How to choose an IT Outsourcing Vendor?

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IT Outsourcing Vendor

If businesses are to attain a competitive edge in the market, they must be sure to save on cost. One of the most viable and sustainable ways of adopting a lean model of management is outsourcing. IT work and support is one of the best business areas of outsourcing due to the ease of the outsourcing process.

It is not easy for your business to keep up with technology that is required to run a business. It is more prudent that you outsource this task. If you outsource this process, you will save on cost because you do not have to hire and retain full time employees. In addition to that, your IT work will be done by the professionals who have a specialization in the field. According to Forbes, outsourcing will help you access talented professionals from a global human resource pool.

STEPS TO CHOOSE THE BEST IT OUTSOURCING VENDOR

The market is saturated with vendors dealing with IT products and services; choosing the right one can be a daunting task. There are various steps that can guide you on choosing the best IT outsourcing vendor. To start with, you need to define the scope of your IT work that you want done. Different vendors will have different areas of specialization. The vendor you choose should be defined by what you want to do as your IT scope.

Second, you need to check the track record of the vendor that you have in mind. One of the ways of doing this is through asking for references. At the same time, checking online reviews is not a bad way to start. Such practices can help you to evaluate if your IT outsourcing partner is a professional.

Third, you need to check the goals and objectives of the IT outsourcing partner. For example, you need to cross-check if the vendor has an experience in dealing with global companies, if that is what you need. The goals of the vendor should be compatible with the goals of your organization.

Lastly, you need to understand that the IT support cannot be a one-time event. You must work with a partner who will be willing to support you even after the process. Most importantly, the vendor should be willing to take other IT tasks with you for the purpose of sustainability and continuity.

CHOOSING THE LOCATION

Rather than outsourcing your IT to companies based in the US, the best thing is to choose offshore software development companies. The US, and indeed North America, can be an expensive place for outsourcing. This is due to the high cost of living which warrants a higher rate in compensation.

Therefore, you should be aware about the offshore software development rates by country. Countries in Western Europe charge the highest when it comes to outsourcing services. The charges are in the range of $ 150 to $ 400. Countries in Africa charge the lowest when it comes to offshore software development with charges in the range of $ 10 to $ 99.

Whereas the question of cost is important in outsourcing, it should not be the only factor of consideration. Other factors to consider when outsourcing your IT include the level of English, time zone, performance standards, experience, work ethics, and ease of payments. Again, countries in Eastern Europe are known to do company leaks of confidential information. If your company is dealing with sensitive information, this should be taken into account.

REQUEST FOR PROPOSAL

After having a checklist of the features and characteristics of your desired IT vendor, it is time that you made a formal application for the products and services that you need. The best way of doing this is writing a detailed request (Request for Proposal). This is the document that you will send out to potential partners. When you reach out to the viable partners, try and negotiate the best possible deal. Be sure to do demos and interviews in order to evaluate the best possible deals.

CONCLUSION

The Journal of Accounting states that IT outsourcing plays a critical role in helping businesses develop their core competencies. As a matter of fact, the business trend now is gravitating towards outsourcing. This is due to the plethora of benefits that it carries. Overall, outsourcing your IT work will help you to stand out among your peers.