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IT Outsourcing Business: 7 Lessons Before You Start

Before you venture into the IT outsourcing business, there are a few lessons you need to mug up for avoiding costly mistakes that would hamper ‘productivity’ and ‘efficiency’ – the heart of growth plans. Here are the 7 small but crucial lessons you better learn before you outsource your IT business.

You get what you pay for: Budget is the key word. You need to decide how much you’re willing to spend for outsourcing your business. See, if you want quality work and that too quickly, then you have to spend money. It won’t be cheap.

You need to be ready to pay 10 percent to 15 percent extra for unexpected things. Don’t be too rigid. Otherwise, your productivity may get hampered.

You need to be flexible and clear: You have to give proper guidelines to the freelancer. You can’t expect that the freelancer would know the nitty-gritty of your business. Explain clearly when he needs to complete the assignment. Give a clear deadline.

Remember, the freelancer is not directly under your payroll. And, you can’t expect him to work on your timezone. Keep in mind about the time difference around the world before sending him any message. He is not bound to give you a reply at 2AM.

You need to respect the cultural difference: Yes, cultural difference is bound to happen. You have to get a list of local holidays and events. Freelancers are less likely to work during these days. In fact, they may not even bother to inform about those days. They would simply not work in those days. Don’t be angry with them. It’s normal for the contractors. If you have any problem, then discuss the issue with them.

Give a proper reason to onshore employees: Your onshore staff may not like the fact that you have outsourced certain projects. But, you need the support of onshore employees for the successful delivery of other projects. So, explain clearly why you’re outsourcing some projects and what is the strategic goal. Once your staff understands the strategic goal, your onshore employees will be satisfied. They can understand where they stand as long-term employees.

You need to create a backup plan: Outsourcing gives you a global identity. But, it also has some risks. Natural disasters, political turmoil and other problems may occur anytime. So, you need to have a backup plan for work and IT data center operations. You have to complete projects by any means. So, always have a plan B when plan A fails.

You may lose intellectual capital: Outsourcing has some risks. You can lose intellectual capital involved in the project. Your onshore staff may not know the nitty-gritty of the application simply because it was outsourced. The outsourcer knows everything. That’s not all. Moreover, since the outsourcer made the project, he would know the concept behind your work product. And, he may apply that concept to other projects too. This would be a disadvantage for you.

It is best to outsource a project when your onshore staff doesn’t have time or talent to complete a project.

You need to hire the right people: Contractor or the freelancer or the outsourcer will be doing your project. If they are not talented or if they can’t finish project on time, your company would suffer. You’ll lose both time and money. So, be careful when you’re hiring contractors. Check their credentials properly. Use the popular websites to find the best contractors within your budget. Don’t be confined to a particular geographical location. Maintain proper hiring standards just like you do when you hire onshore staff. You can’t risk your reputation in the IT world? Can you?

Big companies are competing for getting talented IT workers, which are in short supply. Best brains love to work at good places. So, if you want to recruit talented IT workers in your company, then you need to have a good reputation in the corporate world. It may become little difficult to get new employees and retain them if your company has a reputation for outsourcing. So, you need to tread carefully, Think about the pros and cons seriously before outsourcing your IT business tomorrow.

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