Best Practices for Managing Outsourced Projects

13Apr
2017

Web and mobile development projects are becoming increasingly dispersed; especially, mobile app development outsourcing is on all-time high. Businesses are increasingly looking towards the option of outsourcing for their IT projects. However, the big challenge is selecting the right company that can deliver well. Companies with the right expertise, knowledge and experience in the industry will be able to steer ahead.

Despite the growing popularity of outsourcing, several businesses get anxious when they think about outsourcing their complex IT projects in the hands of a foreign team. Knowing a good deal about the ways through which outsourcing can be managed well is your best bet if you want success in outsourcing. 

Most of the top mobile app development companies and web development companies have begun to take up projects from foreign clients and deliver them well. 

Why choose companies instead of individual freelancers?

Globalization led to shrinking of borders and opening up minds with regard to collaborating with foreign service providers. It is cheaper and more convenient to hire a freelancer across the border than a company. However, there is a huge risk involved in this. The freelancer can disappear without a notice or let you down in some other way with your project is left in lurch. This is not the case with companies that are considered more responsible and simple to deal with.

The relevance of an effective outsourced relationship cannot be overstated. A well-managed outsourcing relationship can create a difference of almost 20-40% as compared to a poorly managed one.

The most pertinent question to ask here is how can businesses effectively manage their outsourced projects. How can they ensure success in their collaboration with an offshore company?

Best Practices

While most businesses understand the advantage of a well-managed outsourced relationship, not everyone follows a systematic approach which results in both parties oscillating amidst chaos and ill-managed processes. Given the stakes involved, it is necessary for companies to have a streamlined approach to maximize value creation for companies as well as the outsourced service provider.

Here are some tips for effective management of outsourced projects, which can help you manage your project well and further collaborate with the outsourced team more efficiently.

#1 Clearly Define Targets & Service Level Agreements (SLAs)

This is an important consideration at the beginning stage of your outsourcing relationship. A company must communicate its expectations and service provider should assess and communicate the level to which the expectations can and will be met.

During the time when the company can define these terms while sending out the proposal and establishing contracts with the service provider. Service Level Agreements (SLAs) should be defined.

#2 Establish Performance Metrics

Once the SLAs have been clearly established, it is crucial to put the performance metrics in place. These metrics will measure success against the agreed targets. The metrics must include the set targets, up-time and down-time and the quality analysis, the percentage of error that is permissible and turnaround time (TAT) etc.

#3 Select in-house SPOC

Identify individuals in-house that will be responsible for collaborating with the outsourcing service provider company. A single point of contact (SPOC) should be responsible for coordination and managing the tasks that have been outsourced.

#4 Do not confuse Sales and Delivery

A company should always focus on getting a good delivery on the project. This is the ultimate objective of the contract; however, it is frequently overlooked once the contract has been signed. Delivering the project should be paid attention to at all times.

#5 Communication is Important

Companies must ensure that the service provider understands project specifications clearly. Give out detailed and precise information. Be prepared for some back and forth communication and lengthy conversations on this front. Outsourcing can be difficult; communication is the most important part of outsourcing a project. Keep it clear and concise.

#6 Retain Responsibility

Outsourcing a project shouldn’t mean that you abandon the project to the service provider company. You own the overall results and delivery so you need to be actively involved in the project and in collaboration.

#7 Monitor Progress

Develop or implement a framework to manage the work and monitor progress on the project. According to the established performance metrics, keep a check on the work being delivered via a smart medium. Make use of tools like basecamp to manage performance and keep a centralized place for collaboration and communication.

#8 Outsource Responsibly

Companies should not be dumping their problematic projects on an outsourcing service provider. Even if they do, they must ensure to clean up the mess beforehand. If a company couldn’t get the systems in place, they shouldn’t be expecting the outsourcing team to do so.

#9 Outsource the Right Projects

There are cases where the outsourcing decision is made for entirely wrong reasons. If the ultimate goal here is to unload the problematic things, or save money on a particular application, then outsourcing is probably not the right decision at all.  Outsourcing should be done to have the right team work on your dream project to get great results.

#10 Get a Compatible Service Provider

Companies need to make sure that the service provider is not just technically skilled, but is also compatible with their company processes. The right experience, communication and work style should be there to make the outsourcing team as an extension of the in-house team.

These best practices can help companies and service providers to make the right decision towards outsourcing projects and manage their work efficiently.  

How can eDesk HUB help?

eDesk HUB gives you access to efficient and verified IT companies that can lead your project to success. A comprehensive platform to get you the best service provider for your project, eDesk HUB can give you ample options as per your project specifications.

eDesk HUB conducts an in-depth research analysis on companies that are registered. The process involves verifying their background, studying their past work and checking on their client references.

Top mobile application development companies and web development companies are registered on eDesk HUB with their profiles containing all the details that companies would want to assess before they hire any of them for their project.

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