IT outsourcing has become an essential part of the modern business community, and it is expected to reach US$ 397.6 billion by 2025, which is 4.5% more than in 2019.
Over the past year, there have been significant and unprecedented changes in business processes and strategies. Outsourcing processes have also transformed to offer competitive solutions based on new technologies, access to talents, and effective strategic partnerships.
Despite the many advantages, companies involved in outsourcing processes face serious challenges. Let’s consider the main ones, as well as possible solutions.
The problem of trust
One of the factors that create an obstacle to effective interaction between the vendor and the client is the reluctance of the client company to provide access to tools, analytical data, and access permissions to information necessary for developers to perform high-quality work. The solution is to choose the right partner who is ready to dive into your business and follow your goals. Client companies also need to strive for a trusting strategic partnership and share with the external team all the information they need.
Before developing a new project, Openix Solution always studies in detail the specifics of your business and analyzes the information to build a strategy and workflows as efficiently as possible and achieve your business goals.
Security and Intellectual property
The issue of security in the field of data protection and intellectual property has come to the forefront in all areas of business. Over the past 2 years, Covid-19 has had a big impact on the number of leaks and cyber attacks. This is due to a greater information load on organizations and the transition to remote work, which leads to disappointing statistics. In 2020, 1120 leaks and cyberattacks were recorded. In total, more than 20 billion records have been hacked. According to Cybersecurity Ventures, the financial impact of cybercrime is expected to reach $6 trillion in 2021 and grow to $10.5 trillion annually by 2025.
Study the intellectual property laws in the country to which you outsource and make sure that your interests are protected. And also pay attention to the choice of a partner and his experience and resources in the field of data protection.
Project control and management
The problem of project management and the right choice of communication tools is also important. As a rule, the supplier is responsible for project management. Poor communication, not defined expectations, and not synchronized processes lead to loss of time and finances. Work plans should be defined in advance, progress should be clearly monitored, and errors should be identified and eliminated as early as possible. Integration problems are often pushed into the background, but in reality, they have a great impact. It is necessary to identify and prescribe all the roles and responsibilities of the project participants and make sure that everyone understands the overall strategy. In addition, it is necessary to agree on the use of unified communication channels, for example, to make a working chat in one of the messengers for urgent communication, and to use e-mail for official letters so as not to lose important information and the project chain. A good team management process will allow you to effectively implement both short-term and long-term projects.
Openix Solutions uses proven methodologies (including flexible process transformation Agile) and its expertise to provide comprehensive IT solutions that meet the needs of your organization. We ensure clarity and transparency of our processes and integrate clients into them to ensure high-quality communication leading to a successful project.
Working in different time zones
Time zone mismatch is one of the biggest challenges for outsourcing software projects, especially when the project is best suited for agile development. Therefore, to avoid this problem, the following rules should be followed. If your project requires continuous close cooperation throughout the entire cycle, it is best to work with the nearshore team. Then, internal and external teams can work together throughout the day and synchronously solve problems by connecting to a quick call or chat. If you already have agreed requirements for the project for the entire cycle, then in this case an offshore team will be an excellent solution.
Personnel issues
Outsourcing companies constantly face problems related to personnel, such as reduced productivity, staff turnover, and high training costs. According to experts, in the United States, replacing an employee costs about twice as much as his annual salary. New technologies and approaches to work will help to avoid most of the problems with the staff. For example, repetitive tasks can be automated. This will increase productivity and allow employees to focus on other more complex tasks. Reducing employee turnover can begin with simply ensuring that employees feel stimulated at work. For example, it can be a competitive salary or a flexible schedule. It is important to create a strong workplace culture and effective communication to avoid turnover.
Impact of the pandemic
Along with the problems of communication, trust, management, and security, the consequences of the pandemic also have a strong impact on the IT market. According to SWZD research, in 2022, more than 40% of IT departments will face the following challenges: limited product availability, delivery delays or logistical problems, supply chain problems, increased product costs, and a shortage of chips. All these possible problems and obstacles must be discussed with the client in advance.
The situation with Covid-19 is still unstable in many countries, so there may be a problem of organizing a remote work process that includes reliable communication, data security, and motivation. To do this, you need to think in advance and establish an uninterrupted scheme of work, make it more flexible, and take into account possible changes.
Companies need to keep track of the latest trends and keep an ear to the ground. The market is constantly changing and then requirements and processes. Therefore, it is important to develop together to create effective strategic partnerships and become leaders of the industry by the time we return to a new “normality”.
