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Seven Points to Consider Before Outsourcing your IT Project

Segregate by distances, a dedicated resource is essential for becoming the ideal solution as an extension to the team.

What is resource outsourcing?

Resource outsourcing describes an arrangement, in which an organization chooses to hire an external team to effectively carry out all their technical tasks, that could be done in-house instead. The process of an organization handing over the responsibility of a specific business process or project to a third-party provider who is skilled and capable of managing the specific business tasks is known as technical outsourcing.

Based on a study by @Statista it was revealed that software application development was the most commonly outsourced IT function. Software outsourcing is playing a key role in the continued growth of the global IT outsourcing business.

Benefits of hiring a dedicated resource:

* When companies from ‘high-cost economies’ hire dedicated resources they are implicitly cutting off unnecessary costs while continuously developing a high-quality final product over time.

* A dedicated resource model can also be a game-changer for long-term and complex projects with constantly changing requirements.

* Unfortunately, technology is popular for becoming outdated very quickly, so companies need teams who are energetic enough to keep up with the changes while still delivering regular services more efficiently.

Global companies are encouraged to invest in outsourcing IT services because of the simple availability of diligent and well-qualified software engineers.

Here are the seven points to consider before outsourcing your IT Project:

1. Outsourcing Destination, Partner, & Model:

It’s fair to say that choice of outsourcing partner and outsourcing model can be easily broken down into a list of relevant points but here on the general scale, we will point out few points. First of all, a company that wishes to outsource must carefully consider the destination. This should be done with consideration for political stability, language proficiency, and access to qualified services, among other things. Secondly, the choice of partner is very important. Even though potential partners can be assessed using a variety of criteria, We want to emphasize the importance of selecting an IT company that can easily understand your business model and your requirement and can work accordingly. And the third point is the choice of outsourcing model. As a business owner, what are your expectation from outsourcing? Are you looking for pure service outsourcing? Or are you considering having business support to lead the project or team from an outsourcing company? Or do you want to use an outsourcing model that blends elements from each of the previous options? 

2. Nature of Tasks:

It is very important to have a clear idea about what type of work you want to outsource. Write and describe a specific scope or reach for your work. As a business owner, you can decide what your company’s priorities are, what your brand needs, and what the best way is to achieve the desired result.

Prepare a clear road map to resolve the specific issue, as well as the overall business objective.

3. Corporate Credibility:

No organization, no matter how big, can afford to compromise on quality. On the other hand, most importantly, no organization can afford to work with a service provider who constantly misses deadlines or provide low-quality work. 

In today’s digitized world you can connect to anyone across the globe. You can certainly research your vendor’s previous work, you can read the reviews and can also inquire about your vendor’s work from their previous clients.

4. Service Level Agreement: 

In an outsourcing relationship, the Service level agreement is the most important document. Make sure all is written down explicitly, leaving no room for misunderstanding. Ascertain that all the details about the project, pricing, execution, T&C needed for the services being provided are clear.

5. Pricing Structure:

Since the primary reason for outsourcing is usually cost, it is critical to obtain the best possible price. Examine the vendor’s pricing structure and equate it with other service providers’ prices. While price is significant, it should not be the only factor to consider.

6. Virtual Communication:

We all participate in virtual communication on a daily basis. However, even though we do it every day, many people struggle with virtual contact when it comes to remote collaboration. What is the reason for this? It’s not always because we’ve practiced virtual communication; in many situations, it’s because we know the people we communicate with and get along just fine.

As a business owner, when you outsource the work you should know exactly how to communicate with a vendor. You should have to make the vendor understand your objective of outsourcing the work along with your requirement.

7. Service Reliability:

The ever-growing IT outsourcing services have a lot to offer. The various outsourcing companies are in intense competition. All claims to be able to provide you with the best service possible. So, how do you know which outsourcing company is best for your project? The only option is to do research. You can do this by compiling a list of the shortlisted outsourcing firms and evaluating their advantages and disadvantages. A business may be accurate in some areas but failing in others. As a consequence, make sure that you pick the one who can manage your project with ease.

Conclusion: Outsourcing not only reduces costs but also provides several advantages such as access to professional and expert staff, flexible staffing, and increased performance, as well as a quick turnaround time, all of which produce more revenue and give you a competitive advantage.

We hope that these important points will assist you in your hunt for an outsourcing partner.

Do you need an Outsourcing expert?

Contact us at business@cittasolutions.com or you can also reach us at +91 8140297820.

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