Do you know around 300,000 jobs are outsourced by US-based companies annually? This shouldn’t come as a surprise to you; outsourcing projects can slash the production cost by up to 70%.
In simple words, if a project is going to cost you $100,000 in in-house production, you can outsource the same project for as low as $30,000.
And guess what, you won’t even have to manage in-house resources, budge up some space for them in the office, and provide them with job benefits.
Easier said than done, right? Outsourcing projects isn’t as straightforward as it sounds to be; your company’s credibility and reputation are at stake.
If you haven’t done it before, this article will provide you with essential information about IT outsourcing.
So, shall we start? Here’s your step-by-step guide for outsourcing projects in 2022.
1. Gather Project Requirements
Your first step is to gather project requirements and be crystal clear about the goals. If you have got multiple projects, save your time by creating a pool of resourcing or agencies ready to collaborate with you.
Anyways, there should be a separate document for each project you want to outsource. Each document must have the project details, deliverables, deadline for the completion of the whole project, and your budget for it.
Clarity is the key here; once you know what resources you need to get the job done, only then you can communicate your requirements effectively to the agency you are outsourcing to.
2. Research for the Outsourcing Services in Digital Savvy Countries
Naturally, when you plan to outsource, the aim is to automate production while saving a huge chunk of production costs. And this is only possible when you do thorough online research before outsourcing.
In today’s digital world where remote jobs are the most sought jobs, and there are ample opportunities to hire the world’s best talent at a minimum price, the outsourcing model is yielding great success.
All you need to do is find talent from digital savvy countries where people are willing to work remotely, at almost 50% less salary than the average salary in your region.
Many companies can help you with IT resource outsourcing Dubai. Likewise, countries like the Philippines, Vietnam, Pakistan, India, Bangladesh, Malaysia, Indonesia, Kenya, and Nigeria have talented IT experts willing to relocate or work remotely for IT companies.
3. Ask for a Portfolio from All Contending Agencies
It’s a bonus if multiple agencies are willing to collaborate with you. Just like you shortlist candidates, shortlist agencies based on their portfolio and quote.
This collaboration could be for a single project or for multiple ones, ideally, you should outsource all the projects under the same roof for keeping things streamlined.
And most importantly, you should ask for a portfolio. See if they have done a similar project before? Or how many projects have they done before the relevant sector?
Never trust new agencies as they can mess up your project or may not live up to your expectations in terms of quality.
4. Consider the Website Testimonials & Reach Out to their Clients
It’s a gamble to trust a business that doesn’t have any past testimonials to show. In fact, even if a business has happy customer reviews and positive testimonials on a website, it’s wise to confirm the authenticity by reaching out to the testifiers on LinkedIn or via email.
If a certain agency has a track record of delivering exactly the product they had promised within the deadline, they should be your first priority. And then you compare the quotes given by each contending agency.
In short, don’t rush things up. Take your time and determine who is your best option.
5. Weigh the Quote, Expertise, & Experience of All Contenders
When starting out, your first priority should be hiring a competent and reputable agency. Only then should you compare the price. Don’t chase the cheapest service because you know who charges less.
Weigh the perks of working with each, including the total production cost and other benefits. This could be post-development support, rapid response and communication, dedicated customer support, and fast delivery.
6. Prepare a Formal Agreement
When outsourcing projects, never start without a formal agreement. Especially in cross-border collaborations not having an agreement would lead to confusion in the future.
Even if the agency is trustworthy, they might fall behind in their commitments. You need something in the form of a document to remind them of their commitments.
In case of any loss incurred due to their negligence, make it clear that they will have to compensate it at any cost. If an NDA (non-disclosure agreement) is required here, get it signed at the end of the project.
Indeed, outsourcing is a profitable model. But managing it is a diligent task. If you outsource to the wrong agency, they will ruin your client’s project. And you know the outcome. So make sure you proceed ahead in a formal way with all the documentation done and after thorough research.