In the outsourcing projects organizations experience such a disappointing results what they want to achieve through the deal and the resulting ROI. That’s because firm might make some common mistakes which should be avoid in order to achieve the better results. Below givens are some of the common mistakes which are made by the outsourcing companies in their software development project.
1. Insufficient analysis of the outsourcing service providers’ model:
In the project work cost-saving has been given a high-priority ,but that should not be only factor which companies should evaluate their prospective partner. They should consider many other factors, which include service provider’s maturity and capabilities to handle any type of outsourcing projects. Company should hire any firm for the purpose of outsourcing after the close analysis of their innovative skill which they use to create software development work. For that, factors like IT architecture design, business vision, and contract management and delivery and execution history should be evaluating otherwise work might suffer.
2. Poor management of the outsourcing contract:
Proper management of the project is another common mistake in the outsourcing Industry. Company should draft the contract is a critical and must give great attention to avoid leaving any loopholes in the system. Moreover, loosely defined contracts may result in a series of change in the project which adds definite costs. Ultimately, companies many have an additional burden of the costing.
Any successful contract management should reflect specific detail and it should also need to be flexible. In today’s systems and services can change a great deal over a short period of time. By incorporating guidelines for managing unexpected situations can secure any project to suffer because of the poor management.
3. Insufficient or regular communication with outsourcing service providers:
Effective communication clarifies the objective of the both the parties to each another. It makes possible to have a streamlined the process between the client and the service provider. Therefore, it is important to identify the potential challenges of communication like distance, time differences, language and find a correct ways to overcome the same.
4. Poor transition management:
The transition period is considered as one of the most complex stages of an outsourcing deal, it will take anywhere as small as three months to an entire year. It also sets the perfect working stage for the remainder of the deal, as a successful transition helps to develop the new relationship with a positive momentum. When signing a contract for the outsourcing, company should show a great sense of trust in each other skills and capabilities, companies should maintain a consistent level of involvement is frequent communication and regular exchanges of business-related information fails to do so might harm the prospects of any outsourcing project.
- Sole focus given on cost savings:
Sole Focus on Cost Savings can be proven dangerous as in many projects. It might be helpful for the cutting down on investment costs. Though cost savings are a crucial benefit of outsourcing, but too much empathize might not be good ideas for the organization. If outsourcing is done solely for the cost factor, then it leads to various kinds of quality related issues.
Therefore any entrepreneur should never consider outsourcing as an inexpensive and easy method of offloading their work, but should consider as one of the effective business strategy. It should be considered as an important tool for building an efficient, lean, and a competitive business to give more time for the core business objectives.