When developing a software solution, you always have two alternatives: hire an in-house team or find an outsourcing partner to do the job. However, most often than not, hiring an in-house team is an expensive process overall, and considering that the average budget of a general start-up is pretty stringent, it becomes a tough choice. For the longest time, business outsourcing has been considered a challenging and tedious process, but not anymore. According to Statista, the global market value of the outsourcing industry rose from $45.6 billion, in 2000, to a whopping $92.5 billion, in 2019. This is an increase of over 100%, indicating that people and companies, in general, are much more receptive to business outsourcing than ever before.
But first, let us understand what exactly business outsourcing is and how you can find the perfect outsourcing partner you can work with.
Outsourcing is the practice of engaging a third party to provide services that were previously conducted in-house by the company's own employees. It is a common model implemented by businesses as a cost-efficient measure. As a result, it has the potential to affect a wide range of occupations, from customer service and manufacturing to the back office.
Although cost is not the only reason for most firms to explore outsourcing partners, cost reductions are undoubtedly expected.
Outsourcing enables businesses to address shortages in their teams - lack of experience or skill - without sacrificing quality, as outsourcing the project ensures high efficiency. It also enables companies to partner with very specific outsourcing developers having niche skill sets, and that might not always be possible with full-time hiring.
Finding and interviewing individuals, negotiating remuneration, and onboarding a new employee takes time, and some employees leave a year or two later for a better opportunity. Working with an outsourcing partner enables you to delegate a large portion of the development process, allowing tech executives to devote their time and attention to higher-value initiatives for the organization.
Additionally, many well-known corporations, such as Github, Skype, and Slack, have successfully outsourced business previously. The only question is if you are willing to follow their lead.
If you answered yes, then these are the key steps that you should take to choose the perfect outsourcing partner for you.
When it comes to developing a corporate software solution, knowing what you want is critical. One aspect that has contributed to the failure of several businesses is a lack of clarity about what they wanted from their product! When you start outsourcing, you should make it extremely obvious to the outsourcing partners what you are looking for. You must also ensure that the partner follows your instructions and does not make decisions on your behalf that can negatively impact your business.
It is essential to understand the fundamental basics of your project before outsourcing it to a company. Knowing the development framework of your project and having a thorough grasp of its execution will help you evaluate whether the outsourcing company has done a good job or not.
Furthermore, mastering the core of your project will help you to interact effectively with an offshore development team or an outsourcing IT company. Developers use many terms that many non-technical professionals do not understand! In situations like these, basic knowledge might really assist you in steering your project on the proper path.
There are countless IT outsourcing vendors worldwide, but you should be aware that not all have the necessary quality and experience. The only sure approach to identifying the best outsourcing IT company for your needs is to research and seek different outsourcing partners, compare them, and then make an informed selection.
When looking for the ideal outsourcing partners, you must ask the following questions:
Once you have the answers to all the above-mentioned questions, it's time to lock down the best outsourcing company and have your legal paperwork in order.
Having your legal documentation in order is critical while outsourcing your project. To ensure that the process operates correctly and that there are no frauds, you must write an independent contractor agreement with the outsourcing partner. The contract will also ensure that any work done in accordance with the contract is your property and will be given over to you at the end of the project!
Non-disclosure agreements and privacy policies are some critical papers that ensure your sensitive data is kept secure and protected from all potential threats. Thus before outsourcing to any partner, you should absolutely obtain legal guidance and compile all of your legal documentation!
It is finally time once you have decided on your outsourcing partner and completed all the legal processes. There are several approaches to collaborating with your offshore developer while enhancing productivity and attaining desired results.
First and foremost, share your product vision. Developers must comprehend your thought process behind the problem and the direction you wish to take. Make sure you've drawn a clear picture of where you want this project to go. Then, communicate with them and sync your work schedule. Ensure you receive constant updates and information related to your project as per your needs and convenience.
When working with an outsourcing partner, discuss the issue of overlapping time and ensure the developers manage work within negotiated time boundaries.
After the project is complete and your offshore development team has it turned over, it's time to test it. Run through various tests and quality checks over and over until you’re satisfied. You have spent money to acquire what you want, so you must get the product that you are most confident with and are not just settling and compromising with an unsatisfactory outcome.
When inspecting the product provided by your offshore partner, exercise utmost caution. Look for flaws and difficulties with its process; if you uncover anything that you believe is incorrect or may impair the functioning of your product, get it addressed. Make sure that the product's interface is simple to use. Check to see whether your product is smooth or if it takes a long time to log in. Get the offshore team to correct any flaws that you believe are impeding the performance.
A good outsourcing partner will always help you in resolving such issues and additionally would also provide you with some alternatives to the situation as well. This is one of the many reasons why you need to spend time searching for good outsourcing IT company.
It takes a lot of time and effort to give an idea a practical form, which is exactly why an outsourcing partner is there for. To convert the vision you have, or the solution you need, to a tangible reality that you can utilize to improve your business or market it for sales. Finding the perfect outsourcing partner is certainly not easy; however, it is not impossible either. If you need to provide the best solutions and the best products to your customers, it is time for you to take that leap of faith.
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Pranav Surendran is a final year IT engineering student who has an undying passion for writing and exploring concepts, be it technical or non-technical. Pranav loves to talk about things that fascinate him, be it books, movies, animes and anything in between.
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