Why Most Software Outsourcing Companies Aren’t Good Enough?
Why Most Software Outsourcing Companies Aren’t Good Enough?

Outsourcing companies are key to your development strategy. But how do you find good ones? Find out in this post!

Outsourcing development is an effective way to scale your teams and overcome the domestic market's hiring barriers. Modalities such as nearshore and offshore give you access to an extensive pool of professionals, increasing the chances of finding the right fit for your project.

To ensure success in this endeavor, however, it is vital to count on a trusted partner. Finding one, however, is not always that easy. Many outsourcing companies are simply not good enough.

Some common mistakes, which we will list and discuss in this text, could compromise your results and turn an arrangement that should be profitable into a real problem. But don't worry: to help you avoid them, we'll provide some tips on how to choose the ideal company for your business. Keep reading!

What is outsourcing?

First of all, let's recap the concept of outsourcing. It is a hiring model in which the professional is not directly linked to the company but to a third-party. The outsourcing company is responsible for the employer's obligations, including those related to wages and other payments.

The outsourced professional may work remotely or in person, which makes this arrangement quite flexible. Through it, your company has the possibility of augmenting the staff with high-end talents, accelerating internal processes, and improving the final product's quality.

How is the process of hiring an outsourcing company?

There are different ways of hiring an outsourcing company. The first step you should take is to define in which modality you intend to invest: onshore, offshore, or nearshore. Based on this decision, you can start looking for companies that fit your needs.

Your potential partner must dispose of a base of professionals capable of filling the gaps in your team. Before you start making contacts, it is essential to check if the region in which you are outsourcing has the necessary resources to provide technically qualified experts.

Before closing a deal with a company that works with engineers from Chile, for example, check if the country produces professionals of excellence in this field. It is also vital to establish unambiguous terms of service, instituting the contract duration, where the professional will be allocated, the value of investment, and the project's goals.

Once hired, the company will scan its talent base to find the perfect match for your business's specific conditions. This is a very important stage since it is critical to consider the professional's soft and hard skills in order to guarantee their adaptation to the project.

While the talent is allocated in your team, the partner must assist in the onboarding process and establish a performance monitoring system to ensure greater productivity. It is clear that partnering with outsourcing companies has the potential to boost your results.

However, it is also true that most of the alternatives out there do not offer enough quality to bring real benefits to your business.

What are some common problems found in outsourcing companies?

It is not unusual to come across people who are frustrated with their outsourcing experiences.

The strategy, although very useful, does have some pitfalls. To avoid them, you need an excellent partner that won't repeat mistakes commonly found in outsourcing companies. Check out some of the most common ones!

Lack of experience

Many outsourcing companies work with recently graduated professionals who are attracted by the possibility of developing their careers.

While these talents cost less than the market average, their inexperience can negatively impact your project. The ideal is to have mixed teams, with at least some seniors among them.

Low rates of English proficiency

Good communication is a cornerstone for the success of any project. Therefore, it is important to ensure that the teams can communicate amongst themselves, without any noise, to guarantee a positive and collaborative work environment. If the outsourced professionals do not speak English, the integration process becomes more difficult.

Unfortunately, some agencies don't give enough importance to this issue. As a result, many provide professionals who encounter difficulty communicating, be it with managers or teammates. So, before you choose your partner, make sure they consider English proficiency before hiring their talents.

Unrealistic prices

When it comes to outsourcing, there is a lot of talk about cost reduction. In fact, this hiring model is usually cheaper compared to the traditional ones, but this does not mean that there will be no investment.

Some companies sell their services too cheaply, which can make an excellent first impression. However, if a good price is not accompanied by quality service, you will face short-term problems.

Likewise, some companies take advantage of the scenario to charge more than reasonable rates. That's why it's imperative to do some market research and stay away from extremes. Be suspicious of prices that are too high or too low.

How to choose an ideal outsourcing company?

The search for an outsourcing company should take into account, first of all, the particularities of your project. What kind of professionals do you need? How many? What are your delivery deadlines? How much can you invest? With the answer to these questions, launch a market research, considering aspects such as the company's reputation and its representatives'; expertise.

You must look to find more than a service provider, but, more than that, a true partner.

Seek for companies committed to the process from start to finish, not merely until the position is filled. Companies that offer customized onboarding processes, for example, tend to build more positive relationships.

Be sure that the recruiting process is qualified

The quality of the professionals provided for your project is one of the most critical factors, so try to learn more about how the selection process is carried out. In addition to technical skills, the candidates must be evaluated by factors such as cultural adherence and behavioral profile.

Observe how the company uses AI technology

Nowadays, the use of artificial intelligence technology facilitates several procedures. If the company uses this resource to optimize talent recruitment, it gains more time and accuracy to find the perfect match for your needs.

Consider the project management processes

It is fundamental to know whether the partnership will enable a productive relationship between both parties. If the outsourcing company commits only to provide the professional but does not closely monitor their journey at your company, you will not explore the partnership's full potential.

The ideal is to find partners that track project metrics, produce detailed reports on the professionals'; performance, and provide insights for streamlining the workflow.

Hiring an outsourcing company is a crucial step to enable your team's scaling and the development of your projects. Many of these agencies are not good enough to provide the benefits available. Still, by prioritizing the aspects we listed in the last topic, you will find the right solution for your business!

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