IT outsourcing best practices in 2021

Let’s start with the fact that the outsourcing market has been growing rapidly since the early 1990s. The analysis from Technavio’s research shows that the IT outsourcing market’s volume will grow by $98 billion during 2020–2024.

Jeremy Coward (National Outsourcing Association’s Community Marketing Executive) also has written in his report that more than 70% of companies are planning to increase the usage of IT outsourcing. The same report from the National Outsourcing Association also reveals that the main reasons why companies choose IT outsourcing are:

  • 35% of cost savings;
  • 23% of user experience improvement;
  • reduced use of outdated solutions by 17%.

Meanwhile, Dun & Bradstreet in their “Barometer of Global Outsourcing” in 2000 has reported that 20–25% of all outsourcing relationships fail within two years. Not much has changed since then.

Let’s talk about how an outsource team can avoid the common pitfalls and ensure customer satisfaction.

Technical expertise in the selected tech stack and industry

Here at Afterlogic, we start with presenting the project manager, who is also the technical lead (not just a postman between the client and the dev team). Then, once we introduce developers assigned for the project to the client, they will be the actual ones working on that project.

Honest project estimates including taking all risks into account

If you are not sure about the time and/or budget estimates but you still want your proposal to be competitive, you can do a couple of things. First, you can include several evaluation options from minimal to complete with all the risks involved. You might also include segmented estimations for different scopes of work — the clients themselves often don’t realize how much some little thing can cost them, and that they might not really need it. And if you also manage to be proactive while discussing the project and present a few of your own ideas that will save time or make the solution safer, the client might just fall in love with you.

Communication

While the importance of good English is already understood by many, understanding the mentality is still somewhere near the end of the priorities list. Most of our clients are from the USA, Australia, UK, and EU. Each country has its own differences in mentality, which we not only put into documents for our managers but also teach by example. Your assessment on a professional scale is subjective. Are you keen enough to keep up a light conversation or make a joke? Got a point. Have a good understanding of technology as a project manager? Got another one. Only a combination of them all makes the person eligible for PM work.

This is why our specialists are not only good with their English but also have the right attitude and great technical background.

Project cost

Conclusion

In the end, the best quality indicator is the number of clients, who stay with the company for many years and return with new ideas and projects. Just like here at Afterlogic :)

Full-stack web&app development agency since 2002. Helping UX/UI agencies with web development -> afterlogic.works

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