Outsourcing has its drawbacks for Tech companies. Especially in the Covid-19 period, 70% of businesses swear by its cost-saving and resource-boosting abilities. In fact, every second organization says “quality of service” is the largest barrier to productive outsourcing.
Depending on how the partnership is built, outsourcing may either help or hinder corporate development. As a SaaS CEO, I’ve worked with both traditional and hybrid outsourcing and gained valuable insights. Here’s how entrepreneurs may improve outsourced project quality, prevent security issues, and maintain control.
1. Invest in company culture
Firms typically create a distinction between outsourcing providers and internal culture. However, it’s difficult to look at outsourcing outside of the company’s beliefs and culture. Outsourcing adds to the risk. So, the more organized and coordinated the company’s organization, the easier outsourcing.
I prefer to do a workplace culture assessment before establishing an outsourcing engagement. Determining where tasks overlap and how our in-house team will manage unexpected difficulties necessitates reevaluating our current processes. We also explain our procedures and requirements to outsourced companies.
2. Hire an outsourced curator
Control difficulties are common among IT entrepreneurs that employ hybrid outsourcing (an approach that combines in-house and outsourced team members). In most cases, a single project manager manages both teams while working together.
An “outsourcing curator” may help with hybrid projects. As a mediator between the team, project manager, and outsourcing provider, I utilize that word (s). Assuring quality work and enforcing privacy requirements, outsourced curator monitors organizes and shows information from the corporate side.
Unlike an internal project manager, the outsourced curator functions as a “bridge” between internal and external activities. Instead of asserting control forcibly when things are tense, this method permits mild but continual surveillance.
3. Pay attention to your requirements.
The main obstacle to offshore outsourcing isn’t a language. Mental obstacles. Offshore developers are familiar with the local attitude. Unless specifically informed, they typically misunderstand the intended audience of a foreign product or service.
To prevent this, the Scope of Work Agreement should include the Problem Statement, Project Goals, Objective, Administration, and Timeline in great detail. You may also work in phases and pay for progress. These protect the firm against fraud and enable you to check your work before moving on.
4. Don’t see privacy as a contract
Generally, IT firms deal with IP (IP). This exposes them to outsourcing frauds. Most of us have a Non-Disclosure and Non-Compete Agreement (NCA). But legal contracts are a complement, not the principal privacy protection. I would never depend on an NDA to safeguard my company’s IP. Winning a lawsuit involving fraud will be nerve-wracking and will not undo the harm caused by security breaches.
Like most IT entrepreneurs, I have many levels of privacy. In order to prevent mistakes, we train our whole staff on IP legislation and periodically update our outsourced privacy policy.