Everyone wants to get a good deal for the money they spend. Whether you’re buying a house, a car, or a seasoned software development talent, you want to get value for every dollar you spend. You should avoid cheap outsourcing, just like you would avoid a bad quality car or house. Therefore, it is important to understand what is “in the deal” when evaluating options for outsourcing IT infrastructure maintenance.
Let’s use the car analogy. Is a $10,000 car better than a $15,000 car? Of course, the answer is “it depends!” Do cheaper cars have the same options?comparable mechanical condition? Is it the same make and model as the more expensive car? Of course, even if the price is low, a car that performs worse than a more expensive car and has unacceptable characteristics isn’t really a great deal. You could call it “just a cheap car”.
At the same time, you have the option of outsourcing IT support that on the surface looks like a good (perhaps very good) deal because the hourly rate is so low. However, this lower priced option may contain bad features, fail to provide the solution you need in the timeline you need, and end up paying a fix that cost more expensive than other options.
Just think about it, do you really want to hand over your real BUSINESS DATA to hands of inexperienced IT person?
1. What makes “cheap IT outsourcing”?
Inadequate tools. You shouldn’t buy a car from a manufacturer that doesn’t have a properly equipped factory or outsource IT services from a company that doesn’t have a properly equipped trained and experienced development staff.
2. Poor Processes
A “cheap outsourcer” may have poor internal processes. This can be shown very clearly. Few or no industry certifications that require a formal, well-documented process. Bad processes can also show up when it comes to on-boarding new IT personnel to a project or struggling to fill someone who suddenly can’t join the project.
3. Limited Experiences
Talent problems come in many forms. Perhaps because they have a “shallow pool of talent”, high-level professionals who rarely see resumes are spending time on your project. Instead, less-skilled developers can work on the project (beware of “bait and switch”). We also find that a vendor with a small workforce that is not enough to cover all our customer obligations. Finally, some “cheap outsource” vendors lack not just the technical skills, but the real expertise required, such as vertical industry experience or specific functional experience (eBiz, finance, sales, manufacturing, etc.).
4. Language barriers
A good outsourcing provider understands the importance of fluency in English for front-line staff and key team members. It would be disastrous if business design requirements were literally a “lost translation”. “Cheap outsourcers” often don’t have English skills.
Outsourcing IT support is cost effective. Offshore and nearshore software development can give you very competitive pricing for your next project. “Cheap outsourcing” means you don’t get enough value for what you pay. Outsourcing providers may offer poor quality services at very low prices compared to the market.
Being able to offer below-market prices inevitably means that vendors are under-investing in their businesses, hiring low-level IT Support, or both. In our experience, you and your IT Infrastructure are at risk in one or more of the following ways:
- Projects are delayed due to vendors managing high team turnover,
- The quality of the solutions provided leaves much to be desired. You weren’t using the best practises or tools. No rigorous testing tools were used to ensure the solution was “production ready”,
- Outsourced IT teams do not have the deep expertise to guide critical design decisions during the course of a project. You might find young people doing most of the work, rather than the “superstars” you profiled in interviews with outsourcers.
- Language barriers and time zone logistics make it difficult to communicate with outsourced IT teams, undermining speed and effectiveness.
To learn more about our services, feel free to reach out to us today, and our team will be happy to assist you!