Development

How to choose software outsourcing company?

According to the statistics of 2017 more than 30% IT services were outsourced and their number will grow in the next years. Thus, a success, as well as a failure of at least the third part of IT projects depended on reliability and capability of contractors, which was chosen to outsourcing. It isn’t possible to ignore this fact. Why do companies outsource their services?

When it comes to outsourcing it always involves benefits. The main advantages (benefits) of an outsourcing are obvious for both start-up and large company:

  • Ability to gain talented professionals
  • Cost saving on a world-class tool;
  • Focus on core business processes;
  • Access to cutting-edge technologies;
  • Solving capacity issues & improving service quality;
  • Boast technological capabilities of the company;
  • Expansion of the time capability (round the clock business operation);
  • Escape the regulation of own country etc.

If you are still reading, then you have probably made a choice in favor of outsourcing, but don’t know how to choose the right outsourcing company out from the huge number of offers. There is no short answer, because it depends on the few aspects which are related with “what”, “where” and “how” questions.

What contractors are suitable to outsource?

There are only a few ways to outsource IT services, but you should clearly realize, what purposes, mentioned above, are preferred by you and what stack of technologies are mandatory to solve this task efficiently. Modern market of outsourcing IT services is divided between:

  • Freelancers. In this article we won’t discuss freelancers, as a part of IT outsourcing sphere because of the topic. However, to be honest, there are professionals, whose experience let them successfully resolve a lot of difficult tasks. Maybe it will be a good subject of next research.
  • Giant multinational outsourcing companies like IBM, Luxsoft, Itellias, EPAM and so on. An implicit fact is that their technical equipment, the expertise of employees and number of used cutting-edge technologies are impressive and capable to resolve any tasks for business. The flip side of the coin of collaboration with huge companies is a long duration of negotiations and a lot of bureaucratic procedures.
  • Small agency. Small isn’t a synonym of ineffective or incapable, most likely flexible, efficient, responsible and communicative. A small agency is a team of results-driven and open-minded enthusiasts, which are experts in a few IT cutting-edge technologies and are able to propose a powerful solution for small and big companies, entrepreneurs and so on. Their flexibility allows to apply changes and improvements “on the fly”, without delay.

Where to find a company to outsource?

In order to minimize failure risks, gain more benefits and a relevant result you should be sure that you know what location of contractor you prefer and what technologies area he should be experienced in to realize a project that you want to outsource. For past few years, leadership in the East Europe belongs to Ukrainian outsourcing companies, which have a number of advantages among the competitors.

The next step is closely linked to the phrase “google it”. No matter what search engines you prefer, this is a first “must do” step in order to find a few companies which meet your requirements. The additional advantages this way are the ability to find contractors in the country what you prefer or respectively technologies what you need.

A logical continuation of the search is LinkedIn – the most popular business- and employment-oriented social networking service, which has more than 500 million members. An account on LinkedIn is a so-called business card of a company where potential contractors can find out more information about company’s activity in the area of your interest (numbers of followers, availability of articles in specific themes and other useful information). If it isn’t enough, there are couples of worthy alternatives on the Internet.

The most popular market-places for freelancers (Upwork, Freelancer etc) are also worthy of looking for contractors to outsource. Majority small IT outsourcing agency has there its own accounts. As usual, there is also a lot of useful information about the portfolio, number of successfully completed projects and customers’ feedback.

How to check a company

As was mentioned previously, in order to take all advantages of the outsourcing project, you should assiduously check companies that are on your short list. It also can save your time and money. The key aspects that have an influence on successful co-operation with a potential contractor, are the following:

Reliability

Check company’s website and social network (Facebook, LinkedIn etc.) accounts. Find out when a company was established and presented on multinational IT-market, what is economic situation in the country where the main office of the company is located; ask to show their office and so on. If it is possible, check via special services how they stuff values their own company.

Competence

Does a contractors experience meet your requirements? Ask what projects were done, what feedback leaved customers, what stack technologies were or are applied in their projects. Ask them for video-audience with responsible workers or project managers to give them additional questions or test tasks.

Communicative abilities

To avoid misunderstanding make sure that English is “enable” and keys employees are skilled. Pay attention to the time zone of contractor’s location. For example, the time zone of Ukraine is GMT+2, which allow comfortable connection with partners from Europe, North America or Asia every day during a working time.

Long-term cooperation capacity

It doesn’t look obviously on the surface, but it has a deep meaning. If the contractor cannot or do not want to understand perspectives of your project in depth and is just attracted by short-term benefits, rather than mutual interests of the long-term collaboration, it isn’t the best choice.

Bottom line The above-mentioned steps can be helpful in choosing the right outsourcing contractors, but they aren’t accepted, because of the difference in every separate situation. This is a strategic step to increase your business. To avoid unpleasant situations and waste of time or resources, just keep in mind the well-known fact “avaricious pays twice” to be not tempted in the low price of doubtful contractors.