There are still many executives who aren’t really sure about all aspects of outsourcing. They are confused about one or more things that make it difficult for them to outsource their work with confidence. If you are reading this article, you might be one of those people who still want to know a little more about outsourcing. There could be various reasons for this confusion. It might be that you might have never outsourced in the past. While there are slim chances of such occurrence, there are companies that haven’t tried outsourcing ever. It could also be because you had bad experience the last time you outsourced, and you want to find out where you went wrong.

In this article, we are going to discuss about all those aspects of outsourcing that might be of interest to you:

REASONS TO OUTSOURCE: This is a question that you might have asked numerous times, especially if you have never outsourced in the past. Why should I really take the risk of outsourcing my work? This is a valid question. However, the answer to this is that the benefits of outsourcing far outweigh the risks that it carries. If you have been reading about business in the world, you would know that many top companies outsource their work and there has to be some logic to that occurrence.

One of the valid reasons for outsourcing is the fact that such outsourcing companies work with multiple organizations. They handle different projects during a normal work day. By this virtue, they gain immense experience and knowledge in the field. They come across diverse challenges while working on these projects, and therefore gain ideas and ways in which they can handle all of those.

The other great reason for outsourcing your work is the flexibility that you receive. When you hire employees, you have to worry about contracts and all the other associated legal implications. Moreover, you have to have an infrastructure where they work. With outsourcing though, you can easily add or remove people from your project. Moreover, you only pay for the amount of work that the vendors do for you. This flexibility is what attracts companies in the modern times of economic uncertainty.

Finally, one of the well known reasons for outsourcing is the cost saving that it allows. The labor costs in other parts of the world aren’t as high as the developed world. The cost differential can sometimes be huge, and that attracts companies towards outsourcing.

THE RIGHT TIME TO OUTSOURCE: The next thing that companies are concerned about is the right time to outsource. Our experience suggests that there is no good or bad time to outsource. You can do it whenever you have a requirement. With regards to a company, it is always good to do it early in the company’s life cycle. That is the time when the company requires flexibility and that is exactly what outsourcing does for you. You pay when you have work, and the costs that you incur are absolutely minimal. However, it is never too late to consider outsourcing. Companies that are experiencing profit dips can consider outsourcing to put a lid on their escalating costs.

THE KIND OF VENDORS TO WORK WITH: Now, this is a tricky question. When you are thinking about the vendor, it is important to first decide on the country that you wish to work with. This is because the country plays a major role in terms of the infrastructure and other rules. Therefore, it is good to choose the region. In general, India is among the top choices of global executives. That is because the rules are lenient in the country and there is a deluge of qualified outsourcing vendors that you can work with.

When it comes to selecting individual vendors, you might wish to consider some of the following things:

Talent: You obviously need to find out if the outsourcing company has talented people working for it. Some companies will even allow you to interview the individuals who might be assigned to your project.

Experience: There are some vendors who have been in the business for over a decade. You certainly know in that case that the vendor has the desired experience to be able to handle your project with care and dexterity.

Flexibility: Different vendors offer different levels of flexibility to the project. Some of them are extremely stringent about the way they wish to associate with you, while some others are keen to be flexible and incorporate your style of working into the project.

Consultation: Finally, you might also want to ensure that the vendor is willing to partner with you rather than simply selling you new products all the time.

These and many other factors can help you select the vendor of your choice.

PROJECTS TO OUTSOURCE: Eventually, you might be left with the decision of what kind of projects can you outsource. In the modern era, vendors are willing to take up any kind of project. They have the skills and the experience to manage challenging projects. With regards to outsource software development, you might consider such projects as app development, user interface designing, software testing, open source software development, requirements engineering, etc.

If you aren’t really confident with assigning the entire project to the vendor, you might decide to assign a part of it. This would be an opportunity for you to test the vendor before you outsource more work to them. Many companies start off by outsourcing back-end and mundane tasks to vendors. While these tasks do not test the skills and abilities of the vendor, they certainly test some other aspects of their work. These include their professionalism, timeliness, communication skills, etc. Once you are completely satisfied with this, you can decide to move ahead and outsource a larger chunk of your work.

SUMMARY

In short, outsourcing is turning out to be an integral part of businesses today and it is important that you make the most of this concept too.