How to Choose the Right Company for IT Outsourcing?

How to Choose the Right Company for IT Outsourcing?

IT outsourcing has recently become a very popular option among enterprises. In many cases, it allows you to minimize the costs associated with building an internal team. So if you have decided to outsource some of your IT tasks , what should you consider when choosing the right company? You will find out in this article.

1. IT outsourcing - start by defining your goals

This is the most important thing a company can do before entering into a contract with any IT outsourcing company. The business practice in question is not a miraculous solution in every situation, so you first need to define what your expectations are.

Appropriate goals are specific tasks such as "build this application to this specification" or "increase this performance metric to this level ". Vague expectations like "increase profits" or "create something our customers will love" usually don't bring the best results.

Therefore, the company you hire needs clear guidance from you to be successful. Nobody knows your company better than you do. It's not realistic to expect external workers to immediately have the same understanding of your project as you do.

2. Outsourcing IT services - expertise counts here

Once you have determined your exact goals, you can look for potential and reliable companies. Once you have this initial list ready, start collecting more detailed data about them.

The most important elements you need to consider when outsourcing IT are:

• specialization,
• business model,
• access to the latest technologies,
• portfolio,
• experience in managing complex business challenges,
• communication,
• meeting deadlines.

Of all these elements, the most important is specialization in the chosen industry . By choosing a team that operates in a specific technological niche, you have a greater chance of using the services of real professionals. This also reduces the risk of errors and misunderstandings during project implementation. In some cases, hiring such a smaller, specialized company will not even be as expensive compared to becoming a client of a large corporation dealing with projects involving various technologies.

3. Choose the right size team

This point is, to some extent, an extension of the last mention in the previous paragraph. Many companies overlook this issue when they first consider outsourcing developers . They often gravitate towards the opportunity to hire the largest supplier possible.

Large companies find it more difficult to give each customer their full attention . Instead, smaller clients will often be assigned to a "B team" of less experienced developers, or treated as a less important side project. At the same time, the IT outsourcing provider will continue to charge its standard high rates based on its strong track record and brand strength.

This means that a large outsourcing partner makes sense for a larger client that is able to attract its full attention. In the case of smaller companies whose projects are not so advanced, the same choice may cause problems.

On the other hand, a smaller IT outsourcing partner is more flexible and usually charges lower rates. It will also be much easier for him to develop closer relationships with you. Attention from senior management can go a long way when it comes to numerous projects. You probably wouldn't be able to count on it in the case of large suppliers - such managers must be responsible for hundreds of customers.

4. Pay attention to business stability

Never underestimate this point. Check the operational and financial stability of the supplier before starting cooperation. Factors such as ownership structure, partners, acquisition plans, etc. should be reviewed.

Ignoring this factor could prove disastrous from a future perspective. What will you do if you signed a contract with an IT outsourcing provider who goes bankrupt after a few months? This will be a nightmare for both you and your customers. Searching for another replacement company quickly will be very problematic.

5. Can you count on partnership?

First of all, you should always take into account the price-quality ratio of the IT outsourcing services offered. However, in addition, you should determine to what extent the supplier is ready to establish closer and long-term cooperation that will help you achieve your strategic goals.

Summary

When building an application or other IT solution, you actually have two options: create your team from scratch or outsource the task entirely to external specialists. The affordability of outsourcing and quick access to global talent from around the world are some of the main reasons for its popularity.

Many successful global companies have gone this route: Skype, GitHub, and Slack are just a few. All you need to do is define your goals and KPIs, find the best possible supplier , pitch your idea, consider your proposal, focus on your core business and let the experts take care of the rest.