6 MAIN OUTSOURCING RISKS AND HOW TO MITIGATE THEM

6 MAIN OUTSTANDING RISKS AND HOW TO MITIGATE THEM

Outsourcing the enterprise information system is a responsible process. requires a general and total analysis when making the final decision. 68 % of big American corporations make a decision to outsource at least some portion of their IT work.

Every year, more and more companies attract external contractors to solve problems.

Whitelane Research confirms that 89% of customers are satisfied with the results. Why did ​business ​owners decide to work with outsourcing companies?

➔ 26% of customers — to reduce expenses and safe internal resources; ➔ 21% — to improve quality; ➔ 19% — to get some rare skills and solve specific tasks; ➔ 11% — to get better financial flexibility.

An important part of making the right decision to outsource the IT services is analyzing the possible risks. ways to reduce them and whether they are acceptable for the business processes of the specific organization.

Frankly speaking, it is almost impossible to avoid all the risks for your company. But what exactly can go wrong? How to avoid possible issues? I am going to tell you more.

Risk 1. Geolocation and time difference for all video calls, messengers and telephony are highly developed today. you may face communication problems.

Imagine the situation: there is an urgent question. the team is not available. the problem was solved the next day. Such delays affect project timelines.

Solution:

➔ Involve the business analyst in the project from the very beginning. ➔ Its task is to define risks, threats and possible war between capacity and project resources. It saves time at the further stages. ➔ At the first stage of the project, the analyst helps to read the client’s business requirements in clear tasks for the​ ​developers​.

Risk 2. Unprotected idea or source code It’s a good idea to save the mind of your product, even if it is not original or unique. mostly if you outsource the products to countries with weak legal companies. The protection of mental property is not an easy thing.

Solution:

➔ I suggest that you judge in the contract what information is secret. ➔ Details of the duty of the parties not to disclose the secret part of the project.

There are different solutions for writing an NDA.Divide the stream code into free division or limit access to the database.

Risk 3. Out of trend

The brightest indicator that the guys are “behind the scenes” is the old design in their portfolio. It’s not just about aesthetics. UI/UX trends affect every side of the software product.

Solution:

➔ Look for a team that follows trends, learns and adapts quickly. ➔ Another important detail: often companies provide their customers the technology​ based on knowledge and load. but it is not the fact that they offer the best solution for the project. If you have an opportunity to consult a free expert, do it.

Risk 4. Lack of outsourcing experience

Not every company has a great source of experience even if it provides the highest level of expertise. As a result, help may not be as smooth as expected.

Solution:

➔ The simple way to reduce the risk is to provide some test work or trial period. ➔ Another option is to request advice and feedback from the current clients of the outsourcing services provider.

Risk 5. Unexpected contract termination

For the customer, a serious possible risk may be a sudden outsourcing contract end.

There may be many possible reasons. service company expiry, Some IT tasks are returned to the internal department, etc.

Solution: In the outsourcing contract, it is important to judge the policy of the bond end and the rules to settle the financial and other issues.