Top Outsourcing Mistakes To Avoid

Finding a proper outsourcing vendor has a large number of pitfalls. In addition, there are a number of mistakes that are common even to large companies with experience. For example, we often encounter a situation where, if an outsourcing company search deadline fails, a business hires a cheaper option with low qualifications or even tries to cover everything with internal resources.

As a rule, such improvisations lead to even greater losses and reputation damage. In this article, we will take a look at the main outsourcing mistakes and give some recommendations on how to avoid them.

Why is outsourcing a great solution?

Outsourcing is becoming an increasingly popular collaboration format. A significant role in this was played by the pandemic, which normalized the form of remote collaboration and the need for custom applications and services. As an outsourcing company, we have noticed an increased demand for a dedicated team collaboration model on projects around the world.

The very concept of outsourcing implies competent savings in obtaining a high-quality product. Other factors in favor of outsourcing include an excess to the global talent market, decreased working time, professional creation of a competitive product, and so on.

Another important point is savings on operating costs. Based on general recruitment statistics in the US, finding a performer for one position takes about 42 days. Then 6-8 months are spent on the adaptation of the employee and reaching his/her full potential. During this time, costs and expenses range from $2,792 to $4,425 per employee. There is no such problem in outsourcing because you are dealing with a professional team with well-established processes.

Consider the main mistakes that arise in the process of outsourcing.

1. Reference to the price tag

If, when looking for a vendor, you prioritize the size of their fee, you doom yourself to failure in advance. When an experienced company asks for significantly less money than those with a similar portfolio, there is reason to doubt their skills. By hiring an outsourced staff solely for their low rate, you risk incurring large expenses in the future, correcting their mistakes. You also run the risk of huge losses that come from their incompetence.

How to be: Always focus on the technology stack and expert recommendations.

2. Ignoring differences

In addition to cultural and time differences, there is also a contrast in the estimates of specialists, depending on the country. If you don’t take this into account when searching, you may run into serious problems. 

How to be: We recommend communicating with local outsourcing companies that have experience working with foreign customers.

Crunch has extensive experience in providing outsourcing services worldwide. We have gathered a deep knowledge from working with foreign partners and are ready to implement innovative approaches in your project! Contact us to get a consultation!

3. Inability to work with outsourcing

Not all projects are equally easy to outsource, and not all companies are able to properly work in this format. We are talking about the values ​​of the company and the ability to build clear communication.

How to be: If you have a need for outsourcing, but do not understand how to organize it, start with delegating small tasks with a low level of complexity and responsibility.

4. Exclusion of the outsourcer from the process

If you consider an IT source just a performer but not a creator, that’s a great mistake. The task of an outsourcing company is to create a product that will be good not only in itself but will also be an excellent development of the company’s idea. Depriving an outsourcer of the right to vote a bit outside the pool of his tasks is a big mistake.

How to be: Let the specialists from the team take the initiative and listen to their recommendations. Their experience and knowledge of their business will allow you to look at your business from a different angle.

5. Involving multiple partners

Outsourcing is primarily about return on investment, and a large number of contractors increases costs and slows down project progress. It can also affect communication.

How to be: Choose an outsourcing company with a large technology stack. This approach will help to implement the project more efficiently and not waste extra money and time on looking for additional specialists.

We have teams for every taste. A large variety of IT specialists in Crunch ensures a broad tech stack for you to choose from. Whatever you have in mind, our developers will make it possible! Drop us a message to get started!

6. Lack of feedback

When you don’t listen to the feedback from the internal team and don’t talk to the outsourcing developers about concerns and questions, it leads to misunderstandings and problems in the project itself.

How to be: Involve HR specialists in the process and hold meetings between your employees and outsourcing specialists. This will streamline the process of receiving feedback and implementing it during work.  

7. Ignoring the existing strategy

Your product is an extension of your company’s mission. You can’t plan to launch a product that’s good on its own but doesn’t fit into the current roadmap.

How to be: Do not forget that before starting any development; a business analyst should conduct research and help you decide on your niche.

Bottom line

Problems and mistakes in cooperation with an extended or dedicated team can be avoided only with the right approach to their selection. Don’t want to stress over everything that can go wrong? 

We’re here to help you find the right professional for your needs, budgets, and values. Thanks to extensive experience and a variety of technologies in the technology stack, the Crunch team is able to implement a project of any level of complexity. Contact us to get a consultation!

The main difficulty in outsourcing cooperation is the correct perception of this type of partnership. You must clearly understand what tasks you want to solve by outsourcing. A clear understanding of the goals allows you to draw up a strategy and implement it. Do not forget about the main mistakes and avoid them, then you will surely get great results.

Read also: Outsourcing vs outstaffing: what is better for your business