IT Outsourcing Guide, Part Three: Best Practices
When done right, outsourcing can help you add real value to your business. You can obtain a trusted technological partner that will take care of your technology needs.
Sounds simple, yet getting this requires thorough preparation. Luckily, there are safe ways that companies can use to adapt their business to new partners and stay on the same page with them.
Expectations and projected results should be clear from the outset to both the client and its outsourcing partner. You should decide on the level of control and responsibility, and choose the most suitable engagement model to lay the basis for fruitful collaboration.
To stay on top, outsourcing providers have to be flexible and adaptive to ever-changing business requirements and offer various cooperation schemes to their clients. Let’s explore the most common ones.
Most Common Outsourcing Engagement Models
-Time and material. The client and outsourcing provider agree on an hourly rate with regard to tasks performed. The client only pays for the actual time spent on development. This model is widely used when it is hard to determine the scope of work in advance.
-Fixed Price. The payment to the vendor is determined during detailed negotiations with the client and remains unchanged till the end of the contract. This approach is ideal for small and medium scope projects where it is easy to estimate the time and resources needed to complete them.
-Dedicated Team. The client can choose a team of highly-qualified remote developers at a monthly per-specialist rate. The outsourcing provider can serve as an extension to the client’s team handling various tasks that range from HR issues to data security and compliance.
Software development and outsourcing make up a perfect combo when both parties understand the challenges that such remote collaboration implies. Be it hidden costs, miscommunication or other concerns, your remote contractor has to prove it possesses the necessary tools and techniques that can combat potential issues.
The majority of software outsourcing companies follow certain practices that make development projects work successfully. What are they?
How Successful IT Outsourcing Collaboration Should Work
1. Excellent communication
Straightforward communication makes the remote development process a win-win deal despite possible language and geography barriers. There are certain practices that help to establish a steady communication process. Among them, systematic calls, chats, and meetings ensure exchanging various ideas is framed in an easy and time-saving format.
Instead of worrying about the issues associated with remote work, you can ask your development partner to provide client testimonials, confidentiality agreements, and co-creating tools. Apart from that, your partner should comply with data protection regulations like GDPR if you plan to process EU citizens’ data.
3. Transparency and flexibility
Transparency can become the secret sauce of successful collaboration with IT outsourcing companies. Luckily, every project participant can have easy access to online project management tools to track the scope and quality of the project. What is more, with extensive use of Agile methodologies that help to collect feedback early and make small adjustments, you can easily see how the development process works. Apart from that, the Agile approach to software development helps to accelerate decision-making and prioritize tasks, which ensures proper regulation of development costs.
Bringing outside minds to your company is no longer associated with the stereotypes that used to put off many businesses in the past. Businesses have managed to adapt to new realities implementing new ways to deal with outsourcing software development. Nowadays, IT outsourcing is a way to establish a long-lasting and fruitful partnership with the technology vendor, which helps to overcome numerous challenges in the industry.
Geomotiv is a trusted development partner that you are going to enjoy working with. Our company has a unique offering of quality services, affordable prices, and highly motivated experienced teams. We are ready to provide dedicated developers who will act as an extension to your in-house team. Geomotiv is here to assist you in choosing the right outsourcing solution, so feel free to contact us.