Managing Risks Faced by IT Outsourcing Companies

IT Outsourcing Company

Every small or large business, regardless of its type has turned its face towards the IT outsourcing services. Realizing the need for outsourcing projects and the potential benefits accomplished through it. Putting away your wary thoughts and activities hard enough to cater and an optimized solution will be at your doorstep.

While getting to know the benefits, some demerits from outsourcing services also exist.

In this document, we will bring the risks associated with outsourcing into limelight and possible ways to handle them.

Let’s begin!

1- Poor Code Quality
What is mandatory is the code quality. Just the code is not required by the client, but of which quality is ensured having no faults. Code errors occur when run on another device with load. Dealing with coding standards ArhamSoft (Pvt) Ltd. has set the coding guidelines and became a regulation for every developer to adhere to.

This principle doesn’t infringe on coding quality. The team of QA analysts provides software testing services for handling performance issues. We also dispense QA services & code warranties after project completion to sort out the code issues if arise. If the client provides their own coding style, then in that case the situation gets changed, but the restriction for the developers is the same.

2- Inadequate Workflow and Management
Clients often demand to have a clear picture of the progress of their ongoing projects. Now, what will you show them if you don’t ensure adequate workflow and properly manage all tasks and deliverables under process. This demands you as an IT outsourcing service provider to employ appropriate project management strategy. Our project coordinators and dedicated team leads at ArhamSoft (Pvt) Ltd. prioritizes every single client need and makes the workflow process seamless by ensuring them unparalleled task management.

Following Agile principles or Scrum methodology, pitching development procedure is as per the client requirements. Additionally, project managers execute correspondence to the client like tasks update, delivery predictions, risk estimation and team administration etc – mostly through Slack and TeamViewer. Hence, getting rid of the unnecessary worries, we provide clients with relevant information and tools.

3- Transfer of IP Rights
Another issue people often found complaining about is that software outsourcing vendors not providing them with intellectual property (IP) rights. They want the IP rights of the outsourced projects with the guarantee that the company and their dedicated resources who built the IT solutions will not use the source codes again for their advantage.

We at ArhamSoft address all such worries of the clients and aim to remove all the ambiguities while contracting out our software development services. We get them signed a contract before affiliation wherein proper terms and conditions are laid out regarding IP rights. The client will figure out regarding the legal facets and their rights at the initial phase.

4- Confidentiality and Security
When a company outsources a project, oftentimes the client has to disclose confidential information with an ambiguity that the other party will come to know about the internal procedures, tools and other critical information.

Facing this situation, ArhamSoft always gets certain agreements signed by the client concerning SLAs and NDAs to assure them that their private information will not be misused.

5- Hidden and Uncertain Costs
One of the vital reasons for outsourcing projects is to minimize the financial burden. But with new developments and technologies, hidden costs could be applied. Normally, the percentage of hidden costs can be summed up to 25% of the total cost. For this, an anticipation about the extra features could be made.

At ArhamSoft, we take hidden charges a grave issue and try to keep everything related to project cost and delivery crystal clear. Well, costing may vary depending on the type of custom software development our dedicated teams have been engaged in, but we make sure that it should break the client’s financial bubble.

Hope that knowing the risks and their appropriate solutions will help you provide improved IT outsourcing services that bring in client satisfaction – mandatory for future engagement and lasting business relationships.


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