10 Things Everyone Hates About Information Technology Outsourcing
What are the most common IT issues your business faces? You might not even be aware that these IT issues are occurring in your business on a daily basis.
In order to plan for the future of your business, it is important to learn about the current challenges your company and employees face every day. With this knowledge comes the power of change and a better understanding of how to implement growth and success strategies.
In the modern business environment, IT infrastructure is crucial. Some companies, however, do not have access to the same experts, assets, and resources as others. Some organizations do not have the resources to hire an on-site IT team, whether due to a lack of availability or a lack of capital.
This is why outsourcing is commonly used to “fill the gaps” in IT. Outsourcing allows enterprises to integrate services and experts into their infrastructure – regardless of their size. Virtualization, BDR, cloud-networks, and more are among the services offered. Businesses can also utilize the skills of IT experts.
Efficiency depends on obtaining valuable IT services. In addition to staying current with modern technology, it keeps data safe. As with any outsourcing venture, there are both benefits and drawbacks. When making long-term decisions, it is crucial to understand how IT outsourcing can help you… or harm you.
Learning the most common IT outsourcing issues at your workplace can help you avoid some of these problems. Here are the 10 things everyone hates about information technology outsourcing plus bonus tips to solve them!
1. Lack of control
Control loss is often a stumbling block to outsourcing investments. Third-party services involve an enterprise entrusting core services to a separate team. There are some people who are uncomfortable with the idea of a secondary business managing their security or essential functions, and it is possible that a secondary MSP will not perform tasks to the same level as a company.
Business leaders may experience disconcerting feelings of letting go of vast swathes of infrastructure management and processes to outsourcing companies. The argument that IT outsourcing cannot match an in-house team’s responsiveness and service levels is partly based on the vendor’s lack of managerial oversight. It is not the lack of control itself that poses a risk, but rather what may result from it.
2. Communication lapses
Communications can suffer serious lapses depending on the provider. There is a problem with long periods between inquiries and conversations, as the slower the outsourced response, the more services are compromised. A security issue, for example, requires fast communication. In this scenario, outsourcing cybersecurity services to a third party would significantly hinder your business efficiency and prolong other problems such as downtime.
3. Cultural differences
Building on the previous point, communication across different cultures has been identified as one of the main challenges associated with outsourcing capabilities, according to a recent study. Several factors can contribute to this, including culture (national and organizational), language, and the distributed nature of teams.
Service vendors staff may feel compelled to be agreeable towards their clients and not challenge unattainable requests, ultimately leading to disappointment when results do not materialize.
4. Security Risk
Despite improvements in security, there are also risks associated with it. The reason is that companies rely on third parties to handle their data, either partially or fully. Your information will be at risk if the company does not have the same safety standards or is compromised in some way. Third parties usually take appropriate measures to protect your information, but not all managed service providers do so.
As an example, what happens if a data center loses data due to downtime or cybersecurity issues? Instead of reducing risk, this scenario has increased it.
5. Higher costs than expected
Often, outsourcing is expected to reduce costs by leveraging economies of scale and the opportunity to move work to countries with cheaper labor.
It is important, however, to make sure that the cost savings up front do not accrue elsewhere from the purchase. It might take a longer time to make up for the shortfall if delivery rates or quality are lower than expected.
6. Lower Quality
Outsourcing quality can be affected by who and where it is done. There are IT providers who provide solid infrastructure and experienced staff, but there are also providers who provide less qualified staff who can negatively affect service quality. Outsourcing varies according to the provider and the task.
Business owners most often cite the possibility of varying expectations as the reason for in-house development over outsourcing. Having no digital professionals and being unable to assess the output of your outsourcing provider can make the situation much more difficult. After the product is paid for, your company may discover flaws in it.
7. Lack of experience with remote teams
It is becoming increasingly common for people to work remotely. There are many businesses that operate entirely remotely. With remote teams, companies can access a larger talent pool and allow employees to work where and how they are most productive.
8. Lowering Morale
Depending on the extent of outsourcing, your staff may also be affected. Cybersecurity and IT infrastructure are essential services, and no one wants to think their jobs are at risk. It is important to consider morale when a company integrates third-party resources. It is possible for discouraged employees to work less or get frustrated with their environment, which may result in quality loss and in some cases, turnover.
9. Being Held Hostage.
According to IT professionals, outsourcing allows the company to lose technical staff and become enslaved to the vendor’s proprietary software and hardware. Long-term contracts give the customer more leverage in negotiations, while outsourcing gives the vendor more leverage once the project has begun.
10. Lacking an IT Plan
When it comes to IT, there are certain things you can prepare for, but not when it comes to a security breach or natural disaster. A managed IT services team can help in this situation.
There is certainly a lot of planning and consideration involved in outsourcing your company’s IT needs. Understanding managed IT services can significantly benefit your business in several ways.
Choosing what to offshore requires understanding the risks involved. The right outsourced plan, however, can provide a lot of benefits and revitalize the efficiency and profit of your company. IT outsourcing has many advantages, if it is used effectively.
IT managed services save your employees’ time, save your business money, provide you with remote monitoring to make your network safer, bring subject matter experts, and even allow you to customize your services.
If you need help in finding the right outsourcing partner, book a FREE APPOINTMENT with Outsource Asia experts today.
Now that we’ve gone through the 10 most commonly faced issues in IT Outsourcing, let’s go over the potential solutions.
These tips will help you make the most of IT Outsourcing – to gain the vast benefits while minimizing your risks.
- There needs to be transparency between your organization and outsourcing firms regarding which elements of the management structure you want to retain control over.
- Be focused on outcomes and metrics, whether it’s throughput or customer experience. A focus on results can allow the outsourcer some leeway in how results are achieved.
- Establish a communication cadence. Clients can benefit from periodic updates provided by the outsourcer by way of regular reports.
- You should ensure that your outsourced team members have good English skills, and your outsourcing contract should specify what is the minimum standard that you require.
- Ensure your meeting leaders are good facilitators, checking for understanding and asking attendees if they are on the same page.
- Whenever possible, use face-to-face or video communication as a lot of communication can be non-verbal.
- Work patterns across time zones should be agreed upon. Collaboration can be affected by a significant time zone difference.
- Establish quality standards, on-site visits, and overtime requirements as early as possible. You will be responsible for any costs incurred by the third party in clarifying these matters.
- Decide on the third party’s operating model. Time and materials agreements tend to offer a lower day rate than fixed price agreements, but fixed price agreements give the third party a greater incentive to deliver on time.
- Third-party tactics can include adding extra team members (thereby increasing cost) or swapping more experienced members with newer, less experienced members (thereby extending delivery timelines and reducing efficiency).
- Measure quality quantitatively and qualitatively so you can pinpoint where quality has suffered, as well as create a feedback loop that allows your employees to voice concerns or suggestions for improvement.
- Maintain high standards of work and diligence for your outsourced team.
- Analyze the results of their specialized staff with the assistance of an unbiased expert.
- Define the success of the project clearly. A common understanding of what success looks like is probably the most important aspect. Rewrite it if you’re unclear about what you want to accomplish.
- Walk through the top-level user journey. It encourages the offshore team to adopt a more user-centric approach and better relate sprints/milestones deliverables to the overall project.
- Overcommunicate. Someone in-house should oversee the offshore team’s information needs. Assist the offshore team with any project changes by communicating with them.