Outsourcing: 5 Things to Consider When Choosing a Partner

Written by Tina Huynh

Jun 19, 2020

Outsourcing could provide a reliable and cost-effective solution for enterprises regardless of their size and nature. An outsourcing relationship can have a strong impact on the overall success of your company and your specific project. Not doing enough research and rushing into agreements with partners can bring unexpected risks such as cultural misunderstandings, quality failure and information leak. Choosing a trustworthy service provider with deep industry knowledge who will later on deliver high-quality solutions takes time, research and careful consideration. In order to maximize benefits from obtaining an offshore partner, consider the following factors when evaluating a potential outsourcing partner.

1. Industry Experience

Experience and industry expertise come first when it comes to choosing an outsourcing partner. It is important that you have an outsourcing company with adequate, relevant experience in your industry to complete the processes that you plan to outsource. Their experience needs to match what you’re looking for to fill the gap within your business plan and the goals you set forth when looking for a partner. Consult their technical lead or developers who will most likely be working directly on your projects and ask to view their previous portfolios.

2. Reliability

The success of your project and the partnership depends largely on the workforce of your outsourced company. Are they punctual to your meetings? Do they pose professional manners? How is their market reputation? You and your team should ask these questions to ensure that your partner is reliable and work at the expected pace. You cannot afford to work with a team who are slow on deadlines and deliver sloppy products.

3. Data security

One of the biggest concerns in the technology industry is data security and privacy. Sharing sensitive information with your partner is necessary during different stages of the project. Therefore, it is crucial to pick a partner that handles information professionally and discretely to avoid a data breach. Ideally, both partners should go through each other’s intellectual property rights and privacy policies thoroughly and sign non-disclosure agreements (NDA) together.

When choosing an outsourcing partner, we always consider whether they have been in the market long enough, have high reputation that is appreciated by clients, stability of finance, and if their engineers are working full time. Some more important factors include matured processes and ethics in services.

Thanh (Bruce) Pham, CEO, Saigon Technology

4. Communication

Communication has a huge impact on the overall success of the partnership. Geographic differences might lead to differences in language, communication style and time zones. To maximize effective communication, discuss with your partner to agree on means of communication (phone calls, video meetings, emails) and on designated times to minimize the gaps between working hours in different time zones. It is important for both sides to communicate their expectations for the project clearly and convey their ideas effectively. Work is more effective when both partners are on the same page.

5. Infrastructure

A partner who has access to the latest technologies and IT infrastructure is in a better position to support the demands of your project. They need the required hardware and software components or integration with the technology of your company to provide seamless collaboration.

At the end of the day, despite the risks, all you need is the right partner for your business. Partnering with a good outsourcing company can give you access to global technical talents, add value to your project and reduce the overall costs.

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