IT outsourcing is a business strategy that can provide numerous benefits, from reducing costs to improving efficiency and quality of the final product. However, to make the most of this option, it is crucial to ask the right questions and fully understand how it will impact your business.
That's why we created a guide of strategic and management-level questions every CEO should consider when looking for an IT outsourcing provider.
As a CEO, you should ask yourself these questions before hiring an IT outsourcing provider
What are my company's short- and long-term business and technology goals, and how can IT outsourcing help achieve them?
Evaluating how outsourcing can align business objectives with the technological capabilities needed to achieve them is essential to determining the viability of IT outsourcing.
What impact will IT outsourcing have on the flexibility and agility of my company?
It is crucial to understand how IT outsourcing will impact your company's ability to quickly respond to market demands and adapt to new opportunities or challenges.
“A company's flexibility to adapt to changing market conditions is affected by switching costs and the partial irreversibility of large physical investments”, they noted in a study published in ScienceDirect, which is why software outsourcing becomes It is a great option since it does not require large investments: the entire budget is adjusted to what the client can pay.
How is code quality and data security ensured during the development process?
Software quality is critical to your company's reputation and customer satisfaction. Ensuring that the IT outsourcing provider has strong quality assurance and security processes is crucial.
What experience does the IT outsourcing provider have in my industry and with specific technologies relevant to my company?
Working with an IT outsourcing provider who understands the complexities of your industry and has experience in the technologies your business needs can speed up the development process and ensure better results.
“High-quality developer experience has become a top priority in software delivery, with 58% of software engineering leaders reporting that developer experience is “very” or “extremely” critical to the senior management of their organizations”, they indicated in a Gartner report on the experience of developers in an IT outsourcing team.
How will communication and collaboration be managed between my internal team and the external development team?
Clear communication and effective collaboration are critical to project success. Make sure the IT outsourcing provider has strong communication systems and is willing to integrate with your internal team.
What is the pricing model and how will additional or unforeseen costs be managed during project development?
Fully understanding the costs associated with software development outsourcing and how potential additional costs will be managed can help avoid unpleasant surprises in the future.
How will changes in project requirements or strategic direction be handled during software development?
Flexibility to adapt to changes is essential in any software development project. Make sure the IT outsourcing provider has clear processes for managing changes in requirements or the strategic direction of the project.
“Communicating software requirements should never be a one-time, one-way exercise. Complex projects require real-time conversations so developers and stakeholders can discuss requirements and changes. The agile team must work with stakeholders to understand and clarify requirements and organize each other's priorities”, they noted in a TechTarget article.
What is the IT outsourcing provider's track record of meeting deadlines and delivering within the agreed budget?
Punctuality and efficient resource management are crucial to project success. Investigating the supplier's track record of meeting deadlines and deliveries can help ensure a successful partnership.
By asking these strategic questions and considering the answers when evaluating potential software development outsourcing providers, CEOs can make informed decisions that drive the long-term success of their company.
Do you need an outsourcing software development team for your next project? At Rootstack, we have +13 years of experience supporting companies in their digital transformation. Contact us!
