Outsourcing Safety Tips

Jun 1, 2012 // by Lorrie Hunsaker // Blog // No Comments

So you have a project that requires an outsourcing provider.

Whether you need technical expertise, additional resources, or both, choosing the right outsourcing vendor to take on your project and bring it to life without knowing what key characteristics to look for can be a lot like walking a tightrope without a net.

Either you find just the right balance between quality service and pricing, and successfully complete your project with confidence and ease. Or, the disproportion among these properties gives way to hidden instabilities and doubt, causing your entire project to come crashing down.

Luckily, we’ve got a safety net for you.

Tip #1) Quality trumps cost. When it comes right down to it, you always get what you pay for. If your main evaluation criteria are focused solely on a price tag, you run the risk of sacrificing the integrity of your project for the sake of saving a few dollars. More often than not, electing to cut corners in favor of pinching your pennies requires settling for an incapable vendor who promises unrealistically low costs while concealing an acute lack of reliability, experience, reputation, or all of the above. Unfortunately, this realization isn’t discovered until your return on investment has permanently diminished. Instead, look for the best value – the place where price and results meet. An exceptional vendor might outperform a mediocre one by 10 to 1 in some cases, but cost only 1.5 or 2 times more. That means your total project cost could potentially be much lower than if you hire a less-qualified vendor whose approach doesn’t meet your business needs, and lets your project get out of control.

Tip #2) Track records don’t lie. Unlike the stock market, past performance is a good indicator of future results when it comes to evaluating an outsourcing vendor. Look for a committed provider with a proven history of success in their field. Demonstrated domain expertise should rank relatively high on the criteria list. A quick review of the vendor’s track record should clearly illustrate that they can analyze and understand key business drivers, design the project, write the code, implement and/or manage the project, and provide support afterward. Finally, credibility counts. An experienced vendor should have enough successful projects under their belt to provide a list of references that can validate their value proposition.

Tip #3) Don’t settle. Never underestimate the importance of a good cultural match between you and your outsourcing provider. Regardless of contract scope or length, an IT outsourcing relationship needs to function as a partnership if real value is to be created for your business. A vendor with similar values, work ethic and business objectives will naturally understand the needs of your business and integrate themselves seamlessly. Look for providers who offer a flexible deployment model, understand the business demands behind the software, and can offer accessibility to the high-end resources you need without any complicated overhead. Most importantly, partner with a vendor who has a genuine passion for solving tough problems, delivers top quality results, and exceeds client expectations.