Outsourcing IT projects is a trend in full bloom over the last couple of years.
If you haven’t dabbled into software outsourcing projects as an entirely in-house business developer, perhaps, now must be the perfect time to do so.
Back in 2022, almost 59% of worldwide businesses cited cost as one of the main reasons for outsourcing it projects. It’s cheap, it’s feasible, and when assigned to the right team, outsourced projects garner better results than expected.
Top it off with remote job perks and the flexibility aspect of things, more and more people are either looking for outsourced projects as full-time jobs or businesses looking to go all-in with software outsourcing projects.
As a matter of fact, Gallup did a survey on outsourcing it projects and remote jobs in 2022. The discoveries of that survey were astounding – all the more reason to go for outsourced projects as a vendor, and someone looking for remote opportunities these days.
- 5 in 10 people are working hybrid
- 3 in 10 people are working remotely
- 2 in 10 are entirely on-site.
That being said, outsourcing it projects does have its limitations. Unfortunately, if it’s your first rodeo, the chances of you ending up with an incapable team, or a vendor who doesn’t work as advertised are higher.
Top it off with gaps in communication and commitment issues concerning deadline-oriented work, outsourced projects can become a nightmare to deal with.
Here are some of the best tips to get the most out of your outsourcing ventures.
4 Best Tips To Outsourcing IT Projects In 2023 and Beyond
1. Determine Project Goals and Scope Before Outsourcing
Not knowing what your project scope is, or whatever the end goal is, never going to get you there.
Software outsourcing isn’t supposed to be done on a whim, just because the cost factor seems attractive. Here are some of the reasons why you need to determine project requirements, scope, and goals before even considering outsourcing it projects.
Defining the project scope and goals helps in establishing clear communication between the outsourcing party (client) and the service provider.
It ensures that both parties have a shared understanding of what needs to be accomplished, reducing the chances of miscommunication and misunderstandings.
Clearly defining project scope and goals helps align the outsourcing project with the client’s business objectives.
It ensures that the project addresses the specific needs and requirements of the client’s organization. This alignment increases the likelihood of achieving the desired outcomes.
Determining the project scope and goals allows for proper resource allocation by both the client and the service provider.
It helps in identifying the necessary skills, expertise, and resources required to execute the project successfully.
Proper resource allocation ensures that the right people with the appropriate skill sets are assigned to the project, maximizing efficiency and productivity.
When outsourcing IT projects, determining project scope and goals enables accurate cost estimation.
By clearly defining the project’s boundaries and deliverables, it becomes easier to estimate the budget required for the project. This information is crucial for both the client and the service provider to plan and allocate finances effectively.
Clearly defined project scope and goals assist in identifying potential risks and challenges associated with outsourced projects.
It enables proactive risk management by assessing potential obstacles and developing mitigation strategies.
Understanding the project’s scope helps both parties identify dependencies, critical paths, and areas where risks may arise.
2. Choosing the Right Type of Services Provider
This aspect couldn’t be overemphasized as it is.
The biggest conundrum of it project outsourcing is delays, cost factors, and misconduct at the hands of a vendor. Here are some reasons why choosing the right services vendor is more important than ever before!
Expertise and Skill Set:
The right vendor brings the necessary expertise and skill set required for the project.
They should have a proven track record of successfully delivering similar projects and possess the technical knowledge and experience relevant to the specific requirements of the software project.
Selecting a vendor with the right expertise ensures a higher probability of project success.
A reliable vendor prioritizes quality in their work.
They follow established software development processes, methodologies, and quality assurance practices to deliver a high-quality product.
Choosing the right vendor ensures that the software development lifecycle includes rigorous testing, code reviews, and adherence to industry standards, leading to a robust and reliable end product.
Communication and Collaboration:
Effective communication and collaboration are essential for the success of any outsourcing project.
The vendor understands the importance of clear and frequent communication and provides a dedicated project manager or a point of contact who can effectively communicate project updates, address queries, and ensure a smooth flow of information between the client and the vendor.
A vendor with excellent communication and collaboration skills helps establish a strong working relationship.
A reputable vendor provides transparent and competitive pricing models, offering value for the investment.
They have a clear understanding of the project requirements and can provide accurate cost estimates.
Moreover, a skilled vendor can optimize development processes, utilize resources efficiently, and minimize the overall project cost without compromising on quality.
Flexibility and Scalability:
The right vendor should be flexible and capable of accommodating changes in project scope, requirements, or timelines.
They should have the capacity to scale up or down resources based on project needs.
Flexibility and scalability are crucial as they allow for adapting to evolving business requirements, ensuring that the outsourcing partnership remains viable in the long term.
3. Value-Driven Services Vs Cost Focused Services
If it’s value over cost, take it.
In most cases, such will pan out in your favor due to the vendors’ expertise and years of experience in handling outsourcing IT projects.
Some of the other reasons for value-driven outsourced projects are:
Value-driven services emphasize customization and tailoring solutions to meet the client’s unique requirements.
The vendor takes a consultative approach, understanding the client’s business context, and providing solutions that address specific pain points and deliver tangible value.
Collaboration and Partnership:
Value-driven services foster a collaborative and strategic partnership between the client and the service provider.
The vendor works closely with the client, actively engaging in discussions, providing insights, and contributing expertise to ensure that the project outcomes align with the client’s business objectives.
Quality and Innovation:
Value-driven services prioritize quality, reliability, and continuous improvement.
The vendor focuses on delivering high-quality solutions that meet or exceed the client’s expectations. They actively seek opportunities for innovation and suggest improvements that can enhance the client’s processes and generate long-term value.
Value-driven services aim to build a long-term relationship with the client. The vendor invests in understanding the client’s business, industry, and future goals to provide ongoing support, maintenance, and strategic guidance beyond the initial project scope.
4. Go Into Pilot Mode Before Actually Signing Someone Up!
Pilot projects are smaller iterations for the full project where you’d eventually sign a contract with an outsourcing it projects vendor.
Here’s why doing so is important:
A pilot project allows you to assess the capability and competence of the development team. It provides an opportunity to gauge their technical skills, problem-solving abilities, and adherence to project timelines and quality standards.
By testing the team’s performance in a smaller-scale project, you can make an informed decision about their suitability for larger and more critical projects.
Building Trust and Rapport:
Outsourcing IT projects involves establishing a relationship of trust with the development team.
A pilot project helps build rapport and establish a level of confidence between your organization and the outsourced team. It allows you to interact, collaborate, and communicate with the team, fostering a better understanding of each other’s working styles, expectations, and project dynamics.
A pilot project helps identify and mitigate potential risks associated with outsourcing IT projects.
It allows you to assess the team’s ability to handle project challenges, address issues, and adapt to your organization’s processes and requirements.
If any issues or concerns arise during the pilot project, they can be addressed and resolved before scaling up to larger and more complex projects, reducing the risk of major setbacks.
A pilot project provides an opportunity to assess the compatibility between your organization and the outsourced team.
It allows you to evaluate how well the team integrates with your internal teams, collaborates with stakeholders, and aligns with your organization’s culture and values. Testing compatibility early on helps avoid potential conflicts or misalignments in the future.
A successful pilot project serves as tangible evidence of the development team’s capabilities and the potential value they can deliver.
It allows you to showcase the outcomes achieved, the quality of work, and the efficiency of the outsourced team to key stakeholders and decision-makers within your organization. Demonstrating positive results increases confidence in the decision to outsource larger projects.
There you have it, some of the main reasons why outsourced projects are a big deal these days, and why it’s important to follow the aforementioned tips.
Blue Zorro excels in delivering all that and more, based on years of experience and a robust development and IT solutions implementation team. We have crystal clear communications and an agile framework where clients can keep track of project development from the get-go.
It’s a ground-up approach with tons of flexibility and our ability to render personalization requests from the clients’ end, ensuring nothing but quality from long-term aspect.