10 Helpful Tips to Find the Right IT Outsourcing

it outsourcing tips

Tech talent hiring in the IT field has become so versatile in terms of its hiring models and working methodologies. Outsourcing is one of the most common models of hiring in modern HR landscapes, especially in the field of IT development. For a successful outsourcing model, you need a talented remote development team and numerous kinds of tools that make your projects successful.

Among such tools, React-Redux is very common for web development. In the web development domain, finding top-notch talent is very difficult due to an imbalance between demand and supply of the resources. Click the given link to find more about the hiring processes of skilled React JS software developers and programmers.

Overview of IT Outsourcing

The demand for software developers, especially the web developers is significantly high in all segments of the global market. The number of websites, web apps, and mobile apps are the major driver of this gigantic demand. In the present marketplace, the React Redux developer demand is very high. The increasing demand opens up the new arena for IT outsourcing and IT outstaffing.

According to the Statista information, the total market size of IT outsourcing or ITO was about $62 billion. The total market value of IT outsourcing in 2018 amounted to $85.6 billion. That means, ITO accounted for about 72.4% of the global share of the outsourcing market. The major factors that contribute to this gigantic share of IT outsourcing include the web development, business process outsourcing, app development, and remote management of IT operations. The IT experts, app developers, web developers, and programmers contribute a huge part of this whopping market.

All small, medium, and large businesses that have websites and mobile apps for their business need the services of a web developer. The demand for React JS framework is increasing continuously in the past few years. According to the StackOverflow developer surveys, React JS was the 7th most loved platform with a 66% ratio of developers support in 2016. This position improved significantly in 2018. Now, it is the second most loved platform in 2018 with over 69.4% support of the developers. The powerful capabilities of React JS Redux vs Flux make it one of the most loved platforms in the web development domain. Both of them – Flux and Redux make a comprehensive web development solution.

What Companies Need IT Outsourcing the Most?

IT outsourcing offers numerous benefits to almost all kinds of businesses and enterprises. Software development and digital process management are two very important domains where outsourcing plays a vital role. With the emergence of different outsourcing models such as homeshore, offshore, nearshore and others have changed both the landscapes and the importance of outsourcing. The major types of companies that use IT outsourcing are mentioned below.

#1 Software Development Companies

According to the latest report, more than 57% of the employees in IT and computer sector work for a certain time remotely. The software industry is heavily powered by remote teams nowadays across the globe. The major hubs of remote software development include Ukraine, India, China, Poland, Brazil, and others. A huge number of software development companies are hiring software developers remotely.

#2 IT Operations Companies

IT operations companies choose to outsource their operational processes in almost all countries worldwide. This trend has started quite a few years now. Numerous IT operations like telecom services, data services, wireless systems, cellular systems, remote server maintenance, and other such operations choose to outsource their business operations.

#3 Retail & eCommerce Companies

Retail and eCommerce companies are mushrooming nowadays. Their business ideas are materialized with the help of online software-based stores. The development, maintenance, up-gradation and data input all other business processes require the services of software engineers. To cater to that demand these companies choose for the IT outsourcing services, which are comparatively competitive.

#4 Telecom Companies

The operations of different types of services in the telecom sector are very costly. Hiring on-premises staff for operations of the services in widespread areas would be so costly. The solution to this problem is choosing the local outsourcing companies in remote areas.

Top 10 Helpful Tips on Finding Right IT Outsourcing

Finding the right IT outsourcing partner is a professional level activity. You need to follow a thorough process to examine and assess all important aspects of the right IT outsourcing partner. Following the following useful tips will help you find the right IT outsourcing partner for your projects. 

#1 Fully Assess Your Requirements

Assessing the requirements is one of the most fundamental parts of all types of projects. Before, you search for the right IT outsourcing partner, it is highly recommended to assess and check the requirements of your outsourcing services comprehensively. Any over-estimated outsourcing resources will cost your business heavily and any kind of under-estimation of requirements will affect the quality of service badly.

#2 Look for Proven Track Record

Ask the outsourcing company about the success rate of projects and the successful clients before finalizing any company. There should be a sizeable list of satisfied clients to the credit of the company. The company should be in business for a reasonable time and have expertise in the domain that you are looking for.

#3 Talk to Professional Reference 

It is very critical to ask the shortlisted companies for a list of references. All references should be contacted for knowing their views about the services, quality, and professionalism of the company. They should also be asked about how they will recommend you to hire them for your project. This will help you understand the level of their understanding of your project and its possible success rate with the cited outsourcing company.

#4 Check for Business Experience

The business experience is very important. The company under consideration should be checked for their experience in the domain of business which you want to use for your help. The company should be in business for at least a few years with a successful history of projects that are similar to your ones.

#5 Ask for Financial Credentials

The financial credentials of the outsourcing company under your consideration are very important factors if you want to establish a long term relationship. The sound financial position of the company would solve all problems related to IT infrastructure, tech talent, or any other issues that can become bottlenecks in your projects.

#6 Check for IT Infrastructure & Technology

Before you finalize your outsourcing partner, you should ask what technologies and IT infrastructure related to your project they have. You should always focus on the state of the art IT infrastructure related to software development and the latest technologies that are trending in the marketplace.

#7 Analyze Tech Teams Expertise

The most crucial thing in the successful completion of process outsourcing is tech talent. It is very important to note that the entire world is going through the shortage of IT experts and software engineers with the desired skill sets. So, you should check and analyze this factor very carefully before you choose the IT outsourcing partner. The outsourcing team should have senior as well as mid-level software engineers with expert-level knowledge of the technology and platforms that you want to use for your outsourcing projects.

#8 Communication & Coordination Mechanism

In the case of IT outsourcing and remote teams, communication plays a very pivotal role in the success of any project. There should be multiple sources of modern communication and coordination so that you can remain 100% in touch with the teams that work on your outsourcing projects. A proper account manager and coordinators should be available as a focal person for your project with the latest communication systems. A proper escalation matrix for communication and coordination should also be in place to follow professionally.

#9 Contract Terms & Conditions

Before you outsource your task or project, you should create a comprehensive contract with clear terms and conditions for the price, quality, timeline, budgets, and other factors. The contract should define service level agreement (SLA) comprehensively so that no conflict arises. All aspects of the penalty for the liquidated damages, delays, and quality should be properly defined in the contract.

#10 Quality & Delivery Checks

Always hire those IT outsourcing companies that offer you a high level of work quality and timely delivery. You should also check the quality check marks and delivery timelines of past projects. The quality check standards and delivery milestones should be one of the base points for the selection criteria of an IT outsourcing company.

What Are the Major Risks of IT Outsourcing

The major risks in outsourcing any project or business process may include the following.

  • Loss of control over project or team
  • Hidden charges of the company
  • Failure of timely delivery
  • Compromise over quality
  • Loss of data confidentiality
  • Reduced access to remote locations
  • Vendor lock-in
  • And others 

Final Takeaway

IT outsourcing is not just a trend, but it is a solid field of business, which will remain in the marketplace. The market share of IT outsourcing is continuously increasing the total outsourcing market worldwide. It has numerous benefits, which attracts numerous types of companies to choose IT outsourcing. To choose the right IT outsourcing, you need to follow the useful tips mentioned in this article.

SDR Team

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