05 mistakes to avoid when selecting an IT outsourcing partner

Picking the right outsourcing partner is crucial for success. When you outsource making custom software to the right company, it can save you money and lighten the workload for your team.

Even though there are lots of benefits, some businesses still mess up when outsourcing, leading to failures, extra costs, and wasted time.

That's why it's super important to know about possible problems and be ready to avoid them.

So, here's a list of the top 5 mistakes you should dodge when picking a company to outsource software development to:

1. Focus Only on Cost

When selecting outsourcing services, it's often tempting to opt for the lowest-priced option, especially for those keen on saving money. However, prioritizing cost savings alone can lead to partnering with a subpar outsourcing team. The adage "you get what you pay for" holds true, particularly in outsourcing.

Choosing higher-cost options typically ensures better quality services, translating to a higher return on investment (ROI). Optimal productivity and quality surpass mere affordability, emphasizing the importance of finding a partner committed to your success. Striking a balance between affordability and quality outcomes is key.

2. Not setting clear expectations with the outsourced team

Not setting clear expectations with the outsourced team can lead to confusion, inefficiency, and poor quality output. To avoid these issues, follow these simple tips:

Clearly define project goals: Make sure you have clear objectives for the project from the beginning.

• What are the deliverables?
• What is the timeline?
• How does the project fit into your overall business goals?
• Do you have a workflow in place?
• Will your product work on different platforms?
• Do you have all the content needed?

Communicate effectively: Keep communication channels open with regular check-ins and updates. This helps keep the project on track and allows you to address any issues early on.

Provide detailed guidelines: Give the outsourced team all the information they need to understand your expectations. Detailed guidelines help prevent misunderstandings and ensure everyone is on the same page.

Set performance metrics: Determine how you will measure success and agree on quantifiable metrics with the outsourced team. This helps keep everyone accountable and ensures that goals are met.

3. Outsourcing Core Competencies

It's crucial to recognize that not all aspects of your operations should be outsourced, particularly core responsibilities. Assess your team's strengths and weaknesses to identify tasks they may struggle with and consider outsourcing those specific areas. However, refrain from outsourcing your core competencies, as this can lead to a loss of control over daily operations and result in execution and strategy issues.

Outsourcing non-essential or supportive services can offer significant time and cost savings while allowing you to retain control over essential aspects that drive the smooth functioning of your business.

4. Overlook Research and Due Diligence

When considering an outsourced IT provider, you can access professional services at a fraction of the cost compared to maintaining an internal IT department. However, it's essential not to hastily commit to an outsourcing arrangement with the first company you encounter. Prioritize thorough research and due diligence to ensure the chosen provider aligns with your company's values, beliefs, and culture.

Verify that the outsourced IT company meets your expectations, standards, and specific needs, including possessing industry experience essential for successfully completing projects and tasks. Insider knowledge to tackle industry-specific challenges is imperative for effective collaboration.

Evaluate the provider's previous track record and experience in assisting businesses similar to yours, considering references and case studies. Additionally, look into their industry certifications. Insights into employee and client turnover rates can also be valuable; companies maintaining long-term relationships demonstrate loyalty and professionalism, while high turnover may indicate deficiencies.

5. Not Clearly Defining Terms of Partnership or Collaboration model

One critical mistake to avoid when selecting an IT outsourcing partner is not clearly defining the terms of partnership or collaboration model. Rushing into an outsourcing arrangement without establishing clear guidelines can lead to misunderstandings, misaligned expectations, and ultimately, dissatisfaction with the partnership.

To prevent this, take the time to thoroughly outline and discuss the terms of engagement with your potential IT outsourcing provider. Clearly define the scope of work, project timelines, communication protocols, and deliverables. Ensure that both parties are on the same page regarding responsibilities, accountability, and desired outcomes.

By clearly defining the terms of partnership or collaboration model upfront, you can minimize risks, enhance transparency, and foster a more productive and successful outsourcing relationship. This proactive approach can ultimately contribute to the overall success of your IT outsourcing initiative.

Start your successful outsourcing journey with SCS Solutions

Venturing into the world of outsourcing can seem overwhelming, but with SCS Solutions by your side, it becomes a seamless experience. Backed by a solid track record and impressive case studies showcasing our exceptional work, SCS Solutions is your trusted partner for creative IT outsourcing.

Choosing SCS Solutions means more than just delegating tasks – it means forging a partnership where your success is our top priority. With a focus on quality, and reliability, and a dedicated team committed to bringing your vision to fruition, we ensure every project exceeds your expectations.

Are you ready to take the next step in your outsourcing journey? Contact us now!