How To Outsource Website Development Companies in 2020

Outsourcing has tremendously increased over the years, and back then, the primary reason was quite obvious - to cut down costs. But that's not the case anymore. Now, big companies are outsourcing website development companies so that they can be more competitive and flexible. That has changed most companies' criteria for searching for the best outsourcing companies.

42% of managers, surveyed by Deloitte, admitted that they needed more time to select the right outsourcing company. A lot more realized that they have to consider a more strategic approach to acquire good outsourcing businesses. By doing so, it will change its business processes instead of just hiring an outsource company for cost-effective reasons.

Companies realize that outsourcing is a complicated way to facilitate business, and not a quick way to reduce costs. Outsourcing website development companies have become a partnership that enables companies to enhance their capabilities such as speed, up-to-date technology, and flexibility that wouldn't have been possible if they had not been outsourced. 

Due to that, you can expect the outsourcing market to expand continuously, but not in the traditional manner. That means, instead of outsourcing due to only costs, companies will hire due to innovativeness, high-quality, and disruptive outsourcing solutions

In this guide, we will make it easy for you to outsource website development companies and expand your business growth. 

Let's get into it.

Why Do Businesses Outsource Website Development Companies

There are different reasons why businesses outsource, depending on the specialization of the company. However, whether the company provides big data solutions or data consulting, there are three main reasons behind a company's outsourcing.

Cost Reduction

A research report from Deloitte suggests that the fundamental reason for a business to outsource companies such as data analytics companies is to reduce costs. Cost reduction remains the top reason on our list because of the following reason:

  • Outsourcing for different reasons aside from cost reduction is still in the early stages but rapidly rising. Also, you should note that companies always consider cost-effectiveness, even though that might not be the only primary reason.

Let's take an example. In 2012, CEMEX signed an outsourcing deal with IBM, which allowed them to save about $1 billion throughout the 10-year contract.

CEMEX pointed out that, even though they'll save cost, it will also enhance the quality of its services, improve the scalability and flexibility, and attain the maximum productivity and customer support.

So clearly, the cost is only a fraction of the advantages, but it's still necessary.

More Flexibility

Website Development Companies

Secondly, outsourcing from website development companies can give you more room for flexibility. Sometimes, most technical experts complain about how they have to carry out tasks with fewer resources, which leads to exhaustion. 

RelatedTop Software Development Companies

The staff, too, is focused on daily activities to support the business growth and does not worry themselves with new projects they'll have to work on in the future.

Let's take a look at the CEMEX and IBM contracts again.

The contract allowed CEMEX to execute a new challenge in the construction market. The services IBM provides, such as high-level infrastructure, technologies, and business processes, will aid CEMEX to attain its primary objective of becoming more competitive in the market.

Specialized Expertise

You can find your kind of expertise through outsourcing. There is expertise in business data analytics, web design & development, data consulting, etc. Outsourcing from companies could allow you to incorporate technologies that you wouldn't have access to if you had not outsourced.

Here's another example from CEMEX and IBM. 

In the contract, CEMEX and IBM launched business processes using information systems that were developed by IBM. CEMEX will use IBM's expertise to enhance its customer service, quality of the methods, and improve the cost structure continuously.

The scale of IBM will allow both businesses to offer services globally, with more than 70 service centers and data centers of over 400 that are located in 170 countries with over 40 languages. That's the power of outsourcing!

Outsourcing web development companies allows the client to use technologies which they don't have to build from scratch. There is enormous potential from outsourcing companies if you do it right. For example, you can use big data solutions for your project and achieve tremendous results without purchasing any software.

Now, let's find out how to outsource from website development companies.

Effective Ways To Outsource From Website Development Companies

When you're planning to outsource, you should not make hasty decisions. It's essential to take your time and follow the steps involved to acquire, for example, skilled data consultants, who can deliver the tasks on time.

Don't begin posting job offers on the first job board website you see. You have to select the best company and make sure that the team is ready to start the project with full force.

There are eight crucial steps of how outsourcing works effectively. We'll examine each of them.

Develop Your Objectives For Outsourcing 

You need to develop your goals for outsourcing, your expectations from the website development companies, and your needs for the project. If you don't make these projections clear, you'll lose a lot of money, and the project will not turn out as expected. 

You can begin by writing down a description of your objectives and ask yourself the following questions:

  • What's the objective of the project?
  • What are the project obligations?
  • What do you expect the project result to be?

In summary, you have a need that requires the services of website development or web design companies. You need to write everything down and what you expect of them. If you want to outsource business data analytics, you need to ensure what you're going in for. You have to be sure that you cover every ground before you proceed to the next step.

Make Your Project Demands More Precise

Narrow down the requirements to be in line with your company goals. Also, you have to know which areas you'd like to disclose to the outsourcing company and the information necessary for the outsourcing company to perform outstanding service.

For example, if you're hiring from data analytics companies, you'll need to give them access to specific information about your business that will help them carry out their job. If it requires them to sign an NDA, make it clear.

You have to disclose all the functionalities of the project so that the team can implement the right resources for the project. If the project requirement is not clear, it can have a devastating effect on the company.

Calculate The Time Schedule And Budget Of The Project

Website Development Companies

After making your project requirements and expectations clear, you need to develop a budget for the project. It will help you select the outsourcing company that's within your budget. However, we have to point out that it's not always the best choice to choose an outsourcing service based entirely on your budget.

There are different types of outsourcing services (we'll get to it shortly), and depending on your goals and budget, you may need to do a lot more to choose the best outsourcing service. 

For example, there are outsourcing companies that offer quality services at a high price. In the same way, you can find companies that provide quality services at a competitive price. In such cases, you'll have to find online reviews, portfolios, customer satisfaction, etc. to determine your final choice.

Also, when it comes to the deadline, you should find out how long the project takes. You may need to work together with the outsourcing company to develop a strategic timeline that will not affect the overall work of your business.

Select The Type of Outsourcing That Fits Your Needs

For you to find the best website development service, you need to determine the kind of outsourcing that works well for your project and business overall. There are three primary types of outsourcing:

Domestic or Onshore Outsourcing

Onshore outsourcing refers to contracting other companies who are in the same country as you. Since you and the outsourcing are in the same region, there'll be no communication barrier.

You won't have problems with quality control, which can be crucial for your project. Sometimes, you may need to give them some training before they commence work. Onshore outsourcing can help you get in touch with your contractors without much difficulty.

However, one thing you need to be aware of is the high cost involved. But the high price is mainly due to the economic level in the country.

Offshore Outsourcing

Offshore outsourcing means contracting a company that's not in the same country as you. One of the main advantages of offshore outsourcing is cost-effectiveness and flexibility. They can also offer different solutions for your project since they're located in different countries and have different ways of accomplishing tasks. 

However, you can have challenges with communication if they don't speak your language. Also, the cultural values and customs may affect your work progress. Furthermore, since there's a time difference, it may result in some inconveniences.

Nearshore Outsourcing

Nearshore outsourcing refers to outsourcing from companies in countries near you instead of your country. For example, most businesses in the U.S. outsource from Mexico and Canada. 

Since you and the outsourcing company are in the same time zone, communication becomes easy. Also, it's possible to meet the contractors and carry on with the project, and it's also cost-effective.

You can use these three types of outsourcing to determine which one is the best course for your project.

List All Your Potential Web Development Services

You can, for example, list all the data analytics companies, after you've decided on which type of outsourcing you'll go with. You can search on Google, ask for recommendations, or our platform to find the best web development companies in different locations.

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After finding numerous website development services that offer what you need, you then develop a list of potential firms you'd prefer to work with. It's the most vital part of the process, because it'll determine whether you choose a company that is unable to meet up the task or exceed your expectations.

We recommend that you select ten potential website development companies and use the next steps below to choose the best of them all. So if you're searching for data consultants, you can select the best ten and prepare them for further detailed questions.

Develop In-Depth Questions For Interview

After the selection of the ten candidates, prepare detailed interview questions. If it's possible to meet them to have the interview, do so. However, we recommend using video interviews. 

Don't relent from asking any questions you deem to be relevant for your project. Here are some of the questions you should ask, including their detailed description.

 Experience

Years of experience is vital in any business. The years you've had in a specific industry determines the work output. Ask if they've had experience relating to your project, including any details they might add.

Years In Business

How long has the company been in business? If there's any verification, you can ask the company to provide. Being in business for a long time can give you an exposure that most companies or your company don't have.

Portfolio of the Website Development Company

Examine the projects the company has executed throughout its existence. If their portfolio meets your expectations, you can hire them for your project.

Tech Stack

Does the company have the necessary technologies for your project? Do they have experience in the techniques you'll need for your project? Carefully examine their technological capabilities if they can execute the project.

Check The Company's Site

Usually, the site of the company has everything you need to know. You can search for their website and find more information. If you're not satisfied or have some questions, you can ask them during the interview.

Feedback

You should check the reviews of the company and find out what clients are saying about them. If possible, you can contact the previous clients and ask them how the company's service was. You should also check the reviews of their employees and former employees to know what they think of the company.

Expertise Of Each Team Member

It's vital to find the experience and the skill level of the team members, especially those who will participate in the project. You can find out how they hire their employees, including turnover rates.

 Internal Workflow

The workflow between the team can determine the success or failure of the project. Find out how outsourcing companies work internally and how each person relates to one another.

 Communication

web development services

Communication is a vital ingredient that you should not ignore. If there's bad communication, it can affect the project in a significant way. So you need to know if the company understands your language. In other words, if both of you are on the same terms or agreement.

Security

Find out how the outsourcing company handles protective measures in terms of securing projects. Make sure that if there's a Non-Disclosure Agreement (NDA) involved, they can agree and sign. Also, consider the payment method if it'll be a problem or not.

Security is crucial, especially if the project involves big data solutions. So make sure the safety is of a high standard. If, for example, it's data consulting, you need to ensure that any information is not leaked out.

Select One of The Best Website Development Companies

After selecting, for example, the best out of the several data analytics companies, develop a contract statement. It should include the total amount of the services rendered, the project time, and details of the payment.

Make the terms clear and easy to understand to make sure you and the outsourcing company are on the same page. If necessary, you can include a financial penalty so that if they don't meet their requirement, they'll take the losses.

 If you are outsourcing from big data solutions, you need to go the extra mile to ensure the smooth process of the project. Ensure that the NDA is strictly followed to prevent any leakage of information.

 Make Sure There Is An Effective Communication

Communication is highly essential, especially if you're using offshore outsourcing for your project. If the project involves business data analytics, you'll need to keep constant communication between you and the data consultants.

Consider the time differences and the working schedules to ensure that there's effective communication. You can use communication tools such as Skype, Slack, Zoom, etc. to keep the communication channel active throughout the project period.

Final Thoughts

Outsourcing for your project can be time-consuming and stressful. But if you follow the guides outlined in this guide, you can hire the best company for your business.

If you want to establish your online business or data consulting services, you can outsource the best website development companies. They can help you develop your site and everything related while you focus on the essential part of your business. 

Also, if your project involves business data analytics, you can find the best data consultants to help you make the project a success. Regardless of your need, you can find an outsourcing company that is best suited for your project.

Thank you for reading! 

 

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