When it comes to outsourcing IT, naturally there are myths about the process. Some enterprises are dependent deeply on outsourcing. However, there are other enterprises that thrive through limiting their outsourcing to a minor part of their overall IT operations, and manage their core activities themselves.
Then there are those enterprises, which do not outsource at all, achieve efficiency as well as cost-effectiveness by doing everything in-house. Various types of outsourcing models work for various businesses. What type of outsourcing would be beneficial for a business would depend on the business’ exact requirements. A lot of entrepreneurs are not willing to make outsourcing as part of the business strategy due to the misconceptions and myths associated with outsourcing.
Below are the IT outsourcing myths busted.
Myth No. 1: Outsourced activities are out of your control. In outsourcing, it is important to work with people stationed at remote places and do not get to meet personally. Yet, this does not mean that one is not in control of the project. The truth is, the IT partner’s business model revolves around performing a good job for the client. If the service provider fails to deliver, the customer will not renew the contract. To succeed in the business, he should do a perfect job for the client. While a client will not get to meet the outsourcing partner regularly, but the service provider would do his best in delivering the best quality service or product since doing so is his self-interest.
Myth No. 2: Outsourcing only works for big players. A lot of small and middle businesses do not go for outsourcing since they think that they’re too small to take advantage of an outsourced model. In the model, the size of a business do not really matter. Anyway, a business will only outsource a small part of their whole business pattern. For example, if one wants an application developed, one has to outsource the making of an application to any app development company.
Myth No. 3: Outsourcing stands for low quality and prices. Companies outsource obviously to save cost. An outsourcing partner which delivers lower quality would not be able to survive in the marketplace that is competitive. A successful Information Technology partner is one which charges lower rates and continues to deliver better quality. They’re able to do this as they use better technology for doing the work and at instances their development centers are situated in places such as India, wherein the cost is very well-trained professionals is lower.
Myth No. 4: Outsourcing means cultural and language barriers. The myth automatically gets busted when taking into account the fact that English is the universal language as well as cultural barriers have melted away under the light of Internet and global TV. The companies taking outsourced tasks employ professionals well-versed in the culture and language of the country wherein they get their projects.
Myth No. 5: Outsourcing drags times and could cause overpays. When a client and outsourcing partner are clear about the kind of work to be done and the contract carefully negotiated, there is hardly any scope for cost overruns and delays. The partnerships between software development firms and mobile startups is common. Most of the partnerships go further on one project. The firms that take up the projects outsourced try their best to accomplish the project on a timely manner since they value their own reputation.
Myth No. 6: You don’t know that you will get. When a client is clear on the kind of final product needed and the service provider has understand the project, then there hardly is any scope for a mismatch in a final product. Before initiating a project, a customer should ask the development firm to show a rough template of what the final product would appear. This ensures that there’s more clarity regarding work that the outsourcing company is expected to do and that there are no last minute surprises.
Myth No. 7: Outsourcing could steal intellectual property. The easy solution for this fear is a watertight NDA with the IT outsourcing provider. Once the NDA is in place, there’s no reason to fear on any intellectual property loss.
Myth No. 8: You spend less time on communication. Once a project is outsourced, it is imperative to keep in touch with the service provider. Make sure to keep tabs on the way the project progresses, or if there’s any scope for more project improvement. Such coordination ensures that the outcome of the project is better than the customer expectations.
Then there are those enterprises, which do not outsource at all, achieve efficiency as well as cost-effectiveness by doing everything in-house. Various types of outsourcing models work for various businesses. What type of outsourcing would be beneficial for a business would depend on the business’ exact requirements. A lot of entrepreneurs are not willing to make outsourcing as part of the business strategy due to the misconceptions and myths associated with outsourcing.
Below are the IT outsourcing myths busted.
Myth No. 1: Outsourced activities are out of your control. In outsourcing, it is important to work with people stationed at remote places and do not get to meet personally. Yet, this does not mean that one is not in control of the project. The truth is, the IT partner’s business model revolves around performing a good job for the client. If the service provider fails to deliver, the customer will not renew the contract. To succeed in the business, he should do a perfect job for the client. While a client will not get to meet the outsourcing partner regularly, but the service provider would do his best in delivering the best quality service or product since doing so is his self-interest.
Myth No. 2: Outsourcing only works for big players. A lot of small and middle businesses do not go for outsourcing since they think that they’re too small to take advantage of an outsourced model. In the model, the size of a business do not really matter. Anyway, a business will only outsource a small part of their whole business pattern. For example, if one wants an application developed, one has to outsource the making of an application to any app development company.
Myth No. 3: Outsourcing stands for low quality and prices. Companies outsource obviously to save cost. An outsourcing partner which delivers lower quality would not be able to survive in the marketplace that is competitive. A successful Information Technology partner is one which charges lower rates and continues to deliver better quality. They’re able to do this as they use better technology for doing the work and at instances their development centers are situated in places such as India, wherein the cost is very well-trained professionals is lower.
Myth No. 4: Outsourcing means cultural and language barriers. The myth automatically gets busted when taking into account the fact that English is the universal language as well as cultural barriers have melted away under the light of Internet and global TV. The companies taking outsourced tasks employ professionals well-versed in the culture and language of the country wherein they get their projects.
Myth No. 5: Outsourcing drags times and could cause overpays. When a client and outsourcing partner are clear about the kind of work to be done and the contract carefully negotiated, there is hardly any scope for cost overruns and delays. The partnerships between software development firms and mobile startups is common. Most of the partnerships go further on one project. The firms that take up the projects outsourced try their best to accomplish the project on a timely manner since they value their own reputation.
Myth No. 6: You don’t know that you will get. When a client is clear on the kind of final product needed and the service provider has understand the project, then there hardly is any scope for a mismatch in a final product. Before initiating a project, a customer should ask the development firm to show a rough template of what the final product would appear. This ensures that there’s more clarity regarding work that the outsourcing company is expected to do and that there are no last minute surprises.
Myth No. 7: Outsourcing could steal intellectual property. The easy solution for this fear is a watertight NDA with the IT outsourcing provider. Once the NDA is in place, there’s no reason to fear on any intellectual property loss.
Myth No. 8: You spend less time on communication. Once a project is outsourced, it is imperative to keep in touch with the service provider. Make sure to keep tabs on the way the project progresses, or if there’s any scope for more project improvement. Such coordination ensures that the outcome of the project is better than the customer expectations.
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