Problems In IT Outsourcing​

Here are some of the most common problems of IT outsourcing and their specific solutions.

Time zone differences: Time zone differences are one of the main outsourcing problems that many organizations face when they opt for offshore outsourcing. Differences in working hours with your offshore outsourcing partner can cause miscommunication and failure to meet project deadlines which are agreed upon earlier. Effective interaction between the client and the outsourcing team is essential for business development. While a 1-2 hours delay is not a problem at all, but 6+ hours delay requires a certain immediate solution.

Solution: Time zone differences with your outsourcing team can be reduced only when you communicate more often. Fixed a time agreed upon by both parties for sharing mutual project updates & daily working time so that both parties stay updated and aligned regarding the progress of the project.

Dealing with scamming freelancers: You hire a freelancer from freelancing platforms. Often, you will find freelancers saying they are subject matter experts, but on the other side, they are a group of freelancers networking with each other. This means you hired a freelancer from that freelancer platform, but in reality, he is delegating your projects to a group of other freelancers/developers he hired without informing you. They promise clients high-quality work at the lowest prices but fail to supply the promised value. Beware of such scam accounts and people selling promises at minimum charges.

Solution: If you know all the specific details or the complete scope of your project, then you can hire a reliable offshore development company. To check authenticity search for them, visit their official website, check their profiles & public reviews, and tap on social networks like LinkedIn or Twitter. An established software development company with dedicated employees is easy to identify. They have verified profiles on social media networks like LinkedIn.

Communication barriers: Companies that are new in the process of outsourcing feel difficulty in maintaining communication with their outsourcing partner. There is a chance that you might face a lack of communication with your outsourcing vendor if you have language and cultural barriers. The communication barrier is one of the most typical outsourcing problems faced by companies that sometimes lead to reduced quality of project delivery.

Solution: You can fix proper business hours where you can communicate with each other to fill the communication gap. You can set a standardized format of communication which can be improved by setting proper mechanisms with the usage of effective project management tools.

Loss of control: One of the most common outsourcing problems that companies face in their starting days is the loss of control of their outsourced project. This is a common stage that every company must surpass before that task is handled by their domestic team. Mismanagement of service providers may affect the quality of your project delivery as they will not be updated regarding your latest conditions.

Solution: Before hiring an outsourcing partner for your company, you can check the experience of the company in managing other similar projects and also research the tracking plan that will be executed during the process. And, fixed timelines for a project deadline, tracked KPIs and further metrics, and identify the point of contact.

Paying extra and hidden charges: Nowadays IT projects in some cases run up to 40-50% over budget. And you can’t put your finger on how much the project will cost without setting clear goals, timelines, and resources required. One method to predict the cost is to choose the fixed price model for paying the offshore team, but this is not appropriate for large projects.

Solution: The cost of software development projects depends on many factors including engagement model, team size, and product features. To have an accurate calculation, it is best to consult a skilled company that knows what they are doing. Because they know about the different pricing models and how to avoid additional charges during and after development.

Data Security: During the process of outsourcing, businesses are completely exposing their business data or assets to outsourcing technology partners. For this, you have to compromise the security of data. And it is not only project data, additional information including passwords, data on business activities, and assets are also at risk.

Solution: When choosing an outsourcing technology partner, prepare a (Non-Disclosure Agreement) NDA for the potential partner along with other required agreements if any. This will protect your business from any misuse of your business data. Discuss every factor of the development process, including where the offshore partner fails to deliver or messes up the product. And also, don’t forget to add the intellectual property clause to secure your digital assets.

Conclusion: Technology outsourcing is a brilliant solution for all business-oriented companies and developing enterprises. Outsourcing your technology requirements is futuristic & also cost-effective. If you are new to the outsourcing business ecosystem, you will meet some challenges, and problems and that is why it is essential to select a reliable software development partner.

As Iqra Technology provides technology outsourcing services to multiple clients. Some of our clients experience one or more of the above-listed situations with their previous vendors.

In order to outsource technology projects, such as Salesforce outsourcing or Power Apps outsourcing, businesses need experts who understand their business processes. One of our clients was looking for an expert technology partner. We onboard them, understand their Salesforce requirements, communicate effectively and design a proper solution as per their requirements. Also, enhance and automate the business process as much as possible.

We are Salesforce & Microsoft partner company, providing offshore support services to our clients in the USA, UK, Europe, Africa & other regions. You can contact us for any of your IT outsourcing requirements.