Reinventing the wheel feels glorious but a better professional choice is to outsource the task to a professional rally team.
Being the Co-pilot to an outsourcing company for your own project can be daunting yet immensely rewarding.
Doing the research and finalizing a decision can be arduous. Fortunately, all our wheels are fully functional so we can give you a ride to the finish line.
What is Project Outsourcing?
Understanding project outsourcing will help you make informed decisions about leveraging external expertise to achieve your strategic goals.
By definition, project outsourcing is bringing in a third-party company to manage and execute the delivery of a product or service. Ideally, the process should go as follows:
- Planning and establishing requirements
- Recruitment and Management of specialists, procurement of equipment and resources
- Delivery of the project according to predefined milestones and quality standards
Having a dedicated team take responsibility for a deliverable from beginning to end can be a huge advantage. It frees up the company’s core team to concentrate on attracting and retaining value and expediting growth. Compare dedicated teams vs. project-based outsourcing models to see which approach best suits your needs.
Sounds great, but maybe you don’t feel ready to take the plunge?
Let’s take a leisurely ride around the pros and cons before we drop you off at destination:
Decision.
Benefits of Outsourcing Projects
Quality is always a priority. Doubly so when handing over a valuable deliverable to an outside team. It all comes down to risk management. Do the benefits outweigh the risks? There are many instances when bringing outside help might end up being a life saver in the long run.
When choosing an outsourcing company consider these four points:
- Cost Savings: Outsourcing saves between 20% and 70% of costs depending on the project because it handles operational expenses, labor, training and onboarding, and compliance.
- Expertise: It is impossible to have a team of experts in everything. Building one from scratch is also a resource-burning endeavor. Hire outside expertise for that one project and don’t stress it.
- Efficiency. Streamline processes, manage tasks, chase deadlines, and keep output stable without lifting a finger. Delegating specific projects to an outside team means increasing productivity by 10% to 25%.
Yes, you can do all of it, but must you? A good decision maker knows how to choose their battles to gain the most out of every situation.
Outsourcing is an option more and more companies reach for, however, it is not an effortless solution. The partner company that provides outsourcing services will need your support throughout the process. Think of it as a rally driver and navigator. It’s not personal skill that wins the race but a joint effort.
Challenges of Outsourcing Projects
A tangible grasp of the risks involved in contracting a third party is a must when evaluating a project for outsourcing. It’s possible this is not the right project, the right time, or the right circumstances for your company to make a bold play of hiring external experts.
Ruminating this, you’re likely to pass by the following three red lights:
- Trust and Communication: Requires strong communication and trust between the client and the outsourcing partner.
- Control: Potential misalignment with company culture due to the inability to control the day-to-day operations of the outsourced team.
- Flexibility: Your ability to make spontaneous changes once the project is underway will likely be limited.
Think about it for a minute.
Has your company had any of the aforementioned issues thus far:
- Last minute changes of large proportions
- Difficulty keeping track of tasks and deadlines
- Broken communication threads
If you’ve answered yes to at least two of the three outsourcing might not be the right choice for you.
Don’t be quick to slam on the brakes just yet!
Organizational problems plague every company out there. The key to success is to tackle the issues head-on. If we are to continue with our rally team metaphor form before, as a navigator, you’d be doing an amazing job identifying potholes before charting the course for your driver.
If you aren’t sure whether your project should follow a full outsourcing model or leverage internal staff augmentation, check out the difference between staff augmentation and project outsourcing for more clarity.
Effective Project Outsourcing Strategies: The Solution
Knowing the problem is half the solution. If you have clear expectations, you’ll have an easier time choosing and committing to a third-party expert. Tackling the challenges of outsourcing armed with a solution-oriented mindset will give you a different perspective.
Issue: Trust and Communication
Solution: Establish strong communication channels and build trust.
Implementing structured communication strategies can significantly enhance trust and collaboration between you and your outsourcing partner. Regular meetings, clear communication protocols, and the use of project management tools can ensure both you and your driver will be crossing that finish line in record time. Before finalizing the deal with your partner, make sure to review the criteria for selecting the right outsourcing vendor to guarantee a smooth collaboration.
Actions:
- Schedule regular video conferences to discuss progress, challenges, and next steps.
- Use collaborative tools like Slack, Trello, or Asana to keep communication transparent and organized.
- Foster a culture of openness where feedback is encouraged and acted upon.
Issue: Control
Solution: Align cultural and operational practices.
To mitigate potential misalignment with company culture, it is essential to integrate the outsourced team into your company’s culture and operational practices. This can be achieved through onboarding processes, cultural training, and regular interactions.
Actions:
- Include the outsourced team in company-wide meetings and social activities.
- Provide cultural training for both your in-house and outsourced teams to bridge gaps and improve mutual understanding.
- Clearly define roles, responsibilities, and expectations from the beginning to align both teams.
Issue: Flexibility
Solution: Develop a robust change management process.
A flexible change management process can help accommodate spontaneous changes without disrupting the project. Establish clear protocols for managing changes to ensure that the project remains on track while adapting to new requirements.
Actions:
- Define a change management process that includes steps for requesting, reviewing, and approving changes.
- Maintain a buffer in project timelines and budgets to accommodate unforeseen adjustments.
- Use agile project management methodologies that allow for iterative development and continuous feedback.
Wrap Up
By addressing these challenges head-on and implementing robust solutions, you can steer your company toward a successful and efficient outsourcing experience. So, are you ready to let a professional wheel spinner drive your project to new heights? If yes, contact us or check out our tips for IT outsourcing success for actionable strategies and best practices.
FAQ
Why do firms outsource projects?
Firms outsource projects to save money, access expertise, improve efficiency, and focus on core tasks, leading to increased productivity and faster project completion.
When should you avoid outsourcing?
Avoid outsourcing for projects requiring frequent changes, involving sensitive information, or needing tight integration with in-house teams.
When should you outsource a project?
Outsource a project when you require cost savings, access to specialized expertise, increased efficiency, or need to focus on core business activities, especially for non-core tasks or when in-house resources are limited.
