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How to Outsource Your Project

The outsourcing model is valuable not only for startups but also for companies that do not have IT departments, for example, due to limited budgets. Collaboration with third-party teams allows businesses to remain flexible, properly distribute tasks according to their relevance and priority, and save the effort and time of full-time staff. This approach is beneficial in many situations.

When Should You Choose to Outsource?

Outsourcing means delegating tasks difficult to solve on your own to third parties. We distinguish three main reasons for choosing this model: cost reduction (at least 30%), access to modern talents and technologies, and increase in speed of work.

Want to know how to work with third-party performers? You can find more helpful information here: In its turn, an outside team will help you in the following situations:

  • It is unprofitable for a small company to create a new department to perform minor business processes.
  • The enterprise consists of several divisions, but they do not bring profit and do not achieve their goals.
  • Your staff does not have the appropriate knowledge, skills, and technologies to solve the problems of the current project.
  • The startup seeks to reduce the cost of staffing and renting premises. For example, you plan to work using the “home-office” model.
  • The management is looking for ways to reduce staff and optimize costs as the business goes through difficult times.
  • Your company is highly demanded, which makes it challenging to solve all the tasks on your own.

These are not all situations when it’s useful to involve third-party specialists. The main thing is to choose your business partner responsibly because the speed and quality of the project implementation depend on it. 

How to Outsource Your Project: 5 Key Steps

Based on our practice of working with IT projects, we divide the implementation of outsourcing in a company into 5 stages:

1. Analysis:

  • Assessment of the situation in the company, goals, and competitive environment
  • Setting strategic priorities taking into account all problems
  • Defining tasks for delegation and their scope
  • Calculation of the cost of implementing tasks on your own

2. Decision-making

  • Studying possibilities and risks
  • Comparing the cost of the work of the in-house and third-party teams
  • Appointment of a worker responsible for control
  • Preparing task volumes and requirements for the outsourcer

3. Partner selection

  • Market research and listing of companies
  • Study of each company: website, portfolio, reviews, social networks, and media
  • Identifying a company that meets all requirements

4. Preparing the terms of the contract

  • Clarifying issues at the preliminary consultation
  • Choosing pricing model and work schedule
  • Signing the NDA and the contract together with a lawyer

5. Transition to a new format:

  • Explanatory work in the team
  • Studying rules and tasks by the third-party team
  • Preparing a project plan

At each stage, the head of your company will receive reports summarizing the results: work performed, intermediate results, comparison of the outsorcerer’s performance indicators with the planned KPIs.

Final Words

Consistency is essential when delegating tasks. Analyze the situation, assess your financial capabilities, brainstorm, and make a decision together with your team. Choose a partner that has industry skills and cutting-edge technology. It is important that they agree to sign the NDA and mention all the nuances in the contract, including the full list of expenses.