10 grave IT outsourcing mistakes your company should avoid

 

Sending IT work to offshore firms has become a favorite of many global businesses. It has become a valuable tool to enjoy the benefits of labor arbitrage, increased geographical penetration, and strengthening ties with national governments. But it can also turn into a nightmare if you do it incorrectly. Software development or similar service outsourcing is beneficial only when you follow the best approach. Before connecting with any custom software development company, it’s better to ensure that you are leaving no space for errors.

According to a Deloitte survey, nearly 70% of respondents use outsourcing to reduce costs and increase productivity. 57% believe that outsourcing software development services help them to focus more on their core business aspects.

Today, this blog will concentrate on the grave mistakes that you should strictly avoid while outsourcing your services.

 

1. Lack of trust

 

Trust is important. The lack of trust can result in miscommunication, and both ends will suffer badly. It will unnecessarily delay the development process. Trust is important, but that does not mean you will trust anyone without checking anything. You should check their skills, previous work, and their way of managing work. Furthermore, every interaction—including calls, emails, comments, etc.—can either strengthen or weaken trust. This is doubly true if the developer fails to disclose a scheduled milestone that is not met within the predetermined window. An honest and transparent partner proves dedication to the project's success.

 

2. Lack of consistent planning

 

Reading a blog that explains all the benefits of outsourcing product development services from Austin may inspire you to do the same. But that’s not enough. You need to have an action plan in place to reap the best benefits of software outsourcing services. There should always be a plan for successful business strategizing.

 

3. Communication errors

 

A software outsourcing company may have plenty of ways to communicate. But activating all channels may not work for you. You should decide on the best channels for communication. Your project should get a single point of contact for regular communication. If any obstruction takes place, you need to omit that effectively.

 

4. Improper understanding of the project scope

 

Both parties working on the project should understand the objectives equally. There should be no place for misunderstandings and discrepancies. A common vision of goals and proper coordination of tasks will help you to get the required result.

 

5. Not hiring temporary project managers

 

Employing a contract project manager is a decision that organizations make for a variety of reasons. Using an internal team member without prior expertise in this position can result in expensive errors. The performance of routine tasks may be adversely affected by more responsibilities.

 

6. Vague contracts

 

Only signing the NDA and paying the packages won’t help unless you clarify the main contract for both parties. You know that ambiguities in agreements result in ambiguous responsibilities and a lack of accountability.

 

7. Overlooking customer goals

 

Customer research should be an active part of your software development process. Otherwise, you won’t be able to develop what your business needs. Intensive customer research will help you to design and develop exactly what your target customers need.

 

8. Poor programming partner

 

While outsourcing your software development requirements, you should ensure that your partner is not only knowledgeable in the industry but also perfectly aligned with your business goals and culture. If it requires a bit more time to find such a partner, spend that time for your own good.

 

9. Too much focus on cost-cutting

 

Outsourcing is a cost-effective choice. But trying to cut costs in every step or matter will lead to a situation where developers won’t be able to focus on the client’s value. You should do market research before hiring any software product development company in Austin. You will have a better understanding of the entire cost, and it will prevent you from setting unrealistic goals.

 

10. Poor collaboration with in-house teams

 

When outsourcing your software development requirements, you must enable many changes in your company's management and organizational structure. Your teams will be expanded with the offshore developers, and they need to work closely. You should prepare your in-house team to work effectively with their new colleagues. There should be proper collaboration and no room for misunderstanding.

 

These are ten common yet dangerous mistakes that may ruin the final outcome of any outsourced project. You should ensure you are not committing these mistakes from the very beginning of the process. When it comes to hiring a custom software development company, you can connect with Pratiti Technologies once. It can offer you world-class software development experience. You will be able to build solutions that your business needs to grow faster. If you need to build solutions that ensure 100% customer satisfaction and rapid business growth, you should look no further than Pratiti Technologies.