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IT Consulting | Outsourcing | Vietnam

Regardless of your company’s industry, you will be spoiled for choice when choosing an outsourcing provider or IT partner. With thousands of software development companies worldwide, you will have access to reputable IT partners that can help grow your business. However, you may come across IT partners that can lead to long-term issues within your company. This can have you wondering - What are the reasons why your project development outsourcing failed?

Of course, it’s crucial to learn all about the reasons outsourcing fails so you know what mistakes and actions to avoid. We’re here to help, so continue reading to learn more about the potential reasons why project development outsourcing can fail and what you can do to stop that from happening to you. 
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## Reasons Why Your Project Development Outsourcing Failed

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There are many risks associated with project development outsourcing, may it be delays, low-quality services, or even contract termination. But why does this all happen in the first place?

Take a look at the following reasons why your project development outsourcing failed and how to prevent it from happening.

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- **No Alignment with Your IT Partner**

While outsourcing comes with its risks, it isn’t the model that contributes to the potential failure, nor is it the most important. It all boils down to the IT partner you choose.

You can outsource to the best-known IT partner in the world, but you may still experience failure if they don’t align with your company’s vision and mission. 

How do you avoid this? When interviewing and onboarding an outsourcing provider, you must use the same process and parameters as you would with in-house employees. It’s important to find a partner who is well-aligned with your vision and the commitment, passion, and responsibility to complete their tasks.

Your outsourced partner should be excited to be part of paving the way towards your company’s success. While this will take some time and effort, especially during the search process, the results will be worth it. 
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- **You Chose the Cheapest Provider**

Did you know that over 50% of companies use outsourcing to cut overall costs? It goes without saying that outsourcing is cost-effective, but always remember that you get what you pay for. 

Meaning, that choosing the cheapest provider can harm your company in the long run, giving you unrealistic expectations of cost savings. If you end up choosing the cheapest outsourcing provider solely because of their affordable quotations, then you might end up dealing with various communication issues, low-quality work, delays, and below-average results once done. 

Always remember that if the price seems too good to be true, then it most likely is. Never choose an outsourcing partner solely for price alone, then you must consider other factors as well, such as their reputation, portfolio, and services offered, among others.
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- **Unrealistic Expectations**

Similar to choosing the cheapest provider, you must watch out for things that are too good to be true. 

You might have come across companies that promise you the moon and stars, giving you the highest expectations and claiming they can go above and beyond instantly, and usually at a low price.

However, companies that do this are most likely trying to get you “on the hook” to secure your contract!

Of course, outsourcing providers are like any business that needs to make a profit (like yours). However, some companies might end up trying to put their profit above your business goals, and that can fail to meet expectations, or even lead to project failure.

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- **Receiving Sub-Standard Work**

One of the major risks and reasons your project development outsourcing fails is that you received sub-standard work. 

When outsourcing, you might not be able to oversee everything your chosen IT partner does. If you choose the “wrong” outsourcing provider, they may take advantage of the situation, cutting corners during the development process. As a result, you lose control of the project.

For instance, you outsourced software development services for an upcoming project. The worst-case scenario of receiving sub-standard work is that you receive an unusable platform that will be difficult, or even impossible, to resolve. This will lead you to start the project over again if you have the time and money to do so.

What can you do to prevent this from happening?

It all boils down to using your due diligence and choosing the right partner. Make sure your chosen IT partner follows the industry standards, and in this case, standards in code quality and documentation. If possible, you can hire or find a professional in your network to audit the company, or to ask for references. 

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- **Lack of Technical Knowledge**

When looking for an IT partner, you need them to know more about the tech field than you do. You just need to ensure you don’t end up with a lack of transparency and control over any tech decisions being made.

This doesn’t mean you shouldn’t know anything about IT or software development. You should still educate yourself and improve your technical knowledge. Knowing a bit about tech will help you determine if your IT partner is worth hiring, which makes the selection process easier. 

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- **Misunderstood Scope**
 
We cannot stress enough the importance of good communication when discussing expectations and project scope with your chosen IT partner.

From the scope, deadlines, and project-specific requirements, everything must be crystal clear. If not, then you are at risk of giving misaligned expectations to the partner, and your expectations may not be met.

For instance, the outsourcing provider might start including features in your product in an attempt to understand your needs and goals. These attempts can grow uncontrollably, and there is even a term for it, called “Scope Creep.”

The Scope Creep refers to the space between your expectations and the results you’re receiving, which gets bigger and bigger if things are left unclear. This results in you being forced to push back on your product launch because you didn’t receive the product you wanted or expected. 

This takes a toll on your money, effort, and the trust you have in your chosen IT partner. You can prevent this from happening at all by creating clear documentation to outline your expectations and goals. Make sure you sit down with your IT partner and the relevant team to work on your project, talking about your expectations for deliverables and answering any questions they have to ensure nothing is misunderstood.

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- **Communication Barriers**

The world of outsourcing is amazing because you get to partner up with companies from all over the world, giving you access to top talents without being restricted by location.

However, this can come with minor challenges, particularly when it comes to communication. You may have different ways of communicating, whether it be in terms of your culture, body language, slang, or dialect. Language barriers can be a hidden cost if not acknowledged properly. 

Besides language, time zones can be a communication barrier, as well as the platforms used for communication such as Skype, Zoom, and the like. 

All this can cause project failure, as your IT partner may not be able to understand the scope or will need extra time to create your product due to the different time zones, all of which result in high costs.

This doesn’t mean you should stay away from IT partners from different parts of the world, though. IT partners from countries like Vietnam offer a lot to the table, as long as you communicate well.

You can resolve all poor communication barriers through proper planning, such as scheduling regular meetings in advance, and setting expectations for when both parties are available to work and answer any queries, adjusting to each other’s time zones. 

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- **No Flexibility and Adaptability**

As mentioned, you need to define the scope of work from the start. But remember that your product, just like any other product, can be compared to a living organism and its needs will inevitably change. 

Its ability to adapt and evolve is a must for it to be successful, and for that, you and your IT partner must be able to be flexible. Your partner needs to be able to grow with you and adjust to your ever-changing needs, doing what’s necessary for your company’s overall success.  

Without a flexible partner, or if you choose not to be flexible yourself, the product may end up not meeting your expectations, and you might be stuck with something unusable!

## Hire the Right Outsourcing Partner Now!

One of the key questions that companies ask is how they can mitigate the risk of failure. Fortunately, it isn’t as difficult as one would imagine, as long as you are aware of the reasons why your project development outsourcing failed. Moreover, you must also put the time and effort into choosing the right provider and communicating with them well.

So, don’t wait any longer and begin your process of finding a suitable IT partner to set you up for success! If you’re still searching for a suitable outsourcing provider, consider our services here at Innomize. We’ve got the IT services you need to get started, ranging from consulting to software development with our top talents.

Give us a call today and let’s discuss your project goals and expectations. 


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What are the Reasons Your Project Development Outsourcing Failed?