What are things you should look for in a good IT outsourcing company?

Published on: May 10, 2021
Last updated: November 10, 2022 Read in fullscreen view

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Learn about software vendors

You should apparently consider your specific needs, project details, and most importantly budget, when choosing an outsourcing company. Other than this looking into some important criteria so as not to stumble upon an irresponsible outsourcer:

Industry expertise: do they know anything about the industry you specialise in?
General experience and skills: try to know their team members’ experience in IT, in the technologies your project needs to be implemented, etc. What skills do they bring to the table?
Are they trustworthy? What’s their reputation? Check customer reviews and previous projects. How long did they last? How successful were they? Don’t forget to read through their case studies.
Are they easy to reach out to? What’s the customer service like? How do they communicate? Once you single out a couple of companies, arrange calls to understand how smooth of a discussion you can have with them. Communication is key when it comes to a long-term collaboration.
Do they guarantee appropriate data security?

You can find the best fit for your project through detailed research, there are quite many high-quality and experienced outsourcing companies out there.

Conduct a comprehensive needs analysis

The key to selecting the best suppliers is understanding what you need from them. Before choosing which suppliers to work with, there are many factors to consider.

What are your end goals?
Who will you be partnering with?
How does this affect your supply chain?
What do you need from the supplier?
How can they help you achieve those needs?
What kind of relationship do you want to build with the supplier?
Are there any potential risks that could arise?

A good supplier has the following qualities:

Is reliable and trustworthy
Can deliver quality products or services
Can provide support if needed
Will honor its commitments
Offers competitive pricing
Provides timely delivery
Accepts returns without hassle
Has a strong reputation
Financial stability
Easy to work with
Uses technology
Can go with you
A good culture

Looking for a good software outsourcing vendor

Here are some considerations when looking for a good supplier:

1. Plan ahead - Before starting your supplier selection process, take the time to think about where you want to go and what you want to achieve. What do you hope to accomplish? Do you want to select a single supplier or multiple ones? How many suppliers will you require? Will you use a formalized process or rely on intuition? These questions will help guide you through the rest of the process.

2. Look beyond price - When evaluating suppliers, don't just focus on cost alone. Take into account the type of services offered, the quality of the products, the delivery timescale, and the availability of spare parts.

3. Consider the benefits - Think about the advantages and disadvantages of working with each supplier. Do they provide good customer support? Will they deliver quickly? Can they handle special requests?

4. Use technology - Technology has made it easier than ever to find and contact potential suppliers. There are plenty of online tools available to assist you with your research.

5. Be realistic - Don't expect to find everything you need from one supplier. You'll probably need to combine different types of products and/or services from various sources.

6. Ask for references - Check out previous clients' experiences with the supplier. It's also worth asking if they can recommend other suppliers who may offer better benefits at lower price points.

What don't you like in IT outsourcing companies?

After asking several of my friends and family back in the states who have used outsourcing services in the past for their own projects, I have a basic idea of the three most common complaints that people offer against outsourcing:

Communication Breakdown- There are several factors involved in this, such as time difference, language barriers, cultural differences, and simply the less intimate nature of communicating from a distance. But it all boils down to the same thing - not enough quality communication.
Lack of ownership/responsibility - This is rooted in the age-old problem that every employer faces - you will never find an employee that will care about the project the same way you do. This is confounded by the distance problem that outsourcing presents. There is a phrase in Russian that describes this precisely - “God is high up in heaven and the tsar is far away.” People sometimes don’t feel the pressure of delivering a quality product on time if they don’t have manager breathing down their necks. :)
Trust Issues - Partly due to the above listed problems, there are a lot of breaches of trust (perceived or actual) between clients and outsource staff. Because the client is not sitting next to the developer, he can’t see exactly how the developer works, his capabilities (until an iteration is given to the client), and every step the developer is taking to fulfill his obligations. When there is a mistake, people are to quick to blame everyone - except themselves! And outsourcing staff is easy to blame because they’re not in the office with you. This creates a negative feedback loop that leads to a lot of finger pointing and disgruntled parties all around.

The good news is that these three major issues can be address in advance through simply doing your due diligence in picking an outsourcing company. Once you get to the short list of which outsourcing companies you want to choose from, make sure to have a few skype sessions or phone calls with the folks you are going to be working with and check for the following:

Do you have good rapport with the person?
Do they know what they are talking about?
If you ask them something that you know they don’t know, how do they respond?
How do they respond to feedback/criticism?

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