Issues and Flaws with IT Outsourcing

By | August 13, 2020

There is time when economy of any country goes down and due to that many companies need to review on their employees, budget and other levels. During these hard times, most of the companies try to reduce their work and try to involve outsource companies to perform their other business operations. IT sourcing has become common these days mainly due to the benefit of outsourcing.

However, before going into outsourcing, a company needs to re-evaluate its issues and flaws associated with it. There are various points on which one can review whether it is good idea to outsourcing IT operations and whether you are taking the right decision when thinking about outsourcing.

Comparing Real Cost Involved

There are some costs which some of the companies don’t consider before lending hand into them. The real costs are the sum of all the other costs associated with outsourcing. All these cost factors must be carefully examined before thinking about outsourcing. You need to rethink your outsourcing plan that whether you are actually going to save a lot of money or not? Whether you will get the true services or not?Why IT Outsourcing

Time factor associated with it

There are some time issues associated with every case which you need to get resolved. When you outsource the IT department, you need to think about the time factor and what would be the time to solution of a particular IT related problem. Many companies don’t pay much heed into it and later on suffer. So this factor must be carefully checked and must be put under the service level agreement with the IT Company.

Relationship

Another concern about IT outsourcing is the careful inspection of the relationship which is developed with the company. You need to evaluate that whether you will be getting the right kind of relationship with the staff and managers of the company.

Network and Systems

When you outsource IT operations, you still need to be aware about your system and how your network operates. This helps in resolving the emergencies and handling other critical IT operations within the company. You still need to make a department which can be aware about the basics of the systems and other network and can later ramp up the time as well as resolving some of the basic issues related to IT.

Liability Concerns

There could be many situations when the third party is not liable to take measures as it is not covered in service level agreement. So you need to protect your company data and other important systems to ensure that you actively participate in any type of situations where the third party IT Company is not responsible.

Handling loss of work

Some of the companies simply go into outsourcing without considering about whether the employee lose the ability to work with the third-party IT outsourcing company or not. The loss of productivity of your current employees is another concern which must be carefully analyzed before outsourcing.

Most of the companies are doing pitfalls with outsourcing and these pitfalls are less to do in terms of technology and everything is more about lack of relationship and communication. Here are some of the steps which need to be avoided.

Don’t Play the Blame Game

Outsourcing is all about relationship and keeping a good communication rather than playing the blame game. This could result into problems in handling business with the offshore companies. If the communication is not done properly, then this would result into passing on the blame to other companies.

In fact, bigger trouble can come with a small miscommunication with other people. Most of the times customer starts blaming the offshore company and this routine issue can be a big problem which may delay the release of new projects.

Pay Focus on Pay Rates

Outsourcing companies often work on hourly rate basis without seeing the bigger picture. Sometimes they offshore the work to lesser experience staff which can even lead to delay. This can be a problem as you need to deal with the other troubles as the hourly rate which you are paying is quite high and you might not be getting the same amount of output from that.

You can easily keep monitoring what companies are asking and whether they are delivering the required work or not. This can also help you judge about the company and help you take further decisions on outsourcing.

Take Control

Companies must never try to micromanage and the whole point about choosing any outsourcing company is about IT skills and expertise. If the company starts micromanaging the specific technologies, it will lose its own core work of business which is their major aim. Try to focus on the major areas of your company and try to ignore the other major areas which could be outsourced. One must pay special attention to the core areas of business rather than stressing upon those areas which can be done from outsourcing.

Being a customer, you must know which areas your expertise and what can be done to take care of those areas. Also, you must not get into too much danger of losing control as many companies think that job is done because they have signed an outsourcing contract, and this can get really difficult for you to get into control.

Ensure You Work as Per SLA

There is service level agreement defined for outsourcing companies and being a customer, you must know and understand that the company is trying to achieve its SLA. The goal of any business is dependent on the SLA. Business goals rely on the target and companies must understand their goals and targets while moving their relationship quickly.

It is not easy to deal with the conflicts in business and outsourcing can be really tedious has to deal with. However, achieving everything is not always possible for any company and must understand that there is an entire technical framework should work towards realizing the targets.

The Bottom Line

The outsourcing issue will be argued back and forth until IT is no longer relevant. But a lot of issues get overlooked when the idea of saving some salary comes to mind. Choose wisely where your IT dollars are spent.

Category: IT

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