How to choose the right third-party company for your process innovation?

Startup Development House
17 January 2020

If you want to take your process innovation to the next level – you can choose one of two ways to do it: either in-house or outsourcing. But since an in-house IT department is often too busy to handle all initiatives, working with a third-party company may be the most optimal (and even inevitable) solution. 

This is something that has been verified in a number of different studies (e.g., Gartner, Technavio) – all showing that the global outsourcing market continues to grow on a year-to-year basis, with companies becoming increasingly satisfied with the results of this type of cooperation. 

Process innovation examples

Process innovation pertains to every type of modification that modernizes, simplifies and facilitates product or service delivery. For example, this can refer to bringing offline processes online, or upgrading the software tools or production methods used, which may not be directly visible to your customers, but the results of which can be reflected in greater efficiency and increased revenue for your company. It’s  vital in the growth of your business and for maintaining a competitive edge, which — more often than not — shouldn’t be something that you tackle completely on your own. Why?

From our perspective, there are three main reasons why engaging an experienced third-party company in the innovation process is one of the best decisions you can make. 

Structured innovation processes = increased efficiency and security

When you’re already occupied with daily tasks, acquiring new clients and trying to stay in line with a preconceived strategy, it may be difficult to single-handedly focus on the innovation processes. Outsourcing this part of your business development to another company can be a game-changer, especially if you want to increase your overall efficiency without compromising any ongoing processes. You can fall back on an experienced third-party company, which indirectly strengthens your business stability. 

But do you know what to look for when you’re trying to select the right company for your project? You should definitely focus on: 

  • Proven workflow
    Ask if your potential partner has a proven workflow for bringing apps to life. An experienced company should have a number of optimized, efficient and agile team workflows that have already been tested on different projects to prove great results. 

  • Fluent design process
    Check to see if they have a fluent and time-saving design process. Having already completed numerous projects, they should also have a process that enables them to deliver results faster and better, as said previously. 

  • Cloud platforms
    See if they have upgraded their systems to any cloud platforms. A high-tech software house should build applications using microservices — make sure that all their cloud-based solutions are stable and able to deliver in any situation.

Team augmentation = a broader  problem-solving approach

When you want to digitally transform your company, it is incredibly important to get a new pair of eyes on your problems, as you may have some natural difficulties with taking a step back and observing things from a neutral distance. An outsourcing company will not only augment your product development team but also help you see the big picture, notice any significant details that may have been overlooked, and put everything in perspective. 

So, make sure that your potential IT partner meets the following criteria: 

  • The organization is well-established
    Your IT partner should have at least a few years of experience building tech products for clients in several different industries. This kind of background will allow them to provide you with a more holistic view of your problems and find the best possible solutions to your current issues and concerns.

  • They possess a strong global presence
    If you want to expand your product development team – offshoring may be a great option. Just make sure that the company you choose to work with operates on an international level, with plenty of experience running projects in different countries or even continents, so they know how to navigate through time-zones and cultural differences with finesse.

  • Record of successfully completing multiple international projects
    Running projects abroad is one thing, but successfully completing them is another. So, don’t just ask about the number of products they’ve made for clients from different countries — also inquire about how they’ve managed to meet specific project requirements to successfully reach their goals.

Cross-industry experience and knowledge = innovation value

If you want to bring more innovation value to your company, you need to embrace an interdisciplinary approach that aims to reprogram your organization as a whole. That’s why all the cross-industry experience and knowledge that an outsourcing partner brings to the table is invaluable during the innovation process. The solutions they offer can often reach far beyond the technology department, driving digital change everywhere else as well. 

Therefore, the outsourcing company you select should possess this highly desired set of qualities: 

  • A mindset geared towards transforming more than just IT
    Why? Because innovation process models strive to make the entire company operate as flawlessly and efficiently as possible. 

  • Ability to acquire very precise knowledge about the client’s requirements
    Having worked on so many different projects related to various industries, your outsourcing partner already knows a lot about the client’s needs and certainly knows where to look to discover more individual requirements. 

  • Startup expertise and knowledge
    And last but not least – it’s not only the medium and big corporations that count. Experience working with startups is invaluable in terms of knowing what it really means to run a tech business and the types of problems that entrepreneurs face on a daily basis.

Wrap-up: what are the advantages of outsourcing?

Managing the innovation process certainly isn’t a piece of cake, but working with a third-party company may help make the process a relatively smooth one. The top 5 advantages include:

  • Higher efficiency and focus on core areas – as delegating means you will have more time left to run your business. 
  • Cross-industry knowledge – that creates the ability to see problems from different perspectives, by working with people who can offer a fresh outlook and holistic approach. 
  • Access to skilled resources – this will complement the skills and qualities of your own teams. 
  • Saving time and money – by avoiding the mistakes you would make trying to do it all on your own, due to lack of experience. 
  • Shared risk – since the success or failure of your project is also the success or failure of your partner, this will be reflected in their own higher or lower revenue. 

OK, so the augmentation of your development team can be beneficial, that’s indisputable. And now you also know what to look for in your potential IT partners. If you are interested in starting this type of cooperation, you can read more about our projects including process innovation — and don’t hesitate to ask us about the details.

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