Often companies do not outsource because they feel foreboding, not because they have failed but just because they really do not know the process- it seems uncertain.
Well, the good news is that like every hustle, you can prepare well to mitigate risk. You can follow a process to focus on the right activities, be decisive and proactive in managing processes as outsourcing happens.
Even after you have made a decision to outsource, rather than wait and watch, you can choose to stay in the thick of things and make the most out of the resources.
Those who plan well, survive well.
On the same lines, if you plan things proactively, you make chances of your success higher. Reading this blog will prepare you well for your journey. But before we get to that let us understand why outsourcing fails.
While outsourcing is an evolved practice for most larger companies in the world, there is a higher failure rate among first-time founders, especially non-tech founders. We believe that combining the different reasons of failure as reported by founders, there are three major broad reasons
Failure to set up the right expectations at the start of the project, having unreasonable expectations or believing unrealistic outcomes is the number one reason for failure reported by founders.
When a vendor tells you that they can build an Uber-like app for 20K USD or when you think that you will just tell your idea in a meeting and the developer would start building it, these are all examples of wrong expectations.
If you start working with a team with who you were never able to communicate well or you chose to ignore the early warnings on communication just because someone was in the budget, well, you are going to fail in your outsourcing journey.
And communication not only means being able to speak the language but also the ability to understand and comprehend your requirements.
Outsourcing means working with someone who could be thousands of miles away and communication is the cornerstone of the whole initiative.
You can go as far as the process goes. Hence, the last and equally important cause of failure is lack of process or flawed process that breaks at the tipping point. If the process is not set, it often results in scope creeps, flawed products and confusion on the state of things.
An effective process keeps things in order and makes them predictable. It has clarity for team members to follow, checkpoints to track progress and a feedback loop to improve. Also, scalability can only be achieved on a strong process.
Understanding the above three mentioned risks, one can draw upon a plan to mitigate them by putting in the effort proactively to counter them. It is important to understand that the above-mentioned risks are true for in-house teams equally and hence, learning to solve the issue is key to success in product development and product management both with in-house as well as outsourced teams.
Here is a list of 9 things that you should do while you get ready for outsourcing-
1. Learn the Tools To Monitor & Manage
When working with an outsourcing team, you constantly need to monitor their progress and operations to ensure timely and quality delivery of work. Along with this, you need to have proper management too so that there isn’t any form of misalignment within the collaboration.
For this, you need an understanding of the tools that you would be used to monitor and manage. Processes are only as effective as the tools used to manage them. If your team uses Jira, go through its tutorial to understand how to get your key metrics from it or to automate a report out of it. The same applies for Monday/Basecamp/Asana etc.
Similarly, learn about the different tools that you would use to monitor the performance of your product. Tools like Mixpanel, Google Analytics, SEMRush, Crashlytics etc are going to be used by you to monitor your product performance and recognize areas for improvement.
2. Vet the Team Well
The core of successful outsourcing is to find a good team. Learn about vetting teams, the questions to ask, the way to really figure out which team would be the fit for you and why is a key skill.
Markdown your priorities and the top skills you are looking for in a team and then create an assessment sheet that can be used to quantify your findings.
The major things to consider while vetting your team are
3. Getting the right contract
Contracts are the most important document when the time comes to use them. Hence it is wise to make sure that your contracts cover your assignment and case comprehensively.
Things to check out in the contract are-
I am Ayush, co-founder and CEO of Mindbowser. At Mindbowser, I and my CTO teamed together to build an agency that can bring the best of tech and knowledge for founders. In case you would like to discuss your options further, feel free to get in touch at firstname.lastname@example.org or book a 30 minutes free consultation call.Get Free Consultation!
Free eBook on Telemedicine Platform Development: All About TelemedicineDownload Free eBook Now!
Mindbowser helped us build an awesome iOS app to bring balance to people's lives.
We had very close go live timeline and MindBowser team got us live a month before.
They were a very responsive team! Extremely easy to communicate and work with!
We’ve had very little-to-no hiccups at all—it’s been a really pleasurable experience.
Mindbowser is one of the reasons that our app is successful. These guys have been a great team.