourcing (and any type of software outsourcing, really) is based on strong communication from the very first meeting until the last moment.

This means setting the record straight, explaining EXACTLY what you want, what you expect from your partner and the scope of the project is completely necessary. You must be as clear as possible.

Same goes with your nearshore company partner. Once they have heard your requirements, they should be able to come up with a clear proposal and a strong strategy that tackles all the main point you’ve previously made.

Remember, software outsourcing is a two way partnership. For this workout, both you and your it outsourcing services provider have to be on the same page, otherwise, your project will fail.