While outsourcing can solve so many problems and save you so much effort and time and cost (Well, as it should), sometimes and if done wrong it can backfire big time!
So What are the top mistakes that do prevent many companies from reaping the benefits of outsourcing? Here are a few:
1- Having No Tech Team On Your Side
No matter how much you understand your business, if it needs a software development, you should at least have 1 in-house employee on your team. Why?
As a business owner, you might know the features needed, the product and what it should look like and what it should deliver. But, at some point you need to know the following:
- What are the best available technologies to adopt.
- What is that programmer on the other side talking about, be it an expression or a tool or even a request.
- Why this can be developed and that can not, from a technical point of view.
No one would doubt how smart you are, but a surgeon wouldn’t know much about marketing, and a business person probably wouldn’t know much about programming, and even if he does, he probably wouldn’t have enough time to do a proper follow up. So? Hire a tech guy/team first.
2- Micromanaging The Outsourced Work Heavily
Outsourcing is meant to save money, effort, and time! If it is not, then you are doing it wrong.
If you have to step in and make sure the work being produced is done right, and if you keep getting calls with questions and requests for delaying deadlines for example, then … red light … red light, we see it, do you?
Do not neglect doing a proper follow-up, but overdoing it means there is something wrong, and you should stop and think.
3- Outsourcing What You Should Never Outsource!
Consider outsourcing only when it comes to tasks that can be outsourced easily, without compromising your business. Never outsource work that you should keep confidential, and never outsource a matter related to your core business concept, get help, yes, but outsource it completely? No.
For example, you are a company working in the field of web security, and instead of offering your clients softwares you have built yourself, you offer them the work of some outsourcing company, does that make sense to you? Exactly, it doesn’t.
4- Choosing The Outsourcing Company Based On Wrong Criteria
When considering and evaluating different offers from different outsourcing companies, make sure to avoid having your judgment and choice be influenced only by:
- The cost: Cheaper is not always better.
- The language & nationality biases: Some would want a person who speaks their language, others would want someone from a different continent. Try removing this kind of biases out of the way.
- Sweet Talk: Trust ONLY what that company profile and current/previous clients are saying, because “doing” is what you need, “Talking” is what you don’t need.
Make sure to choose based on things like: Experience and customer feedback, Quality, commitment and ability to meet deadlines, understanding of your culture and Timezone difference (if exists)… etc.
5- Lack Of Documentation And Communication
Make sure that you or someone reliable on your team will be there whenever a question or a request arise, schedules are great and deadlines are set in stone, but a smooth and fast communication is a must as well to instantly handle any disasters and avoid any delays or misunderstanding along the way.
Documenting it all in every step of the way will help you keep track of what is happening at any time of your workweek, and it will ensure smooth transition of work, whether to a new outsourcing company or to a new manager on your team.
6- Letting Them Do The Research For You
You are a hardworking guy who thinks everyone puts the same effort and passion that you put in your work, bad news here, nope, that is not how the World works.
Before initiating the talks with your new distant outsourcing company, you should know what you need and you should be on top when it comes to new software and outdated ones, what works and what doesn’t work any more.
Simply put, do your research yourself first, because they won’t do it for you, and even if they do, it won’t be extensive and broad as yours would be.
7- Other Important Things
You should also avoid making these tiny itchy small mistakes that might ruin it all for you:
- Not putting enough effort in the selection process and skipping interviewing the team you might start working with.
- Not having plan B, sometimes things don’t work out, pre-plan your exit strategy in advance.
- Putting unrealistic deadlines, jeopardizing the quality and so much more.
Contact us at Transcend, and we will work closely with you to satisfy your business needs mistakes- free.