Common IT Outsourcing Challenges Faced by Companies & their Solutions

1. Trust Issues with your Outsourcing Partner

Working with a company that is located overseas does bring in some trust issues. And quite frankly, this a very valid concern. Simply because the success of your project would be in the hands of your offshore team.

So, what's the way to find the best IT outsourcing company that has the tech and domain expertise you require, fits your budget, guarantees on-time delivery, and can rely on at every step?

Collaboration with a reliable outsourced development team is the solution.

However, the first thing to do is to clarify what has to be done. Understand your business KPI’s and the reasons for which you are outsourcing IT services. Once you are done, the research work comes into play.

It is a must to perform in-depth research on the offshore development companies, before getting in touch. Though it is not possible to do so for weeks, the best way is to check out some B2B rating platforms for creating a rough list of top outsourcing companies.

As soon as you have the list, it's time to get in touch and make a decision.

Select the Company Based on the following:

The maturity of the company: For how long it has been in the marketplace.

The number of long-term projects it has dealt with and the total number of successful projects.

Evaluate the company’s website carefully. Why will the company make something valuable for you if they are unable to do something good for themselves?

Social media presence of the company on different platforms like Facebook, Instagram, etc.

The knowledge-sharing process and technical skill development within the company. Company’s participation in different events.

Have an overview of the companies ranking & reviews on popularly known platforms like Clutch.Co, TheManifest & Good firms.

Case studies inclusive of the client overview, cooperation history, client issues, challenges, solutions, and technology stack issues.

2. Outsourcing for the First Time

If you are outsourcing for the first time, then it is important to understand the process. It includes defining your product vision, development stages, time to market deadlines, and the need for further maintenance.

After finalizing your outsourcing partner, set up clear and realistic expectations for your offshore development team.

Expect your outsourcing partner to walk you through the entire process during the initial discussion. In fact, it would be advisable to get in touch with your dedicated offshore developers and discuss your requirements in detail.

If your team is clear about your vision, objective & goals, then achieving them becomes easy. It would help them to craft an effective product development strategy and project charter to fulfill your end goals. Also, ask them to stay consistent about the regular project status update, in advance.

On top of that, your team will introduce you to the latest technology and whatever is trending in the industry. In short, they will ensure the adoption of best standards and practices for the development process.

3. Are you Technophobic?

Being clear about the technical requirements is crucial while outsourcing. In case you are not a tech-savvy person, things may become complicated for you. In this case, you can onboard a technical manager on site as a point of contact between your company and the offshore team.

Let's say you are planning to launch a mobile app for your business. In this case (where you don't have knowledge about the required technical stack), approaching a development team will become difficult for you.

Because a lot of technologies exist in the market for building a mobile app. For example, to build a mobile app, you may or may not need to hire;

1. Front-End Developers with expertise in Javascript frameworks, HTML, CSS, etc.
2. Back-End Developers with expertise in Java, Kotlin, Swift, ObjectiveC, Dart, Flutter, etc.

If you are aware about the technological requirements of your project, it would become easy for you to hire mobile app developers from an offshore country.

4. The Remote Development Company is either too Big or too Small

The Remote Development Company is either too Big or too Small

Among the common offshoring issues, companies face a challenge in finding the vendor of the right size. Either the remote development company is too small and is unable to scale up or down quickly. Or they are too big that they don’t take mid-size companies too seriously.

For an enterprise, any offshore company that is unable to staff 10-20 individuals is an issue regardless of their expertise. Whereas for any startup, collaborating with a large remote development team can be frustrating and they may not be considered important. Also, they may not get the attention that they actually require.

To address this challenge, you need to find a company with an appropriate size that will take your business objectives seriously. You may also need to choose the right country for outsourcing software requirements.

5. Outsourcing may be Risky

Outsourcing helps different companies to deal with the talent shortage. Working with a third party may be risky but there are ways to mitigate any possible risks.

• Loss of Control: No one wants to lose control of the project while collaborating with an IT outsourcing company. Manage the project equally and ensure everyone is on the same page. Train your in-house staff to efficiently maintain a relationship with the offshore product engineering team. Also, make sure that your company offers high communication transparency using a reliable tracking system.
• Data Protection: The security issue is significant when the project involves sensitive data. In that case, it is always good to conduct a background check. The previous clients will tell you how the company dealt with security issues in the past.
• Unqualified Professionals: A major problem occurs when an offshore software development company makes big promises but gives you a team of unqualified specialists. The major reason for this is, the lesser the salary of the employees is, the higher the revenue of the company. This unprofessional approach may bring poor quality results.

Here, the best measure would be to choose developers based on the interview, and visiting their office in person (if possible).

Source: 13 Common IT Outsourcing Challenges Faced by Companies & their Solutions