The IT outsourcing industry has been growing in recent years, as businesses become increasingly dependent on their IT systems and invest in technology-related services. Smarter ways of doing business led to changes not only in the work processes but in the overall corporate strategy.
A well-designed outsourcing relationship will result in the development of dynamic capabilities related to knowledge management. They can be used for improving, sharing, communicating, and learning so that workers are more able to take initiative. These new capabilities affect changes to a culture from one of efficiency by transfer of knowledge to an education-based acquisition model.
In this article, we will discuss how to develop an IT outsourcing strategy and showcase the most useful practices.
Types of Outsourcing
Outsourcing is a strategy that has evolved over the years.
Outsourcing can be divided into:
- Onshore – working with third-party services in own country
- Offshore – working with distant countries
- Nearshore – working with neighboring countries
Different categories of Outsourcing
- Professional outsourcing – You need a team of expert mobile app developers, but you don’t have the time or resources to build your own in-house development team. It can help you meet your goals without breaking the bank.
- Multisourcing: It includes hiring IT services with other business functions.
- Manufacturer Outsourcing: One can produce products under one’s own brand, with the help of a company (manufacturer) that already has all the necessary equipment and can provide related services.
- Process-Specific Outsourcing: means hiring an outsourcing team that specializes in a narrow or specific service.
- Project Outsourcing: Partner with a company who deals with more than one project.
6 Steps to Successful IT Outsourcing
1. Define Your Outsourcing Goals –
The first thing you must have before going into a decision on finding an outsourcing company is to clearly define what type of application you are looking for, and how long it will take. You should gather all the information that you need to help you in this process. So that, you can find the most efficient way to get in touch with your new business partner.
2. Choose Reliable Outsourcing Partner-
When it comes to outsourcing IT projects, the competition is fierce. A sharp eye and a keen sense of selection are both needed to avoid malpractice and find a worthy partner. When you’ve finally narrowed down your options, check their website and do a thorough review of their clients as well.
3. Pick Matching Engagement Model-
The relationship between your business and the outsourcing partner you choose to work with can be a complex one. There are many factors that will determine whether you find it a fruitful arrangement, and specifically, there are 3 main engagement models that will help you understand how your outsourcing relationship will work. The various models offer different benefits and are suited to different organizations and processes, so it is important that you take the time to consider all of them before deciding. Once the right partnership has been established, however, the sky really is the limit in terms of what can be achieved.
4. Calculate your budget-
Estimation is always a crucial factor that appears while planning the development costs of your project. In order to understand how much money, you should allocate for outsourcing your project, you must examine and compare both internal and external financing options, as well as estimate all possible risk factors.
5. Actively Track Outsourcing Progress-
With a change in development strategies and an increased need for IT outsourcing, staying updated on your chosen software development service provider’s progress can be difficult. Certain conditions, such as lack of communication channels and constant location changes of employees, can make it harder to always track the progress of projects. To avoid loss of efficiency use methods to monitor software development progress.
6. Build Strong Communication-
Effective communication is the key to taking a product to market within a budget. Establish a regular and efficient communication process with your vendor and set up video conference calls for all team members. By doing this, you will find it easier to keep the channel of communication open and clear. Make sure you set up meetings and chats on a regular basis. Involve your team members in your meetings to help you make the project successful.
To Sum Up
Outsourcing software development to an offshore company is a very affordable way of obtaining high quality web applications. However, you must make sure that the infrastructure that you choose will provide sound development standards, consistent technology and employee expertise.
If you’re looking to partner with a genuine expert for your business, our team is here to help. Geared up with top notch business experts and a versatile development team. Infraveo, can deliver a full range of software solutions from scratch. We’re not just another company that does what it’s told. We’ll engage in an actual dialogue with you and create the best possible software solution that meets your requirements and matches your vision.