According to statistics given by the leading project outsourcing service providers in Colorado, close to 50% of all such initiatives just fail. A majority of them often don’t succeed to meet the desired expectations. Till now around 76% of companies from the world over have reported similar issues. We have with us a great example of the State of Texas and IBM. The State of Texas was looking to consolidate their data centre operations. IBM was chosen for this task and their responsibility for the first 2 years was to consolidate operations for 27 state agencies into 2 centres. What happened? IBM was able to migrate systems of only 5 agencies. What’s more? The vendor didn’t perform the required nightly backups and as a result, the State lost $863 mn on the original deal.
So What Went Wrong?
Probably One Or Several Of The Following
1: Lack Of Role Clarity
What leads to role clarity throughout your team members and your IT division? If you don’t understand the business implications of the project you are looking to outsource it is going to create problems later on. Whether it is about redesigning your business website or creating a brand new mobile app for your enterprise, the implications of the project that is being outsourced should be understood by your internal teams and the outsourced IT team as well. This is what is going to shed light on the role of each team member. Understand the technical components of the project and the tiny nuances that make it unique. Decide upon the incentive of each stakeholder and communicate the same to every concerned party within your organization to get more clarity on the roles being formed by every team member.
2: Is There Something Called Implied Communication?
There is no such thing as “obvious” in a project brief. Omitting any information that is critical to the success of your project should never be allowed or excused. Regular reporting, crystal clear communication and cross-checking with every team member with regards to whether they have understood the details of the outsourced project or not is critical to its success. In order to ensure the success of the project, you have to have great planning, alignment and above all, a structured communication process.
3: Do Not Rush A Deadline
It is always advised against rushing to complete a project on an unrealistic deadline. Any such project is bound to fail from the start. For example, a fashion apparel company needs to introduce a new inventory management system to their end-users and warehouse personnel. In order to do that they will have to perform the following tasks:
- A complete analysis of their existing inventory management system
- Assessment of the people using this system and the various processes that they follow
- Vendor comparison, review and selection
- Initiating the migration planning process
- Integrating several aspects of your existing legacy systems with the new one
- Deploying either a combination of two or an advanced version of your existing legacy system with a brand new architecture or adopting a completely cloud-based architecture with a few features similar to your old legacy system
- Testing and quality assurance procedures
- Implementation and change management
- Training and educating your employees and associates
If any of these processes are rushed or made in haste, it will result in further issues down the line. Operating on a tight deadline means losing consistency and compromising on testing and quality assurance. This will result in unsuccessful integration of the legacy system and ultimately the failure of the entire project.
4: Outsourcing What Shouldn’t Be Outsourced
Have you ever made the mistake of outsourcing the wrong functions? You do not need to necessarily outsource your entire IT environment. There are specific functions and projects that are not meant for a particular business type. It is advised to keep some IT functions in house and outsource the rest of them. You will have to decide keeping in mind your core competencies and routine operations as to which functions and projects can be outsourced to a project management outsourcing services provider and which of them can be done with the help of your in-house teams without compromising on your profitability and deadlines.
5: Lack Of Flexibility
The IT world is a rapidly changing environment. Technologies pop up every now and then. Technical advancements and development that happen unexpectedly can put a strain on your business. This requires your enterprise to learn to become more flexible. You need to keep up with the latest advancements and learn to grow and prosper using new technologies so that your projects remain relevant.
6: Micromanaging Can Be Suffocating
You have communicated your requirements to the outsourcing company. You are certain about their skills and their execution capabilities as well. Every little detail of the project is defined well enough in the contract the two parties have signed. The working relationship between you two is strong enough and therefore it eliminates any need to micromanage the project at every little step. Refrain from micromanagement. Avoid being too intrusive, all the while keeping yourself completely informed about the project. Do not intervene or make uninvited suggestions as it may lead to bad morale or less than 100% effort on the part of the project outsourcing company in Florida.
7: Are You Not A Strategic Partner?
The outsourcing company that you have associated with is your strategic partner and you should consider them as that. They are not here to just provide you with seasonal IT services. Let them know that they are contributing to the success of your business and are not here only for a singular IT task in isolation. It is important to make valuable associates for the long run so that your business can grow and prosper with them.
IT project failures or any kind of failures are not limited to just a certain size of business enterprises. They can happen with any organization belonging to any industry. Your project outsourcing needs are going to differ a lot from even your closest competitor in the same industry. This is because your internal organizational landscape is unique. Your needs are distinct and we at Linking Logics understand that pretty well. For more information on how to make the most of your outsourcing project process, contact us right away.