- Written by Ariel Sztern
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Outsourcing isn’t exactly a new trend. One could even say that it is more or less mainstream and culturally accepted within IT organizations, but choosing the right outsourcing partner can be one of the most difficult tasks that organizations face today. That's why before choosing an outsource partner, you must ask yourself some questions. Does the selected partner have experience? Has your selected outsourcing service provider been able to provide quality services to your company? Does your chosen business partner use the best in technology? Does your outsourcing provider have trained professionals?
The following are some topics you must consider if you are choosing an outsourcing IT partner.
Check for proven track records and ask for references
Find out more about the experience of your outsource partner, the different kinds of customers that they have provided services for and the number of projects that they have completed. Before finalizing on an outsource partner ask for references from your offshore partner. From references you can find out more about the quality of service, timely deliveries and customer support services. In addition, make sure that your outsource partner is financially secure, as this is a critical factor in outsourcing.
Find out your offshore partner's business aims
Another important factor to check while choosing the right outsourcing partner would be to check if your business aims and the business objectives of your outsourcing partner match with each other. Tell your business partner more about your business objectives and ensure that your chosen outsource partner understands them.
Think about communication and cultural compatibility
Outsourcing can present unique communications problems that not only encompass language, but also culture. So, when choosing the right outsourcing partner make certain that you and your outsource partner are culturally compatible. Make sure that your business partner understands your organization and your employees.
Ensure that the outsource partner that you choose speaks your language. Finding an outsource partner who can understand your language and communicate with you efficiently can help you understand their business objectives. Good communication can assure you about the outsourcing relationship. In addition to the communication considerations mentioned above, it is important to evaluate the geographical location factor: a huge time difference can make communications much more difficult and create delays.
Look at costs and talent pool
The obvious question is: What is the overall education/skill level in the areas that are most important to your business? Has your provider enough skilled workers to support your outsourcing initiative at a cost that makes sense for your business.
However, we’ve entered an era of outsourcing in which cost arbitrage is no longer the key driver for most companies. Of course, the allure of cost savings remains an important motivator, but today global service delivery is more about efficiency and quality improvement. Sometimes we can be saved money by outsourcing projects to a skilled labor force with relatively low cost. But other times, those savings can quickly disappear if taxes are high, if telecommunications and data networks are unreliable, if intellectual property can be stolen, and the list goes on.
Outsourcing can both help and hinder corporate IT agility. Working with technical partners to outsource development can be effective however it can also be stressful. Rank the importance of each criterion to your business and choose wisely.
TISA offers nearshoring services from its Houston, Argentina and Colombia offices. Feel free to contact us. We will be happy to help your business deploy.
About Ariel Sztern
Ariel is a Software Engineer with more than 20 years of experience in Software Development with experience in managing projects in more than 16 countries
Nowadays Ariel is responsible for managing the operation in USA as President of TISA Software LLC.
Beyond his technical knowledge and passion for the technology Ariel enjoys watching the NBA and playing Ping-Pong, he also like sci-fi movies and was recognized as one of the 40 under 40 by the Houston Business Journal in 2014.