4 Expensive Errors Made In Hiring Outsourced IT Groups (And How To Keep away from Them)

CEO of Ideamotive, a market matching tech expertise with corporations worldwide. Co-author of “The State of CEE IT Outsourcing 2021” report.

Keep in mind the story a couple of crafty fox and a silly goat? The one the place the fox talks the poor goat into leaping right into a effectively, simply to climb on its head and get out? 

Regrettably, for a lot of corporations, hiring exterior IT companies could typically really feel like sliding right into a bottomless effectively. The place the exterior firm ought to carry worth, it typically sparks chaos; the place it ought to facilitate undertaking supply, it places a damper on the undertaking execution with communication bottlenecks and electronic mail ping-pong. And it appears to be the one social gathering benefiting from the association.

Suppose Earlier than You Leap

However this does not need to be the case. On the worldwide IT outsourcing market, estimated at almost $414 billion this 12 months, there are nearly numerous reliable sub-contractors to select from. Within the CEE market alone there are over one million IT specialists

. However how are you going to determine the correct ones and keep away from locking capital with a associate that’s incompetent or not suitable along with your targets and values?

Listed below are 4 important “traps” companies typically fall into when outsourcing IT-related work, with ideas on methods to keep away from them: 

1. Lack Of Firsthand Business Expertise

Expertise within the know-how area is important. However verifying the service supplier’s coding abilities will not suffice. Your outsourcing associate should additionally exhibit an intensive understanding of challenges, aims and issues typical to your area of interest. The shortage of a confirmed observe report in your vertical drags out the onboarding course of, will increase the probabilities of misaligned targets and hinders communication. 

How To Keep away from That: The simplest option to gauge an exterior IT companies supplier’s enterprise expertise is to cross-check their consumer references. A longtime associate ought to exhibit a verifiable report of labor in tasks that cowl your area of interest.

2. Language Obstacles

Language barrier stays a big problem in trendy outsourcing—and one that’s too typically uncared for. In your collaboration to yield enterprise worth, you do not want contractors aware of English; you want those that can effectively talk on this language. In case your outsourcers can not clearly convey each technical ideas and summary concepts in English, this creates an entire spectrum of points that pose a menace to the well timed execution of your contract. These embrace delays within the undertaking kick-off, inaccurate scoping of labor and poor response to suggestions.

How To Keep away from That: Search for IT and software program growth corporations in areas suitable along with your language and tradition. Consider the language proficiency of all members of the workforce who’re going to help your tasks. Instruments like English Proficiency Index could be of assist right here. Goal the international locations with excessive and really excessive English scores—you will be extra more likely to discover a dependable workforce of outsourcers who converse your language.

3. Muddied Communication

Talking a standard language: It isn’t all there may be to environment friendly communication. Different points that add friction to easy info circulate embrace the shortage of knowledge and course of transparency, no time zone overlap and defective undertaking administration practices. Once you work asynchronously, maintaining a undertaking in-synch with an outsourced or offshored workforce that is not responsive generally is a back-breaking train. Friction is more likely to seem if the outsourcer’s most well-liked communication channels do not match your communication type. Furthermore, a bent to over-communicate is as detrimental as gaps in communication.

How To Keep away from That: Consider the service supplier’s communication processes and underlying know-how. Test how the corporate communicates with its shoppers—is it by way of weekly calls, day by day Zoom conferences or emails solely? Set up in case your most well-liked strategies align. Ask concerning the escalation procedures. Contractors ought to be open about their undertaking administration practices and the instruments used to maintain everybody on the identical web page. If they don’t seem to be, the writing’s on the wall.

4. No Scalability

For those who’re utilizing an outsourcer, you are most certainly anticipating development. And as you develop, your wants will evolve, too. Hiring a solo software program developer is a plug-and-play resolution to quickly increase the workforce or delegate a selected activity on a one-off foundation. But when your services or products has the potential to develop, you want a contractor who can ramp up and scale down dynamically. In case your associate solely works with a handful of specialists in a slender discipline or know-how, they may not be capable to help your long-term undertaking wants. Thus, you will have to hunt sources in one other firm and begin expertise searching anew.


How To Keep away from That: Be sure that your IT companies associate has sufficient bandwidth to cowl your consultancy wants now and sooner or later. Discover out the dimensions of their sourcing community and inquire concerning the typical undertaking scope. Partnering with a cross-functional supplier is the most effective insurance coverage coverage. This manner, you’ll be able to dynamically lengthen and resize your workforce, individual by individual, as wanted. 

The place To Discover A High quality Exterior IT Workforce

Gartner tasks that worldwide IT spending will improve by 6.2% from 2020 after a transitory slowdown. International organizations will probably develop their use of exterior IT and software program growth suppliers to pursue digital initiatives that can speed up post-pandemic rebound. However discovering a trusted IT outsourcing associate takes time. Be the fox, not the goat.

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