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Five things you need to know before outsourcing the project

Modern world is all about being open and thinking outside the box. That is why outsourcing became a thing and proved to be a viable solution in cases when company needs something specific for their business operation. It is a reasonable way of doing things. After all — you can’t be an expert in everything and keep everything in-house all the time just in case — it is simply overbearing and rather devastating for the budget.

Instead of hanging out for no reason — outsourcing provides solution for the problem when it turns up. Because of that outsourcing is very cost-effective and helps to gain additional insights into your own operations. The biggest gain is of course expertise which is in many cases superior in comparison with in-house common handymen.

However, it is not that simple and there are many forks in the road that can seriously derail your plans and damage your credibility.

Here are five things you need to consider upon choosing the outsourcing company.

  1. Prices are not what they seem

One of the biggest factors in choosing one company for outsourcing over another is the price of work. Evaluation of the project and subsequent price estimation are very important stages. Each piece must be thoroughly checked ten times in order to be as precise as possible. The price is easy to calculate with a little help of Appsolution web calculator. And that is where things get complicated.

Price rates are very obvious thing to consider — you don’t want to pay more than you have to. You want to pay just right price. And you want quality results. And there are companies who can offer seeming the same thing for significantly lower price. But don’t step into this trap. Some companies tend to state lower price rates in order to stay in competition without offering anything substantial.

In order to avoid misfortunes of hiring unqualified but cheap outsourcing team you need to be cautious on the evaluation stage. Ask question about every aspect of the project — be sure that the team knows how to do it. As a precaution measure — you can ask your colleagues for advice whether they know anything about the company or specific personalities.

2. Company’s portfolio is telling

Next important factor in choosing to outsource team is checking out company’s portfolio. For some it may seem completely optional — it is actually very important from several points of view.

First of all, portfolio is a showcase of the company’s achievements — their legacy. It is what the company is proud of. The selection of the projects shows the values of the company and tells what they consider to be important.

Then it is style of presentation. Look closely at the way projects are described — is it engaging or completely perfunctory? Which elements are accentuated and which are diminished or ignored all-together? Close look at portfolio can tell you if the company in consideration are is the real deal.  

3. The Devil is in the details

When the company is chosen and everything is set — next step is getting the documents straight. Any kind of business relationship must be secured on paper and / or e-mail. That is legal document — it must be embodied in some way. In fact — it is reasonable to document the entire affair step by step just in case. If something goes wrong — you will have a back-up to see when and why.

Documents help to synchronize every side of the project. Their primary purpose is to solidify responsibilities and establish the ownership of the finished product and its components. It is foundation of relationship.

Documentation serves as a declaration of a basic rules of the interaction and general course of action. Project may evolve over time, budget may change — but documents state general intentions and responsibilities.

4. Perils of Work Plan & Payment Schedule

Secret of any successful outsourced project lies in carefully planned working process. Every inch of the way must be thought-over and considered. Think of the project as a timed puzzle. Each element needs to be in the right place in the right time. If not – it all crumbles and you feel really sad.

If the project is developed with agile approach — then you need to define what will constitute the MVP and when exactly it must be ready for presentation. After that planning is organized according to team capabilities with an intention to boost their efficiency to maximum effect. Team must know what is expected so that they can sort it out the most effective way.

Payment schedule is organized according to work plan. There are sections of work. They are gradually prepared, presented and subsequently accepted. The mechanism of payment must be intact with the overall progress of the project.

5. What’s up after the end?

After the project is completed and accepted you need to secure issue of maintenance. Usually this thing is discussed and agreed upon beforehand. But over the course of the project things may change — so it is better to talk it through again after the project is done.

Amount and time of support, its price rate is very important thing. Not only it helps to keep the product afloat and intact — it is window of opportunity to improve and refine certain elements of the product.

In conclusion

Outsourcing is a smart way of doing business. It allows you to focus on the essential parts of your operation without bleeding out resources for stand-by precautions. This approach opens a lot of possibilities in refining and upgrading your business strategy as any interaction leads to new ideas and opportunities.


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