IT outsourcing: How to choose the trusted technology partner?

After identifying your reasons for IT outsourcing, establishing a strategic plan, and comparing the costs of in-house management, the next crucial step is to find the ideal partner to support your activities. We’ve gathered a few tips from our own experience to assist you in the selection process:

Clarify your expectation

If you have followed the recommendations in our previous posts, by now you will have a sense of what it is your requirement, what you are keen to outsource, have some knowledge about potential suppliers and so on. At this stage, spend some time clarifying success criteria, desired outcomes and expectations. It is important you are clear as to whether you are looking for a short-term engagement for a specific project, or a long-term partner for ongoing support. Defining these parameters ensures that you align your expectations with what potential outsourcing partners can deliver.

Assess technical expertise and capabilities

Once you’ve clarified your expectation, it’s time to reach out to potential outsourcing partners. Approach them as job interviews. Consider the person on the other end as a candidate applying to work with your company. Ask questions like:

• Do they have experience in your industry?
• Have they worked on projects of similar size and complexity?
• What certifications, partnerships, or accolades back up their technical skills?

A strong outsourcing partnership is founded on trust and commitment. Ask yourself: would you hire the person you’re speaking with? If the answer is no, it’s time to move on.

Evaluate Cultural and Strategic Fit

Choosing an outsourcing partner is not only about technical proficiency. It’s also about finding a team that aligns with your company’s culture, values, and strategic goals. If you’re focused on innovation, select a partner known for fostering creativity and forward-thinking solutions. Cultural compatibility can greatly influence the success of a long-term partnership, particularly in areas like agility, communication style, and work ethic.

Explore testimonials and success stories

Think you’ve found the ideal partners?  Now’s the time to check their testimonials.  Take a look at what their previous clients have to say about their quality of work, reliability, and ability to work with your internal teams.  When reviewing testimonials, consider:

• How well did the partner meet project objectives?
• Whether they delivered on time and within budget?
• How did they handle challenges and maintain effective communication?

Reading real experiences can help you make a confident decision.

Consider Security and Data Protection Protocols

Data security and compliance are non-negotiable aspects of outsourcing IT services. Ensure that your potential partner adheres to industry standards and has robust security protocols in place. Depending on your industry, you may need to comply with regulations such as GDPR, HIPAA, or PCI-DSS. Confirm that the outsourcing partner:

• Has up-to-date security certifications (e.g. Cyber Essential Plus.).
• Implements secure coding practices.
• Follows strict access control and encryption measures.

A strong focus on security safeguards your business from potential legal and financial consequences.

Evaluate Pricing Models and Contracts

Pricing models in IT outsourcing can vary, so it’s crucial to understand what works best for your business model and project. Common pricing models include:

• Fixed Price: Ideal for well-defined projects with clear requirements.
• Time and Material: Suitable for projects that may evolve or need flexibility.
• Dedicated Team: Best for long-term projects requiring a team focused exclusively on your business.

Be sure to clarify what is included in the pricing, from project management to post-deployment support. Additionally, review contracts carefully to ensure terms and conditions are clear regarding scope changes, deliverables, intellectual property rights, and dispute resolution.

Great planners are the best

It’s crucial to have a skilled planner on your project team who understands budget and time management. An ideal outsourcing partner should be able to assess the project timeline, required resources, and overall cost during the initial evaluation.

Selecting the right IT outsourcing partner is never a piece of cake.  It demands a blend of technical assessment, cultural alignment, and strategic foresight. By thoughtfully assessing factors like expertise, communication, security, and scalability, you can find a partner that not only meets your current needs but also drives long-term success. Ultimately, a well-chosen partner can become an extension of your team, enabling promising, efficiency, and sustainable growth.

Eileen O’Mahony
General Manager, WM Promus