Outsourcing IT functions is the best way how most businesses become more competent in today’s market and make more money by doing less. Many successful companies like Skype, GitHub, Slack etc. have built their products using outsourced development teams. Outsourcing helps organizations to streamline multiple projects which ultimately result in increased business productivity and profitability.
But, too often, entrepreneurs make mistakes and don’t manage to reach the outsourcing goals they have set. And it is very frustrating when it happens because your money is involved in it. You rely on a third-party to complete the project that will be profitable for you. Therefore, you must ensure that its development is continuously aligned with your business objectives. You need to do your homework before outsourcing any project.
“Outsourcing can be a blessing or a curse”
This article aims to teach you some simple steps you can take to avoid the most common outsourcing mistakes. We will then see how you can flourish your business in Florida by making an outsourcing plan with an IT consultant in Florida.
Poor Knowledge of Outsourced Partner:
Many entrepreneurs believe that outsourcing is all about selecting a third-party service that provides resources at the lowest price. But they need to have in-depth knowledge about the outsourced partner. Each vendor has products and services with different qualities and price. You need to inquire about their previous work on their website, social pages and if possible, contact their clients. It is important to assess and categorize each partner to know that they’re capable of quality work and deliver everything right your company.
Fixing Price in Advance:
Your ultimate goal is to get quality work with innovations that will increase your efficiencies. Fixed price bid only works for short-term projects. But it is ineffective on long-term projects like affiliate marketing, customer support, and compliance regulations. You need to be flexible and get most out of your outsourced partners with a plan that is beneficial for both the parties.
“Outsourcing doesn’t mean you should be cheap”
Lack of Understanding of Culture and Location of The Outsourced Partner:
Often companies prefer to outsource their projects to overseas partners because of cheaper labor cost. But you should keep in mind that success depends on cultural work ethics, time constraints, social status, language, and a positive attitude. If you fail to adopt the cultural differences in your development team, you may not get what you expect. Therefore, before outsourcing overseas, consider the culture and time difference that will impact your relationship and communication.
Outsourcing Core Business Operations:
Another common mistake company makes is outsourcing their core business activities. Ask yourself- Will Google outsource its search algorithm for improvement? No. Every company is established on a million-dollar idea. You don’t want to reveal your secrets to anyone. If you do so, make sure you trust the outsourced partner and sign a Non-Disclosure Agreement. Any critical information like passwords, reports, business contacts should remain at the heart of an organization.
Lack of Team Management:
To make the development fast and easy, you need to keep an eye on the teams and motivate them throughout the outsourcing process. The outsourced teams need a lot of communication, standard protocols, and contingency plans. Avoid outsourcing projects under an inexperienced professional who doesn’t know team management.
Outsourcing your IT projects for development puts you at risk of data loss and security threats. Ensure that your outsourced partner will keep your data secured under parameters during the development.
Service Level Agreement is a formal document that defines the working relationship between the two parties for a service contract. You need to develop a strong SLA that outlines your expectations, contract change agreements and financial consequences of delays. SLAs are the heart of project outsourcing. Therefore, you need to invest a significant amount of time creating it and ensuring that the following major terms are highlighted in it –
- The negotiated price
- Delivery schedule
- Possible financial consequences for delays
- Support availability
- Performance metrics
How IT Consultants in Florida Can Help Entrepreneurs Outsource Their Projects Successfully?
Not every business owner has a piece of fair knowledge about IT. You only have a million-dollar idea and lots of determination to win the market. You need someone who can advise you along the outsourcing process- From selecting an outsourced partner, negotiating price, assessing the quality of work to preparing a strong SLA. An IT consultant will mitigate all the risks associated with outsourcing projects.
Florida IT Consultants comprises of experienced project managers and IT professional to direct an outsourced team towards project completion. They are willing to provide their IT consultancy in Florida 24/7 so that your projects get completed by a right outsourced team. They will guide you about all the necessary IT stuff in the simplest manner so that you can understand what is being developed. They will ensure that your communication is fruitful and should not stress your core business plan while making sure that assigned tasks get finished in a timely manner.