IT projects outsourcing has gained a lot of popularity among business leaders. As a result, many organizations outsource software development projects like mobile app and web development. However, despite the growing popularity of IT project outsourcing, there are many misconceptions and negative associations surrounding project outsourcing.
IT project outsourcing might not be the best choice for every business, but it can benefit your organization in many cases. This post will highlight when project outsourcing is the most beneficial to businesses. Plus, we will offer some tips and best practices to ensure that your IT project is a success when working with an outsourcing partner.
IT Project Outsourcing: When Should Your Business Consider This Approach?
Outsourcing software development projects and other IT needs is a great option, but it might not be the best decision for your business. While there are certainly many reasons to choose project outsourcing, if you are having trouble deciding if this is the right choice for your business, there are a few indicators that demonstrate project outsourcing is the right choice, including:
- Difficulty finding talent
- Internal staff shortage
- Lack of technical expertise
- Cost optimization
Difficulty Finding Talent
Even if your business has the resources and the desire to hire internal development talent, finding the right talent in your local area might be difficult. Not only is finding technical talent difficult, but the COVID-19 pandemic has exacerbated the talent shortages in the software development sector.
If your business is not in or near a major job market, you will likely have difficulty finding experienced, talented software developers and IT professionals. Instead of spending weeks, months, or in extreme cases, even years searching for the right software development talent, software development outsourcing can give you access to the talent you want quickly.
Project outsourcing is the best choice to make when your organization is struggling to recruit and hire the software developers it needs.
Internal Staff Shortage
Is your organization struggling to keep up with projects and meet deadlines? If you have an overabundance of projects and not enough internal staff to handle them in a timely manner, project outsourcing can help relieve the operational stress on your internal software development team.
IT project outsourcing is a great way to quickly scale up and get extra talent to meet the demands of software development projects. However, it won’t make much sense for your organization to spend the time and resources to recruit and hire software developers that are only needed on a short-term basis. Instead, your organization can turn some of the project management responsibilities over to an outsourced team to pick up the operational slack.
Lack of Technical Expertise
With software development outsourcing, you don’t need to be an expert to bring your vision to life. Instead, a skilled outsourcing partner can take the reins of your project and successfully lead your organization through the development, customization, and support phases of software development.
If you don’t possess the technical skills, trust an expert. Many companies utilize software development outsourcing to develop the best possible product with the tech industry’s leading development experts. Just because your business doesn’t have the expertise required to build a stunning application doesn’t mean it can’t utilize an outsourced team to accomplish this technical IT project.
Cost Optimization
Companies that need to optimize their costs often use software development outsourcing as an effective way to control costs. Your business will save considerable financial resources otherwise spent on recruiting, hiring, and retaining software developers. In addition, a skilled outsourcing partner can help your company make the right development and technology choices to control costs further.
Many businesses turn to project outsourcing to save money. However, you need to be careful when it comes to cost control. Sometimes the best choices for your business are not the cheapest options. Solely focusing on cutting costs will not yield the results you desire.
IT Project Outsourcing: Tips and Best Practices
If IT project outsourcing is the best decision for your organization, there are some tips and best practices that can assist you in choosing the right outsourcing partner and getting the best results from your outsourced team. Here is what you should know:
- Clearly define goals and expectations
- Choose the right partner
- Start with an MVP
- Focus on the value
- Communicate
Clearly Define Goals and Expectations
Before your organization can begin IT project outsourcing, you need to clearly define the goals and expectations of the company. How can you reach your ideal destination if you don’t know what or where it is? So before you begin looking for an outsourcing partner, take a long look at your project. What do you need help with? What can your team handle internally?
Be sure to make a list of goals you’d like to reach and responsibilities you would like an outsourced team to handle. Ensure that you can clearly explain your vision, long and short-term goals, and needs to software developers. The more they know about what you want, the better they can meet your needs and align their software development processes with your business operations.
Choose the Right Partner
Choosing the right outsourcing partner can be difficult. A true partner should understand not only the needs of your business and industry but also share similar values and culture. Many businesses choose nearshore outsourcing instead of offshore outsourcing to ensure a better cultural and value fit.
Not only should your organization ask a lot of questions of potential partners, but you should be answering a lot of questions in return. It should be a red flag if the outsourcing company you are considering asks few or no questions about your business or project.
In addition, ensure that the partner you choose has a proven software development track record. You can find great reviews and business information on websites like Clutch. If you can’t find testimonials or information about the outsourcing company on any third-party websites like Clutch, you should be concerned.
Start With an MVP
Before launching into full software development, start outsourcing with an MVP. Developing an MVP before a full-fledged application not only gives your business a chance to test product-market fit and specific features on its target audience, but it also gives your business a chance to work with the software development outsourcing company it chose.
During this time, evaluate how well the outsourcing company communicates, executes projects on time, and the quality of their work. If you aren’t completely satisfied with the work the software development company is doing, you can address it or find another company without having to scrap an entire app development project.
Focus on the Value
While outsourcing is a great way to control costs, focus on the value to your business instead of the savings. If you think of outsourcing as a cheap way to offload work, you will set your project up for failure. The rate charged by any software development outsourcing company will reflect the quality of their work and their skill level.
More experienced software developers can generally finish projects in less time. So a cheaper hourly cost with less experienced developers might actually end up costing your business more in the long run. Another thing to consider is that nearshore outsourcing will typically be a little more expensive than offshore outsourcing. However, there is more value in nearshore outsourcing due to time zone proximity, cultural similarities, and no language barriers.
Communicate
Create a regular communication schedule to speak with your outsourcing partner and sync. Ideally, the communication between your business and the outsourcing company will be regular without the added aid of regular meetings. However, setting regular status meetings is imperative to ensure that everyone stays on the same page.
Good communication can save your business a lot of time and money. If you are having issues communicating with your outsourcing company, it is probably best to look for a more engaged partner that will take the time to communicate with your organization.
Final Thoughts
Outsourcing an IT project is a great decision for most businesses. Chances are good that this approach would be beneficial for your business too. However, you need to strategically consider your goals and carefully choose an outsourcing partner to realize the best results. If you need help determining if IT projects outsourcing is in your best interests, reach out to an experienced app development partner.
