18 Disastrous IT Outsourcing Mistakes and How to Avoid Them

Lyubomyr (Lou) Reverchuk
Nov 6 · 4 min read

Nowadays outsourcing development of software is a widespread practice in the US, Canada and various countries of the EU. Understandably, not every experience in this field is positive and successful. Whether you have no outsourcing experience or you have already worked with dedicated remote teams, it is quite useful to find out about the typical mistakes that can be made.

This article will tell you not only why does outsourcing fails and what are common mishaps but also will offer you ways to prevent them as well as solutions to existing problems.

Mistake #1: Not Doing Market Research

Hiring any specialist is a very serious process, let alone when a company hires an offshore team. That is why market research, which will help you estimate the risks and opportunities, should be the first step you take.

The solution from Echo: In order to avoid outsourcing mistakes, take a look at the solutions that your competitors and more well-known companies use. It does not mean you should copy them completely. But the research will give you a general understanding of the options you have.

Another good practice for preventing unsuccessful outsourcing is to research the peculiarities of the IT market in different countries. For instance, outsourcing to Ukraine becomes more popular each year. This analysis may help you to choose the best country to look for developers.

Mistake #2: Unclear Requirements and Vision

Some outsourcing disasters may be the result of misunderstanding and incomplete information. Even the best developer in the world would not be able to deliver the results and meet your expectations if you did not convey your ideas fully.

The solution from Echo: To avoid it, first of all, look at your in-house team, at the roles and responsibilities of each team member. Analyze them thoroughly so you will understand what do you expect from your remote team and which tasks/roles you will give them. Another important bit is to choose the proper outsourcing model that will suit your company perfectly.

Second of all, you have to prepare a complete and extensive description of your ideas and your project that would include all the necessary details. Regular communication with the team is also necessary. This way team members will have an opportunity to clarify unclear information and ask you questions.

Mistake #3: Poor Selection Process

As was mentioned before, the hiring process is not an easy one. It is preceded by selection. Main mistakes in a selection process include lack of market knowledge, absence of a hiring plan, only a cost-oriented approach.

The solution from Echo: Fast and superficial selection can result in failed outsourcing projects as well as monetary and reputational losses. To avoid this mistake, uppermost you should learn about the steps and characteristics of selection and hiring in IT. A general understanding of this process will greatly simplify it.

Mistake #4: Hiring Workers from Anywhere

Modern world technology gives you an opportunity to reach any company’s representatives within minutes. But in this case, like in the previous one, choosing the first option that seems suitable is most likely a bad decision.

Hiring developers from other countries may be problematic for a number of reasons: cultural gaps, insufficient education, or even time differences between your countries. At first glance, you may think that you are saving costs. However, the aforementioned problems may later result in unexpected expenses and disappointment.

The solution from Echo: You should first learn about different models of outsourcing of software, and then decide if you opt for nearshoring or offshoring. It is necessary then to read about the countries you may work with to ensure developers from it have the necessary levels of education and experience.

Mistake #5: Timings and Timezones: Plan to Keep Delays to a Minimum

Delays are inevitable in every work process and every team. However, when you work with the remote team, it may be harder to control them and to minimize delays. In this case, you will always need to take into account the time differences, especially if your team is a part of an offshore software development project.

The solution from Echo: If you prefer to get fast reactions to pressing issues, you should choose nearshoring and the country that has no more than 4 hours difference. Thus, the schedules of both you and your remote team will overlap. It will be easier to plan meetings and have real-time conversations with team members.

Read More at https://echoua.com/it-outsourcing-mistakes-and-how-to-avoid-them/

Lyubomyr (Lou) Reverchuk

Written by

I help tech companies scale their engineering capacity. More information at echoua.com.

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