Pitfalls when outsourcing software development
The pitfalls of outsourcing are out there! By reading this article, you will learn how to identify and avoid them!
If you have been searching for solutions to expand your business operations in a sustainable and scalable way, you have probably considered the idea of outsourcing some of your activities.
Whether offshore or nearshore, outsourcing development is an insightful answer to an issue that has been troubling managers and CEOs for some time: the US talent shortage.
ManpowerGroup's recent study revealed that 69% of US employers are currently experiencing difficulty filling positions – the highest rate ever recorded. It is no surprise that companies of all sizes are increasingly looking abroad for these talents, attracted by the low costs and increased ROI potential they represent.
However, outsourcing development does have its drawbacks. Learning about them is fundamental for you to prepare yourself for the challenges along the way and assess whether this type of arrangement is right for your situation.
Ready to learn more about this matter? In this text, we will address the main pitfalls of outsourcing, highlighting how you can identify and, of course, avoid them. Enjoy your reading!
Before we address the pitfalls of outsourcing, it is vital to understand this concept thoroughly.
Outsourcing development refers to an operational model in which the company outsources IT processes, i.e., it resorts to professionals who are either autonomous or connected to other companies.
You may carry out this kind of activity on the national ground through onshore outsourcing.
However, the main benefits come from offshore and nearshore modalities. These two approaches deal with the search for talent in other countries, aiming to supply the national shortage and access low-cost and highly skilled labor.
Naturally, technology makes all of this possible. Digital communication solutions serve as a bridge to create and manage teams based anywhere on the planet. If done efficiently, this effort has everything to contribute to business growth, both in financial and operational terms.
Exciting, isn't it? Well, but the purpose of this text is not to highlight the advantages of outsourcing but to point out its possible pitfalls. So, keep reading!
Success in any project depends on the ability to recognize and overcome the obstacles involved in the journey. When we talk about a business model that involves professionals based in other countries, some pitfalls quickly come to mind. Below, we will list and explain the major ones.
Communication barriers are the most apparent obstacles faced by companies while outsourcing their IT teams. Internal communication is key to aligning any strategy, so it is essential that everyone involved in the project understands the messages and can exchange feedback.
The tricky part here is that these barriers are not restricted to linguistic aspects. They also encompass factors such as cultural differences and time zone variations.
A Silicon Valley-based company dealing with India-based professionals, for example, needs to coordinate its meetings carefully. After all, New Delhi, the Asian capital, is 13:30 hours ahead of San Francisco.
Communication barriers, as well as geographical distance, generate several adversities. One of them is the challenge of conveying clear messages about the specifics of the project, such as deadlines, key objectives, KPIs etc. If the remote team does not understand exactly what you expect of them, the outsourcing process will not be successful.
That is why it is vital to rely on a solid strategic plan to carry out this kind of enterprise. Finding a partner with expertise in outsourcing allows you to closely monitor the project and ensure the professionals quality and engagement. This is usually a smart move, but still, you have to be aware of the pitfalls.
Just as important as finding a reliable partner with experience in the outsourcing development market is to secure a contract that covers all the company's responsibilities, establishing clear, unambiguous rules that both parties accept. Such care avoids loopholes that can severely damage your company.
So while you are looking for the best solution for your situation, be sure to pay attention to the reputation and level of credibility of potential partners. A solid partnership, coupled with a contract with no room for misunderstandings , is an effective way to avoid the pitfalls of outsourcing.
The last few paragraphs make it very clear: to get around the obstacles of outsourcing development, you must find the right partner. Of course, stating this is very simple, but how to put it into practice? Of course, you must conduct market research and find companies that prove to be committed to the quality of the outsourcing service.
In the process, it is essential to think long-term. Finding partners willing to assume long-term commitments is a sign that there is interest in maintaining a positive interchange for both parties.
Also, beware of companies that promise to deliver results too quickly. They may be fast, but they are not always compromised to ensure quality.
Some companies focused on outsourcing development, for example, promise to find the ideal professionals in a matter of days. At first glance, this could be easily seen as a huge benefit. But is such a quick selection process accompanied by a thorough analysis of the worker's actual suitability for your needs?
Perhaps it is more worth considering companies that include longer delivery timeframes but demonstrate greater concern about the service quality. In this way, the odds of dealing with professionals completely aligned with your business's culture and demands are much greater.
By working with a committed partner, you avoid falling into the pitfalls of outsourcing. The partner will be responsible not only for selecting the best talent available to meet your needs, but also for closely monitoring their performance and ensuring that obstacles such as cultural and language barriers do not negatively interfere with results.
Eager to learn more about the various benefits and the hidden pitfalls of outsourcing development? Keep reading our blog and follow us on Instagram for more content and updates!
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