IT outsourcing services are moving offshore and extend boundaries. Results in there are many companies create demand for IT services. In our previous articles we have considered risks that can arise for vendors when collaboration with IT vendors. But software companies also encounter multiple problems when trying to provide quality services. So now we are going to present risks which IT companies can face with due to wrong choice of customer and give some tips to avoid them.
Risk#1: Client Operations
- Website of the company shows all its activities so try to analyze it thoughtfully. View client base, employee turnover, testimonials if are available. Of course, experience and authority of the company is not the last when analyzing.
- Reade terms of the contract. It must meet your interests and protect IT business during collaboration.
Risk#2: Hidden Costs
You can face many pitfalls like international travelling costs, development of infrastructure, investigation and other expenses. So let’s back to the contract: all costs must be stipulated in.
Risk#3: Intellectual Property Issues
Protection should be number one in your list of thing you are caring about before say YES to your client. Theft of your data and security violation lead to big law problems. Don’t overlook it and try to care properly about your projects.
Unfortunately, there is no adequate international protection for IT property yet. But industry vendors established their own standards and frameworks:
- Dupont and IBM provide the best frameworks for IT outsourcing agreements;
- Capability maturing model integration that is proposed by The Software Engineering Institute at Carnegie Mellon University as framework of best practices.
Whether you are client or IT outsourcing company you should realize the importance of trustful and flexible cooperation with clear separation of the responsibilities. Of course, such features as cultural similarity or industrial relatedness are the good sign for understandable and reliable relationships. Anyway, don’t say NO to your client, care about the risks and try to understand the philosophy of the business in order to satisfy IT needs.