12 Painful Outsourcing Mistakes Companies Make
Like it or not, but we all live in a world, where everything has to be done as quickly as possible without losing quality.
And the software development business is no exception.
Many companies that cannot meet deadlines with the help of staff at their disposal or are simply looking for cheaper labor decide on the outsourcing strategy.
Outsourcing tends to be a perfect solution in many cases, it helps to reduce both overhead and costs, but always keep in mind that this way comes with some drawbacks that can lead to downsizing and collapse of the entire plan.
But nothing to worry about, most of them are pretty easy to get away with.
We’ve rounded up the 10 most common outsourcing mistakes software developers make for you and outlined how to avoid them.
Mistake No. 1. Underestimation of cost
One of the main mistakes of outsourcing is prioritizing saving money.
Of course, you can expect to spend less money when you hire other people, but you should always keep in mind that you are getting exactly what you paid for.
If a developer requests that a task be performed at half the cost of the normal cost, there should probably be some reason for it.
So if you don’t like writing tons of fixes, you’d better steer clear of these cheap specialists.
Mistake No. 2. Outsourcing the Wrong Jobs
It doesn’t take a rocket scientist to understand that not all jobs are equally good for outsourcing.
Furthermore, delegating certain tasks to someone outside the company is always a risk.
Therefore, it is best to start with small tasks, which would be easy to repair if they failed and which do not depend much on professional knowledge and experience.
If you are satisfied with the subcontractor’s performance on these tasks, you can gradually move on to larger tasks that require more responsibility.
But don’t always forget the regular check-up and at least the weekly reports, otherwise, you would end up with tons of undone or poorly done work just before the deadline.
Mistake No. 3. Lack of a detailed plan and methodological flaws
Having a good and detailed plan is always an advantage, but if you work with subcontractors it is a must.
One of the most common mistakes is forgetting that an additional employee usually doesn’t get the picture of the entire process.
Therefore, the more information and details you provide, the better the performance you can expect.
Don’t be lazy to outline your key goals and key steps to take. It is important to arrive at the candidate’s choice for outsourcing with a complete plan in place. In general, the following steps should be followed:
If you are hiring some subcontractors, it is also advisable to think about the hierarchy among them to facilitate control.
And of course, try to describe the task in as much detail as possible to avoid misunderstandings.
Mistake No. 4. Eliminate a subcontractor from the process.
Subcontractors are often seen as additional workers, who are not expected to show initiative.
This kind of thinking actually robs you of some brilliant ideas that a subcontractor may have.
Let him feel like part of the team and give him a chance to take a leadership role to get the job done.
If you are going to hire this subcontractor again, give him some room to grow, it would be great for you and him.
With this change in attitude, you will transform a simple worker who is only good at performing defined tasks into a dedicated employer who cares about the future of a company.
Mistake No. 5. Lack of preparation for outsourcing
Many companies see outsourcing as a magic key to success. This can really be of great benefit, but the company must be prepared for this type of business.
It is very important to plan your outsourcing strategy wisely and take into account the amount of work, the size of the team, and many other details, including the future development plan of the company.
Only after recognizing all of these things can you understand the number and type of outsourcing your business needs.
Time should be spent training current employees to cooperate with new managers, be it a long-term or short-term project.
Mistake No. 6. Neglecting the importance of location
If you don’t capture the cultural differences within your development team, your company runs the risk of having an outdated product. Cultural norms for development and design vary from area to area. Your team’s learning curve can cost your business thousands of dollars.
While it may be cheaper to outsource your development, it may not be the best decision for your business. Before hiring someone in another country, consider the culture and jet lag that will affect your relationship and communication with the worker.
Make sure you are fully aware of the impacts the outsourced equipment location will have.
Mistake No. 7. Not managing the team properly
Without an experienced product manager or in-house IT specialist, it will be difficult to lead an outsourced team. Despite the talents of the outsourced team, they still need to be managed directly.
Whoever you hire, regardless of skill and skill level, will need guidance and instruction. As a manager, you need to check your plans, the progress of your work, and be able to provide feedback.
Your communication should be frequent and focus on the projects you want to complete while making sure they complete tasks on time.
Mistake No. 8. Cost misunderstanding
Outsourcing is not always the cheapest solution. Sometimes, given the effort and resources required to make sure outsourced equipment is on track and running efficiently, it actually costs more to hire employees abroad than it does to hire people.
The organization itself manages some tasks such as those that require attention to detail, account management, or other tasks to do internally.
Mistake No. 9. Believe that an outsourcing team is ready
Many entrepreneurs believe that the team they are outsourcing the project to has all the skills and knowledge to do the job.
However, even those of all abilities may need training specific to their exact project needs. No matter who you employ, there will be training required.
Integration and effective communication with your subcontractors will be the key to your success.
Application Solutions, popular application developers, said: “Quality development is critical to the success of a business. Investing in your development means investing in your business.
Mistake No. 10. Security
Going abroad for development work puts you at risk of data loss and security threats. In fact, companies are 31% more likely to experience security breaches if they outsource their development.
Mistake No. 11. Observe external features without looking inward.
If an application appears to be working, many project managers will assume that it is a good job.
Although the application looks perfect and works great on the first try, the code may be misconfigured.
If there is incorrect programming in the backend, the entire application may have no value. You need a technical expert to oversee the process.
Mistake No. 12. Go cheap
Many people don’t understand the real costs of offshoring their product development. Many small businesses that lack sufficient funds or profits will quickly look abroad to find a development team.
Unfortunately for these companies, in the long run, it can do more harm than good.
While it’s true that outsourcing has the merit of helping you save money compared to hiring a full-time employee, that doesn’t mean it should be cheap. Lower rates are often expensive and of poor quality.
In other words, you get what you pay for. Create a reasonable budget and stick to it. Never compromise on quality to save a few bucks.
We hope these tips help you avoid common outsourcing mistakes, make your work more profitable, and get the most out of your IT budget.