The origin of outsourcing can be traced in the industrial revolution but has become a supportive and a full-fledged business strategy in the eighties. Though outsourcing began with the manufacturing sector and now has paved its way to hospitality, banking, telecommunications and to a major extent in IT. The highlight of outsourcing is that it helps in focusing on core activities by passing on the additional work to other suppliers rather than completing it internally. This lures organizations towards considering outsourcing for its non core activities. But, with the advantages of outsourcing there come many other pestering challenges. Here is a list of top 10 challenges faced in IT outsourcing and a suitable solution for the same:
Dealing with the change:
People are generally hostile to change. Current employees of the organization might not buy the idea of an outsourced IT support system and that will show up either passively in their productivity levels or aggressively in form of resistance in everything. It is the act or the process of dealing with this change that will make all the difference. Some ways by which this challenge in IT outsourcing can be tackled include explaining everything to the concerned employees, encouraging questions, asking suggestions, seeking a common ground, arranging thorough training, etc.
Managing Control and the written formalities:
Several outsourced projects fail or end on a bad note because of the sole reason that the organization has passed too much of control to the vendor. While outsourcing it is always advisable to establish baseline metrics for control of things and keep the written agreements exactly as discussed. Simple checks can ensure everything runs smoothly. E.g. while outsourcing a website development project; the organization can have the registry of the domain in its own name rather than the outsourced partner’s name. Similarly, allowing access only for portions necessary and not disclosing everything can be another simple check.
Making a choice on the outsourcing partner:
Finalizing the outsourcing partner is the next challenge faced by most companies because of the huge competition involved and every vendor claiming to be better than the others in the stream. Any errors in the selection process can cause deep trouble over the course of time. To avoid this problem, one should strictly select the vendor according to the requirements and the output needs.
Breaking Cultural stereotype:
Cultural differences between your organization and the vendor’s profile play an important role in determining the fate of the IT outsourcing deal. The two types of cultural distinctiveness are: Corporate and country- specific. Outsourcers find it difficult to rectify cultural tangles. To avoid this situation, it is advisable to identify the difficulties that might arise and the impact should be studied before hand and a well coherent and synchronized multicultural sensitization program should be formulated for the outsourcer and the service provider.
There is nothing like “Outsource and forget”:
Even if a non-core IT task is outsourced, relying completely on the service provider is never an option for the outsourcer. It is advisable that a well thought after monitoring system is established and it should be followed despite the level of importance of the task being outsourced.
Before hiring an external service provider one should conduct a detailed research. Moreover, with the changing trends in IT outsourcing, it is always better to hire a partner not a vendor, who takes accountability of the task at hand. If you are looking for any assistance in IT outsourcing, Miracle Group is here to help. Whether you need an ongoing support or creation of a single software product, our flexible engagement model will meet each and every customer’s needs.