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Factors for Choosing the Right IT Outsourcing Company

Factors for Choosing the Right IT Outsourcing Company
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by Sanjeev Kapoor 03 Dec 2014

Striking up an effective outsourcing relationship with outsourcing partners is a difficult matter, which requires lot of consideration. An unwise decision in this regard can cause tremendous harm to one’s ulterior business goals and objectives. Although significant benefits such as increased profits lie at the base of all outsourcing endeavors, one cannot afford to ignore that outsourcing gone wrong, can be an extremely excruciating experience.

Certain essential factors need to be considered while choosing the right IT outsourcing company. Here are some of them:

Cost Savings – While cost savings is the primary concern for any company that is outsourcing the extent of cost savings achieved should not be the sole reason for selecting a service provider. Although, pricing will always remain a key consideration, it is also vital to do background research to understand the extent of savings that can be achieved based on market benchmarks.

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Communication – A vital factor, this would act as the backbone of the project. Since involved members working on a project would be settled offshore, it is essential to establish clear cut communication. It must be noted that the targeted outsourcing company needs to realize what is required of them, have to be capable of providing prompt replies to queries, and smart enough to ask for information in order to meet deliverables within time. Although, the true picture of the company would be clear once the working relationship is established, the proposal stage can give a fair idea as to how effective communication can be set up with the service provider.

The Management Team Involved – It is of utmost importance to know who you will be working with. After all, you need to have a clear idea of their experience and exposure to understand how competent they are in executing your task. The commitment a management team exudes reflects the level of interest employees of that organization will take in to complete a particular project. In any case, it is essential for a buyer to understand how far a company would go to meet their client’s expectations.

Flexibility – The approach with which your outsourcing company deals with you is very important. Any outsourcing company needs to be flexible enough to adjust to the changing needs and concerns of their clients and prepare themselves to act accordingly. Before taking the plunge in settling down for an outsourcing company, it is very much essential for you to understand how flexible or rigid the vendor company is. There will be times when negotiation and renegotiation will feature majorly on top of your discussion agenda, for which you need to work with a company that is flexible enough to accept the changes. It is in the initial days of your interaction, you have to understand whether the company you are selecting is capable of doing this or not.

Infrastructure – When selecting an offshore outsourcing company, it is important to execute certain checks such as scrutinizing their power backup capabilities against downtime, infrastructural safeguards, availability of sufficient staff to execute the tasks entrusted them with, and more. It is when these criteria are met; you can proceed with that company. Moreover, it is advisable not to rely only on what is mentioned on paper, but if it seems viable, make a visit to the office floors as well in order to check if everything is in place. If you cannot rely on the organization in question, then working with them becomes impossible.

Client Testimonials – Another factor that should be taken into consideration is going through the previous and existing client engagements of the service provider. It is not only reading the feedback provided by their clients, but getting in touch with them personally to find out how satisfied they are with the services of the company in question. This is a good way to learn about the quality and variety of work the company has done in the past. Based on this information, you can get an idea as to how much that organization can deliver in future.

These simple steps not only help in determining the right service provider but also help in reducing the risks associated with outsourcing.

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