Common Outsourcing Problems and How To Solve Them

In recent years, companies are looking more and more toward outsourcing software development. Outsourcing can be divided into two categories; offshoring and domestic outsourcing.

Offshoring has recently gotten more attention due to several benefits that it accompanies, the leading one being reduced costs. However, there are many risks associated with this process as well. This article shall discuss the problems of outsourcing software development and also mention effective ways to cope with them and pull off a successful outsourcing experience.

Proficient Management and Planning Mark Gross of Data Conversion Laboratory (DCL) has clearly stated that while organizations approach outsourcing as a cost-effective alternative to in-housing, they tend to overlook the probability of associated risk and a false economy. Offshoring has gotten a bit more sophisticated in the last 20 years or so, but the professional-level management and thorough planning that is essential for effectively reducing risk and finishing a project quickly is often missing from experience.

Gross proposed a solution to this problem that the software teams should work in close collaboration with the project teams in order to integrate this process with leading-edge automation. This approach will not only reduce costs but also enhance the product quality and consistency.

Expectations One of the most common issues with outsourcing, especially when newbies are involved, is the fact that the expectations tend to be unrealistic at times and therefore, not a lot of vendors approach the company to make a deal. The thing is, these processes are not as simple in real life as they are on paper. To overcome this issue, you should expect a learning curve and a couple of rough patches through the process. You should shape this into your timeline and consider it while setting business objectives in future dealings.

Cultural, Language, and Educational Differences A well-known hindrance in the way of pulling off an effective outsourcing experience is the significant variation between a typical employee in the U.S. and even the best offshore professionals. There are noteworthy cultural, language, and educational discrepancies between the people of the U.S. and those of the developing countries where outsourcing projects are often sent. These disparities have a huge impact on the capability of the offshore teams to completely comprehend every aspect of a project and therefore, result in an overall low-quality end product.

In order to overcome this issue, you should consider domestic outsourcing. Not only will you be able to rid the process of any language or cultural barriers, but you will also be able to reduce the associated risks and make collaborative work easily attainable. If you still prefer offshoring, then another alternative is that you schedule some time at the beginning of the process solely for getting to know your business partner better in terms of the culture and the work policies.

Process Adjustments Once you finalize the deal with your outsourcing partner, your company may not be fully prepared to actually begin working together immediately. This can cause the workflow to stop and thus leads to objectives not being met. In order to avoid this issue, it is important that you start putting new procedures, staff, and workflows in place as soon as possible to minimize the ramp-up period effectively.

Conclusion Outsourcing problems can happen to anyone. That doesn’t imply that outsourcing as a whole is a bad concept. Particularly, the organizations that first engage in outsourcing practices are the ones to face these issues. As your experience grows, so will your expertise in the process; everything takes time. It’s an innovative way of doing business and adapting to your new partner is important.