What Is IT Project Outsourcing?
Ever had a thought ‘I wish someone could finish this work for me!’. If so, then you probably wanted to outsource your work. Outsourcing refers to collaborating with a third-party with the aim of accomplishing a goal or finishing a task.
In the domain of IT, it particularly refers to connecting with an outside organization that has been tasked with project development for your company. Although this approach has been around for a while, it is currently advancing quickly because an immense amount of work is being carried out remotely.
It has been observed that IT projects outsourcing entails a lot of benefits which is why the practice is all the rage now. However, before handing off your project to an outside organization, it is important that you carry out extensive research!
Benefits of Outsourcing IT Projects
Businesses that use this strategy in their workplaces have been shown to get numerous advantages from outsourcing IT projects. Embracing agile practices and increasing employee productivity through workers’ emphasis on more pertinent tasks at work are only two of the many advantages of outsourcing.
Save up on Costs
Outsourcing benefits your company’s finances by significantly reducing the burden on expenses involved in recruiting and training new employees and establishing specialized infrastructure.
Although it might seem like an extra expense, as you are still hiring someone to work for you, it benefits you because you will not have to invest in for e.g. hiring campaigns and will be able to get the job done by someone who excels in their field.
However, the amount of reduced costs your business is able to maintain depends largely on the outsourcing company that you onboard. If they charge a high fee for their services, then you will definitely struggle with highlighting the cost reduction, but in the end, it’s all about finding the right balance and what works best for your business.
Benefit from extra resources
Once you onboard an outsider in your business dealings, you are in a position to leverage from their skills, whether they are problem-solving or management.
For eg. an organization that specializes in software development will bring with it new ideas, skilled professionals, and development techniques that you may be unaware of. Owing to their specialization, they will be able to solve issues more quickly and effectively and will have access to resources and methods that enhance their services.
This gives you the opportunity to benefit from the additional resources, which, when used wisely, can provide you a competitive advantage in the market.
Involving a trusted third-party in your business operations aids in adapting to more flexible solutions and promptly dealing with problems without wasting time.
You inevitably commit to an agile and flexible method of working when you outsource IT projects. Flexibility is encouraged in such a manner that once you outsource the project, your business can shift its focus on other crucial tasks while also eliminating extra burden imposed on in-house employees.
Moreover, it also ensures that all resources are utilized to their maximum capacity. A set number of overhead is in charge of certain tasks which ensures a smooth sailing process. Processes followed in the operational practices also evolve to follow agile methods as the target shifts to producing quality deliverables, especially in development projects.
Improved security and support
Security of data used in a system is of utmost priority. Some people may think that when IT projects are outsourced, they are prone to data breach and safety hazards. However, that’s not usually the case as these outsourcing companies have several security protocols in place that ensure the integrity of your data.
Sometimes, they may even have better security policies than your business which only improves the standard of the system being developed. Not only that, but your business also has the power to hold the company responsible in the event of a security breach.
Additionally, most outsourcing companies provide 24/7 support, more so due to the differences in time zone, so that everything remains streamlined, and matters are resolved immediately.
Task dedicated Teams
Outsourcing organizations mainly consist of teams that boast complete command over the services that they offer. In IT projects, especially long-term, it is essential that the project is worked on by a specialized dedicated team. This not only ensures consistency but guarantees a reliable output that can be depended upon by your business.
A dedicated team is expected to invest maximum efforts to develop the project and generally follows all the development best practices. This eliminates all the risk factors that may evolve due to compromise on work methodologies.
Generally, when outside organizations are onboarded in your business, the term workspace is regarded in a broader context. It usually refers to an online working environment where people from various backgrounds, races, nationalities render their services collectively.
This results in a dynamic and diversified workspace where one is judged based on their level of skills. It is also an amazing way to expand your business operations to various geographical locations, which is useful for business continuity planning.
Boost in-house efficiency
In-house employees of your business organization also benefit from IT projects outsourcing. When essential tasks, like system development, are outsourced to another company, it allows in-house employees to effectively manage other operation for e.g. project management.
In simple terms, it helps enhance their work-life balance by reducing their work pressure. It has been observed in professional work environments that employees with good work-life balance tend to be more productive at work, which is why employers should go an extra mile to benefit their employees by outsourcing few projects.
A software system’s quality is determined by a number of factors, each of which must be taken into account individually for the system to pass as a qualified and dependable deliverable. Quality assurance is a distinct process in software development which must be carried out diligently.
Therefore, outsourcing companies invest extra effort to ensure that the developed system is put through rigorous testing and passes all the necessary quality checks. They fulfill this responsibility with due diligence because delivering a subpar system could harm the company’s reputation as a third-party service provider.
Additionally, risk mitigation strategies are also taken into account when developing the system and risks are eliminated as soon as they are encountered to maintain the quality of the system.
How to Choose the Best Outsourcing Company?
As mentioned above, as a business that needs to rely on an outsourcing company, it is crucial that an extensive screening is carried out to filter the best organization that can be relied upon for your development needs.
There are various factors to consider before selecting an IT outsourcing company for your business:
Verify company’s Specializations
When you outsource an IT project, you do it with an expectation of accomplishing a goal, for eg. backend development of a software system. Therefore, your search for an outsourcing company will be specific to your needs. In this instance, for example, you will specifically search for a company employing backend development specialists.
In order for you and the company to be in agreement, it is essential to confirm the company’s areas of expertise. This will ensure that the company has the capability and necessary skill set to meet your requirements.
Look up their past Clients
Testimonials from past clients are a great way to learn about how the business operates and assess its services according to client satisfaction. Although it is not fair to rely solely on someone else’s words, they still go a long way in establishing an image of what can be expected from the company.
These reviews from old clients are generally listed on the company’s homepage so they can be accessed easily. Moreover, if someone from your business network has past experience of collaborating with an outside organization, then it is best to follow their word and onboard that company.
Compare and contrast various IT Vendors
Researching for trustable partners also involves putting the potentially good companies against each other to weigh the pros and cons. This is a necessary step that must be followed so that you don’t get sabotaged into working with a less deserving partner when you could have opted for a better one.
Once you weigh the pros and cons of each vendor, the final decision will be relatively easy to make. You will also have the personal satisfaction that the choice you made was indeed the best one.
Verify legal aspects and Contracts
Before signing off a deal with the service provider, make sure you review their contract policies so you can avoid ending up in unwanted situations in the future. It is important that you place emphasis on the contractual policies during the initial discussions, so it is easier to back out if necessary.
Also, organization principles and methodologies vary from company to company, so you need to verify that their practices align with yours to eliminate any discrepancy in the end product that is to be produced.
Build effective Communication
Communication is the key in business dealings. It is essential that your requirements are understood by the other party as intended in order to prevent misunderstandings and inconsistencies. Therefore, ensure that you go over things multiple times and place emphasis on crucial points during the discussions.
Moreover, after onboarding the company, maintain daily back-and-forth communication to track their progress and provide relevant feedback. In this way, you will also be able to own your project even when someone else is in charge of developing it.
Does Your Business Requires Project Outsourcing?
We live in a world vastly dominated by IT and software. There is a lot of pressure on businesses today to only release the best products, which is a difficult task. Now, when it is easier than ever to search for someone who could help you meet your requirements while also maintaining every standard and protocol, then you must take advantage of that.
Along with producing good quality products, you will also benefit from added resources and expertise, expanded network, and diversity in the workspace. In this rapidly advancing world, it can safely be said that all businesses, especially in the IT domain, require project outsourcing to some extent.
How Codesy Can Help You Meet Your Outsourcing Needs?
Codesy Consulting, established in 2020, specializes in fulfilling all your IT projects outsourcing needs. With over 10 years of experience in the IT field, the company now boasts a plethora of talent. From mobile app development to integrating marketing strategies, Codesy has an expert in every domain who is willing to provide services at your call.
So, what are you waiting for? Get in touch with Codesy Consulting today and hire a dev for your IT project!