Top challenges in IT outsourcing
Outsourcing has become a modern gold rush that companies eagerly use to cut costs and increase efficiency. This approach is very useful for businesses but can have some risks and downsides.
When a company first outsources software development, it takes time and effort to settle the adaptation phase, and in some case scenarios, it eventually succumbed to the challenges of outsourcing that hinder the development plan.
On the one hand, outsourcing provides enormous benefits; at the other, it may come with its own collection of complications and obstacles. However, even if some issues occur there are options to fix them.
Here are some of the most significant IT outsourcing challenges companies facing today :
Many companies have certain expectations as to how things will work in theory. They often don’t work out as efficiently in reality. Adding a software development outsource provider is supposed to help your company’s development, but sometimes it doesn’t happen right away. Time is necessary for both parties to adjust to each other and to figure out the best ways to do things together.
To overcome this mishap, wait for a learning curve and a few rough patches. Develop that on your timeline and consider it when setting business goals.
Cultural and language differences
Outsourcing will certainly have an impact on the culture of the company. What so many businesses ignore is potential differences between the corporate culture of the outsourcing service provider and their own. Cultural and language differences can lead to misunderstanding and miscommunication during the work process that will drastically affect results your company was aimed to achieve.
You can overcome it by spending quality time searching for a software development outsourcing partner that will resonate with your cultural and business strategy values.
Time differences challenge a lot of business industries, especially IT-outsourcing. Companies need to apply different strategies to deal with the impact of it, which causes inconvenient communication difficulties. Solving a problem may even require adding more working shifts.
You can fix this by agreeing on near-shoring – an outsourcing strategy focused on recruiting a provider from nearby countries or a time zone close to yours with several overlapping working hours. This means you can keep in touch with the team when they’re working for you and react quickly to any questions.
Another challenge that arises with software development outsourcing is trust. Trying to find an IT company from another country you should realize that it requires to trust a team that you might not even meet face to face, to communicate only through emails and tools like Skype, Zoom, etc.
An optimal thing is to secure your idea with partnership agreements. Under such arrangements, you should indicate who is responsible for the delivery of software, the scope, the acceptance criteria, the timeline, and the budget, and also the possible financial and legal outcomes for the vendor in the case that these requirements are not met.
Leave no stone unturned in seeking the right outsourcing partner. Without clear insights, any company could only come to a bad end if it does not act strategically. Just like every business industry, software development outsourcing also has its peaks and valleys. The right approach will prevent you from getting most of the above-mentioned outsourcing challenges.
As Lee Kuan Yew once said: «If you deprive yourself of outsourcing and your competitors do not, you’re putting yourself out of business.» Don’t let others overcome you and take all the best that outsourcing is offering to you.