Key Drivers that influence Software Outsourcing Decisions for Small & Medium-siz

2. For Rafael Nadal 2021, marked a new low in his chequered career, he lost to eventual champion Novak Djokovic in the semi-finals of Roland Garros, then to make matters worse, he suffered from a career- threatening foot injury, leaving his fans aghast and wondering if the best days are behind the Matador. Come 2022, Nadal defies logic and starts the year by capturing the Australian Open, his 21st Grand Slam, thereby emerging from the shadows of his great rival Roger Federer for the first time in his career. Making this turnaround required immense resolve, resilience, reimagining, and reform. Similarly, businesses today particularly Small and Medium Businesses need to adopt these philosophies as they consider rebounding from the adverse effects of Covid 19. The pandemic as we already are aware ushered in a tectonic shift in digital technology and the way businesses operate. Organizations are enhancing and expanding their digital channels and are using advanced analytics to combine new sources of data, such as satellite imaging, with their own insights to make better and faster decisions and strengthen their relationship with their customers.

3. Now the challenge for Small & Medium Businesses is how do they keep pace with this rapid transformation in the business. Developing and building in-house capabilities isn’t the answer as Businesses would have missed the bus by the team gets ready in today’s day and age. Outsourcing has emerged as the best bet for the obvious advantages it brings to the table. In this article, we focus on the pertinent factor as the title suggests — What are the key drivers that influence Software Outsourcing Decisions for SMBs. Choosing the right outsourcing partner solves half of the problem. SMBs must take into account the following factors before choosing their software outsourcing partner. 1. The Need Factor— It always helps to look inward and identify the core strengths and weaknesses of the Organisation. Identifying the cog where outsourced IT intervention can reap immediate dividends is the key. Now a day most IT solution providers offer Technology Auditing Services to identify gaps in the business processes, thereby enabling organizations to identify risks and recognize new business opportunities. Small & Medium Businesses need to identify their business needs and determine whether the IT solutions partner can provide the specific solutions for their Business.

4. 2. Experience Factor— Does the IT solutions provider have domain expertise and a thorough understanding of the compliance, risk, and auditing functions? One can evaluate the provider’s capabilities by looking at their past and current set of clients who are in similar industries. Scanning the website of the potential IT partner is always beneficial; especially the testimonial reviews section as well as the list of past projects and clients. An experienced IT solutions provider should be able to bring to the table maturity in process design, curtail risk factors in execution, detect vulnerabilities in the process and enhance audibility. 3. Competency Factor— What level of expertise does the IT solutions provider bring? As the saying goes “A captain is only as good as his team’, similarly the IT solutions firm is as good as the team it employs. A competent team with access to intellectual property and technology that bridges the internal gap of the organization is the obvious requirement. Organizations should take into account the staff turnover rate in the IT solution provider’s team and insist on a measure of continuity, and contingency plans in case key personnel leave.

5. 4. Customised Solutions Factor- Most of the time the software development needs are very unique and specific to the businesses. Off- the-shelf enterprise solutions are expensive and also would require significant levels of customization to be implemented in their setups, which in a way will defeat the purpose, or make it extremely cumbersome. Therefore, the best alternative is to work with an IT solutions provider who has expertise in building solutions ground up and is well versed with the dynamics of doing it for small and medium-sized establishments. The IT solutions provider will review the current processes; find opportunities that will maximize savings and reduce spend while maintaining organization efficiency. They can also detect liabilities and challenges within processes in order to reduce risk. Once the analysis of the business processes is completed, the IT solutions provider can not only build custom solutions based but provide ongoing maintenance and support for the new processes at a fraction of the cost.

6. 5. Legacy Systems Factor- Many SMBs, while seeking newer solutions, do not like to disrupt their businesses too much, because they support the day-to-day business operations. This translates to IT solution providers having to build solutions that have to integrate with old or legacy applications. That is where things get tricky. Many challenges may arise. For e.g. dealing with old systems that were never designed to integrate in the first place, archaic technologies, and systems not supporting API integration. In this scenario, SMBs must take into account the following facts: Ø Will it be more convenient and faster to reach the market with a new IT platform Ø Assuming it’s justified to integrate the legacy systems, how is the IT solutions provider planning to approach this undertaking? Will there be any data loss? Ø Does the IT solutions provider provide the flexibility and scalability for such a task along with the expertise required?

7. Ø Does the IT solutions provider have competent staffs to carry out exhaustive testing that is necessary for replacing or integrating old systems to ensure compatibility and reliability? Ø Does the IT solutions provider have the expertise in aligning the functionality of legacy systems with the user experience of the modern UX? Ø Can the IT solutions provider manage the downturn effectively? 6. Tech Support Factor— How proficient is the team in managing Technical issues that might crop up from time to time. Would they cover up 24/7, 365 days a year? It is necessary that this is discussed and elaborated in the RFP (Request for Proposal) to pre-empt any hassle that may crop up and also gives the SMB a fair idea of what kind of services will the IT solutions provider provide. 7. Reputation Factor— The reputation of the IT solutions provider with the industry stakeholders like the regulators, supervisors, and vendors gives an insight into the IT solutions provider's ability to be a responsible service provider or not.

8. 8.Institution Strength Factor —Along with the ability to understand the nuances of foreign businesses and the environment they operate in, financial soundness, size of the firm, and the ability to attract the best talents in the industry are factors that determine the capability of the IT solutions provider to consistently deliver high-quality services over a long period of time. 9. Culture Factor–Maintaining a good working relationship with the IT Solutions Provider is paramount. To build a good working relationship, it’s important to know the work culture of the IT partner, what is the cultural background of the employees in the IT partner’s office? Where are they located? How efficiently can they deal with the customers, can they converse with Customers without using the IT jargon? Apart from the Head and Sales representative of the IT Solutions provider, one needs to develop familiarity with the support engineers who will be working on the project, as they are the ones who will be managing the project on a daily basis. Choose the IT solutions provider that has employees that care about your business issues and its successes.

9. 10. Cost Factor— Cost inevitably plays a role in the decision, but for a collaboration to be successful, the characteristics outlined above, often take precedence. This is likely due to the fact that managed services are applied to critical functions that shape the Organisations future. Also, the characteristics merit monitoring throughout the duration of the project, as changes may impair the IT solution provider’s performance and expose the Organisation to risk. Like other businesses, if you too are looking to develop IT Solutions, Mindfire Solutions can be your partner of choice. We have gained significant experience over the years working with a diverse clientele. We have a team of highly skilled and certified software professionals, who have developed many custom solutions for our global clients over the years. Click here to know more about us and our portfolio of services across industries.

10. Content Source: Medium Contented by: Mindfire Solutions