What are the Risks of Outsourcing a Software Development Team

Leading a team onshore is a hectic task, and what if your team is a million miles away?

The difficulty level will rise through the roofs.

45% of the companies look for outsourcing to fill the skill gap they have in-house.

With a vast pool of talent available to you across the globe, outsourcing will be a promising option that regularly pops up in your searches. But what are you expecting when looking for an outsourcing software development company?

Like the many pros it offers, there are some challenges you have to face while working with a remote team and many concerns that go through an entrepreneur’s mind.

In this blog, you will understand the many risks of outsourcing and learn how to handle them effectively so that you won’t be startled by the curveball a software development project throws.

Why Are You Outsourcing?

This question has so many answers; the most common answer you can find is that it’s a prominent business strategy for companies that work within a limited budget. They can utilise the talent pool available globally without putting a hole in their pockets.

There are a few more reasons for outsourcing projects.

• • • Saving time:- Multitasking often kills productivity, and in order to avoid a situation like that, you would have to outsource some of the workloads. Through outsourcing, you can employ a team for the cost of a single employee onshore.
    • Seeking expert help:- There are so many talented developers all around the world, and many projects would be finished at a lightning-fast pace with top-end quality if you hire the right people.
    • Focusing on core competencies:- Outsourcing tasks outside the company’s core business will allow you to concentrate more on your product.

Want to know the reasons to outsource in detail? Check out our blog where we share the top reasons why businesses outsource their projects.

Outsourcing a project is always a risk; the number one challenge is trusting someone you don’t know personally.

Even with all the metrics provided, many would-be sceptical about choosing an outsourcing company, and we can never blame them. This is just a primary concern for many entrepreneurs, and there are a lot more things that run through the minds of entrepreneurs while they are outsourcing a project.

What Are the Risks of Outsourcing?

For an entrepreneur who is working with an outsourcing team, there will be challenges that startle you like a jump scare. Even a simple hurdle as feedback overlook may come back to haunt you.

The only way you can avoid these challenges is by having a detailed understanding of what they are. Take a look at these common concerns for entrepreneurs.

Will there be a Clash of Culture?

Companies tend to outsource more to Europe and Asian countries, and these two continents have the most culturally diverse society.

These cultural differences lead to misunderstandings, misconceptions, conflicts in beliefs and discrepancies in logical problem-solving techniques.

As a small example, we all know the gesture for “approval or agreement” is a thumb’s up, but in certain parts of the Middle East, a thumb’s up is a highly offensive gesture.

A simple way of tackling this problem would be to determine a common base for communication like the English language and try to understand your client’s culture before giving them a project.

Are you what you say you are?

How do you determine the credibility of your outsourcing partner?

Talking to their previous clients, or if they are a new company, you can ask for a sample project they have done, which might prove to help assess their credibility.

Even after extensive research, you still might be a little bit insecure and feel like you are taking a chance with them.

There is always a possibility that the person on the other line is an imposter. There will be fake posers who try to upsell themselves through half-truth marketing techniques.

We are not looking to alarm you in any way; we are just informing you that this is a possibility in this line of business.

But rest assured, this is a small fraction of the whole bunch of good people out there. There are many companies that are looking to have a long term business and positive relationships.

How will the time zone affect me?

Time zone differences can be a double-edged sword.  The difference in time zone gives 24-hour mobility to your business, but sometimes it takes a toll on the business owner and the outsourcing firm.

For the business owner, he needs to be readily available in case of any urgent requirements or queries, and his work-life balance would be affected severely.

Even when the client wants to inform the development company of any urgent changes, time zone differences can prove to be a menace.

Similarly, client input is necessary for the software development firm to work efficiently. Can you see where we’re going with this?

Time zone is a major concern for many entrepreneurs and businesses who think of outsourcing their projects.

Will I lose control over my project?

You approach an outsource development team with a project idea. But sometimes, the scope and requirements of the projects change while they are working on it and you feel like you are losing control of your project.

Similar to the feeling of getting a lemonade when you give the order for a chocolate frappe.

Controlling a remote team always takes an extra effort. There shouldn’t be any friction between app developers and the clients, all the while relaying the changes and requirements to and fro seamlessly.

Will my client calls become a game of Chinese whispers?

Every project needs to keep a point of contact. Otherwise, the requirements will be given by many people, and they will be passed to the developers in bits and pieces.

But if the POCs cannot transfer the same exact ideas you convey, the project will become a liability and change into something else. This will be counterproductive for both parties.

Will they exceed the budget?

Entrepreneurs who work on calculated resources will have a hard time dealing with projects that exceed the budget.

Most of the time, this concern becomes a reality, and the friction grows into disputes. This is one of the major risks of outsourcing IT services.

Also Read: 11 Successful Outsourcing Case Studies From Tech Giants

How Does NeoITO Handle These Concerns?

With over 8 years of experience in our niche, we have developed a system to help our clients in the best possible way.

As we have established our presence in almost every continent, we are familiar with cultural differences and work cultures. Our team is capable of understanding these changes and adapting to them.

We have a top-tier customer support team who guides the clients through any queries they have on their projects, and all the changes and requirements will be duly informed.

Furthermore, the clients have access to the Trello boards so that they can personally assess the status of their project anytime anywhere.

If budget is our clients’ top priority, then we will always keep that in mind and make our proposals accordingly. There is never a situation where the client is outside the loop of their own projects.

Just like the old saying, “ you can learn a lot from the friends he has”, you can look at NeoITO’s clientele and determine how we deal with our projects.

Clutch ranked us the best app development company in Salt lake city, Utah. So if you want to have the best project outsourcing experience, give us a call now.