Setting clear expectations with IT outsourcing company in six steps
According to Precedence Research, by 2030, the global IT outsourcing market is expected to reach a staggering $1.06 trillion in worth. It is a significant increase from its current worth of $530 billion. This evidence shows the phenomenon is one of the most popular services in the world, and the increasing number of businesses will look for the right IT outsourcing company to get a team extension or outsource services from scratch.
IT outsourcing is responsible for 13.6% of the annual global IT budget. Yet, many companies who find the right IT outsourcing company struggle to set clear expectations for receiving the desired outcome. Let’s explore a general idea of choosing the right IT outsource company and explore six steps for identifying and avoiding dangers in setting clear expectations.
How To Choose The Correct IT Outsourcing Company?
To tap into an IT outsourcing market, you must search for an IT outsourcing support company. While it may sound easy, in reality, the process can be challenging and with many obstacles on the way. In such a case, there are four aspects to consider when looking for an outsource IT company:
- Developers’ hourly rates.
Businesses choose IT outsourcing to cut costs and tap into the talent pool. Yet, keep in mind that low costs often mean poorer quality of services. So, study different outsourcing regions, investigate developers’ hourly rates and choose the most balanced options. It will grant you an IT outsourcing services company offering the best quality for a reasonable price.
- The degree of IT tech development in the chosen region.
Always consider the tech development fact when looking for an IT outsourcing company. It means you need to deal with this challenge to determine the number of IT educational establishments in the chosen outsourcing location and have an idea of the number of ICT professionals the nation offers.
- Time zone considerations.
As with the quality-to-cost ratio, it is important to consider the time-to-efficiency aspect. The rule of thumb dictates that if you outsource your IT company to the region with more than a 2-hour time-zone difference, you will experience troubles with efficient project delivery.
- Potential cultural barriers.
When dealing with an IT outsourcing company, you will likely communicate and collaborate with people from different cultural backgrounds. To avoid cultural barriers, study the cultural landscape of the chosen outsourcing destination in advance.
Keeping these aspects in mind ensures you face fewer challenges when choosing the next IT outsource company. At this point, while understanding how to start with outsourcing, it is time to get an in-depth look at how to get the best of the phenomenon.
6 Steps For Setting Clear Expectations With Your It Outsourcing Company
Now, let’s get to the main course – clear expectations are the key to an effective relationship with a chosen IT outsourcing company. In such a case, it’s always a perfect time to set specific guidelines or rewatch them, but the best time to set them is the beginning of the partnership. Setting the guidelines in advance, it would bring you to your desired goals without hiccups. Therefore, businesses looking for IT outsourcing partners should do it as soon as possible.
Here are six distinct ways of setting clear expectations with the chosen IT outsourcing support company:
1. Define Your Expectations with IT Outsource Company
The core of all clear expectations is apparent and understandable statements. You must present all the guidelines and requirements so the IT outsourcing company can make informed decisions. In a nutshell, present well-defined expectations to ensure there won’t be any misunderstandings on the way. Otherwise, if misconceptions are involved and your needs are not clearly defined, you can find yourself in a position where it is impossible to get the required degree of mutual clarity and trust. Respectively, it will have a definite effect on project delivery.
Trust and commitment start when both parties know what is expected from each other. It is your task to have a clear definition of what you want. If your expectations are complex, deconstruct them into small components and make them more understandable. Give your IT outsourcing services company a set of well-defined guidelines to work with, and soon enough, you will see how smoothly the project goes.
2. Find A Way To Communicate
Working with an IT outsourcing company and remote developers always comes toe-to-toe with communication issues. To deal with this challenge, finding the best means of communication is vital. Start by explaining your IT outsourcing partner and your preferred way of communicating. Never hesitate to show that way. If the company you are working with is unfamiliar with your way, find the middle ground.
It means you need to identify the preferred methods of communication by shortlisting all the possible tools that both you and your partner used. Besides, you can do that when interviewing potential IT outsourcing candidates from the beginning. It will help you find the right two-way communication from the get-go.
After the mutual way of communication is found, make sure to discuss the frequency of communication, and determine the tools that will be most used. You need to show your IT outsourcing company how often you will communicate with it, whether you will use emails, project management tools like Jira, or any document repositories. With all these aspects in mind, you will communicate with your IT outsourcing partner effectively and achieve desired outcomes as soon as possible.
3. Set Realistic Goals When Outsourcing IT Services
After defining expectations and establishing ways of communication, it is time to set realistic goals. This principle applies to IT outsourcing companies and remote team management. What does it mean for goals to be realistic? In short, it means they need to match your business needs and be Specific, Measurable, Achievable, Relevant, and Time-Bound (SMART). When you define these parameters, you get achievable objectives any company you work with can understand.
In short, SMART goals are there to make your business ideas and work process transparent. Yet, you can use the principle both ways. First, when hiring an IT outsourcing company, you can use SMART goals as benchmarks or variables to measure whether a selected partner is a good fit. Ask questions based on the framework above and determine whether a service provider can deliver and meet your expectations. Second, when working on the project, you can use SMART goals instead of KPIs. With these, you will see whether the project is moving in the right direction. As a result, setting realistic goals depends on the proper definition of SMART objectives.
4. Set Achievable Deadlines
Deadlines are crucial for in-house and offshore teams. If you are looking for staff augmentation, setting deadlines is as important as finding the right IT outsourcing company. At this point, always discuss what can be done within realistic deadlines. What is more, always keep some additional wiggle room in case the deadline won’t be met as expected.
The best-case scenario is when both parties offer inputs on the deadline-setting process. Your chosen IT outsourcing services company should offer estimates on the total project duration based on your needs and requirements. You can also ask for the estimates for each phase of project delivery. In turn, on your side, provide different possible approaches regarding the milestones. Both parties can work out different best and worst-case scenarios and plan ahead for any challenge or obstacle. Respectively, setting deadlines is a two-way collaborative process. If you and your IT outsource company makes it right from the beginning, there will be no surprises and postpones.
5. Be Professional with Your IT Outsourcing Partner
The simple truth – nobody cares about your business more than yourself. It means you cannot demand from your IT outsourcing company mutual trust and full investment in your business ideas. Build nerships with outsource IT company, and be professional in the process.
You must consider several key factors to establish trust, transparency, and professionalism. These include the following:
- Determine the optimal level of involvement with an IT outsourcing partner.
- Understand the responsibilities of both parties.
- Know what to expect and what expectations are unrealistic.
- Have a clear picture of service costs and the quality of services you will receive.
- Decide whether you will scale up or down in the future with the same partner.
In the end, being professional is all about respecting the ones you work with and not demanding what they cannot provide. Know what to expect, and know what both parties are responsible for. When outsourcing your IT company, it does not mean you just allow things to go on their own, there is a great need to be invested in almost everything, from remote onboarding to post-release support.
6. Follow The Standards And Protocols
Lastly, setting clear expectations is about following the pre-set standards and protocols. Numerous protocols must be followed if the chosen IT outsourcing company engages in product-based development. Otherwise, you receive a product that might be harmful to users, or regulatory agencies might not allow it on the market in the first place.
In such a context, always have a go-to document to ease your work with a partner. Pay particular attention to Service Level Agreement (SLA). Every single detail there must be well-defined and articulated. This will help avoid confusion, misunderstanding, and ambiguity. Besides, hiring a lawyer to double-check all the legal agreements can be a great choice. A professional eye might find something you and your IT outsourcing partner missed.
Along with SLA, put emphasis on the following documents:
- Non-Disclosure Agreement (NDA)
- Statement of Work (SOW)
- Master Service Agreement (MSA)
- Payment Terms
These are foundational protocols to start a fruitful collaboration with your IT outsourcing company. After all, it is best to deal with all the legal stuff in advance to avoid costly litigation in the future.
The Bottom Line
Setting clear expectations for an IT outsourcing company is a great starting point for a fruitful partnership. Undoubtedly, there is a direct connection between clearly-defined expectations and the quality of services you will receive. Yet, to set clear expectations, you need to define them, find a way to communicate with your partner, determine realistic goals, present achievable deadlines, be professional, and follow the protocols.
When all the expectations are set, and your IT outsourcing partner has a clear vision of them, you will likely receive products and services that stand out. Here in Bintime we are as interested in the growth of your business as you are, so we focus on helping our partners to develop products and services. If you’re looking for a relaible IT outsourcing partner, please contact us to obtain the IT solution of your dream.