The Hidden Value in Outsourcing

Choosing the Right Partner Can Spell the Difference Between a Successful and a Failed Outsourcing Engagement

OutsourceIT outsourcing companies provide the fuel for business growth and companies worldwide have benefited from the advantages of outsourcing. In recent times, outsourcing has taken on several interesting dimensions as a result of new digital businesses, cognitive technologies and in some cases hyper-automation.

This essentially means that labor arbitrage, i.e. displacing labor from high-cost countries to low-cost countries will not be the primal reason for outsourcing any longer.

In any case, the advantages of cost did leave certain wide open gaps in expectation, losing its sheen.  Sourcing companies don’t really want to only focus on cost advantage if that means they are putting themselves in a risky position.

They would rather pay more to keep the project close to home where they can monitor progress and ensure on-time delivery and great performance.

For this reason, many outsourced product development companies have already raised the notch and focused on ensuring that their engineers are up-to-date on technology innovations. They invest in training programs which cover domains and establish Centers of Excellence to promote a culture of thought leadership.

Partnering with such companies would mean a lot more for sourcing companies than just cost benefits.  But how can a sourcing company really be sure that its outsourcing vendor can deliver on promises?

Agile and Scrum methodologies ensure that sourcing companies need not worry about the end result as they will, week-on-week, see developments which bring them closer to the end goal.  In Scrum, project teams focus on weekly goals giving sourcing companies to evaluate the project’s development on-the-go.

Good outsourced product development companies  also have strong testing teams who are domain experts. They don’t just focus on functionality testing and instead spend time on testing end-user experiences.

To summarize the value of outsourcing has not decreased but on the other hand, has taken on many interesting dimensions making absolute sense for companies which want to focus on end user experiences primarily.

 

 

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Joseph Aldrich is a Freelance Digital Consultant working in the Information Technology sector. Joseph shares his expertise and knowledge through articles and blogs on trending subjects in the field of technology innovation, software,and IT outsourcing.

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