Damian, as the SVP of Professional Services at BairesDev, is tasked with overseeing the company’s customer relations life cycle. The practice of software outsourcing has evolved over the years, with a key moment being in 1989 when Kodak entrusted its data processing needs to IBM. Today, 90% of small businesses in the U.S. plan to outsource some aspect of their operations to cut costs and amplify their software resources. However, finding the right outsourcing provider is crucial, as each software need may require different nuances and flexible arrangements.
Despite the benefits of outsourcing, there are common myths that can lead to frustrations if not addressed. One common misconception is that outsourcing leads to poor quality work. To combat this, companies should carefully question potential vendors about their recruitment process to ensure their developers align with the company’s values. Additionally, once onboarded, making outsourced developers feel like they belong can incentivize them to deliver their best work.
Some managers fear losing control over projects when outsourcing, but micromanaging is not the solution. Effective communication tools and methods, such as team communication platforms like Slack and project management tools like Jira, can help maintain control and transparency. It’s important to establish clear communication expectations and integrate outsourced developers into existing communication channels to ensure project success.
While cost-saving is a common motivation for outsourcing, the real value lies in accessing specialized skills, enhancing efficiency, and scaling quickly. Outsourcing can be particularly useful when a business hits a recruitment dead-end or needs to meet market demands. Additionally, nearshoring can offer U.S. clients the benefit of developers in a similar time zone with better English skills and cultural alignment.
Contrary to popular belief, outsourcing is not just for large corporations. Companies of all sizes can customize the model to address immediate needs and achieve substantial returns on investment. Strategic outsourcing, much like a chess game, should be approached thoughtfully to strengthen your overall position. By probing your outsourcer, establishing communication tools, utilizing outsourcing to fill skill gaps, treating outsourced developers as integral team members, and considering nearshoring for cultural alignment, companies can effectively navigate the complexities of software outsourcing.
