Does IT outsourcing come with risks?

Outsourcing an IT company for a project can save plenty of time and money, but it can also pose considerable risks. The first thing to consider when hiring an outside company to take care of the IT of any project is; can they be trusted? It’s important to research numerous IT companies before hiring any of them. There are some important aspects to look at which can help minimise the risks.

The quality of their own website is the biggest clue to their capabilities

An IT company’s website must show their expertise in the field. If they boast advanced problem-solving solutions, they should have undeniable proof in the form of links to previous projects or client testimonials. Their own website and systems should work seamlessly. If the site looks unprofessional, best to move on to the next candidate.

Outsourcers that outsource will only delay the process

An IT company can either be a group of people working together in one place, or it can be an individual who outsources technicians and coders according to the projects he or she accepts. When hiring an IT company, it is important to know the way their team works. If they are also outsourcing, it can greatly affect the timeline of the work and even the project as a whole. The most competent IT companies have teams who are physically working together, all in synch with what is needed from them. If for example, you looking into IT development outsourcing, you need to be very cautious making sure the company you choose are actualy carrying out the work, or have the staff to manage the task at hand. When this is outsourced again and again, you can run into big problems.

The organisation of the work will make or break a project

When starting a working relationship with an IT company, it is of everyone’s best interest to be as detailed as possible as to what is expected of them. Extra costs and VAT add-ons should be clear and agreed upon before signing. The most reliable IT companies will also use a Customer Management Relationship program (CRM) where both the IT company and the client can communicate to keep track of every step of the project.

Legal ownership of data and confidentiality must be agreed upon

Before handing over any confidential information to an IT company, they should agree to sign a Non Disclosure agreement. This is especially important for banks, government entities, and other such companies that need to keep their data protected.

After the project is finished, the IT company should hand over all the control of the code to the client. It’s good practice to ask the outsourced IT company to use open source or commercial systems, just in case the IT company is changed in the future.

Location and language differences can overcomplicate

If outsourcing an IT company on the other side of the world, there must be times of the day when everyone is awake and working on the project at the same time. Otherwise, the communication will be difficult to maintain. If the IT company doesn’t have a representative that speaks the language of the client, communication can be even more hindered end the project will suffer for it.