Outsource ‘IT’ and forget ‘IT’
This concept – still used by some customers - is the most dangerous in the outsourcing industry. Companies outsourcing a project and not closely keeping track on its progress, not continuously updating on the requirements or not regularly and in detail following up with the provider to see how far the project is as well as whether the results are up to the expected standards and requirements – those companies are a high risk of project failure.
The company outsources the project to a provider and then expects to get the desired result on the final day. This kind of an approach is dangerous for the project as well as the outsourcing company. The provider may not be on the same page in the start of the project, he might not be in a position to deliver as expected or – due to lack of customers governance and attention – not paying the attention to this project as would be required.
When the project is completed in this manner it most likely becomes a total waste of time and money for the customer and al minimum long term also for the provider implementing the project.
The outsourcing company and the Implementing provider must be in line all the time throughout the project.
Misunderstanding the cost by “going cheap”
Just by choosing the lowest bidder and going cheap it never guarantees you the quality that you may be looking for. Thus it is always advised to look for quality and pay little extra – as compared to the lowest bid at hand - than to go cheap just to over spend later on delays, necessary corrections and trying to spend extra effort to still get the desired quality.
It is advisable to look at others or other projects, the time frames and costs involved and then decide on an approximate and realistic budget. Important is to be flexible to ensure getting good quality.
Assuming that “once you outsource you won’t need managers” - failing to properly manage the team Hire Managers to take care of your business.
Project that has been outsourced has to be constantly managed from both ends by managers to keep the project and the expectations from the project in line and reduce the loss of time and money.
Failing to provide guidance- Communication
Communication is very important in any form of relationship may it be between two couples or two companies (Read our article: From “Falling in Love to a Long Lasting Marriage” - in IT Outsourcing Quality is one Key Criteria).
Simple but still important: Any task that has to be completed in a given timeframe and a certain quality should be monitored regularly. The task should be divided in stages with stipulated time within which that stage should be completed. At the end of every stage the project should be reviewed and the task ahead should be updated according to the review.
Security
Choosing the right outsourcing service provider as a fitting partner is an important element of the outsourcing process. Obtain sufficient information to make an informed assessment of an outsourcing service provider’s data confidentiality and physical and information technology security capabilities. When it comes to application or app development (sw sourcing), the pliXos B2B Marketplace offers all important criteria in a simple to use online tool, already filled with a global lust of prequalified providers: www.gsp-client.de
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