Which of the following is the primary reason why companies outsource?

October 11, 2021
5 min read
Which of the following is the primary reason why companies outsource?

Projects falling behind the schedule or failing? We discovered the number 1 reason why this happens and how to fix it!

We all been there, done that – planning a new project, got all excited about it but fast forward to the future – it never happened or happened but way later than initially expected. 

Let’s dig deeper what are the main reasons behind it and what are the best solutions for brilliant ideas to be implemented on time.

  1. Poor initial focus and wrong evaluation of the business needs

Project leader needs to have a clear vision of what he/she is going to do, as early as possible. That goes hand in hand with an understanding of the business’ needs – that is why projects are happening in the first place. It’s important to define what project success looks like at the very beginning and do not lose this focus until the end. If there is no clear focus at the earliest stage of the process, things will soon get out of control – and the project will be neglected or fall behind the schedule.

  1. Not having the consensus on priorities

Once the vision is clear and the team starts working on the project it can easily get lost if there’s no clear definition of the priorities. Make sure to decompose the project into “must-haves,” “should-haves” and “could-haves”, this can become a solid framework for the iteration. Also make sure that all team members are on the same page and every single person understand “must-have” as a “must-have”, to avoid situations when some team members start working and prioritizing “should-haves” or “could-haves”.

  1. The winner rarely takes it all

Too often, enthusiasm arises from the false belief that one solution will solve a given problem. However, proper solutions are rarely so straightforward and simple. Usually, they are a mixture of methodology, strategy, and teamwork, not the result of a single action, technology or idea. Project initiators/leaders should encourage open communication and leverage participatory group decision-making to solve challenges while implementing the project.

  1. Hello, procrastination!

Sooner rather than later team members involved with the project can experience the temptation to procrastinate and postpone the tasks related to a given project. This might happen due to various reasons, but mainly because they get overwhelmed by competing priorities – because they are involved in multiple projects at the same time and can not dedicate their time properly. This usually leads to a lack of motivation or even burn-out which results in procrastination.

  1. Weak leadership

Talking about motivation – guess what? There’s a direct correlation between good leadership and a motivated team and in the case of weak leadership…well the ship goes down rather fast. The efforts of any motivated team are 50% of project success. Let us reverse that – efforts of a team lacking motivation are 50% of projects fail. That is one scary number, ha?  Remember there are people – not only project managers – who at each management level have a responsibility to ensure that the project is successful. The worst-case scenario comes alive when those involved in supervising dedicated project managers start to micromanage rather than when support. The project manager when gets lost in providing information for the higher management and surely, he or she has neither time to track the project’s direction nor the time for motivating the team.

  1. Not enough attention to the budget and resources 

Your budget can be completely off – this goes to the very beginning of what can go wrong list: not having a clear vision, clear priorities, and clear “must-haves”. Till you have not sorted out these things, you cannot set the relevant budget and allocate the necessary resources for the project. Any project will face failure when resources run out. 

  1. Forgetting the end customer

Every project starts with a great idea, but does this lead to the research of how the end customer will benefit from it? Most often not. So going on with the project only means discovering that the problem you were solving was not actually the problem your customer needed to be solved. Doing the hard work of deeply understanding your customers, what they need and what they’re willing to pay for sets the ceiling on project performance and can help refocus a team when things do not go as planned.

Do you notice a common variable in projects who fail patterns?

 So we discussed 7 deadly sins that lead to failing projects and/or missing the project deadlines. Have you noticed anything they have in common? Take a moment to think about everything you’ve read above, and we bet you will come to the same conclusion. We call it to NUMBER 1 problem why projects fail.

Yes, you guessed it right – it all starts and ends with a team. Wrong team, weak project manager, unmotivated and burned-out professionals – many things can go wrong with the project when you dedicate its implementation to the wrong, not strong enough team or the team who is lacking resources.

If there’s a problem, there’s a solution!

The good thing we discovered the one problem that lies in every reason related to project failures. It’s so much easier to find a solution when you have a clear focus, we already talked about that. The solution that could save you from seeing your projects die, from losing investments and having burned out employees – staff augmentation. Or to put it in other words – digital-based employee outsourcing!

To prove this reasoning let’s take a look at which of the following is the primary reason why companies outsource?

Reasons might vary depending on the given company and the project, the bus usually digital-based employee outsourcing is used for:

  1. Reducing project costs. It is not always the best strategy to hire the professionals that you feel your team is missing. If the project is once in a lifetime or short term it will be too expensive to attract and keep the desired talent. Also, digital based employee outsourcing can help you save on overhead cost, as you will not have to invest on expensive infrastructure, technology, or software.
  1. Keeping focus on that matters the most. With non-core functions robbing time, money and effort, most companies are unable to concentrate on the core competencies, resulting in slow business growth. Outsourcing a part of your work can give you the flexibility to focus on the core aspects of your business. Since outsourcing increases the workflow, you can finish your projects and usually finish them faster.
  1. Accessing highly skilled professionals. This literally means staff augmentation based on the needs you have. For example, you might need to hire a remote developer, but are unable to find one. Or keeping him or her inside the house might be too expensive for you. Outsourcing can help you gain access to such skills and invest smartly.
  1. Managing the risks related to the project. The outsourcing of your non-core or even your core business functions to an external service provider helps in sharing the risks. Outsourcing is a good risk management strategy that you can apply for your company and really sky-rocket the possibility for your projects to be implemented on time.
  1. Compensate for insufficient internal resources. When you want to fill the position, you feel that is urgent for business development, do you take into consideration all resources and investments related to filling that position? Firstly, you need resources who find, hire and train new team members. There are also additional costs like software and all the necessary equipment needed for the employee to fulfill his tasks. Unlike internal staff, an outsourcing service provider can usually guarantee you with 24/7 services for 365 days a year, without vacations!

Conclusion: Outsourcing is the new black!

Outsourcing might be scary at first but based on the facts that you have just read it really seems to be a panacea for failing projects. Just think about it – one decision and you can augment your staff. You have a strong team, but it lacks a skilled project manager – outsource it! You feel that your project lacks market research and you do not have internal resources to carry it out – hire a market researcher on a short or long-term basis! A great idea has just been born in your head and you feel it can lead to your business development, but you are lacking internal resources or do not want them to burn out – hire the whole product development team!

Whatever doubts or questions you have related to digital-based employee outsourcing, we are here to help you.

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