We all think that the IT industry is based on software. That means that in the industry all things will be automatic. But That’s is not true every automation begins with human interference. Technology still does not progress too much, where no need for humans. So human involvement means the chances of errors. In the IT industry, things are not much automatic like we think. Many services are still dependent on humans. That means they need to negotiate with patients when dealing with the development firm. Outsourcing is good, but also has its dark side which needs to be understood clearly.
Many IT firms are good who do all things as per the requirements of the client. But in actuality, they are only a few because they are also much expensive because of their fast services. The selection of outsourcing vendors is very easy if we understand the real framework or working style of the firms.
A better understanding of vendor possibilities can give more exposure to handling. That leads to the easy guideline for the vendor and self-assessment as well. Because the better handling is only possible with tolerance and that comes with the experience with vendor negotiation.
Here are some key areas which need to be understood clearly before going to make any deal with the vendor. The more you wise about the below areas the more intelligently you will handle vendors. Because of all the things in your mind before any deal. That will give you help in making a good contract as well.
1. Issue with Security
Keep in mind outsiders will be outsiders, with no boundaries, no borders for them. Internally you can secure things in which every way you want. But with the outsourcing firm, you are open to the world. Anything they can do with your data either sells or share with your competitor against some funds.
So that risk always stands in your way with an external vendor selection. Even they are in the contract, but you never realize when they do wrong things with your data. It’s hard to say, but only a good name and trustable vendor is always better. New means a big risk to your business.
2. Variation in budget
For the normal or below average vendor, it has been reported several times. The decided budget never be enough for them and even not get back funds from the decided budget. That’s mean a high risk with the new vendors. Need to ready for high compromise because after data and desire sharing nothing in your hand.
3. Time Boundaries
After the contract and the concerned payment with the contract mostly average and under average vendor forget time constrain. In actual they forget the time because now they have a much better upper hand. If a client or customer cancels the order it is a big risk as their data and funds are in their hands.
4. Matching issues
In all relationships of the world matching is the main and key element. Because if no matching no relation can survive for long. This is the same and applicable to all industries. For the IT industry if no have a match on any task or project means more time waste on claim and blame.
5. Making things difficult
Most of the IT companies practice making fools to the client or customer. As they make things difficult in front of the customer to get more funds against the simple and small tasks. If the customer has knowledge about the task and scope, then this trap cannot be played by the client by IT firm.
6. Move Out of scope
Most of the firms care for their easiness and they move out of track. Just to complete the task quickly and earn more money. In actuality, this is a kind of fraud most of the clients not understand it only few can get it. This is the normal thing for the IT industry but in actual it is not fair in the deal.
7. Unfixing on disputes
Some things become under conflict when clients understand the things and catch IT firm red hand on any mishandling. This kind of handling becomes more difficult for that need third party arbitrator to solve the matter.
8. Reasoning on unfinished things
This is the normal trend in most industries even in the IT industry as well. When things are not as per the demand of the client giving stupid reasoning and nonsense arguments. It is just to save from the contract claim.
9. Centered contracts
The contract is the main thing if both firms are professionals but mostly IT firms keep it in their favor. The more clauses in the IT firm’s favor mean more security for them. Mostly at contract time clients do not focus on other terms.
10. By push long Consultancy
Most of it has been observed that many of the consultancy or hiring IT firms increase their working tenure. This is not by the client will this is for their personal interest as they make things more difficult to linger on it. To get more time and money from the client during this duration.
11. Involvement of third parties for task
Some of the IT firms commit the things which even they can’t do it. This they do because for that they can hire a third-party firm for a specific task. This makes things more difficult to convey things for the firm and to get the proper results.
12. Late responding
The late responding is something else that is not related to work directly. The late response belongs to the communication gap. This is mostly done on a day-to-day basis, after the contract and advancement mostly it gets slow with the unprofessional team.
13. Hiding lack of expertise
Most outsource it company not show their weakness and never let you know they have limitations in any area. Because they have the capability to move their weakness to third-party firms. That third party converts their weakness into the best output.
14. Blackmailing on share stuff
Normal and under average IT development outsourcing companies most of the time do blackmailing when clients are willing to end the contract. This is the worst situation for any hiring firm.
15. Delay in correction and changes
The issue begins when IT consulting outsourcing finish any task, but the client needs correction and changes. This is another kind of war between client and external firm. That ends with the high compromises.