Over the last 30 years, the contract manufacturing suppliers have grown into a multi billion dollar industry that leads the world in technological and manufacturing expertise. Nowadays, every organization, no matter it is a big company or a small firm, in the computer industry, networking or electronics use complex partnerships. Well, this partnership, where some specific tasks or responsibilities are delegated to a provider, is called outsourcing.
It is right that outsourcing covers a lot of elements that surely enlarge your company horizons, but you need to be delicate and attentive when you start this posses. If you are interested in checking the advantages, read Why Outsourcing Is A Good Opportunity for Your Business. In terms of the IT area, outsourcing could be one of the best options but also, one of the most dangerous. If you are wondering why to think about choosing the wrong company to do the services for you. You risk losing the trust of your partners which is the most dangerous in business. Just think that the software product won’t be as your partners expect it to be or don't meet all the requirements set in your contract.
But this happens only when you pick up the inaccurate company for outsourcing. According to Bob Booton in “Outsourcing in a box”, there are four main pieces of advice you should take into consideration when you start this process.
1. If you outsource simply to cut costs, you will fail. During the time you are hoping to cut costs, you should know that every company desires this too, but it cannot be the only reason to undertake an outsourcing project. You have to choose quality, not quantity. Also, we all can agree on the fact that the world is not dealing with financial crises, but qualified human resources. I think you should reconsider your mind if you think differently.
2. Outsourcing is both a strategic and tactical decision. This element is about time. The managers surely know that time managing is the hardest part when it comes to business. So, you must take the time to develop your outsourcing strategy before you start the project. Also, you have to be aware of long-term issues and short-term issues.
3. Understand the costs is the real key before you start and after you start. It costs money to outsource so you must invest upfront to save money later. Moreover, you must analyze all of the costs (including hidden costs like research, travel, etc)
4. The flaw of outsourcing is in the practice, not the idea. You need to learn all of the angles and understand how to use outsourcing to your advantage. Properly managed, your supplier can reduce your costs and achieve your company goals.
In which direction is outsourcing heading?
In a good direction! Fortunately, outsourcing is a key for quality software application development for most of the regions around the world. This process is possible due to the Internet era and globalization, so it is obvious that this action is called global outsourcing. According to Survey Report on Global Software Outsourcing 2017, here are some key points from the survey which confirm that it remains a key strategy when it comes to quality software development and realization of profits. Outsourcing to nearshore locations has often worked out the best clients.
