Dominic Deacon, commercial director at Wetherby-based IDS Group, believes that the outsourcing of IT and software and development can be a complex decision for any organisation, whether they’re looking to scale quickly or because they want to reduce costs. He recently joined the discussion around outsource or in-house with Yorkshire Business Insider. You can read the full article here.
Commenting on the need for businesses to outsource specialist functions, Dominic said: “When engaging with a prospective client, the key question that they should be considering is ‘what is the outcome I need and why do I need to outsource?’.
As with any type of outsourcing, it’s usually the case that a business requires access to a broad range of specialist expertise. This may be because they are struggling with a skills shortage in-house and aren’t in a position to recruit, or they want to gain insight from experts that aren’t involved in the organisation’s day-to-day functioning. Or put simply, an organisation’s leadership may prefer for their team to stay focused on core revenue generating activities.
When considering cost, scalability is also a key factor when deciding to appoint an external supplier. The ability to scale up or down resources in harmony with business requirements means money can be spent or saved when required; which is key for smaller firms which may be bootstrapped.
Another reason why an organisation may decide to outsource its software development is the speed to market; having the ability to accelerate development cycles can help provide a market advantage, something which could otherwise take a considerable amount of time if recruiting one individual in house.
Reflecting on IDS Group’s current client base over the last decade, the main priorities Dominic says its clients consider when outsourcing also include trust, security, and compliance – is the outsource partner accredited and compliant with the regulations in which the business operates? Do they trust them? Cost transparency is also a deciding factor, with many organisations wanting a clear understanding of the supplier’s cost structure and transparent pricing model.
However, it’s not just the amount of money saved and the time it takes to scale. Cultural fit and track record are just as important. When looking to outsource, it’s worth considering if both organisation share common values and can clearly demonstrate expertise.
