8 Best Practices in IT Outsourcing for a Small Businesses

Tired of the high cost of IT support? If you answered4. Don't try to take on too much in your first project.
"yes" you are like most small business owners. UtilizingComplex projects are difficult to scope and difficult to
offshore IT resources can reduce your costs by ascommunicate. If you have a complex project try to
much as 80%. Suddenly projects that once seemedbreak it up into simpler phases which will be easier to
cost prohibitive become feasible at these levels. Likeconvey and easier to manage.
any other service you will occasionally run across a5. Freelance sites such as Elance have escrow
provider you wish you had not hired. That can be saidaccounts you can place funds in. This allows the buyer
for all contractors though regardless of where theyto place the money for payment in a third party
come from. With some careful due diligence andaccount and then release the money only after the
proper preparation you can make offshore ITobjectives of the project have been met. This brings
resources work in your business and gain asecurity to both the buyer and the seller.
competitive edge.6. Finalize your agreement with the provider by
The following are important points that I have learneddeveloping a checklist that needs to be completed in
from multiple startup operations that utilize offshore ITorder for escrow payment to be release. Email this
resources. Follow these keys to success and you willtoo them and ask them to confirm back by email that
dramatically improve your chances for success.they understand and accept the deliverables for the
1. If you fail to plan, you plan to fail. Preparation is keyagreed upon project price.
to a successful project. Define in your own mind what7. Communicating on the details of the project can be
you want to achieve. You don't need to be adifficult with both parties typically speaking different
technically savvy person to do this. Describe it in yourlanguages and potentially bad international phone
own functional terms what you wish to achieve in yourconnections. For this reason I prefer to text chat with
project. For instance, you may wish to increase theproviders. This eliminates the issues of bad
traffic to your website by 20% a simple statement ofconnections and individual accents that may make
that goal would be sufficient.communication difficult.
2. When interviewing candidates be specific in asking8. All of the sites have private message boards that
how they intend to achieve the goals of your project.allow you to converse in private with each provider. It
There is always more than one way to approach ais a best practice to avoid providing any company
problem but if you speak to enough providers you willspecific details in the public areas but feel free to do
see common themes and be able to sort out thethis on the private boards. You never know when a
contenders.competitor may be lurking about and you do not want
3. Feedback is important in judging a provider andto give them advanced notice about competitive plans
most popular freelance sites have feedbackyou may have in place.
mechanisms for both buyer and seller. I typically don'tThere are a number of good sites on the internet that
go with anyone that has less than a 90% feedback. Iact as brokers for offshore contractors. I have had
will often entertain brand new providers though whichgood luck with Elance but a search on "freelance
most people stay away from. They are typically verysites" will return all of the top sites available to get you
hungry for business and will go the extra mile to makestarted.  The first few projects can be very
sure you are happy with your results. The key herefrustrating mostly because the time difference makes
again is in the interview process to ensure they haveit difficult to communicate in real-time. By mastering the
the commitment and knowledge to complete theskill of working with offshore providers though you will
project. Ambition and good intentions are not enoughhave a significant competitive advantage over the
to pull off a good project.competition.