What to consider when choosing the IT outsourcing company?

Five years ago, already 92% of the biggest companies in the world listed by ‘Forbes’ were using IT outsourcing. Nowadays, the popularity of these commissions is rising also among small and medium companies. Considering the prognosed revenue growth on the IT outsourcing market to 512.5 billion dollars in 2024, the increase in IT outsourcing providers is not suprising. But how to choose the best one for your project?

IT outsourcing, despite worsening condition of the industry, is growing in strength year by year. According to Gartner’s prognosis, the global research-analytics company specialized in i.a. strategical usage of technology, IT outsourcing is the fastest growing field related to creating software. It is forecasted, that in 2028 the magnitude of the IT outsourcing market will be 777.7 billion dollars (with the annual CAGR rate of 10.99%)

Costs are not everything

IT outsourcing will benefit from prognosed continuous problems with qualified and experienced specialists recruitment, but also from an increasing interest in digitalization. On the other hand, the specter of global crisis in sight, the companies will search for savings. In spite 59% of companies declaring in 2020, that reduction of costs is the main reason for deciding on IT outsourcing, when choosing the provider of such services one should not only consider the financial matters.

777.7 billion dollars – forecast magnitude of IT outsourcing market in 2028 (with CAGR 10.99% annual rate)

Company’s profile and experience

Decision on IT outsourcing company should be preceded mainly by defining your needs. IT outsourcing is an extremely broad term including different services requiring different abilities. For example: system and server administration, archaization and protection of data, providing complex solutions in the field of creating software, applications, integration or testing. Especially in the second case it is suggested to commission the services to a company with a vast experience and narrow specializations, such as j-labs. To one that has already completed similar projects with good results – particularly in the areas in which we are interested.

Technical abilities and technological capabilities

Before signing the contract with IT outsourcing company make sure that they are able to service your needs effectively and with a good result. Experience in an industry is one thing, but the ability to work with different technologies, underwent trainings and courses, obtained certificates or the access to newest software is another. It is advised to choose the company that hires experienced IT specialists on senior positions, to whom technology, reliability and substantiveness are priorities.

Security of the data

Company offering IT outsourcing should also guarantee the security of the client’s data. Only a spoken promise is not enough. Real confirmations of diligence towards cybersecurity are implemented in company procedures and protections, but also certificates such as ISO/IEC 27001 (in j‑labs we can boast about bringing it into play). It is also important to choose companies that work in countries with stable political and economic situations. Currently, according to experts from Statistica, not the best options are i.a. China or Ukraine. Quoting, in these countries ‘there are concerns about breach of intellectual property and data security’.

Scalability of services and model of cooperation

When choosing the provider of IT, important is the scalability of services according to growth of our business. Thus, take into consideration, if the company offering IT outsourcing has enough resources to support your projects not only now, but also in the future.

Effective communication

Effective communication with outsourcing company allows to e.g., tracking project’s progress, quick problem solving, flexible reactions on changes and building trust between both sides. Thus, it is important, that the company has developed not only their own systems of internal and external communication (including, like in j‑labs, support of Delivery Manager, caring about realization of business requirements and quality of provided software). Due to globalization of services company should hire specialists with fluent English, e.g., from Poland or other Central and Eastern Europe countries. According to Statistica report, language barriers are the main obstacle for US’ companies to commission IT outsourcing in Latin America countries.

0.5 million people are working in an IT sector in Poland

19 thousand companies are providing services connected to software developing

Compatibility of the corporate culture

Before signing the deal with IT outsourcing company make sure, that they have established their own corporate culture. Even more important thing is making sure that it is compatible with your own’s business values. Why? It can have a real influence on cooperation and effectiveness. It is especially vital when you decide on outsourcing your IT services to different countries, e.g., with lower working costs. Among industries, which developed their position in recent years is i.a. Poland, where about 0.5 million is hired in IT sector and 19 thousand entities are providing software developing services. Polish developers are known not only for their adaptability, abilities and strong working ethics, but also cultural compatibility with developers from Unites States or Western Europe.

Do you know already how to choose the best IT outsourcing company? Time to contact j‑labs! We check all above requirements. Check out what you can do with j‑People – specialists with almost decade of experience – within IT project outsourcing and IT specialists outsourcing.