IT Outsourcing in Toronto: Why Should It Be Done And What To Keep In Mind For It?

Outsourcing is becoming a very common practice nowadays. Multiple companies have adopted this practise recently since it helps in cost reduction.

Companies are always on the lookout for trustworthy technology partners who can add the needed value to their projects. But there’s more to this.

Here are the major reasons why companies outsource their software development:

• Optimizing any operational costs:

Outsourcing is very frequently used by various enterprises for optimizing their departmental costs by using long-term engagement. Oftentimes multiple operational departments like HR, IT, and more have been outsourced using cloud vendors in a bid to optimize and improved their costs.

• Competition:

Technology is rapidly improving with blockchain, RPA, AI, and more. As such there’s a need for businesses to use them and get a competitive advantage over others in their field. But it’s easier said than done.

It might not be possible for a company to incorporate a whole new setup with employees having the needed skills right away.

As such in such cases, offshore outsourcing can give these companies the edge needed to gain the upper hand in their field while also getting the time to properly hire and set up a space for the future.

Making use of enhanced skills: Many companies need a particular skill set for a project which their internal teams don’t have. Also in some cases, it’s more useful to just outsource the resources for a particular time especially if a skillset won’t be required anymore after one kind of project is over.

What are the things one should consider while choosing an offshore outsourcing team?

• Cultural differences:

When the topic is offshore outsourcing then companies should pay attention to the various cultural differences which both the parties will have to face. When working internationally, it’s always important to outsource to a company that has an international work culture.

• Structural requirement:

This is also a very important factor to choose when going for offshore outsourcing. There are mainly 3 kinds of team structures that an enterprise can select from to carry out its outsourcing job. The first one is the well-known generalist structure.

This is mainly used when an enterprise needs to improve its development capacity. Do note that here a development team provides the end-to-end full development services.

Next up is the specialist system. It can be chosen if the enterprise needs a team that comes with very niche expertise.

Lastly, there is the hybrid-team structure which suggests a mix of the above two. Businesses have to choose the one which works for their project.

• Time difference:

Whether the company wants an outsourcing partner with a time difference or not depends on the project at hand.

This is because there are many situations where having a time zone which is different from that of the IT outsourcing company‘s is considered beneficial. But there are also times when having an outsourcing partner with closer time-zones can be very beneficial.

But ultimately the decision for it is based on the kind of project being outsourced and how much collaboration is needed for it.

• Development methodologies:

Companies and businesses should ensure that their methodologies do line up with the offshore partners too.

It is also a very important step to choose a partner who operates very transparently when it comes to the issue of management as well as resolution.

To ensure that an IT outsourcing company is on the same page as the other partner, there should be predefined expectations, responsibilities, roles, and more. All these help ensure smooth engagement.
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Tips for managing an offshore team

• Risk management:

Every project comes with its own set of risks. As such any business needs to communicate the risks as well as challenges associated with it to the IT outsourcing partner.

This will help the risk be mitigated without the partner getting surprised if such problems do arise. Along with these goals should be set and a plan should be made by both partners so that potential risks can be reduced.

• Control management:

The responsibilities and role of any IT outsourcing partner should be predefined. What’s more, is that the control degree that’s given to the offshore working partner should also clearly be evaluated.

This is to ensure that the achievement and success of the defined and expected objectives can be ensured. Control management also includes clear communication.

All the required and expected challenges, expectations, roles, and more should be very clearly communicated so that there’s no ambiguity of any sort.

• Coordination:

Effective coordination is what makes any project successful so team leaders should communicate with each other and keep progress charts. Without effective coordination any project, no matter how great can be destroyed.

• Resource management:

IT outsourcing companies who work with the offshore teams don’t always have full control over any dedicated resources.

As such the other partner can switch and swap resources when needed. In such situations, the IT outsourcing company has to take stock of the situation before starting effective communication so that there’s all the needed information to ensure smooth functioning during the term of the project.

• Alliance management:

The outsourcing company must bring in collaborative efforts while working with any kind of offshore partner. Working like a well-oiled team and not like a boss-employee frame will help in getting better results.

So it is very important to carefully identify and then select an offshore partner company. One must ensure that there’s proper communication and collaboration so that any project gets done with the minimum possible hassle and the best possible results.