What about externalized business?
There has never been a better time to launch a business in the new technology sector than today. The IT services sector today embodies one of the most lucrative industries in the world.
If you want to start a business or a startup, this is the sector in which to invest your resources. But what if you have no technical skills? Some of the biggest tech companies were founded by people who had no technical training. Look for example at Alibaba, Oracle, or Groupon, etc.
Entrepreneurs say the 10 most critical factors for business success are:
- The idea
- The direction
- The team
- The capital
- Response to the crisis
- The growth
None of these points mentions the technical aspect. In fact, the technical part concerning developments can be largely outsourced and this is more and more the case in companies: IT developments, IT solutions, software, web or mobile applications are outsourced to IT services companies, ESN, suppliers who are experts in this field.
The Benefits of IT Outsourcing
Outsourcing technical developments have always been and continue to be, the key to success for many large companies around the world.
For instance, Noah Kagan, the serial entrepreneur, and former Facebook employee used offshore to develop his AppSumo web application. GitHub, Slack, Skype, Alibaba, and even Google have also outsourced their developments to an offshore IT company to optimize their productivity. When you see the benefits, you quickly understand why they chose IT outsourcing.
If you outsource your software developments in Vietnam for example, you benefit from a high level of technical competence at a low-cost price.
When you subcontract your production, you reduce your recruitment costs because the technical team is not on your premises, you also reduce your operating, recruitment, IT infrastructure costs, etc.
Access to quality skills, experts, know-how
You only deal with people who are competent and experienced in new technologies and computer engineering more precisely versed in the art and how to design a web application or software while respecting market quality standards.
Focus on strategic topics
By outsourcing part of your business, you can focus on the parts of your business that are most strategic and require more effort and involvement on your part.
Freeing up internal resources
This frees up your internal resources which can concentrate on other tasks. The advantages of outsourcing IT developments are really numerous. On the other hand, the condition to be able to benefit from this multitude of advantages is to choose well its external provider IT offshore.
Not all companies offering outsourced IT services are created equal. Some do not have the skills you are looking for, or lack the resources. Still, others are simply unprofessional and lack the level of quality required by market standards. If you choose your offshore IT partner incorrectly it could cost you dearly.
How to select your offshore IT partner?
Keep in mind that it is crucial moment to select each offshore partner. As a result, take the time to choose your partner.
Here is a list of points to be very careful of:
Is the selected partner able to offer you the services you need? Does he have the level of expertise necessary to achieve the level of service you expect? Pitch your project to the offshore IT provider, talk about the objectives you are aiming for.
Reliability and experience
Like any business relationship, outsourcing is based on trust. Find out about the supplier’s track record, current customers. Who did this subcontractor work with, what were the results? What projects were delivered, what types were they? How many days/man were the projects evaluated? What were their technical and functional specifications?
Will the offshore IT development company be available when you need it? How are project monitoring and daily points carried out with the team of offshore developers? How will the company react to problems? What are the steps to setting up a team of developers? Do they work with the agile method, Scrum?
Technic of management
Be sure of your provider
Outsourcing goes beyond a simple subcontract. The concepts of trust and sustainability are essential for the business-service duo to work. In short, the company should not limit its selection of service providers on the sole criterion of cost.
Management of outsourced business
The management of the outsourced function must be established from the start. Generally, this approach is supported by a committee on which representatives of the client company and representatives of the service provider sit.
Think about new technologies
It is no coincidence that the strong development of outsourcing over the past decade corresponds to the development of new technologies. These represent so many tools and supports that allow the company to split up while continuing to communicate.