If you are on the stage of considering whether outsourcing business processes is a good idea, it has probably come to you mind how to trust someone located thousands of miles away. Frankly speaking, it is always a challenge for a company that has been managing its entire IT for years to relinquish control and, at the same time, maintain security and quality at the same level.
We’ve selected the most common concerns you can have about outsourcing IT and explained how to minimize them. Hopefully, our tips will help you leave all our doubts aside.
IT Outsourcing Risks and How To Mitigate Them
It is not a secret that nowadays outsourcing is quite widespread. Still there are some risks which can keep an IT director awake at night, such as:
Security and Transparency
When you outsource, you delegate part of your IT infrustructure to another company. You can hand over sensitive information that contains processes, employees’ details and other important data to the outsourcer. So it is natural that you may worry about the way the outsourcing provider handles your resources security. Selection a IT company working in compliance with international security standards can dispel your concerns about security. Sign a non-disclosure agreement (NDA) that is binding for both parties.
Lack of Experience
Young companies can consist of skilled specialists but may lack experience in handling problems or maintaining a smooth workflow in the company. That’s why it is important to get some proof (for example, ask for references) that they are able to handle issues once they arise. The outsourcer should provide, upon request, a track record of successful resolving outsourcing issues and solid relationships with hardware/software vendors, etc.
Poor Financial Base
Lack of financial security can also be an issue. It important to know that the outsourcer is financially stable and won’t wind up before all work on your project is completed. It can also be an issue if your provider can’t add capacities when you need because of any financial constraints. Besides, if the outsourcer is not financially healthy, he can hardly employ outstanding specialists because the offered salary rates are generally low.
Check out how the company has been doing recently to avoid problems in future.
Another issue can be confusing clauses in the contract, which make it difficult to get and cause problems later in case some obligations under the contract are not performed. Make sure that your SLA (service-level agreement) is clearly written in English and puts the customer first.
Lack of Responsiveness
You can get stuck trying to figure out what’s going on and the outsourcer can keep your waiting as long as hell keeps burning. Contracts are not enough to assure your problems get as much attention as they deserve. It is something in attitudes and relationships with your service provider.
Many outsourcing companies are not flexible enough, stuck in the past and do not utilize the new technologies to the extent you’d like. They are focused on their business model rather than on rendering improved service to you. The ability of taking advantage of new technologies is one of the major factors to take into account when choosing an outsourcer. Nowadays it is a must for an outsourcing company to focus on innovation and deliver improved service.
It is no less important for both clients and outsources to work together and create favourable conditons to excel in their roles.
Some outsourcers will try to lock you into selected hardware and software, leaving you little chance to quit, having you, thus, on the ropes. Make sure that the provider offers maximum flexibility and accessibility so that you could drop him painlessly, in case you are not satisfied with his service.
Outsourcing IT to another company is always a matter of trust. The degree of this trust depends on how many points an outsourcing company can score as a result of risks analysis and whether these risks can be reduced. Verifying that with an outsourcing company that you’d like to make your future partner can give you near accurate predictions on your endeavour outcome.
Latest posts by Svetlana Gordiyenko (see all)
- XB Software Participated In The ‘I’m Testing Yandex’ Contest - March 13, 2017
- CDMNext Released: Ideal Tool for Leading Economic Indicators Analysis and More - February 23, 2017
- Welcome to 4Front Meetup #14. New Year’s Edition - December 21, 2016