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Outsourcing Made Simple

Outsourcing can be a real nightmare if it fails, as it’s not a guaranteed business arrangement. If it hits off, it can do wonders for you. Techtic has been working as a technology outsourcing partner for many global clients for over a period now. We understand the pains and challenges of outsourcing.

Read More: Staff Augmentation: What To Keep In Mind?

What is Outsourcing?

Outsourcing is a business method where one business hires another business to operate a part of its business process. It includes several parts in a business-like recruitment process outsourcing (RPO), business process outsourcing (BPO), customer support outsourcing, and many more.

However, you don’t need to only hire a registered firm for Outsourcing. Several firms are also hiring freelancers to get their work done at an affordable cost.

How does Outsourcing Work?

Outsourcing is an industry that works by compiling several steps. But the primary steps are to understand the client’s requirement. Then you have to check the affordability as per their requirement of the client. And this involves evaluating operating and environment affordability. After clearing out the budget, then the service provider starts working on the project. And they need to make sure that they are delivering quality.

Read More: Quick Guide on Staff Augmentation for Beginners

Types of Outsourcing

Outsourcing in business has helped many businesses to generate profits. And that gives rise to Outsourcing of almost all business operations. It includes

  1. Professional Outsourcing
  2. IT Outsourcing
  3. Manufacturing Outsourcing
  4. Project Outsourcing
  5. Process Outsourcing
  6. Operational Outsourcing, and many more.

Read More: Staff Augmentation vs Managed Services: What to Choose and Why?

So we have developed given codes to make outsourcing easy and beneficial for our clients.

6 Steps for Made Outsourcing  Simple

1. Understand the Requirement

Clients have a specific set of requirements that they wish us to accomplish. If we do not understand them we won’t be able to deliver. So basically we have to carefully listen to them and envision their expectations of the final product.

  1. Document initial client conversations
  2. Identify real business needs
  3. Classify needs based on their priorities
  4. Share classification with client and development team

2. Perform Feasibility Checks

Never commit to what you can’t deliver. Learn to say “No” if you feel that you cannot deliver. Perform extensive analysis on the client’s requirements. Check for:

  1. Technical environment feasibility
  2. Operating system feasibility
  3. Scope for enhancement in an existing application
  4. Budgetary limitations

3. Development Process Made Simple

At many companies, the requirement gathering and analysis part goes fine. But things start going erratic during the development stage due to a lack of consistency; standardized your development process.

  1. Divide the project into phases.
  2. Establish milestones.
  3. Authority to monitor progress and compliance with best practices.
  4. Daily reporting.

4. Deliver Quality

Never compromise on quality. Clients deserve the best. So work hard to deliver the best quality that matches their expectations.

  1. Test the application
  2. Evaluate process flow and final outcome
  3. Check compliance with quality standards
  4. Offer technical support post-delivery

5. Protect Intellectual Property

Loss of intellectual property or critical business info is always looked up as a threat of outsourcing. Take steps to assure your clients that their business info and digital assets are secure and unsolicited.

  1. Information security policy
  2. Have an NDA in place
  3. Confidentiality contracts for employees
  4. Handover of source code on project closure

6. Clear Communication

Half the problems in outsourcing arrangements arise due to ambiguous communications. Make a conscious effort to keep your communications simple and clear to avoid these problems.

  1. Competent people trained in soft skills
  2. Employees trained to bridge cultural gaps
  3. Periodic sessions to brush up employee communication skills
  4. Use different means of communication

If the above-mentioned codes are followed with due diligence in offshore development projects, people won’t just see you as an outsourcing company.

Reasons for Outsourcing

The major reasons for favoring Outsourcing are:

  1. Reducing the cost of operations by cutting down the cost of labor and equipment
  2. Improves product as the business focuses on its core function
  3. Gaining access to skilled professionals
  4. It helps you track all those resources that are not available internally
  5. Free up your internal resources

Read More: 7 Reasons why should you outsource your Mobile App Development

Pros and Cons of Outsourcing

With access to skills, there are certain challenges in Outsourcing as well. That implies; Outsourcing is that coin that has two different sides. So, here are the pros and cons.

Pros of Outsourcing

  1. Outsourcing in a business helps it to increase more profit and operations lucrative.
  2. It increases the economic efficiency of the business
  3. It distributes job that leads to coming up with a precise and enhanced outcome
  4. Outsourcing can create a bond with international skills

Cons of Outsourcing

  1. Although it makes operations affordable, it takes away the job of millions of deserving candidates in a nation.
  2. Outsourcing refers to handing over a certain part of the business to someone else, which may hamper your business’ reputation as you will lack transparency.
  3. In some cases, you may ignore the labor and environment standards.

Outsourcing Trends and Future Directions

Outsourcing in the future would be more standardized. So, they are now more people-driven instead of cost depending. And in the future, small businesses and startups will experience greater use of Outsourcing to eliminate operational inefficiency.

Read More: Why Software Development Outsourcing is the New Normal?

Wrapping Up

This is everything about Outsourcing that you must know. Outsourcing in years to come will create an impeccable impact on the businesses. As the businesses will move towards Outsourcing, they can enhance their support and development.

They would rather see you as their offshore business partner.

Nisarg Mehta Nisarg Mehta

Nisarg Mehta, CEO & Chairman of Techtic Solutions, is the vision of the company. Nisarg is active in operations in his daily routine as he is one of the key decision makers in terms of technological advancements of the company. He is a friendly leader with hardworking, motivating, visionary and passionate personality.

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