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 outsourcing for app development. There is a demand – there is a supply, so several firms offering such services have appeared on the market. We have a guide for you to help you choose the best one!
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.
And here Outsourcing can be the game changer!
Why do you need IT outsourcing?
We are sure that you already know the advantages you can obtain due to Outsourcing Software Development. But let’s make a short reminder.
- Access to a large pool of specialists, at every stage of seniority.
- The flexibility of your team’ squad,
- Savings, both in terms of money and time,
- Reduced risk related to working on new projects,
- Improved service quality and speed to market,
- Opportunity to focus on core business functions.
But this is all provided you find the right IT Outsourcing provider.
Prepare Your Project
Before engaging with an IT Outsourcing provider, it’s important to define your project requirements. You can think of it as a small internal audit.
Consider whether you want to outsource the entire project or just specific competencies. Will you be creating a completely new project, or are you expanding an existing one? What technologies will you be using? Additionally, clearly define the project structure, internal roles, and the methods for management, escalation, and reporting.
By doing this, you will be able to create a comprehensive brief, which will greatly facilitate not only the selection of an IT Outsourcing Partner but also further collaboration with them.
Where outsource your IT project?
When choosing an IT outsourcing provider, you must first consider which collaboration model you prefer. You can choose from nearshoring, offshoring, or working with a local company.
In the case of nearshoring, you will be outsourcing to neighboring countries. For instance, if your company is in Germany, you will typically work with a partner from the European Union. The most commonly chosen region for this is Central and Eastern Europe (CEE), for example, partnering with developers from Poland.
Offshoring, on the other hand, involves working with a more distant partner, potentially from another continent.
Which IT outsourcing model should you choose? Determine whether a shared time zone or cultural similarities are crucial for you. Additionally, consider how well-defined your project management processes are—the less established they are, the closer your partner should be.
Set you priorities
Let’s start with the fact that it’s important to prioritize the specifics of your project and your company’s capabilities. You can check various rankings or ask friendly companies who they work with. However, keep in mind that some prefer to work with global corporations, while others choose smaller agencies. For some, price is the priority, while for others, industry experience is more important. Define your priorities.
Here are some most important aspects to consider when thinking about IT outsourcing:
Competences
The most important aspect to take into account is competencies. If you need software developers, it is important to look for companies that employ people with the skills you need.
Relevant experience
Your future partners should be able to document their experience in the field you want them to work on.
Communication and approach
All projects rely on communication. Even more so when you work with external partners. 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.
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.
