8 Steps to Successful IT Outsourcing to Ukraine

Ukraine is one of the most attractive destinations for outsourcing IT nowadays, as it combines such benefits as big pool of IT talents, convenient geographical location, relatively low rates and cultural proximity to European countries. According to the “Central and Eastern Europe IT Outsourcing Review 2010”report 2010, IT outsourcing Ukrainian market value in 2010 made $697 mln, i.e. + 31,5% of growth in comparison to 2009 $530 mln. So one of the most vital questions all businessmen definitely ask themselves is how start outsourcing IT in the right way in Ukraine and what partner to choose between 940+ outsourcing companies in order to bear fruits and minimize their risks?

1. First of all define: what goals do you want to achieve?

According to classical outsourcing theory, outsourcing is used to:
  • Decrease project value
  • Improve quality
  • Delegate non-core activities
Be sure that you have clear vision of your goals and tasks before contacting with someone.

2.  Which risks should be taken into account?

Try not to delegate core activities to outsourcing vendors. This may cause many risks for your business. One of the main criteria for choosing outsourcing partner may be the possibility to change it quickly and without hassles.

3.  How get in contact efficiently with outsourcing vendors?

At the second stage pay attention to that fact that the main difference between outsourcing companies is in people that are working there. The company may has tremendous experience, but according to factual evidence, an average working duration of one IT specialist in Ukrainian outsourcing company is about 2-3 years. So take notice of people who will be in charge of your work, not those who offers you own services.

4.  Choice of team members

You should have opportunity of highest possible choice between IT specialists that the company offers you. Do not agree on the first employee you were offered. Look all of them and determine the choice criteria and only after that choose your team’s members. The rightly combined team is 80% of project’s success.

5. Discussion of project’s details

When discussing project’s details it is vital that communication with team and project manager would be at a high level and you 100% understand each other. The majority outsourcing failures are because of bad understanding of the main project’s goals and unqualified team members. Thus, in company Ainstainer Group we try as much as possible implement Agile frameworks for reaching the best results and mutual understanding of common goals.

6.  Contract agreement

When signing a contract agreement pay your attention to the ways and conditions of cancelling a contract, the cost of additional work and overtimes of employees.

7.  Work

The most crucial moment is working according to plans. At this stage you should be as much as possible be confident in professional competency of people that are involved in your project. The second important criterion is managerial structure that outsourcing company offers you. Have a look at Agile frameworks. With their help is much easier reach tasks’ transparency and control the project’s progress.

8. Completion

Determine the criteria of fulfillment the whole project. Which materials and resources do you need to get from outsourcing partner after the project’s completion. So, IT outsourcing today is a powerful tool for reaching company’s goals in short and long-range perspective.