The Lifecycle of Outsourcing and Why it Matters

Learn more about the major steps of the outsourcing lifecycle and how to find the right IT partner to enhance your team and boost your IT services.


  • Sep 30, 2021
  • Insights,
  • Blog
The Lifecycle of Outsourcing and Why it Matters

The Important of Outsourcing
Outsourcing a project or aspect of your company is a great way to reduce costs and enhance your team’s knowledge. There are some stigmas around outsourcing, but overall, when done correctly, outsourcing can be a huge advantage to your business.

Some business owners and CEOs fear that outsourcing will decrease the quality of work or will lessen their involvement in the project. This isn’t the case. When you partner with the right IT outsourcing provider, you’re at the heart of the decision-making process, and you can find a company like Nearshore that works with highly skilled IT professionals to ensure that every project meets the highest standard.

Biggest Steps in the Outsourcing Lifecycle Explained
There are several steps in the outsourcing lifecycle that can help business owners better understand the process and decide if it’s the right strategy for them.

Deciding to Outsource
The first step in the outsourcing lifecycle is making that initial decision to outsource. This step will require some diligent research and critical thinking to ensure it’s the right choice. You should also consider how this decision will impact your in-house employees. Some employees worry that they may lose their jobs when a company begins outsourcing. You want to reassure your staff that outsourcing shouldn’t be viewed as a threat and more as a partnership. Your outsourcing team is there to help with the heavy lifting. Once you’ve decided that outsourcing is right for you, it’s a good idea to brainstorm some concrete goals and objectives to keep in mind as you search for the right partner.

Choosing a Technology Partner
You’ve made the choice to outsource. Now it’s time to find your new team. Look for outsourcing companies that promote high levels of communication and and emphasis on “partnership.” These are the types of teams that want to make your goals their goals and help your business succeed.

You should also familiarize yourself with various outsourcing terms and figure out which services you’re looking for. For example, staff augmentation or team enhancement is a great service for those who want to temporarily add additional highly trained professionals to their IT team. Companies like Nearshore will often conduct interviews to find and build the best team for your company’s needs. Managed services, on the other hand, is more of an ongoing agreement in which your outsourcing partner helps with IT maintenance.

Creating an Outsourcing Agreement
After thorough research and selecting the right outsourcing partner, it’s time to draw up your contract. During the negotiation process, it’s important to have an outlined strategy and list of services, so that both parties have a clear idea of what is expected and allows each to have some level of control within the partnership.

Your outsourcing contract should address items like new ways of operating, methods of communication, and other changes to your operational process. Once the contract is signed, it’s time to start implementing those changes. This will be a bit of a transitional period for both parties as you get to know each other and fall into a new workload routine. During this stage, it’s a good idea to keep your in-house employees in the loop by introducing them to the outsourced team that they may be working with and training them on any operational changes that may impact their day-to-day duties and responsibilities.

Monitoring and Controlling
As the contract goes on, it’s important to be monitoring your outsourcing partnership. This means regular meetings and communication, sharing results, and working to make the arrangement a true partnership. The key elements to any great partnership ship are trust, communication, and openness. Continue to foster these attributes in your outsourcing partnership and you’ll reap the rewards.

End or contract or new project
At the end of your initial contract, it’s time to reevaluate the agreement and decide if you want to continue the partnership on the same terms, re-negotiation your deal or go your separate ways. For some businesses, outsourcing is simply a temporary solution to help with a major project or inter-company change. But for others, sourcing can offer a great long-term solution to enhancing your in-house IT team, shifting more mundane, everyday tasks to your outsourced team, and allowing in-house employees more time for critical business projects. If you wish to continue the partnership, you always have the option to change the next contract based on your initial experience or if your goals and objectives have changed.

Outsourcing Could be the Solution for You
A deeper understanding of the outsourcing lifecycle can help determine whether this type of partnership is right for your business. Outsourcing is a great way to cut costs as it’s much less expensive than hiring new in-house employees and it often allows you access to expensive hardware and software that would be much pricier to purchase on your own. Think about outsourcing to partner with a group of trained and skilled individuals who have your business goals in mind during every step of the process.

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