Problems Commonly Encountered While Outsourcing IT

Outsourcing IT development enables you to reallocate resources into crucial areas of the business, especially those directly related to your core business values.

 

Although one can not deny the many benefits IT outsourcing can have on your business, when you first start doing it, you should realize a few things in advance, as a matter of fact, you should expect a few problems that usually gets solved quickly if you are dealing with a very professional IT outsourcing company.

 

Here are a few expected problems and how to handle them each:

1- Misunderstanding … In So Many Ways!

Let’s assume you have just signed the deal and you are about to start, a few meetings in, and you suddenly think to yourself “this is not what I said”, or “how come I know this piece of info while they don’t?”, and this is only the beginning in a sequence of questions reflecting anger and frustration. So, why is this happening?

Misunderstanding is really common in the outsourcing business relations, and it has many types, many causes, and it comes in so many ways, such as:

First: The Decision Making

Sometimes the service being developed might need quick decisions with no delays, which might drive any of the parties involved to act on the spot before asking for permission. This might cause misunderstanding and problems, as the decision taken by one party can be a decision the other party wouldn’t want to go with.

Solution: Make sure to clear things out from day 1, name your decision making personnel and arrange for procedures to be taken in emergencies in advance.

Second: Clashes Due To Different Cultures

Your staff and that of the outsourcing company come from different work cultures, what seems common and usual to you in the work environment, might come across strange and unusual for them. Such as:

  • The way they respond to messages, they prefer email while you prefer phone calls.
  • They think first then act, while you want them to execute your orders without thinking.
  • They show up to work at 11:00 Am while you start your day at 7:00 Am and expect replies when you text them around that time.

Solution: Before signing the agreement or before you begin the actual work, make sure to get familiar with each other’s business culture, for you not to be surprised or misunderstood later on, and vice versa.

2- Lack Of Back-Up Plans

Unfortunately, there are many unprofessional outsourcing companies out there who would be too focused on the delivery and deadlines, rather than investing enough time in planning first.

You two need to plan things first before you begin, you need to draft scenarios and solutions to problems that might arise from the very beginning, this way you can plan for: back up plans, back up personnel, back up resources and how to handle an error or a decision gone wrong.

3- Contracts

Contracts should never be signed on the same day you receive them, make sure to read every word first, consult with your legal advisor, make sure the work flow you have in mind and the deliverables agreed upon are all mentioned loud and clear in the contract.

A poorly written contract might ruin it all for you, especially if it falls short when it comes to:

  • Accountability and payment for damage.
  • Procedures to be taken when jeopardizing quality and confidentiality.
  • Follow up processes and the expected kind of follow up.
  • Termination of agreement details and terms.
  • Ownership rights of the service/product being developed.

Most of the problems mentioned above can be handled and solved with no negative impact on the partnership, especially if your decision of choosing that specific outsourcing company was based on the right standards and criteria. Try reaching us out at Transcend, and don’t let the fear of encountering any of these problems hinder you from making the right decision for your business.

 

Our staff has a diverse set of experts who would love to help you overcome your fears and unleash the superpowers of your business. Get in touch today.

 

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