Outsharing: Is It Better Than Outsourcing?
With the rapid development of communication and project management technologies, the popularity of remote business cooperation is also on the rise throughout the globe. Today, you can outsource business processes easier than ever before. Be it offshoring or nearshoring you are after, there is a plethora of new tools and platforms that you use to set up a working partnership within just days. This can work really well for more simple business processes like copywriting or graphic design projects. However, when it comes to complex work processes, there is a need for deeper involvement from both parties. This is where outsharing comes in.
Outsharing stresses on working partnerships and encourages collaboration. An outsharing partner thoroughly examines your business case, reads beyond the specification lines and suggests optimization solutions. They focus on value whether it’s designing and creating new functionality, optimizing the processes, or improving the user experience.
Over the past few years, outsharing has been gaining in popularity. Many companies consider outsharing to be the next level of outsourcing software development. It is believed that in the coming years outsharing will replace outsourcing.
Reasons for outsourcing
Outsourcing can provide solutions to software companies and businesses anywhere in the world. Depending on where you live, you can save about 70% on hourly rates by outsourcing software development to development shops or freelancers. When you outsource your work, you don’t need to go through long and costly hiring processes.
You only need to look out for the quality of the companies’ previous work. You get access to talented and skilled labor at a low cost during outsourcing. That’s why businesses and companies consider outsourcing development in the first place.
Outsourcing partners hire talented people in their team who know how to manage different business situations. They understand how a company’s goal can be attained. External service providers are fully aware of the latest technology of the industry and are capable of providing their clients with the best services at a much faster rate.
Most importantly, outsourcing allows you to focus on the core of your business processes or invest in research or marketing.
Risks associated with outsourcing
No doubt, there are numerous benefits of outsourcing internal business processes to professional outsourcing companies. However, it has its own set of flaws. There are many risks associated with outsourcing, such as potential cybersecurity attacks, poor communication, lack of cross-cultural awareness, misuse of sensitive corporate information, insufficient product quality, and management difficulties due to a lack of centralization.
Most businesses fear a lack of direction and authority when an outsourcing company is doing their work. Company personnel loses control over their own process and technologies when certain services are outsourced. The consequences can be fatal or serious. Contractual disputes can occur or the quality may suffer.
Many outsourcing companies do not bother to understand their client’s product vision and strategies. Their involvement in the product development is limited to delivering the code that matches the list of specifications. Many of these clients don’t get the product they envisioned and the quality they deserve.
Keep in mind that it is very important to choose the right outsourcing partner. Engaging with the wrong outside service provider could cost your business in terms of performance, productivity, employee morale, and financial outlay.
Read more about the most common reasons why outsourced software projects fail.
What exactly is outsharing and is it better than outsourcing?
Outsharing means having an equal remote partner, who is completely involved in realizing the client’s product vision and helping them reach their strategic goals. Outsharing partners not only deliver code but also function as a remote Chief Technology Officer.
They offer well-reasoned and valid opinions about your product roadmap and enlighten you on how to reach your goals and objectives in the most effective manner. Outsharing partners will also tell you about new technologies that are worth adopting for your company. They also have the soft skills to build strong relationships with their clients.
Outsharing partners need to share the same product vision, and truly understand each other’s organization. Both parties need to invest time and effort and communicate openly. Keep in mind that open communication is essential to remote business success. You should encourage your outsourcing partners to share their concerns and ideas, both negative and positive. This will give them the sense that they are valued. Ineffective communication, on the other hand, can easily lead to project failure.
Outsharing is necessary to develop and create complex technology solutions and products that make life better and easier. It is for companies that want constructive expert input and deeper involvement from their outsourcing partner.
To sum it up
If you have concerns about the risks that are associated with traditional outsourcing, outsharing could be your solution. Think about your outside IT service provider more like a strategic business partner. By gaining full access to their unique perspective and technological expertise, you can gain even more value than you would from an in-house IT department. The principles of outsharing help you gain more and more value over the long term instead of focusing on the completion of single projects.
If any of this sounds appealing to you, we would love to talk more about the topic. Visit our website and feel free to drop us an email with your questions. Thank you for reading!