Outsourcing is a very common phenomenon in the contemporary business scenario. IT outsourcing is a term coined to elaborate the process of seeking resources external to the organizational set up for information technology functions. A business entity uses IT outsourcing for infrastructure to software development, starting from maintenance to support. A company often outsources its IT management task or IT projects to a third party because it is economical than developing an in-house IT management division. According to experts, there is no fixed success mantra for outsourcing. But in the present scenario the major snags related to outsourcing is less to do with technology and more to do with communication, strategy and relationship.
The most common mistakes that take place while outsourcing is as follows:
- Miscommunication Leads to Blame Game
It can be onshoring or offshoring, outsourcing is basically defined by relationship. If there is any lack of communication and the customer and the outsourcing company starts playing blame game then even a regular minor problem may look like a mountain. Ultimately, this leads to a dysfunctional business relationship. Never go for a confrontational mentality.
- Excessive Focus on Pay Rates over Results and Strategy
The decision to hire an outsourcing company is at times completely budget driven. An outsourcer may offer lower rates but on the other hand, staff the entire project with juniors instead of experienced people. It might be cost saving but can be technically unviable On the contrary, if the IT outsourcing falls in line with the company’s aims and longtime strategies then it can yield many constructive results like it can diminish delivery time, access better skillsets, compensate the scarcity of staffs and also can lessen risk factors.
- Disregard All the Risk Factors Instead of Alleviating those
Another way to mess up an IT outsourcing project is by not taking into consideration the general outsourcing concerns like loss of privacy, increased information safety hazard, a decrease of in-house knowledge, unreliable performance and many more. If the clients think that these concerns are genuine then they must take steps to sort out the risk factors.
- Be a Control Freak and Force Your People to Shut Up
Companies often over interfere after they have outsourced the project. The single most agenda of outsourcing is to obtain superior IT skills and knowledge but the companies often destroy all the efforts of the IT firm by dictating too many issues to them. Sometimes people raise concern about the entire concept of outsourcing. But let them express themselves and try to assuage their fears after hearing them out.
The above points will help the companies to avoid the general outsourcing mistakes committed by them and help to derive the absolute benefits offered by this process and will help to access superior quality skills at a low cost.