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The main client concerns about IT outsourcing and how we solve them

arateg profile image Arateg ・3 min read

Based in Belarus, our custom software engineering company has delivered more than 50 projects to industries such as healthcare, e-commerce, insurance, education, finance and banking. Since 2014, we have been providing IT outsourcing services to organizations located mainly in the USA and Europe. Collaborating with CEOs and CTOs for over 6 years, our experts have helped them address hundreds of business and technical challenges.

At the moment, we are witnessing the rapid growth of IT outsourcing. Although this practice allows saving costs and accessing high expertise, there are some issues C-level executives aim to resolve. In this article, we will consider the key concerns of CEOs and CTOs when outsourcing software development tasks.

The main concerns of CEOs and CTOs when outsourcing software development

1. Legitimate issues

Legitimate issues have to be taken into account before hiring a software development outsourcing company. When drawing up a contract, you should include the clause about protecting intellectual property to prevent illegal distribution of your ideas, requirements, and know-how.

Ask a potential IT service partner to sign a non-disclosure agreement before sharing business-specific goals and sending any documents, for instance, a technical specification. Write down deadlines and deliverables to ensure all stages will be completed on time. Since it is often challenging to predict the exact number of the necessary tasks—especially for long-term and complex projects—it is also important to choose a proper payment model.

Here at Arateg, we always start collaboration with signing an NDA to provide our customers with data confidentiality. We consult with lawyers on all document-related issues in order to ensure proper assignment of rights and intellectual property.

2. Payment model

Concluding a pricing model agreement, you and an IT service vendor will define the work scope, timeline, and project cost. It will also indicate what you actually pay for: the number of spent hours, completed tasks, or the end result and performed KPIs.

Our customers said that sometimes they felt difficulties when choosing a type of an agreement: Fixed Price, Time and Material, Mixed Mode, or Dedicated Team, especially when they wanted to establish a long-term partnership with an IT outsourcing company. In this case, a high level of flexibility is crucial: while it is possible to make accurate time and budget estimations for small occasional activities, it is challenging to calculate the exact cost of building a complex product without a detailed technical specification.

At Arateg, we analyze the project requirements to understand your business goals and help you draw up a pricing contract according to your needs.

Read our article “How to choose the best software development pricing model for your project.” to learn the peculiarities of different agreements.

3. Project management

How will I control software project development if an IT outsourcing company is located in the other country? This is a common concern of C-level managers that IT service vendors should address. Before delegating IT-related tasks, you should make sure a potential partner provides daily reports containing information about performed tasks, planned activities, and technical issues solved by the team.

In our software engineering company, we focus on process transparency, so that you can easily control the project. We hold regular in-person and virtual meetings to discuss the required issues and show the outcome of each stage.

Our experts communicate with you to get a clear understanding of your business needs, show intermediary results, and receive your feedback. We also give you access to a time tracking system, so that you can monitor deadlines and estimate the number of spent hours.

See what our customers say about cooperating with Arateg.

“We had a dedicated team of developers and the PM who was my contact person. We had weekly meetings and 1 time a month a meeting in person with the team!”

Marketing Executive at Ad Tech Company

“Arateg team is very responsive. We can reach out to them at any time over Slack or Jira. We had never the feeling that we are not heard. The communication is superb. We never lost time due to communication.”

Managing Director and Product Owner at food pre-ordering startup

4. Deadlines

The ability to meet deadlines is one of the key client concerns when outsourcing software development. It is especially important when the organization aims to improve time-to-market while saving product quality. To deliver the project on time, software engineers should need to analyze the customer requirements and estimate the scope of work properly.

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