It’s not fair to chalk up outsourcing fails to communication issues, quality, or a host of other factors and then categorically deny outsourcing as a solution for your business. Rob Pearlman of Verbat – who’s also next month’s webinar participant – has written an extensive white paper on the top 10 Reasons Why Outsourcing Fails. Here are some more noteworthy examples.
1. Outsourcing just to reduce costs
While it’s true that outsourcing can be part of an overall strategy to reduce costs in your organization, it’s not a silver bullet that will suddenly make your business more cost-effective. Before bringing on an outsourced software development team, decide on what processes you’ll be outsourcing and how they’ll integrate into your current staffing model. Decide whether you have any preferences about their location and skills. A little bit of planning here is key.
2. Bringing Remote Teams On Board Without Internal Support
Project managers, CIOs, and CTOs should make sure that both outsourced, remote teams have the political and logistical support they need within their organization. Convince the board that outsourcing can produce long-term benefits for your company. Tell them that your outsourced teams will be working on small projects to test their abilities before taking on more important functions. Having senior level approval at your company can translate into a much smoother working process.
3. Carelessly Selecting An Outsourced Team/Using The Wrong Selection Factors
Treat the search for your remote development team as if you were hiring in-house, and you’re much more likely to end up with a mutually beneficial working relationship than if you search halfheartedly. Check up on the team’s references and ask for past work, and invest time in asking the team difficult questions about their expertise live via Skype or any other remote communication tool. If you didn’t make in-house interviewees go through a rigorous hiring process, you wouldn’t expect to hire quality talent. The same is true for remote teams.
Second, prioritize communication and personal accountability over technical expertise. It’s no use to hire mobile application developers if they don’t understand your business priorities, and don’t get back to you on time. Consider also the match between the size of the partner company and your own company’s needs. Sometimes, smaller providers can give you higher quality service than larger teams because you represent a bigger chunk of their pipeline.
If you’re curious about the other 7 reasons why outsourcing fails, get Rob Pearlman’s 10 Reasons Why Outsourcing Fails
for free today.
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