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25 December 2024 Muftia Parasati

Best Practices to Manage IT Outsourcing Team Effectively

Utilizing IT outsourcing has become a strategic approach companies adopt to enhance operational efficiency and drive innovation. But rather than getting an individual IT expert through outsourcing, what about getting a whole team of IT experts through outsourcing? While having an IT professional through IT outsourcing is needed to fill specific skill gaps, an IT outsourcing team can be a fitting solution for some IT projects. Learn more about an IT outsourcing team and how to manage them effectively.

What is an IT Outsourcing Team?

IT outsourcing team refers to a specialized group of professionals who are contracted by companies to operate various IT functions. These may include software development, infrastructure management, technical support, and cybersecurity. Hiring a group of IT professionals through outsourcing providers allows businesses to leverage diverse skills and expertise. They are usually knowledgeable in the latest technology and industry best practices. This will enhance the benefits of outsourcing IT support obtained by companies. 

What Are The Common IT Outsourcing Models?

There are three standard IT outsourcing models to define the way companies collaborate with the outsourcing providers:

Project-Based Model

A project-based model is an IT outsourcing model in which a company client hires a team to implement the part of the project that is already planned and defined. The project manager from the IT outsourcing team carries full responsibility for the quality and performance of the project. This model is suitable for projects that have predictable and well-studied functionality. 

Dedicated Team Model

The dedicated team model refers to a group that works exclusively on their client’s project. Unlike the project-based model, a dedicated IT outsourcing team focuses more on their client’s project. They will become their client’s technical and product advisors. During project execution, they can offer ideas and suggest alternative solutions.

This model is suitable for early-stage businesses that are expected to grow and have the potential to expand and for projects with many vague requirements. If the company wants to validate its product idea or find a product-market fit, the dedicated team model may be the best solution.

Outstaff Model

Outstaff is an IT outsourcing model in which companies hire individual specialists rather than a full team to fill specific skill gaps. Some projects require a couple of additional professionals, and companies can hire outstaff workers to cover that scope of work. This model is suitable for short-term projects or for businesses that lack specific knowledge and hence need extra hands to run their businesses effectively.

What Are The Main Benefits of Using an IT Outsourcing Team?

Outsourcing IT functions has become a strategic move for many companies seeking to enhance efficiency and reduce costs. However, outsourcing a whole team of IT professionals rather than just individuals has several benefits. Some of the benefits are:

Comprehensive Solutions

Contracting IT outsourcing teams may offer comprehensive solutions comprising project management, quality assurance, and customer support. This approach will simplify the management process and reduce the overhead costs associated with coordinating multiple individual IT professionals through outsourcing. By entrusting the entire project lifecycle to a whole team, companies can minimize administrative burdens and focus on strategic priorities.

Access to Specialized Experts

IT outsourcing provides access to experienced IT professionals who have honed their skills through years of experience. An IT outsourcing team consists of IT professionals who are well-versed in industry best practices and can deliver high-quality work efficiently. By leveraging established workflows and methodologies, the IT outsourcing team can streamline project execution and reduce errors caused by IT outsourcing risks.

Cost-Effective

Outsourcing the entire team may be more cost-effective than building an internal team. Companies can significantly reduce costs associated with benefits, infrastructure, and recruitment, which is especially beneficial for long-term projects. The team is already equipped with the needed expertise, which will save costs related to training and managing the internal IT department.

How to Manage an IT Outsourcing Team Effectively?

While working with an IT outsourcing team, it is crucial to implement effective management to ensure the work quality meets the company’s standards and expectations. Here are the key strategies to manage your IT outsourcing team effectively:

Establish Clear Objectives and Expectations

Defining objectives and expectations is essential, as both your company and the IT outsourcing team need to set the benchmarks for success. This will also serve as a roadmap for your outsourced team to meet these objectives and expectations. Your company and the IT outsourcing team will have a mutual understanding of achieving these goals. Ensure your objectives and expectations are measurable and aligned with your company’s broader objectives. 

Implement Effective Project Management Methodologies

Project management approaches such as agile or scrum can be particularly beneficial, as they promote iterative development processes and continuous feedback. By dividing projects into manageable segments, IT outsourcing teams can swiftly adapt to changing requirements and address IT outsourcing challenges

Communicate Frequently

Communication may be one of the common challenges when working with external parties, such as IT outsourcing teams. Therefore, it is important to maintain regular communication with your IT outsourcing team. This includes regular check-ins and status updates to assess progress and make necessary adjustments. You can use various communication channels, such as video conferences, instant messaging, and emails, to stay informed about updates, deadlines, and any changes in requirements.

Monitor Performance Regularly

Implementing performance evaluation is needed to monitor the effectiveness of your IT outsourcing team. To assess individual and team contributions objectively, you should set key performance indicators (KPIs) that align with project goals. By closely monitoring progress, you can identify strengths, areas for improvement, and potential challenges. 

Want to Expand to Indonesia? IT Outsourcing by PhinCon Got Your Back

If you are a Singaporean company considering entry into the Indonesian market, navigating the complexities of local regulations, seeking local talents with expertise and experience, and managing operational challenges can be difficult. However, collaborating with the right partner can help you overcome these difficulties.

PhinCon is one of the top IT consulting companies in Indonesia, offering IT outsourcing services to enhance companies’ IT efficiency. Now, PhinCon extends its services to help Singaporean companies, such as PhinCon Pte Ltd, expand their business into the Indonesian market.

PhinCon offers a comprehensive IT outsourcing solution designed to empower businesses to focus on their core business activities. The solution includes talent acquisition, recruitment, payroll, benefits, and tax compliance according to Indonesia’s regulations. By leveraging PhinCon’s services, Singaporean businesses can easily accelerate their expansion in Indonesia. 

For more information about IT outsourcing services by PhinCon, contact us through email sales.sg@phincon.com

Editor: Irnadia Fardila