Outsourcing in the IT industry has grown to become a common practice rather than a trend. Entrepreneurs and businessmen of today and tomorrow prefer to hire offshore IT partners to avail quality services in a cost-effective manner.

Along with this, they even ensure that highly competent professionals are dedicatedly working on their project(s). But the merrier it sounds, the more attention this task requires.

You need to focus on two things before even thinking to select the best offshore IT partner. First shall be, are you ready to accept the outsourcing, and second, to clear all or any doubt you have regarding the process of it.

So let’s read about the intensity with which outsourcing is growing in the IT industry. This shall help you in deciding whether to move forward with outsourcing or not. In case you have already decided to embrace, you can skip to the next section.

Outsourcing Software Development Is Becoming Preferable

1. Freeing up resources to focus on core business is the most widely cited reason for outsourcing IT functions, at 49%. About 45% of companies outsourcing IT functions say that they opted for information technology outsourcing projects to save money. About 46% say outsourcing lets them access skill sets that aren’t available in-house.

2. Despite, or perhaps because of the COVID-19 pandemic, the percentage of the budget spent by IT departments on outsourcing continued to rise from 12.7% in 2019 to 13.6% in 2020.

3. The global IT outsourcing market is expected to grow by $98 billion from 2020 to 2024, expanding at a CAGR of 5%.

4. About 300,000 jobs get outsourced out of the US each year.

5. 78% of businesses all over the world feel positive about their outsourcing partners.

These five statistical points prove that outsourcing and offshoring have become preferable options for IT firms worldwide. You might be wondering if both the terms are interchangeable or not. Let’s check their definition before moving ahead:

  • Outsourcing– Here, the responsibility of the work is given to a third-party. They have to deliver as per the contract and may or may not work dedicatedly to the client.
  • Offshoring– Till the project completes, they’ll be employees of the client. In that specific project, they may work on one task or several daily tasks like a regular employee as they dedicate the mentioned time to that particular client only.

Along with this, it is also a common industry practice to use both terms interchangeably. In this article, we have mentioned the terms concerning their meaning only. But in the above statistics, outsourcing acts as an umbrella term and does include offshoring.

Common Doubts Faced When Hiring Offshore Service Providers

You have witnessed the intensity with which offshoring & outsourcing software development is growing. There are good chances that you might be wondering about applying the same in your office as well. It’s not you. Many businessmen and startup owners are planning to hire an offshore IT partner. So what’s stopping them?

Few doubts that every business faces while hiring offshore IT services and their simple explanation:

1. What’s the entire service scope of an offshore IT partner?

Like we covered in the definition above, the offshore IT partner works as part of your company. They dedicate a part of them and their resources only to you. So they take care of:

  • Required IT Infrastructure
  • Recruitment Process
  • Payroll
  • Work management
  • Taxation
  • Local Registrations
  • Managing office
  • Day-to-day activities

Along with this, they take care of all the required managerial, administration, and HR responsibilities. But make sure you have discussed everything first. Even the things a contract and agreement doesn’t cover. This will ensure you a smooth offshoring service experience.

2. Is an offshore IT partner just for HR responsibilities?

Definitely not! If your offshore software development partner tries to convince you of this, then remember, they are not right for you!

Whether offshore or not, all IT partners have the same responsibilities to take care of. As said above they are part of your team, like an extended version of your company in a different location. From office space to human resources, everything needs to be managed and administered.

Normally, the offshore services providers build the team, monitor the ongoing tasks, plan future work, and ensure that the goals are met. Hence HR tasks are part of their overall work.

3. How to make sure that you are moving forward with the right offshore service provider?

It is common to wonder how to make sure that you choose the right service provider when there are plenty to choose from. So for selecting the right offshore service provider, you need to:

  • Have a clear and concrete vision of the same.
  • Be sure of what you are expecting them to do.
  • Share all the work, goals, and future vision.
  • Ask them how they plan to accomplish them.
  • Discuss strategies and fix the working process.

By following this, you will ensure that your work is being done in the manner you want. Your offshore partner might face problems in copying and coping with your work processes and methods. This is the reason why it is important to discuss the above points. Along with this, many companies hire offshore IT partners to completely delegate the IT department. Under this, the above points will provide you with an idea of forming a control & contingent plan.

Things To Consider While Selecting Your IT Partner

Whether you are outsourcing software development service or hiring an offshore IT partner you need to go through the following points:

Reputation

When you partner with an offshore entity other than online mediums, there aren’t many options. So checking their reviews on trustable online B2B websites is mandatory. Also, you may get to know businesses they have worked with. Check if those businesses are genuine, and hence you’ll know if reviews are too.

Other than that, their portfolios might include clients you know, so reach out to the one you can. The same can also help in assessing the kind of businesses they have worked with. Lastly, Google business reviews, social media, LinkedIn, and other such platforms are always there.

Team

It’s not about how many human resources they have but the expertise, capabilities, and skillsets of them. Their team is the one that is going to work on your idea. So you need to check if they are well-trained and organized to complete the task.

The developers, managers, HR, and even senior employees. The entire hierarchy shall make you confident that your project is in the right hands. This is why, if done right, offshore outsourcing is the best example.

Experience

This is a bi-folded aspect that we have discussed in the above two points.

You need to check their experience through referrals, portfolios, and more. Looking for the diverse work they have done, while also making sure that they do the work.

Along with this, their experience in developing and managing such independent setups matter the most. Have they worked on projects under the guidance of clients or brought more to the table than human resources.

Timing & Communication

When offshoring or outsourcing, you’ll come across players from different countries. In the IT industry, distance doesn’t matter. For the sake of management, timing does. It will be hard for you to take follow-ups or arrange meetings if your partner’s timing is too difficult.

Along with this, communication plays a pivotal part. As already you two are working from a large distance, so regular and prompt communication increases reliability. Along with this, make sure that your offshore outsourced IT partner is honest and transparent with you. For this, it is important that you initially monitor their work.

Flexibility

It is very important in offshore outsourcing setup. The timing issues can be well managed with a higher degree of flexibility. This is to ensure that communication will be constant across different time zones.

Along with communication, the partner shall be flexible in meeting your requirements. Technology and business are changing landscapes. With company policies, the partner shall also be able to adapt & accept necessary changes.

Service Level Agreement

In an Offshore IT Partnership, the Service Level Agreement (SLA) is among the crucial documents. You shall ensure that the SLA provided by your offshore outsourcing partner has everything written out clearly. There shouldn’t be any room for any confusion or conflict.

Cost

There are high chances that you or any other business enterprise would have turned to an offshore IT partner for their cost-effectiveness. So how can you not compare the prices of different prospects.

But there’s more to this. Remember, costs & proposals can sometimes be deceiving. Ask for a detailed breakdown of the cost to know what all is being included. Also, ask for the charge of anything that you want but isn’t specified.

Other than that, this also demands cost vs quality analysis. Sometimes going with a higher price is right or sometimes opposite. So make sure you are not following the pursuit of lower price but ensuring the quality as well.

SEE ALSO: Cost To Make an App

Final Words

So this is how you ensure that you select the best offshore IT partner for your company. Outsourcing software development is also not an easy task, and you need to verify your every move and decision. Make sure that you are more than one hundred percent confident with your decision. As once you sign the contract, the process of going back is not a favourable one.

If you have made up your mind and are looking to hire an offshore IT partner or gathering prospects for someone. Then fill in the contact form below and allow us to share with you why we are among the top offshore outsource IT companies in the world.

FAQs

1. Why shall you choose offshore outsourcing to India?

The basic reason you would choose to hire an outsourcing offshore IT partner is to lower your operating cost. India is known for competitive pricing all over the world, not just for IT services but for several products and services. 

Along with this, India has also established a concrete reputation in providing skilled IT professionals who can master and work with even the most complex IT setups. Indian engineers and IT professionals have got their talents recognized in almost every sector and industry.

So with offshore outsourcing in India, you ensure that your company is in the best hands.

2. How Excellent Webworld can help you in your pursuit of finding the right offshore IT partner?

We hold a decade-plus experience in the IT field. From consulting to development, we have a successful track record. This includes serving small and medium businesses to fortune 500 to budding startups.

 With our developer for hire model, we have enabled many firms to achieve their business goals. Also, we have an extensive and reliable IT infrastructure to support clients’ vision.

Whether it’s the USA, UK, UAE, Canada, South Africa, and more, we have worked with flexibility and end-to-end communication. 

If you are set out to look for the right offshore IT partner for your organization. Do contact us, we sure that you’ll be happy to conclude your search.

3. What can be done in case you are not satisfied with your offshore service provider’s performance?

A reputed and experienced firm always has many options to provide you with. Whether you want a new developer or an entire team, a dynamic and reliable partner will always make that happen for you. Offshore outsourcing services include a clause where you can demand such a change. Many companies even include their process of change for such clauses.

Excellent Webworld guarantees you top resource options. We are sure that you will never feel the need to change your developer or team with us. Even if you do, you can choose a developer from our updated resource pool. There are always chances that you’ll find fresh names in it along with the ones you passed earlier. In the case of changing the entire team, the process is the same. We even believe in going the extra mile to hire the best resource from the market for the project. But our growing in-house pool of candidates has always succeeded in assuring high client and end-user satisfaction.

Lastly, once you sign the contract, we take it as our responsibility to ensure that you get the best and satisfying service.

4. Does offshore outsourcing lead to dilution of control?

It’s a common question that arises in almost every client’s mind. Now the answer to this can never be a simple yes or no.

The control is always in the hands of the clients.  Still, you need to provide liberty and freedom to the offshore IT partner for better management and monitoring.

For example,

X firm (client) sets a certain goal and milestones for the project. This may or may not include daily tasks, weekly targets, bi-weekly targets, monthly targets, quarterly targets, half-yearly targets, and so on. But the shorter the duration of the targets, the more responsibility on the X for future work.

So clients themselves prefer to delegate the maximum part of the work to their partners. Based on their expertise, they can design the entire process to achieve the goal. Initially, all clients prefer to monitor the work very closely, and that’s acceptable. Soon you’ll find the trust to delegate larger work chunks as you might do to your senior managers. This always happens when clients have selected the right partners.

Also, the time difference, culture difference, HR policies, work policies, and other such things might need to be worked on when choosing offshore outsourcing. Delegating your partner such responsibility can also prove to be helpful for you.