5 reasons Why Most Outsourcing Projects Fail

5 reasons Why Most Outsourcing Projects Fail

In today’s extensive work culture, outsourcing has become an integral part of most enterprises, be it big or small. Companies prefer to outsource software development tools because it saves money, is easy to scale and more flexible. Outsourcing has many benefits but it does come with its own share of challenges. Hence, it becomes important for enterprises to be aware of upcoming challenges and prepare to overcome them.  Let us highlight some of the major challenges that project managers should anticipate and try to mitigate:

Reason 1: Lack of Clarity in Roles

Every IT project requires a clear business case. In most outsourced projects, the roles of each stakeholder is not clearly defined, which could lead to confusion and chaos.

Solution- Define all Roles clearly

CIOs are a connecting thread between the IT division and CEOs. They should take the responsibility to define every individual’s role in the outsourcing process and manage their project teams.  The CIO should be aware of each business implication of the project and should be vigilant about each IT project, from redesigning of the website to addition of new mobile apps, etc. These implications should be communicated to other IT teams as well. Proficient CIOs understand their team members, motivate them and know how to communicate things in between different platforms. It is imperative for a CIO to understand technical components of every project to be able to guide the team in the right direction.  

Reason 2: Not taking into Account the Bigger Picture

Some CIOs do not pay attention to how a project initiative for one product or service can affect other products in the portfolio.

Solution- Get a Bigger Picture of Future Scenario

Once the CIO has defined everybody’s role in project outsourcing, he must look forward to integrating solutions that can be aligned with other tools and products within the company. There should be a clear understanding on how one product affects others. This means taking into account the bigger picture for future scenarios is imperative. It is an easy task to build isolated products but the success rate can be low if these are not rightly integrated with other business tools.

Reason 3: Lack of Proper Planning

This can lead to major deviations in the outsourced project.

Solution- Proper Planning to Avoid Failures

CIOs should work closely with customers to understand their needs and priorities to help plan upcoming projects. For smooth operation of projects, every requirement should be manned prior to commencement of operations. It is difficult to plan everything for a project that is going to run for a long term that is why we suggest fixing short term goals and planning accordingly. Key standards like documentation, styling and method of communication should be predefined.


Reason 4: Finding a Trustworthy Partner

When it comes to outsourcing, choosing the right partner is imperative but finding a dependable one is a major challenge.

Solution- A Trusted Partner is Indispensable for the Success of a Project

If you trust your partner entirely, include them in the planning phase. Focus on project outcomes is of utmost importance. An outsourced developer can also be included in the planning phase. You can leverage the experience of your partner and expect better results in your endeavors.


Reason 5: Lack of Proper Communication

Missing Information while sharing the project brief can prove to be a huge mistake.

Solution- Impelled and detailed communication

Seasoned CIOs like to explain things in detail. During group meetings, many team members make the mistake of omitting some information, which may create a huge communication gap in future. It is crucial to give detailed information about your enterprise to the outsourced partner and all stakeholders. It is better to over-communicate, than missing out on information completely. Regular reporting, video conferencing and cross-checking with extensive communication can create solid efficiencies in the lifecycle of a project.

The above mentioned points prove to be major challenges for any enterprise opting for an outsourcing venture. It is crucial that all your resources are well aligned and team members are clear about the goals of the project. Great planning and structured communication can avoid outsource project failures within your enterprise.

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