Choosing a Mid Sized it Outsourcing Vendor: Pros and Cons

by on February 6th, 2011
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The huge volume of service providers with exceptional resources, rapid changes in the IT industry, and aggressive competition contribute to a daunting process of hunting a suitable IT Outsourcing vendor for the clients. There are several mammoths in the IT industry that are targets for IT Outsourcing for major global clients. However, with several new software companies cropping up, the inclination towards choosing a mid-sized IT Outsourcing vendor is increasing.

Below are some of the pros and cons in this choosing a mid-sized IT Outsourcing vendor:

Lack of Analysts reports

When considering IT Outsourcing, one of the most important factors is choosing an organization with a good reputation. The IT industry is congested with so many hi-profile companies, that the newly emerging IT Outsourcing vendors do not find themselves mentioned in any report to talk of their credibility. This necessitates the client to take extra measures to understand the reliability of the IT Outsourcing vendor in terms of cost, quality and commitment to deadline.

Eager to Please

It is obvious that when a mid sized IT Outsourcing vendor is chosen, the client is presented with a team of young professionals who are eager to please and work harder in order to establish a strong foundation in the IT industry. A set of fresh eyes coming up with new and innovative ideas is a sure shot boost to the client’s productivity, and ultimately, revenue.

Lack of experience

Most mid sized IT Outsourcing vendor would not have faced the day to day challenges involved in handling a highly demanding and volatile project. More often than not, they have a very limited client base and so their exposure is fairly restricted.

Learnability and Adaptability

The lack of experience may as well work out in the favor of clients since the IT professionals of such an emerging software company would be open to challenging ideas and new concepts. They would be willing to experiment and be pretty flexible thus giving a leverage to the clients in terms of exploring new dimensions.

Infrastructure limitations

It is a giver that a mid-sized IT Outsourcing vendor would not have all the sophisticated hardware equipment or the software technologies at hand. A client needs to evaluate the vendor’s hardware and software capabilities prior to sealing a deal with them in order to prevent any future hassles in terms of deliverables.

Further Cost Reduction

A mid-sized IT Outsourcing vendor would be able to provide services at a much cheaper rate than an established vendor, because of the fact that they are new entrants into the field and cannot afford to be costly. However, it is imperative to ensure that the quality of output is not compromised, whatsoever be the case.

Thus, there is a well-balanced trade-off between the pros and cons in choosing a mid-sized IT Outsourcing vendor compelling the clients to follow a stricter scrutinizing process.

About Author

Cygnet Infotech, an India based Microsoft Partner with Gold and Silver competency provides offshore software development and skilled resources to its clients in 20 countries globally. Having developed a mature global delivery model, Cygnet has also earned ISO 9001, ISO 27001 and CMMi Level III certifications. Visit http://microsoft.cygnet-infotech.com


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