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How to choose IT Outsourcing partner?

IT Outsourcing partnet

IT Outsourcing is a growing industry. Statistics show that by 2023 global spending on outsourcing will hit $731 billion. Currently, as much as 92% of G2000 companies use external IT services and 60% of organizations globally turn to outsource for app development.

Why do companies need IT outsourcing?

There are several reasons why companies decide to work with external partners when it comes to their IT projects. The main one is the lack of skills in the global market. A ManpowerGroup research reveals that 69% of US employers are struggling to find skilled workers. Looking for the right employees and training them takes a huge amount of time and money, making the whole process extremely burdensome. What’s more, keeping such talented and difficult-to-find employees is trickier than ever, especially with the always-increasing wages and costs of employment.

In a fast-paced environment, companies need talented and skilled people available immediately and just for a particular project. Short deadlines are therefore another reason why it is more convenient to find an external partner than to look for employees on your own. And while actual money may not be an issue, budgets certainly are: those allocated to recruitment are being cut more often than operational ones, giving companies another push to outsource. 

Benefits of outsourcing

 Companies decide to outsource their IT projects more often than ever and are increasingly happy with such a solution. The main benefits of outsourcing include:

  • Immediate access to a large pool of creative individuals: thinkers, developers, cybersecurity specialists, and designers,
  • The flexibility of such a solution, with no need to limit yourself to full-time employment,
  • Savings, both in terms of money and time,
  • Access to skills not available within your organization,
  • Ability to choose the right technology, even if there is no experience using it within your company,
  • Easiness of scalability, once your business grows,
  • Reduced risk related to working on new projects,
  • Improved service quality and speed to market, 
  • Access to a large pool of tools and processes,
  • Agility,
  • Strong problem-solving skills of experienced IT partners,
  • Opportunity to focus on core business functions.

Things to consider when choosing your IT partner

Although outsourcing is a great idea, it has to be done carefully – it is crucially important to choose your partner wisely and to base your decision on thorough research. 

The market is full of IT companies happy to offer their services, so there is a wide pool to choose from, but when you look at them closely you will realize not all of them are what you are really looking for.

Here are some most important aspects to consider when thinking about IT outsourcing:

  1. Competences
    The most important aspect to take into account are competencies. If you need software developers, it is important to look for companies that employ people with the skills you need. It is also important to verify the level of competencies you are after. You can check that by reading online reviews of the companies you consider or by speaking to some of the clients the company worked with in the past.
  2. Relevant experience
    In business there is nothing more important than experience: when you have seen and coordinated numerous projects within different companies, you know what works and what doesn’t, and you know the processes and how to address issues once they arise. This is why your future partners should be able to document their experience in the field you want them to work on.
  3. Specialist knowledge
    Once checking the competencies and experience of your future IT partners, have a look at the particular projects they worked on. If you are a fintech, you should be more inclined to go for a company that collaborated with similar fintechs, as they will have more experience in the problems of the fintech world. If you are from the e-commerce sector, look for organizations experienced in working with e-commerce, which employs specialists in the field. 
  4. Communication and approach
    All projects rely on communication. Even more so when you work with external partners. You will be communicating with them often, and there may be some problems on the way. This is why it is of utmost importance to go for a company that you feel at ease with, that is easy to communicate with, and that shares values similar to yours. If it takes them too much time to get back to you if the replies are not as clear as you would like them to be – these are all signs something may not be working there as smoothly as it should.

    Equally important is their approach to the whole process. What you are looking for is trustworthiness, openness, agility, and transparency. Remember, if something doesn’t feel right from the beginning, it will be worse once you collaborate closely!
  5. Readiness for a long-term relationship
    Looking for external partners is a complex and time-consuming process, so once you decide to do it, it is worth finding a company you will stick with for longer. A long-term partner will get to know your organization better and will be able to respond to any of your future needs, once they arise. So don’t think about outsourcing as a one-off collaboration but as a partnership that will take your company to the next level.

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