December 5, 2019

Why do many tech companies fail to get outsourcing work for themselves? Why have some businesses found ways to entrust third parties with tasks and successfully drive growth while others do the same in vain? Let’s explore some of the key tips on utilizing outsourcing to drive growth.

  • Choosing an outsourcing vendor is like hiring a person into your team, so approach the search for a contractor seriously. Learn as much as possible to ensure that your money continues working for you and you won’t have to correct, redo, or improve upon the work done (unless you intend to).
  • Delegate tasks that don’t actually create value but help maintain core ones. For instance, if you’re developing a trading platform you’d better keep all activities in-house. However, if you are selling clothes and need to create an online presence, then you might hand over website creation.
  • Keep an eye on the costs and expenses, as not to get into a trap of overpaying. Monitor all costs of the service and effort put into it, since outsourcing providers may sometimes sell their services at rates above the market. In other words, watch out and keep a concise record of all activities.
  • Stay in contact with the developers so they better grasp all set tasks. Be involved in the process, yet don’t waste your time on too much micromanaging. As well, don’t forget to give them access to relevant systems and materials (so that they have everything they need).
  • Clarify your requirements and provide feedback. Your vendor should have a clear vision of what you expect from them, yet provide feedback if there is something they could do better (or need to correct mistakes), so you’re more satisfied with outcomes.
  • Streamline your processes and set precise guidelines, including those about the tools to be used. When dealing with a contractor, they must be on the same page, so even if you’re working with different software, you must design a system and agree on it to keep all people on the right track.
  • Check that your vendor is flexible. In the case of intensified workload, you will want your partner to adapt to those changes – so you won’t have to consider seeking a new one; therefore, always confirm that the contractor will be able to meet increased future demand.

In any case, outsourcing is not the only panacea and there are also alternative models, the “Alcor Model” among them. Several Tech companies have already launched development hubs in Ukraine and take advantage of their own team in an offshoring destination.

Alcor covers all bases for tech companies by providing recruiting, accounting, legal, and real estate support. If you choose this model, you will hire software developers with a product mindset, meaning they will remain knee-deep in your project and feel a part of the team.

Turning to such a model might push your product forward. Such companies create their own culture and promote their own brand locally to engage even more talents. They also set rules and motivate their employees through stock options. Even more, taking some team members or a whole team to one of their offices is much easier in such a case.

A crucial piece of advice, whether you choose to outsource or move on with an alternative way, is to remember that the overall results depend on your efforts as well. You set the pace for your cooperation, so if something doesn’t go as intended it’s worth reconsidering your approach.

No matter which way you look at it, every case is unique and nobody knows your needs better than you. To make the right choice, take some time to review all alternatives, identify every option’s benefits and drawbacks, and handle communication efficiently – then you can stay confident about having made the right call.