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Topics: Offshore Recruiting, Offshore Recruitment Services, Offshore RPO, Offshore RPO Services

5 Successful Outsourcing Case Studies You Must read

Posted on September 25, 2023 Written By Sakshi Sharma

Did you know that according to a report , 63% of marketers consider case studies to be an effective content marketing tool? The present-day constantly changing business environment demands successful outsourcing to achieve growth. QX Global Group, a leading outsourcing firm, has a proven record of transforming businesses across various domains. 

In this collection of case studies, we explore successful outsourcing examples a nd how their expertise and technology drive remarkable results in diverse industries. 

Case Study 1: Engineering Staffing Agency Secures 654 Placements in 10 Months with Outsourced Recruitment Support

Client’s challenges.

• Delay in covering all the open roles  
• Limited bandwidth for the onshore team to cover all the open roles  
• Limited pool of candidates for locations with high open roles  
• The onshore recruitment team was unable to meet critical hiring deadlines

Solutions Provided

• Identified and set up a team of 15 offering Offshore Recruitment Services to deliver this project
• Trained the team to bring them up to speed with the client’s process, systems, and roles in under 30 days
• Weekly progress review call with the hiring manager to discuss
• locations with urgent hiring needs,
• focus for the coming week,
• upcoming roles for the team to pipeline candidates, etc.
• New jobs covered within 24-36 hours
• Built pipelines for repetitive roles to ensure the swift flow of candidates
• Open roles advertised on job portals and social sites to attract more candidates
• Streamlined the candidate application process into the client ATS
• Identified best practices from success cases, applying them to other openings as part of the continuous optimization process
• Kept track of the interview offers and started to keep a check on the success cases and gauge our submittal and turnaround time process

Case Study 2: GBS Model Implementation for Global Recruitment Agency

Business challenges.

• Transitioning from a long-withstanding region/entity-based structure
• Build a plug-and-play model to integrate services for newly acquired brands easily.
• Ensure continuous improvement of current processes to increase team efficiency, implement smart automation and
• build a scalable business model.

QX Solution

In order to bring about organisational transformation for the client, QX followed

a unique Transition-Improve-Transformation model:

• Transition: For the first six months of our partnership with the client, the QX team worked on process mapping, identified client requirements, did an in-depth risk analysis and did a comprehensive process baselining.
• Stabilise & Improve: In the 6 to 18-month period, the QX team focused on introducing ISO, monitoring processes, collecting feedback and ensuring continuous improvement.
• Transformation: 18 months into the partnership, QX moved into the transformation phase – bringing about smart automation, benchmarking and continuous process improvement.

Tools and technology implemented:

• Bank Download Tool – This tool has helped the process of downloading daily cash receipts from over 20 bank accounts
• PO Update Tool – This tool has helped clients eliminate manual efforts of updating the PO number on invoices.
• VMS Timesheet Tool – This tool has helped our client to automate the “Timesheet Download and Upload” process

Case Study 3: Optimising O2C Process for a Leading Recruitment Firm through Bank Download Automation

The client, which has a network of more than 40 brands that it has expanded via mergers and acquisitions, is one of the largest recruiting experts in the world. The client, one of the fastest-growing organizations in this market, concentrates on combining recruiting businesses servicing various sectors.

• The crew put in a good deal of time and effort each month to download more than 4,000 payments.
• Manually carrying out this procedure for several manufacturers increased the possibility of mistakes, such as missing downloads and duplicate downloads.
• The staff had to pay close attention to make sure that each payment was downloaded, handled carefully, and posted in accordance with the client portal’s specifications.
• The staff would struggle to separate IDF and current payments because to the huge payment volume, significantly increasing the chance of human mistakes.

How QX Helped

As a part of our solution, we performed the following activities:

• Created and built a bank download program that downloads and keeps all incoming payments from bank portals in a certain folder automatically.
• Initially, 20 organizations used the technology to automate bank downloads; as time went on, more companies did the same.
• Automation increased team productivity and download accuracy, which eliminated the potential for manual mistakes.
• To greatly reduce suspense balance, establish a smooth communication route between cross-functional teams.
• A highly adaptable system that can be simply adjusted to any changes in the bank site has been implemented.

Case Study 4: Streamlined Loan Approvals for Global Recruitment Giant Through IDF Automation Services

For the client, QX has worked on a number of projects, including end-to-end F&A transformation for crucial processes, including pay & bill, accounts payable, and accounts receivable, delivered using a Global Business Services model.

• When inputting bills manually, the QX team would invest a lot of time and energy.
• Manually separating invoices for the many customer brands raised the possibility of mistakes. This was a cause for worry because any uploading fault may result in the customer suffering a financial loss.
• The compliance staff had to exercise extra caution and frequently struggled to adhere to regulations. Fund flow leakages might be caused by any disagreement.
• The team had to pay additional attention to make sure that the requirements of the financial institutions were satisfied and that the data was posted properly in the required formats on their portal.
• IDF Automation technology was created and used to automatically separate intercompany and non-intercompany invoices on an account level.
• After that, non-intercompany accounts undergo the second stage of invoice level segregation based on criteria such as GBP & foreign currency invoices, credit notes, self-bills, and perm invoices. The system then creates the whole file, which the team may check and publish to the bank site.
• Successfully deployed the solution across 11 businesses to allow IDF process management.
• Configure the system to produce a consolidated report that aids the team in completing month-end reporting and reconciliation tasks promptly.
• The client’s quarterly audits may now be carried out more successfully thanks to the implementation of several persona dashboards with audit trails.

Case Study 5: Automating Data Parsing for Recruitment Agencies with Email Parser

Six of the top ten healthcare staffing agencies are among the top recruiting firms QX works with in the UK. These organizations frequently deal with a lot of emails with the same or similar material. Manually processing this data may result in a loss of time, money, and labor.

• The customer had to keep a team of 15 employees on hand to transfer job openings from their inbox to their front-end system due to the client receiving thousands of job posting emails from various Trusts.
• The organization’s competitiveness and turnaround time were influenced by the time it took to create the vacancy in the front-end system and deliver it to the recruiting consultants.
• Sometimes, two data entry personnel would select up the same opening, leading to duplicate opening entries in the front-end system.
• Closing openings that were filled requires tedious and time-consuming manual updating.
• Human mistake risk rose considerably when data was entered manually.
• Arranged for more than 30 Trusts to deliver vacancy alerts in organised formats (during the first two to three months) by configuring their email addresses and vacancy information structures.
• Create a system such that configuring any new Trust email address or accommodating any modification to incoming email or vacancy structure only takes 15 to 30 minutes.
• Set up a quick notification mechanism for the appropriate team members for any system exceptions.

In conclusion, these successful examples of outsourcing by QX Global Group serve as compelling examples of how strategic outsourcing can drive operational efficiency, cost savings, and business growth. These case studies showcase the tangible benefits that businesses can achieve by partnering with QX Global Group, from streamlining financial processes to expanding their global reach. 

Q. How successful is outsourcing?

Ans: The success of outsourcing varies depending on various factors but can be highly successful when executed strategically.

Q. What is successful outsourcing?

Ans: Successful outsourcing involves achieving cost savings, improved efficiency, and maintaining quality while delegating tasks to external providers.

Q. Why is outsourcing successful?

Ans: Outsourcing can be successful due to reduced operational costs, access to specialised expertise, scalability, and the ability to focus on core business functions.

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Originally published Sep 25, 2023 04:09:30, updated Sep 26 2023

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A Guide to Sales Outsourcing in the UK

Your company is growing and the next move is to scale to London and continue to increase revenue by attracting new customers with the help of sales outsourcing in the U.K. And now is the right time for you and your business to explore new markets abroad. Expansion into Europe raises all sorts of questions and there’s serious planning ahead. First decide on location and find the most desirable market for your SaaS product or service. Prior to planning your go-to-market process, strategy and plan — and any decisions around hiring an outsourced sales team — you need to consider the where and how. Once decided where, setting up, scaling and growing in the shortest time is the real key to success, as you move quickly with the best sales team.

Where will you choose to expand? There are plenty of good reasons to place a pin firmly on the U.K. Discover why the U.K. is one of the easiest markets in which to gain traction, and take some tips from our guide to sales outsourcing in the U.K., making the road to Europe and to successful selling, problem-free and smooth.

Post-Brexit U.K.: A different landscape

The Brexit referendum charged many a lively debate before, during, and after it was passed. The withdrawal of the U.K. from the European Union (EU) and the referendum itself damaged the economy , there’s no doubt. However, now that the dust has more or less settled, it’s safe to say that the U.K. is still a great place to expand to, to do business, and to consider sales outsourcing for your tech business.

The U.K. is a good choice for European expansion

Why might the U.K. be best for your European expansion? Measuring numbers is a logical start so let’s check out the stats :

• During the past five years in the U.K., tech companies raised £97 billion.
• Last year, the tech industry there continued to race ahead at record levels of success — £24 billion — higher than both France and Germany combined.
• There is more venture capital (VC) investment there than anywhere else in Europe.
• The U.K. has eight cities with more than two unicorns.

London is a natural landing point (from the U.S.) for technology companies like yours and post-Brexit it’s still a great place to work and live, with an excellent scale-up community as endorsed by our sales partner here at Sales Force Europe, Nigel Pollard . Working with us for the past 13 years helping tech companies go-to-market in the U.K., Nigel admits he has seen all the crashes and downturns from Brexit fallout to layoffs. “And in each case, there's been a shock and then a period of stagnation, before companies get on with it – or see their competitors beat them to market." 

Three reasons why the U.K. is the right choice for your tech business

The u.k. has no language barrier.

Paving the way and avoiding obstacles makes the fastest route. Prepare by looking at country-specific issues that might hold you up and find the best solution. One of the most obvious of these is language and the barriers that can bring. When you’re looking to attract new customers, suppliers, or business partners — strategic partnerships that will take you to sold — isn’t it just easier when they’re already speaking your language? That’s probably reason enough alone to make the U.K. an attractive contender for your tech offering, as you won’t have to invest in translating your English app and marketing materials.

SaaS is evergreen in the U.K.

Identify product market fit (PMF) and ideal customer profile (ICP) for perfect alignment. Your product has to closely match the chosen market, and you have to know exactly the customer who wants to buy it. There are of course, tech trends, and these should be closely monitored to ensure you are selling the most up-to-date and required SaaS solution or product. The U.K. is the place to be when it comes to fintech. The number of firms in that sector (1600) is projected to double by 2030. With over 76,000 jobs in the U.K., the fintech market is an important contributing industry to the country’s overall economy. Sustainability is a subject that everyone is talking about. The U.K. is known to be leading the race to a net zero carbon economy, with cutting-edge technology and revolutionary research, leading the way in clean growth. Perhaps that makes it just the right place for your sustainable and innovative greentech SaaS service or product?

Tax incentives for your tech business in the U.K.

The U.K. is an attractive and business-friendly location for expansion and growth. Worried about corporation tax? The U.K. has one of the lowest rates in the G20 at just 19%. There are also plenty of tax credits and incentives to take advantage of and be duly noted when considering the U.K. for your company’s growth and expansion into Europe. On the other hand, due to some government funding changes , visas are likely harder to come by, so partnering with a sales team already based in the U.K. might be the smarter move.

SaaS sales in the U.K.

The U.K. is a competitive market, but with a good sales strategy, a target market and a well-planned and carefully thought-out approach, you will succeed. The target market is already there. Your SaaS product or service is only as good as the sales people you hire who will be out there introducing it to your new U.K. market. First impressions count. 

A new market will mean you will encounter teething problems and issues to overcome.

The language may be one barrier you don’t have to cross when you expand to the U.K., but there are still regional accents and local cultural hurdles — and how to pour your tea and spread your scones — to be aware of and traverse. That can be overcome by sales outsourcing in the U.K.

U.K. business culture counts

Business culture is something we are all aware of today, how you do business is often the deal-sealer. Companies (and therefore new customers) will often prioritize this. British business culture exists. Punctuality is high on the list, as is politeness, trust, fairness and respect for diversity. Humor may sometimes be perceived as ironic, and may take some getting used to. 

Whoever you employ to take your product forward to a new U.K. market will need to be as fluent in British culture as they are in the language. 

Create a strong and local U.K. sales team

You will need the best-performing team. A team of strong sales representatives comprising experienced people who will get things done and get the sales that are necessary — fast. They will be locals, used to doing business in London or other U.K. cities and well-versed in local business culture. They will also understand the sales cycle, and how that has changed over time.

Our CRO at Sales Force Europe, Gavin Page , has worked in tech sales leadership and management in the U.K. for more than 30 years, including with scale-up companies from the U.S.

Gavin notes that despite the political turmoil of the past 12 months the U.K. remains in a position of relative strength, especially considering the more obvious and macro-economic factors of Brexit, the war in Ukraine and the pandemic, and the winners and losers from that. For tech companies the new way of working  — working from home and hybrid — has brought a change in infrastructure that they were already familiar with. There’s already a lengthening of the sales cycle, with those buying software solutions looking for a much more defined return on investment (ROI). Nobody is buying quickly or on a whim. Sales teams have to really look at what is being brought to the table and know their product and their customer, advises Gavin. “So ensuring that unique selling point (USP) and that return on investment, and making sure that those things are very, very obvious to your customer, is critical in ensuring that you don’t have your sales cycle derailed at the last minute. And again, focus on that, does it increase sales? Does it reduce costs? Does it do both? And be really clear about what that message is.”

By leveraging the services of sales outsourcing in the U.K., you will be able to get that message across with ease. You’ll stand out from the crowd with a tech-savvy London team of sales agents all managed at the local level. Relationships are still what close deals, especially when approaching channel sales, government contracts and telecommunications. 

Ask the experts

Don’t rush the initial decision-making. As much as you want to get in there and start closing deals, you have to get the process right with expansion and sales outsourcing in the U.K. Zero in on your target market, check out the competition, sure — but also consult market experts . Experts with professional specialization in your vertical that will act as your guide to sales outsourcing in the U.K. At Sales Force Europe we will also advise you how best to position your offering in the market, localizing the offering and presenting it in a way that's a good fit by a great outsourced sales team.

“It’s all about trust and experience,” says Nigel Pollard, “knowing what works for the client and for the customer, otherwise it just won’t work. It’s essentially about time, patience, timing, and of course, a little bit of luck.”

Utilize the Power of Lead Generation Services in Europe

The secret to tech sales in turkey, lead generation outsourcing vs building an internal sales team.

The Ultimate Guide to Outsourcing IT Projects in 2023: Best Practices and Tips

Home » Blog » The Ultimate Guide to Outsourcing IT Projects in 2023: Best Practices and Tips

Outsourcing IT projects is a trend in full bloom over the last couple of years. 

If you haven’t dabbled into software outsourcing projects as an entirely in-house business developer, perhaps, now must be the perfect time to do so. 

Back in 2022, almost 59% of worldwide businesses cited cost as one of the main reasons for outsourcing it projects. It’s cheap, it’s feasible, and when assigned to the right team, outsourced projects garner better results than expected.

Top it off with remote job perks and the flexibility aspect of things, more and more people are either looking for outsourced projects as full-time jobs or businesses looking to go all-in with software outsourcing projects.

As a matter of fact, Gallup did a survey on outsourcing it projects and remote jobs in 2022. The discoveries of that survey were astounding – all the more reason to go for outsourced projects as a vendor, and someone looking for remote opportunities these days.

• 5 in 10 people are working hybrid 
• 3 in 10 people are working remotely 
• 2 in 10 are entirely on-site. 

That being said, outsourcing it projects does have its limitations. Unfortunately, if it’s your first rodeo, the chances of you ending up with an incapable team, or a vendor who doesn’t work as advertised are higher.

Top it off with gaps in communication and commitment issues concerning deadline-oriented work, outsourced projects can become a nightmare to deal with.

Here are some of the best tips to get the most out of your outsourcing ventures.

4 Best Tips To Outsourcing IT Projects In 2023 and Beyond

1. Determine Project Goals and Scope Before Outsourcing

Not knowing what your project scope is, or whatever the end goal is, never going to get you there.

Software outsourcing isn’t supposed to be done on a whim, just because the cost factor seems attractive. Here are some of the reasons why you need to determine project requirements , scope, and goals before even considering outsourcing it projects.

Clear Communication: 

Defining the project scope and goals helps in establishing clear communication between the outsourcing party (client) and the service provider. 

It ensures that both parties have a shared understanding of what needs to be accomplished, reducing the chances of miscommunication and misunderstandings.

Requirement Alignment: 

Clearly defining project scope and goals helps align the outsourcing project with the client’s business objectives. 

It ensures that the project addresses the specific needs and requirements of the client’s organization. This alignment increases the likelihood of achieving the desired outcomes.

Resource Allocation: 

Determining the project scope and goals allows for proper resource allocation by both the client and the service provider. 

It helps in identifying the necessary skills, expertise, and resources required to execute the project successfully. 

Proper resource allocation ensures that the right people with the appropriate skill sets are assigned to the project, maximizing efficiency and productivity.

Cost Estimation: 

When outsourcing IT projects, determining project scope and goals enables accurate cost estimation. 

By clearly defining the project’s boundaries and deliverables, it becomes easier to estimate the budget required for the project. This information is crucial for both the client and the service provider to plan and allocate finances effectively.

Risk Management: 

Clearly defined project scope and goals assist in identifying potential risks and challenges associated with outsourced projects . 

It enables proactive risk management by assessing potential obstacles and developing mitigation strategies. 

Understanding the project’s scope helps both parties identify dependencies, critical paths, and areas where risks may arise.

2. Choosing the Right Type of Services Provider

This aspect couldn’t be overemphasized as it is. 

The biggest conundrum of it project outsourcing is delays, cost factors, and misconduct at the hands of a vendor. Here are some reasons why choosing the right services vendor is more important than ever before!

Expertise and Skill Set: 

The right vendor brings the necessary expertise and skill set required for the project. 

They should have a proven track record of successfully delivering similar projects and possess the technical knowledge and experience relevant to the specific requirements of the software project. 

Selecting a vendor with the right expertise ensures a higher probability of project success.

Quality Assurance: 

A reliable vendor prioritizes quality in their work. 

They follow established software development processes, methodologies, and quality assurance practices to deliver a high-quality product. 

Choosing the right vendor ensures that the software development lifecycle includes rigorous testing, code reviews, and adherence to industry standards, leading to a robust and reliable end product.

Communication and Collaboration: 

Effective communication and collaboration are essential for the success of any outsourcing project. 

The vendor understands the importance of clear and frequent communication and provides a dedicated project manager or a point of contact who can effectively communicate project updates, address queries, and ensure a smooth flow of information between the client and the vendor. 

A vendor with excellent communication and collaboration skills helps establish a strong working relationship.

Cost Efficiency: 

A reputable vendor provides transparent and competitive pricing models, offering value for the investment. 

They have a clear understanding of the project requirements and can provide accurate cost estimates. 

Moreover, a skilled vendor can optimize development processes, utilize resources efficiently, and minimize the overall project cost without compromising on quality.

Flexibility and Scalability: 

The right vendor should be flexible and capable of accommodating changes in project scope, requirements, or timelines. 

They should have the capacity to scale up or down resources based on project needs. 

Flexibility and scalability are crucial as they allow for adapting to evolving business requirements, ensuring that the outsourcing partnership remains viable in the long term.

3. Value-Driven Services Vs Cost Focused Services

If it’s value over cost, take it. 

In most cases, such will pan out in your favor due to the vendors’ expertise and years of experience in handling outsourcing IT projects. 

Some of the other reasons for value-driven outsourced projects are:

Tailored Solutions: 

Value-driven services emphasize customization and tailoring solutions to meet the client’s unique requirements. 

The vendor takes a consultative approach, understanding the client’s business context, and providing solutions that address specific pain points and deliver tangible value.

Collaboration and Partnership: 

Value-driven services foster a collaborative and strategic partnership between the client and the service provider. 

The vendor works closely with the client, actively engaging in discussions, providing insights, and contributing expertise to ensure that the project outcomes align with the client’s business objectives.

Quality and Innovation:

Value-driven services prioritize quality, reliability, and continuous improvement. 

The vendor focuses on delivering high-quality solutions that meet or exceed the client’s expectations. They actively seek opportunities for innovation and suggest improvements that can enhance the client’s processes and generate long-term value.

Long-Term Relationship: 

Value-driven services aim to build a long-term relationship with the client. The vendor invests in understanding the client’s business, industry, and future goals to provide ongoing support, maintenance, and strategic guidance beyond the initial project scope.

4. Go Into Pilot Mode Before Actually Signing Someone Up!

Pilot projects are smaller iterations for the full project where you’d eventually sign a contract with an outsourcing it projects vendor. 

Here’s why doing so is important:

Evaluating Capability: 

A pilot project allows you to assess the capability and competence of the development team. It provides an opportunity to gauge their technical skills, problem-solving abilities, and adherence to project timelines and quality standards. 

By testing the team’s performance in a smaller-scale project, you can make an informed decision about their suitability for larger and more critical projects.

Building Trust and Rapport: 

Outsourcing IT projects involves establishing a relationship of trust with the development team. 

A pilot project helps build rapport and establish a level of confidence between your organization and the outsourced team. It allows you to interact, collaborate, and communicate with the team, fostering a better understanding of each other’s working styles, expectations, and project dynamics.

Mitigating Risks: 

A pilot project helps identify and mitigate potential risks associated with outsourcing IT projects. 

It allows you to assess the team’s ability to handle project challenges, address issues, and adapt to your organization’s processes and requirements. 

If any issues or concerns arise during the pilot project, they can be addressed and resolved before scaling up to larger and more complex projects, reducing the risk of major setbacks.

Testing Compatibility: 

A pilot project provides an opportunity to assess the compatibility between your organization and the outsourced team. 

It allows you to evaluate how well the team integrates with your internal teams, collaborates with stakeholders, and aligns with your organization’s culture and values. Testing compatibility early on helps avoid potential conflicts or misalignments in the future.

Demonstrating Results: 

A successful pilot project serves as tangible evidence of the development team’s capabilities and the potential value they can deliver. 

It allows you to showcase the outcomes achieved, the quality of work, and the efficiency of the outsourced team to key stakeholders and decision-makers within your organization. Demonstrating positive results increases confidence in the decision to outsource larger projects.

Partner with Blue Zorro Today !

There you have it, some of the main reasons why outsourced projects are a big deal these days, and why it’s important to follow the aforementioned tips.

Blue Zorro excels in delivering all that and more, based on years of experience and a robust development and IT solutions implementation team. We have crystal clear communications and an agile framework where clients can keep track of project development from the get-go. 

It’s a ground-up approach with tons of flexibility and our ability to render personalization requests from the clients’ end, ensuring nothing but quality from long-term aspect.

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Software Development Outsourcing to London: Is It Worth It?

• Outsourcing
• Software Development Outsourcing to ...

The rising number of unfilled software development jobs and the global transition to remote work drive nearly half of organizations worldwide to outsource the development of their digital products. Some companies consider software development outsourcing to London, a city that holds the title of Europe’s biggest IT hub. But does outsourcing to the UK’s capital make sense from a business perspective? 

At Relevant , we analyzed the world’s biggest IT outsourcing markets. This article discusses the state of custom software development in London with its advantages and drawbacks. We also compare the UK’s market to other outsourcing destinations, including the largest Eastern European IT hubs.

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Table of Contents

Global software development outsourcing: Trends and rates

Before we get into the United Kingdom and its software development market, let’s look at the global picture of IT outsourcing. Below we review different regions in terms of technological trends, accessibility, and value for money.

North America

Top outsourcing destinations : the United States and Canada

North America is the world’s second-biggest tech hub (rivaled only by China’s), with over 26.8% of devs around the globe. According to the Bureau of Labor Statistics , over 1,469,000 employed software developers worked in the US in 2019. The employed software development workforce in Canada is approximately 462,000 . But these figures don’t include thousands of freelancers, unemployed specialists, and independent contractors.

This region is the heart of cutting-edge technologies and software development trends. According to the 2020 Network Readiness Index , the US is the leader in future technologies like AI or IoT. 

However, the North American outsourcing companies charge the highest rates in the world. Based on the 2021 State of Software Engineers , salaries of US engineers range between $115,000 and $171,000 per year. Canada isn’t that far behind with an annual $75,000 salary for a software developer (about $100,000 for a senior engineer). So, it’s not surprising that most European and Asian clients look for outsourcing companies in cheaper regions.

Latin & South America

Top outsourcing destinations : Argentina and Mexico

Latin & South America is an attractive outsourcing destination hotspot for international businesses. Argentina and Mexico are major players in the region.

The software development market in Argentina made over $1,5 billion in revenue in 2019. There’s a big pool of candidates because the government invests heavily in education and STEM disciplines (the country ranks 34th in the list of countries with the best education). There are hundreds of outsourcing companies in Argentina with an average hourly rate of $50 and higher.

Mexico is another supplier of qualified tech talent. Over the last decade, the government’s focus on IT has led to rapid tech infrastructure growth. Today, Mexico’s hub brings together several hundreds of software outsourcing companies. Their hourly rates range from $60 to $120.

Top outsourcing destinations : India

The South Asian countries, in particular India, make up the world’s third-largest software development outsourcing market. 

India has the highest number of IT professionals and the lowest median salaries. The IT and BPM industry in the country exceeded 4 million employees in 2021, and the numbers are growing. Plus, the average freelance programmer will cost you only $11 per hour, which makes India one of the most popular places for outsourcing.

However, cheap labor often results in subpar quality. Most Indian developers have little knowledge or experience with real projects. Some studies have found that only 5% of the country’s engineers can write correct program logic. Given that, picking a reliable vendor in South Asia is a game of chance, and the odds are rarely in your favor.

Southeast Asia

Top outsourcing destinations : Singapore and Philippines

Southeast Asia has recently become a major IT hub, recently thanks to the growth of tech industries in Singapore and the Philippines.

Singapore’s government focuses on creating an innovation-driven economy. This is evident from the country’s 2020 research and innovation plan and recent $300 million budget allocation for deep tech startups. As a result, the IT sector currently contributes 6% of the nation’s GDP . The Singaporean tech industry has over 220,000 people , and their annual salaries range from $65,000 to $108,000 .

The Philippines also has a vast pool of IT talent and outsourcing companies. According to Deloitte , the country’s business process outsourcing is expected to grow by 5.1% per year until 2033. An average software developer here earns about $8,500 annually . 

Both countries have a steady pool of candidates and above-average English literacy. However, a large time zone difference creates a communication gap for European and US clients.

Central & Eastern Europe

Top outsourcing destinations : Poland, Hungary, Romania, Czech Republic, and Ukraine

Eastern and Central European countries are go-to outsourcing destinations for international businesses. Let’s zoom in on some of the biggest IT hubs.

Poland has the largest developers population in the region. The country has over 300,000 professional engineers (with 17,000 specialists graduating annually) and about 800 registered outsourcing software development companies. According to the 2019 SkillValue report , local developers rank as the third-best in the world.

The IT market in Romania is also thriving. It’s set to reach $8.6 billion by the end of 2022. The government focuses on the expansion of the country’s IT pool and has over 7,800 graduates every year. Local software developers support many technologies and work with various programming languages. The SkillValue ranks Romania as the 22nd country with the best devs.

Moving on to Ukraine: many world-renowned companies choose Ukraine as an outsourcing destination for its advanced IT infrastructure and engineering talent. Based on the 2021 Tech Market Overview , the country is home to over 200,000 tech specialists and nearly 5,000 software companies. Thirteen Ukrainian firms made their way into the 2020 Global Outsourcing 100 list . Plus, some of Ukraine’s startups, like Grammarly, have become tech unicorns.

Outsourcing companies from Central and Eastern European countries are known for their technical expertise, English proficiency, strong self-management skills, and reasonable rates. An average IT project will be billed at $25 to $70 an hour—much less than in the US or Western Europe. 

Now, how do these regions compete against the British outsourcing market?

Should you consider outsourcing IT projects to the UK?

Outsourcing services are in high demand in Western Europe, with the total market expenses on outsourcing reaching $13.9 billion in 2019. In comparison, North American companies spent about $21.6 billion during the same period. 

The United Kingdom is Western Europe’s center for IT and software development outsourcing. The UK’s software market turnover may reach $30.3 billion by the end of 2021 (compared to $27.2 billion in 2018). At the same time, the country’s IT infrastructure outsourcing industry can grow to $14.9 billion in 2021 from $13.5 billion in 2018.

As you can see, IT outsourcing is a top industry in the UK. The main reasons for that are:

• Record demand for IT professionals. A software developer is one of the most sought-after jobs in the UK (with over 10,000 vacancies in April 2021 alone). Even though many local specialists are sitting on the bench, there just aren’t enough people to fill all the positions.
• High costs of in-house teams. Cost-saving is still the primary reason for outsourcing for 70% of companies . If you hire a software development team , you can save money on salaries, training, software licenses, hardware, and office rent. 

According to the 2020 LiveArea Research , 46% of British companies outsource IT and development. Over 37% of UK businesses plan to outsource them in the future to confront problems caused by the pandemic. 

Now, let’s see what you can expect from the UK’s technological landscape.

UK’s IT ecosystem overview

The United Kingdom is Europe’s most technological nation. According to the 2021 Tech Nation Report , the UK’s tech and scaleup ecosystems are valued at $585 billion. That’s much more than the runner-up ecosystem in Germany at $291 billion. 

The UK has robust tech initiatives and strategies. The 2020 NRI report ranks it as one of the top 10 performing countries based on its digital transformation readiness. The researchers note an impressive score in the areas of technology and IT skills among businesses and government.

The country has an enormous investment capacity. Based on the Tech Nation Report , the UK is ranked as the world’s second for fintech investment, third for investments in AI, and fourth for its blockchain ventures. On top of that, the UK has 25% of Europe’s highest investment tech cities, namely London, Manchester, Oxford, and Cambridge. 

When it comes to digital skills, the country has a strong regional bias. According to the 2021 Disconnected Report , the UK’s top software developers are mainly working in London. However, according to the 2021 Tech Nation Report , Britain is full of IT hotspots, including:

• London . A stronghold of the UK’s IT industry and the beating heart of startups. London has a fantastic talent pool and innovation initiatives. Plus, the city is home to over half of the country’s digital tech unicorns and tech scaleups.
• East of England . The UK’s second-largest IT cluster with nine digital tech unicorns and 12 high-value scaleups. The region is famous for Cambridge’s IT hub and colleges with good engineering programs. 
• North West . This region includes IT clusters like Manchester and Liverpool. It has five digital unicorns, four high-value scaleups, and many universities with degrees in technical industries. On top of that, Manchester is Europe’s fastest-growing tech cluster, with investments jumping from $66,5 million in 2018 to $251 million in 2019.
• Midlands . Many startups and outsourcing companies choose cities like Birmingham in the Midlands because it costs less to start a business there. 
• South East . The South East includes Oxford and Oxfordshire. These locations are full of innovative tech businesses (from engineering simulation to biotech). It’s also known for Oxford University, recognized as the world’s best university and Harvard’s rival.

Now, let’s look at some of the best outsourcing software development companies in the UK.

IT and software development companies in the UK

Overall, the UK is home to over 80 tech unicorns (almost as many as Sweden, Germany, France, and Israel combined). This places the United Kingdom close behind the US and China. Some of the country’s most valued IT companies include:

• Concentra 
• Raspberry Pi

You can find hundreds of software development outsourcing providers throughout the country. Some of the top players in the industry are DCSL GuideSmiths, GoodCore Software, and TatvaSoft.

Now, where should you look for an outsourcing company in the UK? With an overwhelming majority of digital skills and IT software companies in London, the capital might seem an attractive outsourcing destination for many businesses.

What about outsourcing to companies in London?

Given the sheer number of outsourcing destinations, does it make sense to hire developers in London ? 

The answer depends on your budget, goals, and your region’s software development prices. For example, given the rates of American software engineers, US companies might find London rates more acceptable. 

But what about clients from other regions of the world? Let’s discuss the pros and cons of developing custom software in London to figure this out.

Pros of outsourcing to London

You can expect many benefits from Europe’s biggest IT hub. The advantages of outsourcing to London include:

• Europe’s largest tech pool . According to the 2020 State of European Tech report , about 57% of the UK’s 850,000 software developers work in London. Plus, domestic universities like Oxford produce thousands of local talents every year.
• Expertise-oriented IT companies . London won’t disappoint anyone looking for an outsourcing application development company or bespoke software design services. Nearly hundreds of software development companies are listed on Clutch, and hundreds more are available for local clients.
• Advanced tech stack . London IT companies have access to the latest technologies. Based on the 2021 Technology and Innovation report , the UK ranks third with investments in frontier tech (robotics, biotechnology, and AI). Plus, the outsourcing market is actively adopting automation, cloud migration, and AI solutions.
• Openness to offshoring . The UK is Europe’s most open country to offshore outsourcing, according to the 2021 CBI study . So, most London companies won’t turn you down because of geographical distance.
• Time zone . Most clients can communicate with London-based software development companies in real-time because of their convenient location. The UK shares business hours with European countries. Besides, most US states and Canada are a few hours ahead, and Asian countries are just a few hours behind. 
• Native English speakers . Finding dedicated software development teams with proficient English skills isn’t easy (especially in Eastern Europe or South Asia). As you can imagine, you won’t suffer from language barriers when you work with native speakers.

What’s the catch? Let’s look at the downsides of London outsourcing to find out.

Cons of outsourcing to London

Outsourcing IT and software development to London isn’t without its drawbacks. Here’s what you should know before choosing the British capital for your next project:

• Sky-high rates . High costs of living, a hefty 19% statutory tax on corporate profits, and $93,000 to $116,000 average engineering salaries reflect developer’s hourly rates in the UK . According to Clutch , London’s custom software development vendors cost from $100 to $150 per hour (with top players charging over $300 hourly). 
• Lack of diversity . The British market faces diversity issues , with many groups being under-represented in today’s workforce. For instance, clients from Eastern Europe or Asia are unlikely to find a team with members speaking their language. 
• Shortage of new talents . Based on 2020 London Matters research , the capital’s flawed talent acquisition approach led to a lack of interest among millennials. As a result, there’s a shortage of young specialists with fresh perspectives.
• Complicated geo-politics . The decision to leave the EU resulted in many uncertainties and legal complications, with data exchange laws being the most notable for software engineering companies in London. Data protection in the country is regulated by the UK GDPR and DPA , but organizations have to follow other local laws depending on the software and end-users. For example, fintech app developers must follow EU GDPR, PSD, FAP, and MiFIR when creating software for European residents.

To sum up, extraordinary rates and complicated laws are the biggest drawbacks of London-based outsourcing. So, where can you outsource if you want to save money?

Best alternatives to outsourcing IT services to the UK for 2022

Cost-saving might be the primary driver for outsourcing, but it’s not the only one. If that was the case, everyone would hire developers from South Asia (with varying success). Scalability, technological skills, and communications are necessary ingredients for a successful product.

These are the aspects we looked at when compiling our list of best countries to outsource software development in Europe.

Czech Republic

• Software development companies on Clutch : <90
• Number of developers : >100,000
• Rates : $45-$120 per hour
• Popular tech stack : Python, SQL, C#, HTML/CSS, JavaScript 

The Czech Republic is a great destination for outsourcing in Eastern Europe. The country’s software industry is set to reach $1.33 billion by the end of 2021. This country was also the starting point for renowned companies like Avast and AVG.

There are 100,000 developers in the Czech Republic whose coding skills are ranked higher than those of devs in Western countries like the UK. In addition, the country’s universities produce more than 3,600 specialists yearly.

According to the 2020 State of European Tech report, the Czech Republic is Europe’s top country with the largest share of freelance developers. The yearly salary of local software engineers reaches about $41,000, while senior professionals usually make over $55,000 annually . Given these rates, local engineers and outsourcing companies are a viable alternative to most Western countries.

• Software development companies on Clutch : <100
• Number of developers : >80,000
• Rates : $35-$90 per hour
• Popular tech stack : Python, SQL, Java, JavaScript, C

Hungary is another great alternative to software development outsourcing to London. The country has over 80,000 professional developers, meaning about 1% of the population works in the ICT sector. In addition to the employed workforce, Hungary has a fair share of independent contractors. It’s currently ranked the 7th country with the largest share of freelancers .

The country has only an 18% voluntary attrition rate . This means you’re likely to work with the same development team if you partner up with a company for the long term.

The rates in Hungary are much lower when compared to software engineering companies in London, partially due to 9% corporate income tax (more than twice lower than in the UK). An average engineer makes about $30,000 per year, but a senior developer’s salary may reach up to $45,000.

• Software development companies on Clutch : >800
• Number of developers : >200,000
• Rates : $25-$70 per hour
• Popular tech stack : Python, SQL, Ruby, Java, JavaScript

Ukraine’s outsourcing market offers a combination of talent, high-quality services, and attractive prices. The IT sector reached $2.43 billion of export value in 2019 and could soar to $9 billion by 2025. Based on the 2019 Software Development CEE Report , Ukraine’s software R&D sector is growing almost five times faster than average global figures. 

As we mentioned, Ukraine has over 200,000 software developers and thousands of tech companies. And that number might grow to 250,000 by 2025 through the efforts of more than 150 tech universities , colleges, and boot camps training IT specialists.

Ukrainian software developers have exceptional tech stacks and experience across programming languages. SkillValue ranked Ukrainian specialists as 4th best globally, placing them 14 positions higher than devs in the UK. Besides, Ukraine beats most Western and European countries on TopCoder Country and HackerRank rankings.

Many countries prefer working with Ukraine’s specialists because of their advantageous geographical location and language skills. Overlapping business hours allow clients from Europe to discuss pressing issues in real-time. You’re highly unlikely to struggle from miscommunication, either, because 85% of tech specialists have an intermediate level of English. 

As for the prices, Ukraine has some of the best rates in Europe. Junior and mid-level software engineers here make about $32,000 yearly. And according to Clutch , top outsourcing vendors will charge you from $25 to $70 per hour. 

So, if you’re wondering about the market with the best balance of quality and price, you should seriously consider outsourcing to Ukraine.

Wrapping up

Should you consider outsourcing software development to London? The idea makes sense for US and UK clients who are comfortable with sky-high rates and regulatory uncertainties. 

If cost saving is one of your primary objectives—there are far better options. As we’ve established, Eastern European countries like Ukraine outperform most Western outsourcing destinations in technical skills and software development prices. 

Also, picking the right tech partner is more important than choosing the country for outsourcing. You need to ensure you’re working with a reliable company with industry knowledge, a strict vetting process, and an impressive track record.  Relevant has over 200 successful software development projects behind its back. Our knowledge, experience, and vast tech stack allow us to take up tasks of any complexity. If you’re interested in outsourcing your project to an experienced developer, make sure to drop us a line .

The advantages of outsourcing to London include access to Europe’s biggest talent pool, hundreds of qualified companies, and a favorable time zone. Besides, you’ll work with native English speakers open to offshoring. On the downside, you get exceptionally high prices and complicated post-Brexit data protection regulations.

According to Talent Up , the senior engineer gets up to $126,500 per year, which translates roughly to $500 per day (not counting the bonuses). However, the rates of software development agencies in London are much higher because of the benefits of corporate services and a 19% income tax and can reach over $300 an hour.

The best outsourcing destinations in Europe include Ukraine, Poland, Hungary, Romania, and the Czech Republic. These countries have hundreds of outsourcing companies, tempting prices, and some of the world’s best programmers with good English-speaking skills. For example, SkillValue ranks Ukrainian developers much higher than those in the UK. In addition, some of the best outsourcing vendors in Ukraine have a $25-70 hourly rate—times cheaper than in the Western outsourcing markets.

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IT outsourcing projects: UK vs USA

Itransition is a seasoned resident of the software outsourcing market. With projects completed for more than 800 customers from over 30 countries, the company has delivered custom software development to businesses in IT, energy, finance, retail and many more verticals.

Based on our portfolio, we are sharing Itransition’s experience with clients from the UK and the US — the two largest consumers of IT outsourcing services. Itransition has been working with clients from both countries since the company’s foundation. Now we are well-equipped to tell the difference between these two client segments and leverage this knowledge to help you manage your clients’ expectations effectively.

Let’s take a closer look at how UK outsourcing clients differ from those in the US and how to keep long-term and mutually beneficial business with both groups.

IT outsourcing profile: US clients

Typical clients from the US come from companies of different calibers — startups, high-tech companies, and multinational corporations. As a rule, the vendor is approached by a top management representative, such as a member of the board or a business owner.

Generally, when a US client makes a decision to find an outsourcing partner, it usually means they seek a long-term relationship. As they have a very positive attitude to outsourcing based on extensive prior experience, they are ready to invest big into a project and add even more when needed. However, they leave their partners little room for error. If there are any violations of an SLA, they won’t think twice to part ways in spite of the vendor’s successful track record throughout the project.

As for the project specifics, US clients describe their vision and needs broadly,

the way the company owner sees them. The decision regarding a potential cooperation is made swiftly — it usually takes about 90 days from an initial inquiry to signing the deal.

IT outsourcing profile: UK clients

When it comes to clients from the UK, we are usually approached by companies from the public sector, independent software vendors, and multinational corporations. The main difference from the US is that an initial inquiry comes from a personal assistant or a functional manager, and it takes much longer to make a decision regarding the cooperation — up to 150 days from an inquiry to signing the deal. Startup movement is also quite strong in the UK. And in these cases we deal with co-founders, typically, who are quite keen on building a relationship as they have less tolerance for failure.

UK companies also have a positive attitude to outsourcing, but they favor those vendors that have a representative office in the UK so that they could visit the vendor often. Otherwise, your chances to establish a long-term partnership are much lower. The interest in long-term relationships usually grows when the vendor is able to solve initial challenges effectively. However, even if there are some unsatisfactory issues, the vendor can be given a second chance if the overall performance has been otherwise excellent.

The project’s vision is usually narrower, and project requirements are more technical and issue-oriented. The goal is to solve a particular issue here and now, like automating a process, engineering a particular feature, developing a module, and so on. For this reason, budgets are much smaller compared to US outsourcing projects. The entire sum is usually broken down into installments.

5 key recommendations

Based on these client profiles, we’ve drawn up general recommendations that can help alleviate cultural differences and build successful relationships.

Give it more time with UK clients

UK clients usually take their time before signing a contract, so you need to account for it in your planning. Besides, consider setting up either a representative office or a fully functional operational center in the United Kingdom.

Work your way up to meet top-level UK business stakeholders

If you want to approach the most influential decision-maker on your UK project, you’ll need to prove your ability to deliver on your promises first. Only in this case you will get an opportunity to discuss your partnership with business owners or members of the board.

Expect more freedom and responsibility on the US projects

When working with US clients, you often get the set budget right away, even prior to having a detailed action plan, which you’re likely to be responsible for drawing up in the first place. With clients from the UK, you are bound to work with a smaller budget yet with a clearly defined roadmap broken down into iterations.

Bring your A-game with US partners

US outsourcing projects are like sprint competitions, while UK projects are more like a marathon. With US partners you have to start very fast and spend a lot of energy initially, with no sign of slowing down throughout the project. “You are only as good as your last performance,” Americans like to say, and they do business by this rule.

In the US, your service is treated more like a commodity than a partnership, at least at the beginning of cooperation. No matter how well you perform, you may often feel you are replaceable, so the pressure can get rather intense.

UK clients’ loyalty is forever

Even though initially you have to prove yourself in action to UK partners, if you do gain their trust you can be sure to continue the relationship and become a long-term collaborator.

The bottom line

It’s impossible to bottle the national peculiarities of UK and US IT outsourcing projects into a single infographic or a blog post. Still, this brief comparative study is a good starting point for every software development vendor who wants to understand how to approach these two cultures most effectively and reach mutual understanding.

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The role of outsourcing in project and programme management: the benefits

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Outsourcing is an essential strategy widely used by many organisations and businesses regardless of their size and field of operation. This article is part one of a series on outsourcing, and here we discuss the importance of outsourcing in project and programme management, and its substantial benefits.

Outsourcing is when all or part of an organisation’s activities are performed by others; it’s when organisations employ other parties known as outsourcers to carry out works and/or provide services the organisation would usually do in-house. 

Outsourcing is an important business strategy as it provides a range of considerable benefits such as costs certainty and optimisation, risk transferring, flexibility, increased quality and increased reach.

Here are the different types of outsourcing used by businesses:

• Internal and external : External outsourcing is used by almost all businesses to delegate some or all of their activities to a third party/third parties. However, in the internal model, companies employ outsourcers which are owned and/or controlled/managed by themselves, such as their subsidiaries, affiliates, or branches.
• Selective (partial) and full: Selective outsourcing is more commonly used than full outsourcing. In selective outsourcing, some of the activities of a business are outsourced, but in full outsourcing, all activities are delegated to outsourcers.
• Front and back office: These outsourcing models are mainly used for business processes or administrative activities including front office affairs such as marketing, customer services, public relations and back office affairs such as IT, human resources, accounting and finance, are carried out by outsourcers.
• Offshore and onshore (domestic) outsourcing : Offshore and onshore outsourcing is the practice of procuring services needed by a business through a oversea or domestic outsourcer, respectively. Offshore outsourcing is predominantly used by companies that operate or have projects overseas, like international construction companies.

The benefits of outsourcing in project and programme management 

Given the breadth, diversity and complexity of projects and programmes, practical strategies like outsourcing are of great importance. Outsourcing offers various benefits that are crucial and effective in completing and delivering projects and programmes:

• increasing efficiency
• facilitating procurement and providing access to needed expertise
• optimal management of human and financial resources and costs
• risks transfer

Depending on the organisations’ strategies and types, companies use outsourcing to develop and manage their projects and programmes, regardless of their size and sector of operation. 

Outsourcing helps in cost certainty because outsourcing contracts are often fixed, therefore the costs associated with projects and programmes are generally highly predictable. Moreover, outsourcing can help project and programme managers optimise the costs associated with implementing their projects and programmes, mainly by reducing overhead costs. However, it’s important to note, that outsourcing doesn’t always lead to cost reduction because outsourcing costs aren’t necessarily less than insourcing.

Outsourcing enables managers to obtain all or part of the services, expertise, and machinery required for their projects and programmes without needing to mobilise or allocate the teams, human resources, equipment, machinery, and other resources and requirements necessitated by insourcing. This enables managers to streamline their operations, concentrate on their core activities, and better manage and employ the resources earmarked for their projects or programmes.

Outsourcing enables transferring some of the risks associated with implementing projects and programmes to outsourcers. In an outsourcing arrangement, outsourcers are obliged to properly implement the work assigned to them within an agreed budget and timetable. Accordingly, the risks arising from delays, unexpected rises in prices, shortages of skilled human resources, etc, concerning the outsourced activities are automatically shared with outsourcers. 

Outsourcing plays a critical role in projects and programmes implementation, particularly complex ones. Organisations and managers can use and enjoy various benefits that outsourcing provides, such as cost certainty and optimisation, risk transferring, flexibility, increased quality and increased reach, in implementing a project and or a programme regardless of its size and type. The type and location of the project, programme and organisation concerned, and the executive strategies taken to implement the project and programmes, are determining factors in selecting outsourcing models.

Outsourcing doesn’t essentially lead to cost reduction but rather provides cost certainty, which is crucial in budgeting and cost management and the entailed risks. Stay tuned for part two of this series where we explore the risks and solutions in outsourcing.

You may also be interested in:

• A systems-based approach can improve outsourcing in government projects
• APM Guide to Contracts and Procurement
• Basic knowledge of contract law is essential for an effective project manager

Hossein is the Managing Director at Petro Power Construction and a council member of the British Exporters Association (BExA). He has over twenty years of experience in managing and implementing a wide range of projects in the Energy and Infrastructure sectors. Hossein specialises in economic evaluation and environmental impact assessments, risk management, investment and financing of projects in the above sectors.

Hossein is a Chartered Project Professional and a fellow member of the APM (ChPP, FAPM). In addition he holds various academic and professional qualifications in engineering, finance, leadership and management, renewable energy and land management.

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The 6 best online outsourcing websites (and how to use them)

Freelancer and Upwork are freelancing sites that facilitate and streamline the process of hiring virtual or remote workers.

Each of these sites have their own approach, but in essence, all of these companies allow you to do more or less the same thing.

You can post a job description, have people bid on the work, negotiate on price, and look at previous ratings and work history before settling on either a contract rate, or a pay-per hour agreement.

Generally, money is held by each of the websites in an escrow account, and they release the payment to the worker when the work is complete (skimming a neat profit at the same time – typically 10-15% of the money that changes hands).

The best outsourcing websites

• Freelancer.com
• Amazon’s Mechanical Turk

Read on as we will review each of them later.

See how Time Doctor’s easy-to-use time tracking software can help your team be more productive.

So why outsource.

Freelancer (an online job marketplace acquired by Freelancer in 2012) argues that online outsourcing makes workers “more accountable”.

With 54% of traditional workers in the U.S. “sleepwalk through their day” and an additional 18% actively sabotage other workers, a Gallup Research says, “in today’s competitive environment, that’s simply unacceptable,” says Freelancer founder Ian Ippolito.

“When I hire a traditional employee, I can’t be sure they’ll do the job right, spending time at the water cooler or playing solitaire instead. But in our virtual environment, we’re proud to guarantee performance,” Ippolito said.

The added flexibility of having to hire staff only when you need them is another reason why many businesses are turning to online outsourcing . You also can get access to top quality people at a much lower rate than if you were hiring in your own country and the cost savings can be very significant.

To hire a quality programmer in California is probably going to set you back $80-$120 per hour.

Using outsourced web sites you can find quality programmers in the US for $30-$40 per hour, or in India, the Philippines or Russia for $10-$15 per hour.

Additional Tips:

If you are managing remote teams, take a look at these strategies for managing virtual teams . See also the online collaboration tools to help your team be more productive .

Outsourcing and freelancing sites allow entrepreneurs to easily launch side hustles and affiliate sites without incurring huge labor costs.

Getting started

Outsourcing can be overwhelming at first – each of these sites uses a different system, have a different layout and can take days to get used to.

Deciding on which site to use while striking the balance between competitive rates and effective results can be like walking a virtual tightrope.

As mentioned above, all of these sites will require you to:

• Post your job.
• Start receiving proposals from candidates.
• Compare profiles, reviews, ratings, credentials, portfolios and price to select the best fit. Methods of payment and working together generally vary from site to site (explained in more detail below).

We ourselves have been active in online outsourcing for over 10 years and our virtual team extends to several countries around the world. We’ve used these sites many times for many different projects (small and large).

Here’s what we know.

Based on Compete.com rankings, these six sites are the top outsourcing sites on the internet (at least in terms of traffic). From most to least popular:

How it works: Pay only for verified time spent working for you – Upwork’s Work Diary software allows you to see each of team members activity levels (keyboard and mouse activity), and feedback, as well as web cams and screenshots of their computer to make workers more accountable.

Payments: Based on hours worked, or completed jobs.

Fees: The fee is 10% of the employer’s payment to Upwork which equates to 11.11% on top of the amount paid to the contractor.

Our experience: Upwork is great when you have a task where you’d prefer to pay by the hour. Also, note that Upwork is formerly oDesk, which merged with Elance in 2013.

Check out our comprehensive Upwork review if you want to go into more detail about the platform.

2. Freelancer.com

How it works: When you hire a worker you need to create payment milestones, as milestones are completed, payment is released.

Payments: Based on milestones, or completed work.

Fees: Here’s where it gets messy:

• Posting a project – $5, refundable, fully refunded on selecting a Service Provider.
• Selecting a Service Provider – $3 or 3%, whichever is higher
• Posting a Featured Project – $19
• Hide Project from Search Engines – $3
• Optional Hide Bids from Other Users – $3
• Gold Membership – $24.95/month, 0% project commissions
• Posting a Full Time Project – $99.95

Our experience: Better for project based work (one off jobs). Easy to use, and suited to smaller jobs – “The average job is under US$200, making outsourcing for the first time extremely cost effective for small businesses .

We also have a full Freelancer review if you want to learn more.

How it works: Pay for completed work.

Fees: Memberships are available from $29.95 to $99.95 per quarter.

• Project Fee – Either 5 or 10% of the Invoice or Escrow amount, depending on your membership level.
• Escrow Fee – 2% of the escrowed amount. Only charged when SafePay Escrow is used.
• Employer Payment Method Fees – Up to 4% for a credit card payment and 2.5% for Withdraw Method Fees – $3 to receive funds by check and $9 to receive funds by wire transfer.

Our experience: Caters more to US based freelancers (182,000 workers in the US vs 51,242 in India, and only 1,887 in the Russian Federation). Working with a native English speaker is sometimes a good option when you need to be able to verbally communicate project requirements.

Guru is also a good option if you are looking to work with a US based provider.

4. Amazon’s Mechanical Turk

How it works: This platform provides developers with access to an on-demand workforce with a flexible UI with a simple API.

Organizations use crowdsourcing via MTurk for help with things like microwork, human insights, and machine learning development .

Fees: You decide how much to pay the person you hire.

• 20% fee on the reward and bonus amount (if any) you pay Workers.
• HITs with 10 or more assignments will be charged an additional 20% fee on the reward you pay Workers.
• The minimum fee is $0.01 per assignment or bonus payment.

Masters qualification fee:

• There is an additional fee for using the Masters Qualification.
• The fee is 5% of the reward you pay Workers.

Premium qualifications:

• There is an additional fee for using Premium Qualifications .
• The additional fee per assignment starts at $0.05 and varies depending on the qualification .

Our experience: It’s a strange name, but it has some great functionality. MTurk is based on the idea of taking a job and separating it out for many different people to work on (in pieces).

It’s an interesting approach and worth checking it out if that approach fits your project requirements.

5. DesignHill

How it works: Post a brief where you describe your project, choose a package, and then launch your design project.

You’ll browse dozens of designs that designers submit to your contest. Then, you can give feedback and get unlimited revisions. You get to choose the best one when all is said and done.

Fees: Fees vary depending on which package you select. Fees vary from $199-$999.

Our experience: This is a good option if you have a limited budget for graphic design and/or want to choose from more style than one.

The crowdsourcing option gives you the opportunity to limit down designers until you’ve found the one you like the best.

How it works: Professional freelancers post “gigs” and buyers can review the gig, contact the seller, and see the price.

Once a gig catches a buyer’s eye, they can enter into an agreement and start working on a project together.

Fees: The buyer will pay full price of the gig, usually via PayPal or CC, the seller keeps 80%, and Fiverr keeps the other 20%. If a gig costs the traditional $5, the seller keeps $4, and Fiverr keeps $1.

Our experience: Fiverr started out with most freelancers posting their services for $5. Freelancers can now post their starting rate, and also provide add-ons. Even though gigs sometimes cost more than $5 , the prices are still outrageously low. It’s possible to strike gold and find remote work for very reasonable prices.

You can also try out the other sites like Fiverr for the more reasonable prices for the different tasks.

Which site is best?

In short, it depends on the type of work that you are doing.

For hourly work, Upwork is possibly the best option. For one off project based work, Guru and Freelancer.com are great options as they have a process where you upload funds into escrow (giving the provider and reassurance).

Disputes over completed work are usually handled swiftly – although it’s important to have a clear job description (see below – Tips for posting jobs). In our experience Freelancer is best for getting project based work completed.

Guru is great if you are looking for a US based provider. With Upwork the providers often have to pay to bid on projects. This provides a bar that eliminates some of the lower quality providers. The result is that you are more likely to pay a little more, but you are also more likely to get a good end result. Places like Fiverr have workers all over the world, but the prices are also more than fair.

If you are looking for a specific type of work, DesignHill and MTurk are more focused. These might be a great place to start if you know what you want, and want to only hire a designer, for example.

It’s hard to say which site is the best, because it depends on your preferences, your goals, your budget, and how you like to work with remote workers.

Each outsourcing website is different, and you’ll get different features, different benefits, different types of remote workers, and different expertise. The best idea is to check them all out and see what works best for you individually.

Comparing the software used to monitor paid by the hour work

If you are hiring on an hourly basis you’ll want to monitor how many hours are worked (and confirm they were actually worked).

If you develop trust in someone you might not need to do this, but generally it’s hard to trust a new person that you are paying on a hourly basis that they will deliver the results you want (and/or that they aren’t just sitting around fiddling with their mouse).

Upwork has a “similar tool” which takes screenshots of the person’s computer at regular intervals.

Time Doctor (that’s us!) is another alternative which can be used to monitor paid by the hour workers.

It’s a much more comprehensive and a more effective tool for working with remote teams and has many advantages including automated reports, time usage reports (for application and internet usage) and it doesn’t attract an ongoing fee (as the Team Tool and AccueTime Card would).

Project based work versus paying an hourly rate

Generally, you can hire either on a project basis, paying for a completed project , or on an hourly basis.

Project work is generally safer for you as there is a fixed amount you need to pay to get the task complete.

When you hire on an hourly rate you don’t have any reassurance of the maximum amount that you will spend.

An hourly rate is more appropriate for longer term work or where you have a variety of different tasks for the person.

Tips for project based work

If you hire on a project basis, make sure that you do complete and detailed specifications of the project . Exactly what do you want to happen, how will you know when it is complete.

List the requirements in detail. Be careful that you select someone who has experience doing projects of a similar level of complexity.

It is easy for freelancers to say yes to a project without thinking through how difficult it might be to complete (particularly if they are desperate for work).

Having someone quit halfway through a project is the worst possible outcome (and an experience we’ve have had many times).

Having to start over means you lose time and money. Learn from our mistakes – see below.

Hiring an individual versus a team

On all of these sites, there are generally 2 types of workers – individuals and teams.

The advantage of hiring an individual is that you know exactly who you are working with and you can get familiar with the working style of that person.

If you are working long term on an hourly rate, you can negotiate lower rates if you are working directly.

You will also have more control if you are hiring a person rather than you hiring a company which has a number of employees. On the other hand a company might bring more training, synergy and an environment where people can ask for advice and direction.

In our experience working with an individual is a better move especially if you are working together in the long term.

Which country should you hire in?

About 5 years ago, we worked with an online researcher and programmer based in Mumbai.

Things were going so well that we asked him to set up an office for us. We paid for computers, office space, etc and wrote up some contracts for 2-3 new staff who would work under his supervision.

5 weeks later we received an email that went something like this:

“Hi, I am the younger cousin of ________ and he is forcing me to do work and doesn’t pay me. He threatened to stab me with a knife if I talk to you”.

Our Mumbai contact had forged receipts for office equipment, falsified personal documentation and was sitting between 2 computers pretending to be 3 different people.

In general most of our experiences with workers from India, Bangladesh and Pakistan have been negative.

In our experience, it’s common for freelancers to ask for bonuses before work is completed, complain that the work is taking longer than expected, ask for money, and will often create really poor excuses for not reaching milestones: rare diseases, non-existent floods, house fires and everything in between have been used to excuse under-performance.

As always, it really depends on the person.

There are extremely talented people in India, however it is sometimes difficult for you to get access to them on freelance sites .

We work with a designer who is Indian – he’s an illustrator and does great work and has never missed a deadline.

It’s important to look at work history carefully to make sure that past performances matches would you’d expect from a worker (and make sure their experience is in the right area). If they have multiple very high ratings on the freelance site you are more likely to be pleasantly surprised rather than disappointed.

Other locations

Former Soviet Union (Russia, Belarus, Ukraine etc) – a good place to find low cost, technically superb coders.

Usually not the clearest communicators (or the best designers), and you’ll have more luck if you have a detailed blueprint at the beginning of a project. However, they are generally hard workers and honest in answers to any questions you have.

Philippines – incredibly diligent workers in all areas. It’s possible to find good writers, marketers, researchers and programmers. One of the cheaper places to hire great staff.

USA / Canada / UK – excellent if you are looking for skills in a particular area, but it’s important to look at work history.

We’ve had bad experiences hiring people who are new to freelancing. In general hiring someone in these places is more likely to get you a better result but is also more likely to be 2-10 times more expensive.

Graphic / Web design – don’t hire designers from South East Asia if you expect a western looking result. South America seems to have good illustrators and Flash programmers.

Expats – hiring someone from the US or UK living in Thailand for example can be a great way to get very talented people at a lower hourly rate.

Their living costs are lower and they might not find it easy to get a high paying job in their place of residence – freelancing might be an extremely appealing option. Try advertising on expat forums.

Note: In each country be aware of natural disasters. For example, typhoons can wipe out power to entire cities for a number of days in the Philippines. Political turmoil or severe heat waves can also create problems in some countries.

Tips for selecting the right worker

A common struggle with online outsourcing is ending up with people that can’t get the job done or leave half way through a project.

One way to overcome this problem is to hire people that have good feedback and ratings. If we are posting a complex job, we never hire anyone with less than 30 completed jobs and they must have ratings of higher than 90% (or 9 out of 10).

Another way to dissect your applicants is to avoid any generic responses. If someone hasn’t addressed your criteria in a clear and simple way, it’s probably not worth looking at their work history.

You can even put a simple test in your job description like “mention the word elephant when you are replying so that I know you’ve read our job description in full”.

Kick the tires

Although it takes a little longer, if the job is important, you should create a small test that can evaluate a person’s skills.

For example when hiring a writer for my website, I asked them to write 3 sentences for a specific page on my site. “Please look at this web page, evaluate the current content and then add another paragraph of 3-5 sentences that you think are missing on the page, and that fits with the current style of the content”.

Here’s a very good example of a short job advertisement / test by Jason Fried from 37 Signals they used to hire customer support representatives for their business.

Alternatively (especially for larger projects), hiring someone for a small-project they can do in their spare time is a lot easier for both sides to swallow. “Kick the Tires” in Getting Real talks about this:

Before we hire anyone we give them a small project to chew on first. We see how they handle the project, how they communicate, how they work, etc. Working with someone as they design or code a few screens will give you a ton of insight. You’ll learn pretty quickly whether or not the right vibe is there. Scheduling can be tough for this sort of thing but even if it’s for just 20 or 40 hours, it’s better than nothing. If it’s a good or bad fit, it will be obvious.

It’s also a good idea to think hard about what you’re offering and how you can make your situation as attractive as possible: flexible hours, bonuses for work completed before deadlines and any other sweeteners will help attract a great pool of workers to select from.

The most common frustration is in not getting the output that you desire out of the contractor. Another potential problem is needing to spend a lot of time back and forth training the person or fixing issues with their work.

Here are a few pointers for overcoming these and other challenges:

• Hire people with a lot of great feedback.
• Test many different people, possibly using several different outsourcing sites.
• After testing, select the best few people and hire all of them. Then start working with these few different people on test projects and continue working long term with the ones that produce the best results.

Really it’s a matter of trial and error to a large degree, and once you work with dozens of people you will find a few who always come through for you and whom you can depend on.

Over time you’ll develop a list of preferred contractors that you can contact for work that you know they can deliver.

What can you outsource with these sites?

Theoretically, you can outsource anything.

Looking at the types of work listed in Upwork for example there is: programming, web design , writing, sales, customer support even legal work or accounting.

In practice the more specialized and complex the task, the more difficult it is to find the right person on one of these sites.

Hiring staff directly vs using an outsourcing site

Outsourcing sites are best for finding people to do project based work.

If you want a longer term full time person you might want to try hiring them directly. Target the country or area where you are most likely to find the right staff. Then use a multi-pronged recruitment method including: posting on job sites, Linkedin, posting in relevant forums and referrals from people in your network.

Recruiting remote staff (in your own country or abroad) is really no different to recruiting locally. All of the same hiring and firing principles apply.

In the US, Craigslist, Linkedin, Monster are good ways to advertise for people. Sometimes you can get better results from word of month, from advertising on Facebook or from advertising or relevant forums or industry specific web sites.

For example if you are recruiting Java programmers, there are a number of Java forum websites where you can advertise for free or for a small fee. This helps you to go direct to the place where your target employees are hanging out. You can do the same thing with Linkedin.

Recruiting overseas in the Philippines, Russia, India etc is similar.

You can use Facebook, Linkedin or local job websites to recruit in all of these places. For example to recruit in the Philippines you can use BestJobs.ph .

In Romania, there are English language job websites like bestjobs.eu . In general, it’s not hard to find popular job sites any country and posting a job ad is usually $50 to $100.

In other developed countries you will find sites like Gumtree (Australia) where you can advertise jobs for free (or find people looking for work). Similarly, in the U.K. Where the job market is tight you can find highly skilled travelers who might be interested in any sort of work (try the jobs section in TNT Magazine ).

10 tips for posting projects requirements

• Write your description as if you are explaining them to a 10 year old child
• Set clear milestones if you want use them for payments
• Ask someone else to read your project description before uploading it – sometimes things that make sense to you will make no sense at all to someone who has no involvement with your project or company
• Invite workers who have matching experience. For instance, if you are looking for Joomla help, search for workers with Joomla experience and good ratings. Sort them by the last sign in date and then invite them to your project.
• If you are worried about protecting your intellectual property or idea, create an NDA and make sure you are exchanging it with a real entity. Make your terms and conditions reasonable (most of these sites have a standard NDA you can modify).
• If you don’t want to draw attention to what you are doing, keep your job description vague and discuss details only with parties you are interested in working with.
• Post the majority of your job description in an attachment and leave a small “test” to make sure the person has read the description (for example, mentioning a particular word or asking them to address 2-3 key criteria).
• Use a service like gomockingbird.com to clearly outline your ideas in a visual medium
• Make your project sound exciting and include that it will look good in any portfolio
• Post your job to specific geographic regions depending upon the sort of worker you are looking for.

Remote work is growing as a viable, cheaper, and often better option when it comes to building your team. Let this article act as a resource in helping you find the right remote worker for your organization.

Book a free demo of Time Doctor

Rob Rawson is a co-founder of Time Doctor which is software to improve work productivity and help keep track of what your team is working on, even when working remotely.

8 high paying remote jobs

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Top 100 Business Processes Outsourcing (BPO) Companies in the United Kingdom

United Kingdom

The Best of April 2024

Looking for a top business process outsourcing company in the united kingdom.

A BPO services firm provides expert services for particular business processes that many companies don't possess in-house. Finding the best one for your company, though, is challenging.  Read more +

To assist you in your search for a partner, we’ve compiled this list of the top BPO companies in United Kingdom. Browse descriptions, feedback, and awards to find which can best suit your company’s needs.

List of the Best United Kingdom BPO Services

Service Excellence

Would Recommend

• Min. Project Size "> $1,000+
• Company Size "> 250 - 999 employees
• Location "> Edinburgh , United Kingdom

SmartPA is the leading UK virtual assistant company, based in Edinburgh. Founded in 2008, they have over 300 employees that serve businesses of all sizes. Let SmartPA’s virtual assistants handle your and PA tasks remotely for a flexible monthly package.

• Krispy Kreme
• Total Oil & Gas
• Edinburgh Univertsity
• Financial services " >
• Medical " >
• Hospitality & leisure " >
• Non-profit " >
• Real estate " >

Get connected with a company for free

Tell us about your project, and we'll match you with vetted companies that meet your requirements.

• Min. Project Size "> Undisclosed
• Location "> Wrexham, United Kingdom

Moneypenny is a call answering and managed live chat firm based in Duluth, Georgia, that was established in 2000. Their team of over 1000 employees answers calls and live chats for mid-market and large companies looking for more personalized service.

• Eagle Bioscience
• The Federal Saving Bank
• Keller Williams
• Advertising & marketing " >
• Business services " >
• Consumer products & services " >
• Education " >
• Government " >
• Information technology " >
• Min. Project Size "> $5,000+
• Company Size "> 50 - 249 employees
• Location "> Fleet, United Kingdom

Operatix is a midsize sales outsourcing company based in Dallas, Texas and Fleet, United Kingdom. Established in 2012, the team focuses on sales outsourcing and call center services.

• eCommerce " >
• Telecommunications " >

Excelerate360 Ltd

• Location "> Hitchin, United Kingdom

Lead Gen Dept.

• Company Size "> 10 - 49 employees
• Location "> London, United Kingdom

The Lead Gen Dept is a digital agency based in London that specializes in helping B2B companies generate and engage sales-ready leads with your ICP. Founded in 2019, The Lead Gen Dept has a specialized team helping clients to connect and book meetings with pre-approved target accounts. They have significant experience in the enterprise space and take care of all the top-of-funnel activities leading to a prospect requesting a call.

• ThinkAutomation
• Grey Monarch
• GPS, Navigation & GIS " >
• Manufacturing " >

Verbatim Virtual Receptionists

• Location "> Thatcham , United Kingdom

Verbatim Virtual Receptionists is a call answering service company that was founded in 1997. Based in Thatcham, U.K., the team of about 10 employees does voice services and non-voice BPO and back-office services, including virtual receptionist, inbound appointment scheduling, B2B lead generation and qualification, and online customer support.

• Knight Frank
• Volkswagen Group UK
• HelpAge International
• NRG networks
• Automotive " >

Face for Business

• Location "> Burscough, United Kingdom

Established in 2011, Face for Business is a customer service outsourcing company. The small team provides customer service outsourcing. The company is in Burscough, United Kingdom.

Established in 2021, Growth Hub is an other marketing company. The agency offers other marketing and business consulting and has a small team.

The Contact Company

• Company Size "> 1,000 - 9,999 employees
• Location "> Birkenhead , United Kingdom

The Contact Company is an outsourcing firm based in Birkenhead, U.K. Founded in 2006, it has more than 250 employees who specialize in non-voice BPO/back office services and voice services. The team primarily partners with enterprise and midmarket clients in the business services, financial services, retail, telecommunications, and e-commerce sectors.

• River Island
• Arts, entertainment & music " >

Virtual Sales Limited

• Location "> Horsham , United Kingdom

Small direct marketing company Virtual Sales Limited, is in Horsham , United Kingdom. They specialize in direct marketing and market research and were launched in 2001.

SalesCaptain

Sales outsourcing company SalesCaptain was launched in 2021. Their small team is located in London, United Kingdom. SalesCaptain provides sales outsourcing, direct marketing, CRM consulting and SI, call center services, and more.

• The C2 Group

CALLCARE is a midsize call center service launched in 1998. Their services include voice services and non-voice bpo/back office services. The company is based in London, United Kingdom.

• Min. Project Size "> $250,000+
• Location "> Leeds, United Kingdom

Arise is a business process outsourcing company headquartered in Miramar, Florida, with offices in Atlanta, Orlando, and Canada. Established in 1994, they have a team of about 2,000 that provides both voice and non-voice BPO/back office services.

• Utilities " >

One Umbrella

• Company Size "> 2 - 9 employees

One Umbrella is a SaaS & tech digital marketing growth company based in London. The company, founded in 2019, has a team of less than ten that provides social media marketing and PPC services. One Umbrella serves small and larger-sized companies in the business services, education, IT, and e-commerce industries.

• Giulio Fashion
• Eighth.Studio

AMD Digital

AMD is a business consulting company. The small London, United Kingdom-based agency was established in 2019. Their services include business consulting, email marketing, advertising, voice services, and more.

• Mind Future Gaming
• The PR Genius
• Energy & natural resources " >

Paragon Sales Solutions

• Location "> Countesthorpe, United Kingdom

Paragon Sales Solutions is a telemarketing and marketing agency founded in Leicester, England in 2019 with fewer than 10 employees. They offer social media marketing, business consulting, and voice services for small businesses.

• App Sapiens
• Go Gloucestershire Communications
• Fourwards at Ashfields
• Location "> Harlow, United Kingdom
• Location "> Crewe, United Kingdom
• Supply Chain, Logistics, and Transport " >

Prospect Connect

Friday solved, glo - generate leads online.

• Location "> Ipswich, United Kingdom

GLO - Generate Leads Online is a freelance digital marketing agency based in Ipswich, England. Founded in 2019, the company offers SEO, web design, and PPC services to small businesses. Their SEO services focus on on-site optimization, link earning, and local search.

• Fees Free Mortgages
• Orwell Fitness
• Bosch Auto Service

Orpiv is a digital marketing agency that has been offering web development, social media marketing, and other digital marketing services to their small business, enterprise, and mid-market clients in the IT, business services, and advertising and marketing industries since 2014. Their 50 employees are based out of their offices in Baramulla, India and Denmark.

Deeper Insights

• Min. Project Size "> $25,000+

Founded in 2014, Deeper Insights is a London based machine learning and data science consultancy. With another office in Portugal, their team of 10 specialize in artificial intelligence, big data consulting, custom software development, and business consulting. Their mid market and enterprise clients are primarily in the advertising, consumer products, financial services, and health care industries. 

• Smith and Nephew
• Breast Cancer Now
• Location "> Poundbury, United Kingdom

Gungho Marketing , an email marketing and sales outsourcing company, is based in , United Kingdom. The firm offers email marketing and sales outsourcing and has a midsize team.The firm was established in 2007.

The Telemarketing Company

Not yet reviewed.

• Min. Project Size "> $10,000+
• Location "> Brighton, United Kingdom

Located in Brighton, United Kingdom, The Telemarketing Company is an answering service. Launched in 1990, the midsize team provides voice services.

Online Giants

• Location "> Kingston Upon Thames, United Kingdom

incite is a growth marketing and lead generation agency in Kingston Upon Thames, United Kingdom. Founded in 2003, they have about 7 employees that serve mostly small businesses in the advertising, IT, and business sectors. Services include business consulting, content marketing, and digital strategy.

• Location "> Nottingham , United Kingdom

Phone answering service Answer4u is located in Nottingham , United Kingdom. The agency provides voice services and non-voice bpo/back office services and is midsize.The agency was founded in 2004.

• Location "> Portsmouth, United Kingdom
• Yes Optimist
• Location "> Manchester, United Kingdom

Inboxxia is a. The small Manchester, United Kingdom-based agency was founded in 2021. Their services include.

Get connected with the right company for you

We'll do the work for you – finding and connecting you with service providers that meet your exact requirements.

Most Reviewed BPO Company in United Kingdom

Check out a BPO Company in United Kingdom with the most new reviews in the past 12 months.

• 1 Funel 22 new reviews
• 2 Fusion Business Solutions (P) Limited 13 new reviews
• 3 Inboxxia 9 new reviews
• 4 Paragon Sales Solutions 8 new reviews
• 5 MKC Agency 6 new reviews
• 6 Growth Hub 5 new reviews
• 7 Lead Gen Dept. 5 new reviews
• 8 ReveGro 4 new reviews
• 9 Operatix 4 new reviews
• 10 Simpout 4 new reviews

BPO Company

• 11 Friday Solved 4 new reviews
• 12 GLO - Generate Leads Online 4 new reviews
• 13 Excelerate360 Ltd 3 new reviews
• 14 SalesCaptain 3 new reviews
• 15 Virtual Sales Limited 3 new reviews

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The best IT outsourcing providers in the United Kingdom

• PA Consulting
• Tata Consultancy Services
• Outsourcing & Shared Services
• Rankings & Awards

The overall majority of UK organisations are satisfied with their outsourcing partner, reveals research among 800 large IT outsourcing contracts. Tata Consultancy Services, Computacenter and Getronics can call themselves the best IT outsourcing providers of the country, followed by Cognizant.

Every year PA Consulting Group and Whitelane Research explore the state of the UK outsourcing market. This year’s edition took more than 800 unique IT outsourcing contracts held by approximately 260 of the top IT spending organisations in the UK under scrutiny. The total annual value of these contracts is more than £15 billion, which according to the researchers represents almost three quarters of the UK market by value.

One of the areas the authors looked into is the satisfaction with outsourcing providers and their services. The results reveal that the overall majority (86%) of organisations is satisfied with the way their outsourced IT activities are managed, with almost half (44%) stating to be satisfied, and another 12% very satisfied. Just over 10% of organisations say they are unsatisfied, of whom 1% is very unsatisfied.

Although the overall satisfaction is high, there are significant differences between the performances of the nearly 30 IT service providers analysed, says the researchers. The best performing outsourcing provider, Tata Consultancy Services (TCS), for instance achieved a satisfaction score of 80%, a hefty 22% higher than the lowest scoring firms researched, BT and T-Systems. Computacenter and Getronics hold a joint second spot in the list of outsourcing firms with the highest client satisfaction, followed by US-based giant Cognizant. Six companies share the fifth spot: HP, Infosys, SCC, NIIT Technologies and the French-origin services firms Atos and Capgemini .

Outsourcing appetite In the report, titled ‘2015 United Kingdom IT Outsourcing Study’, the researchers also investigated the outsourcing appetite of UK organisations, uncovering that four in ten expects to outsource more in the next few years . Last month Consultancy.uk featured the same analysis for the Dutch outsourcing market , conducted by Whitelane Research in collaboration with Quint .

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How to outsource a software project

To successfully outsource a software project, it is imperative to meticulously articulate the project's objectives, delineate its scope comprehensively, and envisage the desired results with clarity.

Software development, particularly when bespoke solutions are required, can swiftly escalate into a complex, time-intensive, and costly quest for businesses.

In the domain of technological advancement, the creation of custom software is a path fraught with challenges. The need for skilled programmers, the relentless ticking of the clock, and the ever-burgeoning costs can daunt even the most stalwart of enterprises. Yet, there exists a strategy to navigate these treacherous waters: outsourcing .

Outsourcing software development emerges as a beacon of efficiency, offering a reprieve from the high expenditures and incessant demands on time that are synonymous with in-house development. But what is the essence of software outsourcing? Is it the panacea it promises to be, capable of curtailing expenses? And how does one embark on this voyage, entrusting their vision to an external team?

Below you will find answers to all these questions and more. So whether you are looking to outsource your next big project or just want to know the benefits associated with outsourcing, take a look at our guide below to get started.

Related Rate : how can the risks of outsourcing be mitigated?

Article Contents

TL;DR – Key Takeaways

In the vast and intricate domain of software development, outsourcing emerges as a strategic thread woven by those who seek efficiency, expertise, and innovation. Here are the distilled learnings from this article:

• Outsourcing Fundamentals: It’s a strategic partnership for custom software solutions, tapping into global expertise.
• Strategic Planning: Success hinges on clear goals, detailed scope, and choosing the right technology and partners.
• Maximising Benefits: Align with partners sharing your business values, maintain transparent communication, and implement agile methodologies for flexibility.
• Outsourcing Models: Choose from staff augmentation, project-based, dedicated teams, or ODCs based on control, collaboration, and cost needs.
• Vendor Selection: Partner with a team that not only has the skills but also aligns with your company’s ethos and values.
• Quality Assurance: Integrate continuous quality checks to ensure the software meets high standards.
• User Experience: Prioritize the end-user’s interaction with the product for a successful outcome.
• Further Reading: Engage with additional resources to deepen your understanding and refine your approach to outsourcing.

What is Software Outsourcing and How Does It Work?

Software outsourcing is the strategic engagement of an external development team to create custom software solutions tailored to a company’s unique needs.

This practice stands as a modern-day alchemy, transforming the traditional in-house development model by bringing in a cadre of external specialists dedicated to the craft of software creation and management. It’s a partnership that extends beyond borders, tapping into a global consortium of expertise.

📈 The Dynamics of Software Outsourcing:

Software development outsourcing is not just a tactical move; it’s a strategic alignment with teams that bring a wealth of knowledge and a passion for technology. It’s a choice made by thousands of companies, from burgeoning startups to tech titans and esteemed institutions. Esteemed entities like Netflix, Apple, Nasdaq, Harvard University, the World Bank, Securitas AB, Microsoft, and IBM PartnerWorld stand testament to the power of outsourcing.

🌐 A Global Trust in Outsourcing:

• Netflix leverages outsourcing for enhanced content delivery and recommendation algorithms.
• Apple trusts external partners for the development of certain components and software solutions.
• Nasdaq utilizes outsourced software to handle complex financial transactions and data analysis.
• Harvard University outsources to innovate and maintain their educational platforms.
• World Bank engages with software teams globally to manage their extensive financial systems.
• Securitas AB relies on outsourced software to bolster their security infrastructure.
• Microsoft and IBM PartnerWorld collaborate with global developers to stay at the forefront of innovation.

Outsourcing software development to a trusted partner not only allows businesses to focus on core growth strategies but also opens up a realm of benefits. Access to specialized skills, a passion for technological innovation, and the ability to create effective software solutions are just the beginning. It’s about harnessing the collective expertise of a dedicated team whose sole focus is to bring your software vision to life.

What Are The Benefits of outsourcing your software development project?

It lets you focus on core activities.

Specialist software development can be an essential part of the progression and success of a company. However, due to how challenging and time-consuming a software project can be, it will require large amounts of focus from you and your business’s managers.

Software outsourcing will  give you the freedom to divert your attention  to other sectors of your business that may require immediate attention. Business growth is based on many factors, so knowing you aren’t bogged down with just one project can massively help you out.

You should still keep up with the development progress where possible through scrum meetings, where stakeholders and management can be kept abreast of progress, and online meetings, but this will be far less often than using an in-house team. A reputable outsourced team will be able to manage almost all issues that arise, giving you peace of mind and freeing up your focus.

Frees Up Managers time

Managing a large-scale project can become time-consuming, especially with an in-house team. With so many factors coming into play, you can either hire a dedicated project manager or handle the project yourself.

Choosing to outsource software development projects will save time for both you and any associated managers. Most software outsourcing services will feature an  in-house project manager  – saving you from micromanaging the development process.

This can be an understated benefit as it frees you up to work on other projects that might require your immediate attention. It can also help you manage your budget more effectively as you won’t need to participate in development actively.

Saves On Costs

Hiring an external team to work on your software development project is an excellent way to save on costs. Though the industry is fast-moving, as long ago as 2017, Forbes had the insight to publish an article looking at the pros and cons of outsourcing and included the opportunity of cutting costs as a major benefit.

In most cases, you always won’t be required to purchase additional resources for the software development process. A software outsourcing company will usually be in charge of its own resources, meaning you won’t need to buy the latest hardware or software for development constantly.

When outsourcing software development, you won’t need to continue to pay a wage after the project is done. When hiring a new developer, you will tend to keep them on board post-project completion. So not only will the cost be lower during development, but you also save once the project is complete.

Software development outsourcing is one of the  easiest and cheapest ways  to create bespoke software for your business.

access to skilled software developers

Hiring a specialist for a specific task is not only costly but can also be complicated. When outsourcing software development to an external team, you can  access a range of skilled developers  that you may not usually have access to.

Outsourcing can give companies access to specialists in a variety of software development fields all around the world. The benefit of this is that living and labour costs will vary, making it possible to find value for money outsourcing opportunities.

For example, at the time of writing, figures from Numbeo show that the average cost of rent for a 1 bedroom, city centre apartment in the UK is £749.93 compared to £114.42 in India, a difference of 84.74%. Average monthly net salaries in the UK are £1953.74 compared to India’s £315.09, which is 83.87%.

This will give specialists in countries with a lower cost of living the opportunity to offer a lower-priced service. You must research outsourcing software development companies to ensure the quality is of the standard you would expect, though.

An external software development company may also have access to hardware that your development team does not currently own. For example, machine learning requires costly hardware, which an outsourcing company may already own.

It is extremely beneficial for an outsourcing business to keep up with the latest digital trends and programming software. Any project that requires a niche programming language or dedicated hardware is incredibly suited to a  specialist outsourcing software development company .

If you are considering developing specialist software or just want a team of the best developers to handle your project, outsourcing may be the right call.

Reach international partners

A great advantage of software development outsourcing to an overseas team is forming bonds with international teams. Creating links with international partners is a great way to  add diversity  to a project and  open the door for future projects .

Partnerships can also outlast the software development outsourcing stage, offering you a way to reach a target audience typically outside your reach. International partners are an excellent addition to any software development or marketing project, so ensure you choose a team you are looking to create a lasting bond with.

An offshore software development company can be a great partner to have if you plan to work within software development in the future. Be sure to put in the effort to develop a lasting relationship; it is more than worth the time investment.

manage the risk of a large staff team

It may not seem initially obvious, but outsourcing the development of your software to an external team will involve less risk than an in-house project. One example of this is when it comes to financial risks and investments.

Outsourcing software development projects means you won’t need to invest in one-use tech or hire new team members for specialist fields. This makes outsourcing especially ideal for smaller companies or start-ups who haven’t formed a dedicated development team yet.

Managing a large team  can quickly become challenging as you need to adapt to accommodate individual team members. Due to constant development in larger teams, software development companies will be incredibly experienced managing projects of this magnitude.

Lowering the chances of financial risks is something that any business will strive for, and outsourcing can achieve this. Just make sure you research any potential outsourcing partner to check how successful they are at managing risks.

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How Do You Maximise the Benefits of Outsourcing Software Development?

Maximising the benefits of outsourcing software development involves careful partner selection, effective communication, and the strategic management of resources.

To truly harness the potential of outsourcing, one must not only engage in it but also master the art of managing the partnership to extract the greatest value. It’s about turning cost savings into quality gains and time into innovation.

📈 Enhancing Outsourcing Efficacy:

• Select a Partner Aligned with Your Business Values: The congruence of business ethos and values between your company and the outsourcing partner can significantly influence the project’s success.
• Foster a Transparent Communication Channel: Clear and open communication is the cornerstone of any successful outsourcing relationship. It ensures that expectations are managed and that any issues are promptly addressed.
• Utilise Agile Methodologies: Agile practices allow for flexibility and adaptability in the development process, accommodating changes and ensuring the project remains aligned with business goals.
• Implement Continuous Quality Assurance: Integrate quality assurance processes throughout the development lifecycle to ensure the end product meets the highest standards.
• Focus on User Experience: Ensure that the outsourced team understands the importance of user experience in the development process, leading to a product that resonates with end-users.

🌐 Effective Resource Management:

• Leverage the time zone differences for round-the-clock development.
• Optimise the cost benefits by engaging with partners in regions that offer competitive pricing without compromising quality.
• Invest in training and development to keep the outsourced team updated with the latest technologies and practices.

By focusing on these areas, businesses can not only achieve cost-effectiveness but also ensure that the software developed is of high quality, delivered in a timely manner, and provides an excellent user experience.

Considerations to make before outsourcing software development

Do you already have the resources.

Before considering hiring an external software development team, consider whether you already have the resources required to complete your project. If your team has already made progress and the resources support this, outsourcing may not be required.

One of the main reasons a software company may outsource a project is the cost associated with the required resources. But if you already have the resources, then outsourcing may be a wasted cost – this, of course, depends on if the resources are enough to finish the project.

As with all development decisions, you must analyse what your team has available to them. If you do, then you may be able to save yourself a fair amount of development costs.

Is your budget sufficient for outsourcing?

Although outsourcing software development is regularly far cheaper than hiring a team of full-time software developers, it will still come at a cost. Outsourcing costs can vary greatly depending on the company being used, so that full cost transparency will be essential from the start. If you are planning on software development outsourcing, then make sure you take some time to  plan out your budget .

Chat with your team managers and figure out exactly what you want from the software development process: do you want a truly bespoke software suite? Are you considering hiring a well-known software team? What resources are required?

Ask your trusted team members questions such as these, as they will greatly impact the cost of software development outsourcing. If you are struggling to lower the costs, consider what you truly need your software to accomplish and how robust it needs to be.

You may quickly realise that you simply can not afford to outsource software development to a specialist team. By budgeting, you could also save yourself a lot of money as you may quickly realise ways you can save that you otherwise might have missed.

are you going to make the most of your new software?

Whether you are outsourcing software development or building it entirely in house, developing any software can be expensive. From wages to purchasing resources, individual costs can quickly add up.

Before you pay a specialist team and outsource software development, determine whether or not you will truly get the most out of your new software. It can be quite difficult to know how much you will use the bespoke software, so ask your staff and see if they think it is needed.

You should also check the current software market as there may already be software out there that is perfectly suited for your tasks. Not all software needs to be bespoke, so you might be able to save yourself a costly development process.

However, if you are planning on specialising in a niche field, then developing your company’s software is more than worth it – just try to ascertain how much use you will get out of it before investing.

do you have a trusted outsourcing partner?

Before you negotiate with a range of software development companies, be sure to consider any outsourcing teams you already have links with. Developing partnerships and relationships are essential in the corporate world.

If you are lucky enough to have a  trusted outsourcing partner  you can rely on, then consider handing your project over to them. Hiring a team you trust can negate the worry that they might underperform, and it could also save you money further down the road.

A partner you trust will also know your businesses needs and expectations, which will help them develop robust software suited to your brand.

Time is money  for managing a large business, so it’s always a good idea to save time where possible. Negotiating a deal and getting to know a brand-new company will take time – and can be completely avoided by hiring someone you already trust.

Few businesses can boast a trusted outsourcing partner, so if you are one of the lucky few, then be sure to work alongside them where possible.

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Software outsourcing is no longer about just saving money, it is a strategic tool for accessing highly qualified experts to compliment your team and accelerate project delivery. { SD : UK } is a highly experienced bespoke software company that delivers quality solutions that are cost effective. Reach out to us for a free consultation.

how to choose a software development company

Honing a skill usually requires two things; managing time and effort, which can both come with experience.

A team with a long history of working on projects similar to yours will tend to offer a better service than those that lack experience. This isn’t always the case, but if you try to decide between two teams, the one with more experience may be better suited to your project.

Not only will more experience lead to better programming skills, but the experience can also help when it comes to managing large projects. If a team has already worked on a similar project before, they will know the best way to tackle individual elements – this can lead to a far more efficient development process.

If you are in the process of comparing outsourcing development companies, taking the time to look through their respective portfolios of work, or previously completed projects, will give you a far better understanding of what you can expect from them.

Requesting evidence of previous work on projects closely related to your software project is recommended. This will give you a better understanding of their development process and give you the information you need to make a fully informed decision.

Specialist areas

Gaining access to specialist areas without purchasing the necessary hardware or hiring experts can be a challenge. Not only are most specialist areas expensive to access, but they can also be challenging to access due to how competitive they are.

Thankfully, by taking the time to compare pre-existing software outsourcing services, you may be able to hire a specialist team for your project. Not only will this save you the hassle of trying to enter a difficult field, but it can also save you money on specialist equipment that may be needed.

Finding an outsourcing company covering specialist areas shouldn’t be too difficult as they will most likely advertise  specialist skills . However, if you are in any doubt, simply ask what specialist areas they can cover.

Some of the most popular specialist areas that an outsourced team may be able to help you out with are:

• Machine learning and neural network tasks
• Functional programming designs
• Database design and data management
• Network administration and programming
• Integrating existing software

Much like gauging a team’s experience, you can also inquire about a portfolio or an example of previous projects they have worked on. This is perhaps the best way to check if they have experience in specialist areas.

Depending on your specific project, you may not need a specialist. If your project isn’t within a specialist area, then the added cost of hiring a specialist team may not be worth it.

examples of previous work

A great way to gauge how experienced and skilled an external development team is, involves checking out their previous work. It isn’t uncommon for most software development teams to offer a portfolio to potential clients offering a glimpse into past projects.

Portfolios  can show you exactly what an outsourced team has experience in and how skilled they can be. With so many different elements within software development, getting an example of what a team can achieve can truly help you make your decision.

Another bonus to checking out a client’s previous work is that you will be able to see if they have worked on a  project similar to yours . If you plan to develop a specialist software suite, a team with similar work experience may be better suited to your project.

This is why it is vital that software development projects are checked throughout each stage in their development so that if a problem is present it will be identified and overcome early on before the next stage in the development begins.

One of the biggest benefits of outsourcing software development is that it tends to be far cheaper than hiring a new software developer. If cost is a large consideration in your decision to outsource, you will want to make sure that the external development team is affordable.

Before you settle on a single software outsourcing company,  compare the costs  between a few different teams. You will want to find the ideal balance between experience, skills and cost so that it can seem fairly difficult at first.

A range of different factors will determine the cost of outsourcing. Be sure to keep the following in mind when trying to figure out a reasonable budget:

• The experience of the software development outsourcing company
• Whether or not your software requires specialist development
• The overall size of your project, such as the number of developers required
• Will you need continuous technical support once development is complete?

Try to determine a budget for your outsourced project to determine which outsourcing software development team is the best for your project. This way, you won’t be tempted to spend more on a team that your budget cannot accommodate.

The best software development projects are those which expertly balance the needs of the project team with those of the end-user. These needs can vary depending on the industry in which the application sits, but usually involves a mix of ‘giving the consumer what they want’ and ensuring that software standards adhere to the industries specific goals – such as enabling volume purchasing or avoiding inconsistencies.

local or overseas?

Deciding between a local development team or outsourcing to a team overseas can be quite difficult. An overseas team might be slightly cheaper, but it can be hard to remain in constant communication, especially if they are in a different time zone.

On the other hand, a local team will be far easier to coordinate with but may cost you slightly more – which can sometimes be worth the investment.

The best way to decide between a local or overseas software development team is to compare their experience and skill level. The cheaper option is usually better if they both have similar skills and past experiences.

It is advisable to try to decide what you value most in an outsourcing company to decide better which team you want to handle your project.

scalability

Scaling your staff to accommodate a project as it gets larger can quickly cost you a lot of money. In-house software development will regularly cost more than outsourcing development to an offshore team – especially if you need to upscale your team.

If you pass your project on to an outsourcing firm, you won’t need to worry about rescaling your dedicated development team. Before you decide on a team that’s right for your project, you will want to discuss the  size of the team  with your chosen outsourced teams.

Try to find an outsourcing software company that offers a  flexible development team  that can scale depending on the size of the project. Although most will want to decide on the size before development begins, you may be able to find some that can scale the number of software engineers they provide.

It can also be beneficial to sit down with managers and developers you trust to figure out the exact project requirements. Thorough planning is the best way to ensure any outsourced team can finish your project successfully.

level of involvement

A lot of how much involvement you want in a project will come down to personal preference. Some people prefer to let specialists crack on, whereas others will want to be involved in almost every decision.

When comparing software outsourcing teams, try to deduce how much involvement you want and how much the team is happy to offer. If a development team wants to work independently, then someone who wants high levels of involvement may not be suited and vice versa.

Software development teams are used to  varying levels of involvement  from a manager, so you shouldn’t need to worry too much about finding one that works with your needs. As long as you make it clear before signing a deal, there will rarely be any issues with this!

value compatibility

There’s no point working alongside a software development team if they aren’t compatible with your business structure and values. Finding a company that shares similar values to you is a great way to form a corporate relationship but can also help boost productivity.

Working alongside a team that values compatibility can truly help when it comes to software development. There is a range of ways that a company can be compatible with yours, such as  work ethic and methodologies used .

There is a current debate over whether  waterfall methodologies  is the only project management procedure feasible within the world of outsourcing. In reality, as long as both companies share the same working methods, then any methodology is feasible.

During negotiations, always ask how a team works and whether or not they think they could work well alongside you. Compatibility can really help an outsourced project get off its feet.

transparent processes

One of the biggest worries people may have when hiring software outsourcing services is that you may not keep track of development. As you won’t be managing each aspect, it can be difficult to see how development is progressing.

Thankfully, there is a range of online tools that can be used to track development on any large software development task.  Trello  and  GitHub  are just two examples of some of the fantastic tools out there designed to help keep track of development in a range of programming languages and IDEs.

On top of this, most software outsourcing teams will be familiar with these and will happily keep you in the loop with development. Software engineers regularly work in large teams, so sharing progress with other team members is vital to success.

When negotiating a deal with a development team, be sure to ask about the tools they use and how they plan on sharing progress with you. Transparency can be a large deciding factor, so try to find a company that will not only offer you a glimpse into development but will also guide you through the software they have developed!

Good communication channels

Although you won’t be required to manage each element of your new project individually,  clear communication is essential . It can be hard to determine how effective an outsourced team is at communicating without working with them.

One of the most effective ways of finding out is simply checking a few reviews online regarding their services. Communication is an essential part of collaborating with external teams, so if a team can’t communicate, the reviews will usually show this.

You can also judge a team’s communication before hiring them by checking how often they reply to any enquiries you have. However, this is fairly unreliable so try to still back this up by checking out reviews online.

Software development companies regularly work with external clients, so finding a team that struggles to communicate is extremely rare. With so many ways to communicate as a team today, such as Slack and Microsoft Teams, you will rarely run into communication problems.

post-project support

Another great addition to look out for is whether or not your chosen outsourced team offers post-development support. This can be in regular patches or bug fixes or even just support for further development.

Not all external developers will offer this, though, as it is not always beneficial to them, but it should be something you keep your eyes peeled for. Most applications and software will require regular maintenance and even upgrades as technology improves.

Continuous project support can also save you large sums of money as you won’t need to hire a whole new team to handle updates and patches. Software outsourcing teams will typically be happy to work on a project after completion as it provides them with constant and reliable work.

We would recommend hiring services from a company that offers support once a project is complete. Your business’ budget and the in-house team will be extremely thankful.

tips for a successful outsourcing partnership

Communication is key.

As with all successful team-based projects,  communication is vital.  A software outsourcing company will need to know exactly what your aims are and what you expect from them to develop the software you require.

Before you outsource your project, ensure that the team you are outsourcing it to communicate effectively. Bad communication will make a difficult task even harder, so try creating shared channels on software such as Slack and Discord.

The choice of development method can also have a large impact on communication. If the outsourcing team relies on AGILE development, frequent scrums are vital to the project’s success. By coordinating meetings, you can keep up to date with the team’s progress.

Once the project starts, however, communication is still needed. Throughout the software development, try to keep up  regular meetings  or video calls. Most software outsourcing companies will be excellent at communicating, but it’s best to discuss this beforehand!

know your goals

When it comes to software development outsourcing, you may not be able to micromanage individual elements the way you would with an in-house project.  Establishing salient goals  beforehand with the external team is extremely important.

This may mean you will need to  create a plan  beforehand that both you and the software outsourcing company can use to stay on track. You should also try to think of any contingencies in case issues arise during development.

An underappreciated benefit of planning is that it will help you find the ideal software development outsourcing team for your project. By establishing goals early on, a team will decide whether or not they can truly achieve what you are aiming for.

As long as you make sure that you clearly set out what you want the software to achieve and how you want it to do this – you shouldn’t bump into any issues.

stay open to new ideas

Adaptability is crucial when it comes to the software development process. We have all bumped into issues when creating new software, whether that’s team or code-based, so it’s important to ensure you are open to new ideas.

Although sticking to an established plan is a great way to keep development on track, you should also accept that you may need to change facets of your software. An outsourced team may notice issues that your in-house team missed – which could massively change the development process.

Big changes should, of course, be discussed between you and the outsourced software engineers, but you should be ready to make that call. Being open to new ideas can help enhance your project, so  listen to the developers  and be prepared to make changes you may not have previously considered.

work out your partner’s strengths, and use them!

When finding the right outsourced software development team, you will probably have checked their portfolio to see what projects they have previously worked on. If your chosen software development team has skills that could help your project, be sure to use them!

By spending time getting to know your partnered development team, you can discuss where their strengths lie and how that can help the development process.

For example, if you are looking to build an image classification database and know your chosen software development team has experience in neural networks, take advantage of this. Not only will the external team be happy to work on something they are familiar with, but they will also be far more suitable for the task.

Ideally, you should spend some time getting to know a team before hiring them for a software development project. This way, you can determine whether or not they are the best team for the job and if it is worth outsourcing development.

put time into developing the relationship

Much like steady communication, a strong bond between you and the outsourcing company can certainly improve project productivity. This is especially true when working with a company that shares similar ideals to you.

By cooperating with external teams, you may just form a relationship that can benefit both of you further down the road. Whether that’s by sharing development on a new application or combining a product with theirs,  a strong inter-business relationship can be a great boon .

Forging links with overseas companies can be difficult, especially if you both work in differing fields. Software development outsourcing can offer you the platform you need to get in touch with businesses around the globe.

It has never been easier to develop a relationship with a team in another continent, thanks to the array of remote-working software available. Be sure to take the time to familiarise yourself with the outsourced team with software such as Zoom and Microsoft Teams. Who knows, it may form a long-term partnership!

Embracing the Future with Outsourced Software Development

Outsourcing software development has emerged as a pivotal strategy for businesses seeking to innovate, scale, and remain competitive in the digital age.

Throughout this article, we’ve traversed the landscape of software outsourcing, uncovering the ‘what’, ‘how’, ‘do’, and ‘why’ of this transformative practice. From understanding its fundamental workings to mastering the art of maximising its benefits, we’ve explored the strategic steps necessary for successful implementation and the various models that can be adopted to suit different business needs.

📈 Recapitulation of Key Insights:

• Software Outsourcing Defined: A strategic partnership that allows businesses to leverage global expertise for software development needs.
• Strategic Planning: The cornerstone of successful outsourcing, involving clear goal setting, comprehensive scope definition, and meticulous partner selection.
• Maximising Benefits: Achieved through aligned values, transparent communication, agile methodologies, continuous quality assurance, and a focus on user experience.
• Outsourcing Models: From staff augmentation to offshore development centres, each model offers unique benefits and should be chosen based on the project’s specific requirements.

As we stand at the precipice of technological evolution, outsourcing is not just an option but a necessity for many. It enables access to a world of talent, fosters innovation, and can lead to significant cost savings. However, it requires a thoughtful approach, one that considers the intricate balance between cost, quality, and time.

For those ready to embark on this journey, the path has been charted. With the right approach and partnership, outsourcing can be the catalyst that propels a business into its next phase of growth and innovation.

Embarking on a new software development venture? Contemplating the vast sea of outsourcing? Take a moment to consider Software Development UK, where expertise meets innovation. Our seasoned developement team have built solutions for industry leaders and transformed start-up visions into market-revolutionising realities. Entrust your project to our capable hands, where it will not just be built, but be crafted with the finesse and precision that only true connoisseurs of software development can provide. Connect with us, and let’s bring your idea to the forefront of the industry . Click here for a free consultation with our experts . Please take a few moments to visit our software development outsourcing services page to learn how we can add value to your project.

Further Reading and Resources :

To continue your quest for knowledge in software development outsourcing, consider exploring the following resources. Each offers valuable insights and could serve as a guide in your journey:

• “Outsourcing Software Development: A Practical Guide” by Steve Mezak
• “The Software Outsourcing Show” Podcast
• “Global Software Development Handbook” by Michael H. Hugos
• “The Art of Software Outsourcing” by Raman Kuppuswamy

Frequently Asked Questions

Provided below is an FAQ to help you understand our services in more detail. If your question is not covered please feel free contact us .

What exactly does software outsourcing mean?

Software outsourcing is the practice of hiring an external organisation or team to manage your software development needs. This can include tasks like app development, software testing, system integration, and much more. By leveraging Software Development UK, your business can focus on its core competencies, saving valuable time and costs while gaining access to a team of skilled developers.

How can software outsourcing benefit my company?

Outsourcing your software development projects can offer numerous benefits. You’ll be able to focus more on your core activities, free up your managers’ time, and save on costs related to hiring and maintaining an in-house team. Moreover, you’ll gain access to skilled software developers and potentially establish beneficial international partnerships.

Is software outsourcing a cost-effective solution for my business?

Indeed, software outsourcing can be highly cost-effective. With it, you save on hiring, training, and infrastructure costs, as your projects are handled by a dedicated team of experts at Software Development UK. However, it’s important to consider whether your budget is sufficient for outsourcing and whether you’ll utilise the software to its fullest potential.

What considerations should I make before outsourcing software development?

Before deciding to outsource, assess whether you already have the necessary resources, if your budget is suitable, how the new software will be utilised, and whether you have a reliable outsourcing partner. Reach out to Software Development UK for a free consultation with our experts to help you make informed decisions.

What is the right way to approach IT outsourcing?

IT outsourcing can be a game-changer for your business when done right. Choosing a reputable software development company like Software Development UK that aligns with your values, understands your business, offers transparent processes and maintains good communication is key.

How do I choose the right software development company?

Look for a company with extensive experience, clear specialisation, a portfolio of previous work, and competitive pricing. Also consider factors like scalability, the level of involvement you desire, value compatibility, process transparency, communication channels, and post-project support. At Software Development UK, we tick all these boxes.

Should I choose a local or overseas software development company?

This depends on your specific needs, budget, and comfort with working across different time zones and cultures. Both options have their merits. Here at Software Development UK we have in-house UK specialists and access to wider network of experts that we have utilised to deliver projects quickly and cost effectively. Speak to one of our experts to discuss options to understand what would work best for your projects (e.g. onshore, near-shore or offshore).

What are some tips for a successful outsourcing partnership?

Open and frequent communication, understanding your goals, openness to new ideas, leveraging your partner’s strengths, and investing time in relationship development are all critical for a successful outsourcing partnership.

What kind of post-project support can I expect from an outsourcing partner?

Post-project support varies among software development companies. It may include technical support, user training, software updates, and maintenance. At Software Development UK, we provide comprehensive post-project support to ensure the success of your software long after development has concluded.

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Genius Outsourcing Statistics UK [2024]

Last Updated: February 9, 2024

That call centre worker you finally managed to get on the line with, is he physically in the UK? The security, canteen and cleaning staff on your university or company grounds, are they directly employed by this institution?

If similar questions crossed your mind, you’ve begun inquiring about outsourcing – a phenomenon steadily present in the UK’s economy. And now you’re in the right place to further expand your awareness of the subject, examining the outsourcing statistics UK we’ve had the pleasure of breaking down to you.

For starters, check out the most illustrative ones.

• The UK is the most open to offshore outsourcing and the least cautious about doing business with developing countries out of all European markets.
• In 2019, 67% of the UK’s start-ups outsourced in need of a skilled workforce.
• In 2019, almost 5% of Britain’s population were outsourced workers.
• 34% of UK based businesses outsourced IT support in 2019.
• 10% of UK businesses outsourced their marketing in 2020.
• 61% of British businesses outsource their payroll.
• 5% of businesses outsourced cyber-security in 2018.
• 73% of accountants in the UK approve of outsourcing.
• 71% of companies in the UK planned to outsource to reduce costs.
• In 2020, almost a third of UK businesses expected to outsource more.

Outsourcing Statistics UK

The uk is the most open to offshore outsourcing and the least cautious about doing business with developing countries out of all european markets.

The nation’s cost-cutting corporate culture and historical ties to numerous countries around the world account for this openness. Since English is the official language of the United Kingdom, there are few linguistic barriers. As a result, offshore providers can reach the British market very easily.

23% of all public sector contracts in 2018 went to the sole bidder

Lack of good judgment is a trait many UK outsourcing companies had in common in recent years and was commonly manifested through expansion to areas where they lack expertise by pursuing new contracts or acquiring companies.

This, of course, is not to absolve the approach the UK’s government has had towards outsourcing, as it often gave contracts to the lowest bidder, regardless of how realistic their price was. The result is a market where tender winners are often unable to profit. By fulfilling the contract, outsourcing firms lose money and risk going under, as Carillion did in January of 2018.

Therefore, it is not surprising to see fewer and fewer companies bidding in public outsourcing markets. In 2018, there was only one bidder for almost a quarter (23%) of the government’s outsourcing deals.

In 2019, 67% of the UK’s start-ups outsourced in need of a skilled workforce

Of more than 3000 start-ups surveyed for Clockers, one of the biggest IT outsourcing companies in the UK , 56% resorted to outsourcing in order to manage Software-as-a-Service (SaaS) program development, application programming interface (API) integration and customer relationship management (CRM) systems.

40% cited time saved on recruitment as a motivator to outsource, and 28% felt outsourcing gave way to project management of greater efficiency. Looking for Eastern European workers stands out among IT outsourcing trends , as 62% of businesses did so.

71% of companies in the UK planned to outsource to reduce cost in 2021

Stats on outsourcing show that, of all the organisations that planned to increase their outsourcing efforts, 71% cited cost reduction as their primary motivator. For the public sector, this was less of a concern, as only 38% of public companies identified a reduction in cost as their primary objective when outsourcing.

Generally, the top reasons for outsourcing next to reducing costs were to transform business (50%) and improve the quality of service (50%).

Looking for a workforce within the UK, on the other hand, was motivated mainly by the desire to improve quality (88%) and the need for building and controlling intellectual property (63%).

There were 180,000 IT job positions in 2020

As London Technology Week had estimated, there should have been 850,000 IT job positions in 2020 in Europe. The UK’s share of this comes to around 180,000, meaning the British IT workers should have experienced an increase in their salaries as their projected number didn’t meet the market’s demand. 

The options left to British companies are to either outsource or help skilled workers get a work visa for the EU. Whether these workers are from the EU or not is rendered irrelevant by Brexit.

In 2020, almost a third of UK businesses expected to outsource more

Perhaps concerned with the rise in tariffs expected after Brexit, when asked in 2020, almost a third (30%) of businesses in the UK anticipated increasing their outsourcing endeavours. Luckily, the trend went the other way, too, and 15% of organisations planned to ease down on their outsourcing. Let us also note that 19% could disclose neither the type nor the number of jobs they will outsource in the future.

Outsourcing Statistics UK by service type

Application outsourcing is expected to reach £7.5 billion in revenue by 2025.

Application outsourcing lets companies reap all the benefits of fully operable enterprise applications with a lower IT budget and fewer employees, without a doubt increasing percentage points in statistics on jobs lost to outsourcing . 

High-speed internet allowed many British companies to outsource customer and technical support, application maintenance and other jobs to developing countries. The revenue projection for 2021 was £6 billion, with an annual growth rate of 5.26%, leading to the £7.5 billion market volume estimate for 2025.

Contracts for the UK managed services in Europe, the Middle East and Africa amounted to almost  £800 million in 2020

Taking into account only contracts exceeding £4m in value, the total value of managed services for British clients stood at £794 million in 2020. 

On average, the values of traditional managed-service contracts grew by 10%, reaching £2 billion, and IT infrastructure and operations management (ITO) saw a 36% increase and amounted to £1.6 billion. 

Almost 5% of Britain’s population were outsourced workers in 2019

2019 saw a large number of Britain’s outsourced workers protesting for treatment equal to the one their permanent colleagues enjoy. We couldn’t find relevant outsourcing jobs statistics , but the Trades Union Congress estimates that around 3.3 million workers in the UK were outsourced. They, more often than not, take lower-paid jobs. 

Which companies outsource the most? One could argue that public ones do, but banks and retailers have followed the trend. In the case of University College London (UCL), outsourced workers are primarily employees of Sodexo and Axis, the big names in the UK outsourcing industry . Still, there are many other UK companies that outsource , such as Serco, Capita and Interserve.

Business process outsourcing should reach almost £22 billion in revenue by 2025

Business process outsourcing allows a company to devote its strengths to activities that make it stand out in the market. A process that doesn’t rely too much on management hierarchy, such as accounting, is likely to be outsourced. With an estimated growth rate of 6.21%, revenue in the business process outsourcing should rise from 2021’s projection of £17.1 billion to £21.8 billion by 2025.

The second quarter of 2019 saw outsourcing contracts worth £938 million signed

A 34% increase from the first quarter’s contract value has proved the UK outsourcing market to be a lively one. UK outsourcing industry growth is further illustrated through public sector spending that grew almost ten-fold, from £51 million in the first quarter to  £489 million in the second.

Of all the deals considered, only 2% fell out of the BPO category, with customer service, HR, revenues and benefits comprising the majority of outsourced processes.

Application and network management and end-user computing saw the largest sums spent – £284 million, and the £118 million spent on work outsourced by manufacturing companies followed.

Outsourcing Statistics UK by function and industry

34% of uk based businesses outsourced it support in 2019.

YouGov reports that more than a third of British companies reached overseas to acquire a workforce in IT, making informational technologies the most outsourced function. As motivation for this, most (48%) cite a lack of necessary IT staff. Many (30%) say it yields better results or that it is cheaper, that it reduces staff costs (29%) or increases efficiency (28%).

The UK outsourcing figures show IT workers are not the only ones with stiff competition abroad, since 28% of company executives decided to outsource payroll, as reported in 2019. These decisions were primarily motivated by cost (41%) and deficiency in skilled staff (34%).

73% of the UK’s accountants admitted to a positive effect outsourcing could have

In a joint investigation that ForrestBrown and AccountancyAge led in 2020, outsourcing was shown to enjoy ever-increasing popularity in accountancy practices. A third (33%) of those surveyed admitted to outsourcing their bookkeeping services at least once. Moreover, almost two thirds (64%) agreed that to stay competitive, they have to outsource some higher-value services.

With 33% of respondents intending to do it within the next three years, outsourced bookkeeping is on its way to becoming another of many outsourcing facts other businesses will have to guide them. Also expected to be outsourced soon are payroll services (19%), expenses (15%) and the compliance function in its entirety (18%).

Outsourcing a call centre to South Africa saves almost £12,000 a year

For many world’s countries, South Africa is the go-to destination for business process outsourcing , predominantly for call centre outsourcing services (73%). With the annual costs of running a call centre in the UK amounting to over £17,000, and these costs standing at around £5,500 in South Africa, it is no wonder that 78% of all Africa’s southernmost country’s call centre services are resolving the problems of British customers.

10% of UK businesses outsourced their marketing in 2020

According to a study by LiveArea, conducted in April 2020, only 10% of businesses in the UK outsourced marketing at the time. Of those who weren’t outsourcing, 37% said they would consider outsourcing IT and 32% said they would consider outsourcing marketing as a result of the pandemic.

Advantages and risks of outsourcing in the UK

61% of british businesses outsourced their payroll in 2019.

Compared to the costly in-house practice, outsourced payroll gives you the benefits of a secure and more affordable service that’s compliant with HMRC’s requirements.

Monthly, outsourced payroll usually takes £2 to £6 per employee. Naturally, quotes vary considerably depending on the number of employees. A firm of no more than ten people will have to set aside more per one employee to cover these costs than a firm with hundreds of workers. 

Three times as many companies might outsource marketing after the pandemic

As Opinium and LiveArea found out, 28% of British companies consider outsourcing parts of their work due to Covid-19. The majority (37%) predicted outsourcing information technology positions. While 10% of brands outsourced their marketing when the research took place, three times as many (32%) companies might do so after the pandemic.

A little over one fifth (22%) of them claimed they’d consider outsourcing sales, and almost a quarter (24%) felt the same way about customer service.

5% of businesses outsourced cyber-security in 2018

The introduction of GDPR in May of 2018 drove many companies to make changes in their cyber-security, with over a third (36%) of them either building cyber-security policies and procedures from the ground up or updating them to meet the new regulation. 

Other measures included additional staff training or communications (21%), deploying new systems (12%), firewall updating (6%), data encryption (5%) and lastly, cyber-security outsourcing (5%).

Having read so much about outsourcing trends and predictions, what can we expect in the times ahead?

O utsourcing statistics UK warn us – the phenomenon is here to stay and might become more common and more complex, with artificial intelligence and machine learning underway.

We, therefore, ought to prepare ourselves in order not to be taken by surprise when the day of accounting, customer service and finance completely outsourced, or automated, comes. A great skill to have will probably be the one of developing new skills.

“Do what you do best and outsource the rest” –  Peter Drucker

• Marketing Gazette
• Institute for Government
• PA Counceling
• Emerging Europe
• Computer Weekly
• People Management
• Contract Centres
• Forrest Brown
• Expert Market
• Information Age
• assets.publishing.service.gov.uk

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Outsourcing Projects from the USA to India

Outsourcing services from usa to india.

Last Updated: 1 Jan 2024

Have you ever wondered why several American companies seem to head the Indian side when they need to outsource a project? Several businesses from the US, the UK, Canada, Australia, and South Africa are turning to India when they need external project support to leverage a mixture of skill and cost-effectiveness that appear hard to match elsewhere. But what’s the secret behind this strategic move?

The rise of India as a preferred outsourcing destination is no accident. It’s proof of the country’s ability to deliver exceptional work quality.

What is Outsourcing?

Outsourcing refers to delegating specific business functions, tasks, or processes to external service providers rather than handling them internally. Most people utilize this approach for tasks considered non-essential or peripheral to the core business operations.

For instance, outsourcing may occur when a company chooses to have an entire mobile app development project, or just segments, completed by an external specialist firm.

Why Outsource?

Companies opt to outsource for various strategic reasons, and the global outsourcing market, valued at $92.5 billion, indicates its growing popularity. Some of the primary motivations for companies to outsource include:

• Cost Efficiency : Outsourcing allows companies to cut expenses associated with hiring, infrastructure, and training by utilizing the specialized services of external providers who often operate at a lower cost.
• Scalability : It allows companies to swiftly adjust their workforce size and operations in response to fluctuating project needs, thus offering remarkable scalability.
• Accelerated Time-to-Market : Firms that outsource, particularly to countries like India, benefit from quicker project completion times, which speeds up the product’s entry into the market. Outsourcing can also significantly reduce the hiring time by 40-50%, contributing to a quicker launch.
• Technological Advancement : Outsourcing is a preferred strategy when companies seek to implement cutting-edge technologies like cloud computing and big data analytics without the significant investment required for training an existing in-house team.
• Business Agility : The practice enhances a company’s agility, enabling it to respond with more flexibility to evolving market conditions and business needs.

Models of Outsourcing

We can divide outsourcing into several models based on the location of the third-party service provider: onshore, nearshore, and offshore. Here’s an explanation of each type:

• Onshoring : This model involves delegating business activities to a third party in the same country of operation. Onshoring offers the advantage of minimal cultural and communication barriers, but it typically comes with higher costs and a more limited talent pool compared to other forms of outsourcing.
• Nearshoring : This Nearshoring approach refers to outsourcing work to service providers in geographically close countries, often within the same or similar time zones. Nearshoring strikes a balance by reducing cultural and communication challenges while often offering cost savings compared to onshoring, though it may still be more expensive than offshoring.
• Offshoring : Offshoring is when a company subcontracts processes to a distant country. This can involve setting up a subsidiary in that country or partnering with a local third-party provider. The main benefits include significant cost savings and access to a broader talent pool. In the IT industry, this practice is widespread due to the scarcity of IT professionals domestically. Many US companies outsource jobs overseas, with statistics indicating that about 300,000 jobs are sent abroad each year, especially as industries face challenges in filling specialized roles domestically.

Why is India such a hot spot for US clients looking to outsource?

Why does the USA look towards India? For starters, the value proposition is incredibly compelling. Regarding software development and IT services, India has created a reputation as a hub of innovation and expertise. American companies, in pursuit of excellence and efficiency, find a partner or co-founder in India that aligns with their strategic goals while offering economic advantages that are hard to overlook. Here are the advantages of outsourcing to India .

Cost-Effective Development :

For most companies, the goal is to create top-notch applications without breaking the bank. Hiring developers in countries like the US or Canada is costly. But in India, thanks to the favorable currency exchange rates and economic landscape, you can access the same talent level for a fraction of the price.

Deep Reservoir of Talent :

India is like Silicon Valley for software development outsourcing. Outsourcing to India allows American firms to tap into a reservoir of seasoned expertise, particularly in software development. Indian developers are not just coders; they’re skillful at managing the entire lifecycle of a project with a level of professionalism in both management and design that complements their technical services.

India is home to some of the world’s most competent and tech-savvy web developers . This massive experience and expertise means that India’s workforce is ready to deliver with precision and skill when it comes to intricate software needs.

Effortless Communication that Clicks :

Communicating with a software development company in India is straightforward for clients in the USA. Indian developers use multiple communication tools such as Skype, Slack, and others, ensuring that discussions flow seamlessly. This clarity and ease of interaction trim down misunderstandings and turbo-charge project efficiency or productivity. The client enjoys enhanced returns on investment.

Support Around the Clock :

An application that runs smoothly and keeps users happy requires regular updates and maintenance. Recognizing this need, numerous Indian outsourcing companies provide comprehensive after-sales support and ongoing maintenance services.

Quality that Stands Out :

By choosing to outsource to Indian developers, American software development companies gain access to a workforce that excels in coding, project management, and design. Indian professionals bring their A-game to every aspect of development, ensuring that the services provided are of the highest quality, even in the age of remote working.

Flexibility in Operations :

Many wonder if Indian companies can align with their preferred time zones. Indian firms are known for their adaptability, often adjusting their work hours to sync with the time zones of their international clients.

Finding a company that blends well with your time zone is vital, as it’s not just about the convenience of overlapping hours but also ensuring that this flexibility doesn’t come at the expense of quality. The right Indian partner will offer the adaptability you need and a commitment to delivering top-notch work.

Time-Zone Advantage :

The substantial time zone difference — often around 12 hours — between India and the US can be a strategic advantage for American companies. With a team in India, work can continue even after the US-based office has closed for the day.

This around-the-clock workflow can dramatically reduce project turnaround times and enhance productivity. Additionally, it provides a competitive edge, as American companies can accelerate their project timelines and potentially bring products and services to market faster.

Step-by-Step of Outsourcing from USA to India

Outsourcing work from the USA to India involves a systematic approach. Here is a step-by-step procedure to ensure a smooth and legally compliant outsourcing process, along with some considerations regarding costs:

Step 1: Understand Legal Framework and Trade Agreements

Before outsourcing, understand the US laws and international trade agreements concerning outsourcing. Consult the Department of Commerce or a legal expert specializing in international trade to grasp the legalities, such as permitted services for outsourcing, trade partnerships, and specific regulations that might affect your business plans. This step is critical to avoid legal drawbacks and ensure that the outsourcing process aligns with U.S. and Indian regulations.

Step 2: Identify Services or Products for Outsourcing

Determine the aspects of your business you wish to outsource. Not all services or products may be suitable for outsourcing. Analyze your business model to identify tasks that can be effectively completed abroad, such as customer support, back-office functions, IT support, or software development, without the need for physical presence.

Step 3: Conduct thorough Feasibility Studies and Market Research

Carry out a comprehensive study to understand the viability of outsourcing to India for your specific services or products. This research should include cost analysis, understanding the Indian market, identifying potential outsourcing hubs within India, and assessing the quality of work. A well-conducted study will inform you about potential cost savings and help identify the best regions in India for your outsourcing needs.

Step 4: Request and Collect Proposals

Advertise your outsourcing requirements or a Request for Proposal (RFP) to invite proposals from Indian companies. You can do this through business portals, outsourcing platforms, or contacting business chambers in India. Collecting multiple proposals allows you to compare and choose the best partner based on quality and cost-effectiveness.

Step 5: Screen and Shortlist Potential Partners

Review the received proposals carefully. If necessary, set up a selection committee to evaluate and shortlist the most promising companies. Invite the top 5 contenders to do their presentation. Consider company reputation, past work, technical expertise, and financial stability. Importantly, consider to check the b2b reviews sites like clutch and designrush.

Step 6: Visit Potential Partners in India

Once you have a shortlist, plan a site visit to India to inspect the facilities of the potential outsourcing partners. This will give you a better understanding of their operational capabilities and company culture. It’s also an opportunity to discuss and negotiate terms in person. You also get to understand local business practices and ensure the company meets your standards and requirements.

Step 7: Train Your Indian Counterparts or the Key Personnel

Once you select a service provider and finalize the contract, initiate a training program for the core team (team leaders or managers) that will handle your outsourced work. They should understand your company’s values, quality expectations, and business processes. They, in turn, can train the local staff, ensuring your standards are met. Effective training is essential for maintaining service quality and can involve on-site sessions, virtual training modules, or a combination of both.

Step 8: Establish Strong Communication Channels

Set up regular communication protocols with your Indian partner. The initial phases will require daily updates. Over time, as the partnership solidifies, you can adjust the frequency of these communications. Utilize tools such as video conferencing, email updates, project management software, and regular visits to ensure clarity and address issues promptly.

Regarding Cost:

The cost of outsourcing to India varies significantly depending on the nature of the work, the expertise required, the work volume, and the expected level of service. For instance, IT services like web development outsourcing cost anywhere from $15 to $50 per hour, while call center operations might be billed on a per-call or per-minute basis. Manufacturing can have a wide range due to material and labor costs. Always request detailed quotes and consider long-term cost-effectiveness, not just the initial expense.

Remember to factor in such costs like

• Legal and consultancy fees for researching and ensuring compliance with outsourcing laws (due diligence).
• The cost of issuing and advertising RFPs may involve marketing or agency fees.
• Travel expenses for site inspections.
• Training costs for developing materials and conducting sessions.
• Ongoing communication and project management costs.

Tasks you can outsource to India

Outsourcing from the USA to India incorporates multiple jobs, leveraging India’s skilled workforce, competitive costs, and technological capabilities. Such may include:

Digital Marketing:

Digital marketing services are widely outsourced to India, utilizing local expertise in SEO, content marketing, social media management, and online advertising campaigns.

Software and Application Development:

India’s significant pool of software developers such as Aalpha Information Systems provides services in developing custom software solutions, mobile applications, and enterprise software.

Accounting Services:

Outsourcing accounting tasks, such as bookkeeping, tax preparation, and financial analysis, takes advantage of India’s trained financial professionals.

• Textile and Manufacturing:
• Clothes Manufacturing: India’s rich textile industry makes it a popular choice for clothing design, production, and export.
• Footwear Manufacturing: Skilled labor and cost-effective materials contribute to India’s role as a prime location for producing various footwear types.

Data Management Services:

• Data Entry and Data Mining : Businesses often outsource routine data entry tasks or require specialized data mining services to extract insights from large datasets.

Pharmaceutical Production:

India, being a hub for generic drug production, attracts outsourcing for manufacturing various pharmaceutical products.

Electronics Manufacturing:

• Computer Components/Parts : Production and assembly of computer parts capitalize on India’s technological manufacturing capabilities.

Herbal and Natural Products:

• Herbal Products Manufacturing : The country’s biodiversity and expertise in herbal remedies support the manufacturing of a wide range of natural products.

Office and Educational Supplies:

• Stationery Production : India is a cost-effective location for producing paper-based stationery goods for global distribution.

Toy Industry:

• Children’s Toys Production : Outsourcing to India for creating and manufacturing toys benefits from lower production costs and scalability.

Industrial and Chemical Sector:

• Chemical Production : India’s industrial sector is equipped for the production of various chemicals, often at lower costs than in the USA.

Specialized Services:

• Diamond Cutting and Polishing : The country’s historic expertise in diamond processing makes it a top destination for these services.
• Hair Extensions Production : India is known for sourcing and crafting high-quality hair extensions and wigs for the global beauty market.
• Hookah Production : With a tradition in hookah crafting, India produces a range of hookah-related products for export.

Businesses should ensure their outsourcing partners in India adhere to quality standards and ethical practices, especially in manufacturing sectors.

Tapping into India’s market means going for seasoned experts. This is why businesses across the globe, and especially in the USA, find themselves calling up developers from India – for quality and affordable work.

Looking for right team of experts to turn your idea into reality? Connect with offshore development company : Aalpha information systems.

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Muzammil K is the Marketing Manager at Aalpha Information Systems, where he leads marketing efforts to drive business growth. With a passion for marketing strategy and a commitment to results, he's dedicated to helping the company succeed in the ever-changing digital landscape.

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Outsourcing from UK and Europe

Globalization, challenging economic environment and increased competition are making many enterprises reconsider their business models to enhance their performance. This is exactly where outsourcing adds value to a business model. By outsourcing, businesses can pay exactly for what they utilize. This unburdens the enterprises as they can quickly outsource their project to a vendor with the right resources for getting the job done. While cost reduction is the major reason for outsourcing, access to skilled resources and data security and confidentiality are among the other major factors that drive outsourcing.

Although US tops the list of foreign nations outsourcing to India, UK and Europe are becoming open towards offshoring and outsourcing in an effort to access skilled resources and cut down costs. According to the 2016/2017 European IT Outsourcing Study, by Whitelane Research, over 4600 IT outsourcing contracts from more than top 1500 IT spending European organizations were identified, accounting to €40 billion.

UK and Europe - The Next Big Outsourcing Frontiers

Europe, which has been historically slow towards offshoring and outsourcing, has emerged as one of the next big frontiers. Offering a potential outsourcing opportunity of close to $45 billion, Europe is one of the top players outsourcing IT and Insurance services to India. Apart from these, other processes outsourced by European businesses are Data Entry , Accounting and Bookkeeping services and Engineering services . The most outsourcing-friendly nations of Europe, which include UK, Scandinavia, Germany, France, Switzerland, and Benelux, account for a total potential of $30.4 billion out of $45 billion. According to a report by PhillipCapital, France and Germany continue to be the largest players with the IT-spend potentials of $9.2 billion and $7.8 billion, respectively.

According to an estimate by Black Book survey, Indian revenues from UK outsourcing are expected to grow at an annual rate of 26.5% over the next 2 years, with a market value of close to $9.7 billion by 2018. UK is one of the major demand drivers for offshoring insurance services with a steady rise in the agencies outsourcing from the UK. While established organizations are the ones who are majorly outsourcing, smaller companies are now slowly following the trend.

Currently, numerous insurance companies including Norwich Union, Abbey National, AXA, Allianz Cornhill, and Aviva offshore some of their services to India. Companies outsourcing from UK also sub-contract some of their support functions such as finance and accounting to Indian service providers. Other services outsourced from UK include -

• Call center services
• Mortgage services
• Healthcare BPO services
• Software development

What Makes India a Mature Global-Outsourcing Destination?

Offshoring story of India began in the year 1985, with the establishment of Texas Instruments office in Bangalore. Since then India has maintained dominance in the global outsourcing, due to a mature ecosystem. Today, Indian offshoring industry has evolved and provides the widest array of services with most mature service providers. Some of the major services provided by India include KPO , R&D , BPO , Engineering services , IT , etc.

Although many nations offer services at lower costs, they do not exhibit the level of process maturity offered by India. Having entered the market early, India has developed a fine process maturity. Following are some of the major factors that make India a mature global outsourcing destination.

• The Time-zone Advantage - The difference between the time zones of the outsourcing nations and India has a positive impact on business. It allows tasks to be completed and delivered overnight, thereby offering a swift turnaround time
• Seamless Communication and Skilled Resources - Being one of the largest English-speaking nations in the world, India also has highly skilled resources. This simply means that the outsourcers can easily communicate their requirements to these skilled resources having the language advantage to ensure flawless execution of their projects
• Outsourcing-friendly Policies - Indian outsourcing policies are flexible, making it easier for the overseas agencies to outsource their businesses to India
• Superior Customer Service - In spite of the time-zone differences, Indian service providers have maintained a friendly, round-the-clock customer support with a good command over English
• Vast Talent Pool - With a huge population of 1.2 billion people, approximately 3.1 million graduates get absorbed into the workforce every year in India. This quality of talent is a major factor that attracts businesses worldwide and makes India a potent candidate for outsourcing
• Confidentiality and Data Security - Although there are nations who offer services at much lower rates than India, uncompromised data security and confidentiality are the two major factors that attract global outsourcers to India

In addition to these factors, tremendous growth in the value chart has endeared businesses across the globe to India.

Outsource2india - A Lucrative Outsourcing Option for UK & Europe

While reduced risks and operating costs are the major business benefits of outsourcing to us, the main advantage is to retain complete control over the project at every point of time. Following are some of the reasons that make us a promising service provider -

Flexible Pricing Options

At Outsource2india, we offer flexible pricing options. You will be billed only for the utilized services and we can also customize the billing as per your project requirements. This pricing flexibility enables businesses to manage their budgets and reap huge profits.

Easy Scalability

We have multiple delivery centers and a huge workforce. This helps businesses to quickly scale up or scale down the projects as per their requirements.

Best Infrastructure and Technological Capabilities

We offer global outsourcing clients with the most advanced software, including customized solutions for different project requirements, such as system migration, legacy system maintenance, business process re-engineering, and e-commerce to name a few. Besides, uninterrupted communication channels, fiber optic networks, submarine cables and other necessary infrastructure are also in place to provide consistent and continued services.

Consistent High-quality Services

Having over 25 years of multi-domain industry experience we provide consistent, high-quality services that precisely cater to the business requirements. Quality and time-to-market are the major adages that make us a preferred outsourcing partner.

With India, outstripping competitors worldwide in terms of service quality and cost, it is now riding the crest of global outsourcing revolution.

Avail Business Advantage by Outsourcing Jobs from UK and Europe

Serving global customers across various sectors, we have multi-disciplinary industry experience. We provide streamlined services using industry best practices and get the best resources to work on every project we undertake. Besides, by evaluating the requirements and expectations of our clients, we provide a customized pricing structure, where the client can pay for exactly what was utilized.

Our wide array of outsourcing services includes insurance back office support , legal process outsourcing , software development, translation services , healthcare BPO, web analytics , and creative design , to name a few. Quick turnaround time and assured data security are the added advantages of choosing us. Therefore, if you want to maximize your benefits and minimize your operational costs, then feel free to get in touch with us.

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Research and Analysis

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Advantages of Outsourcing KPO to India

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10 Questions to Ask before you Outsource

Important answers to get from your prospective outsourcing partner before signing on the dotted line.

Global Outsourcing

Some of the key factors driving outsourcing to offshore destinations.

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UK Export Finance signs cooperation agreement with U.S. Department of Energy LPO

Memorandum of understanding signed at CERAWeek energy conference signals closer cooperation on joint financing for clean energy projects.

UK Export Finance offers financing for US projects alongside the Department of Energy Loans Program Office (LPO). 

LPO’s first ever memorandum of understanding with a European export credit agency creates opportunities for UK renewable energy and technology firms.  

UK Export Finance (UKEF), the UK’s export credit agency, has signed a memorandum of understanding (MoU) with the U.S. Department of Energy Loan Programs Office (LPO). 

Signed at the CERAWeek energy conference in Houston, Texas, the agreement signals UKEF and the LPO’s interest in considering potential new joint financing opportunities for energy and green infrastructure projects.  

The signatories were Vomic Nur Shah, Global Head Business Origination and Client Coverage at UKEF, and Jigar Shah, Director of LPO.  

This is the first-ever MoU between a European export credit agency and LPO, which has closed over $30 billion in financing deals for energy and advanced technology vehicle projects in the last decade.  

Collaboration and co-financing with UKEF are expected to create new opportunities for British businesses of all sizes – including smaller firms – looking to support US energy and decarbonisation projects.  

UKEF has a capacity of up to £5 billion for supporting exports to the United States. The export credit agency has a regional head, Jesse McDougall, based at the British Consulate General in Houston and dedicated to supporting new business for UK exporters in North America. 

Tim Reid, CEO of UK Export Finance, said:

The US remains the UK’s biggest trading partner, and this Memorandum of Understanding is an important step which helps us to continue strengthening economic ties and reducing carbon emissions.   I look forward to seeing our partnership nurture new opportunities for both the US energy transition and for British exporters.

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