Tips to avoid IT outsourcing failures

By Admin

According to a report by Statista, the global revenue from IT Outsourcing services is projected to be around $430 billion USD in the year 2023. Considering the above fact, we can safely assume that the IT outsourcing industry will be growing rapidly over the upcoming year.

Businesses and organisations nowadays prefer outsourcing over building in-house teams due to multiple reasons. If you want to know details about it, we already have an article that covers the benefits of IT staffing/outsourcing solutions over building an in-house team.

It is evident how beneficial it is to outsource IT projects or build a remote team with IT staffing rather than hiring an in-house team. But this doesn’t guarantee the success of every IT outsourcing project.

There are some critical areas to be taken care of while outsourcing IT projects to avoid disasters and eventually complete failure of the project.

In this article, we have listed down a few tips on how you can avoid IT outsourcing or IT staffing failures for your projects.

  1. Properly documenting goals and scope

  2. The first critical area to be taken care of is defining clear goals and getting them written down on paper in an agreement or email. Doing this will keep both, you and the IT outsourcing vendor on the same page. This way you can avoid any conflict in future arising due to unclear milestones.

    The final outcome of the IT outsourcing project might have a lot of subjective things, thus it is a good practice to be on the same page with the vendor from the start by documenting every detail of scope and goals.

  3. Establishing a consistent communication model

  4. Remember that good communication is vital for successful teamwork. In the IT outsourcing project, you have a team which is probably a few thousand miles away from you. Communicating consistently can be a highly impactful factor for the quality of the final outcome of the project.

    While maintaining regular communication, you should be also careful about not overdoing it or not exceeding your boundaries to provide your input. You have hired a professional IT outsourcing partner to trust, not to micromanage. Micromanaging will irritate the IT veterans on the team and you might end up spoiling rapport with them which can be a major reason for the failure of your project.

  5. Prioritise value over cost

  6. You don’t want to end up spending a dollar to save a cent right? To avoid this, it is very important for you to keep value over costs. Selecting an outsourcing partner just because of low price and not due to other merits is not an ideal screening process.

    This doesn’t mean that you should just go with the top bidder. Have a thorough analysis of all the other scopes like industry experience, and past work and then consider the costing as a factor.

  7. Build relationships, not just the software

  8. Getting the perfect software built with the IT outsourcing partner is not the end of your engagement. Whenever you build a great product, it needs constant updates, bug fixes, data management, and more. It is important to understand that you are going to have a long-term engagement with the remote team.

    Thus, it becomes important to connect and build a relationship with the team members of the IT outsourcing team as it will help you get better support and understanding from the team. Even at certain points when the project faces some hiccups, your relationship with the team will certainly be a motivating factor for them to get above and beyond to solve the problems.

    Definitely, outsourcing is a great option if done correctly to execute an IT project. The above-mentioned tips will help your project run smoothly with the outsourcing team. Besides this, one of the main things is to select a perfect IT outsourcing partner for you. MSBC has a proven record of delivering IT outsourcing solutions to clients across various industries like fintech, manufacturing, construction, and logistics.

    If you are looking for the perfect IT outsourcing partner, feel free to contact us.


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