November 3, 2011: The Information Technology industry is flooded with a large number of service providers and more and more service providers are entering into the industry which makes it highly competitive. With this larger number of service providers competing for their chunk of share, clients are finding it very difficult to select a suitable vendor to outsource their business process.
The IT industry has large number of giant service providers who serves large global clients. There are a lot many new start up software companies in the industry, which has drawn attention of the clients who now started to pay attention to such mid sized software companies.
There are many factors that should be taken into account while selecting mid sized service providers. They are:
- Large number of service providers, but no analysis reports
In most cases clients select a vendor based on service provider’s reputation. The present IT industry is flooded with high profile service providers. In addition to this there is large number of new entrants who doesn’t get listed in any of the reports. Lack of such reports makes it difficult for the client to understand the credibility of the service providers. So the clients will have to put extra effort in determining the reliability of the service providers in terms of quality, cost and timely completion of the projects.
- High level of energy associated with young professionals
Selecting a mid sized service provider has an advantage of utilizing young and energetic professionals. As the service provider is new to the industry, the professionals will work hard in order to please the client and to build a strong foundation in the industry. Such professionals will come up with innovative ideas which will boost the performance of the company.
- Flexibility and adaptability to try out new ideas
The young professionals will be more flexible as they are new to the industry and will be ready to experiment which will give the client opportunity to explore new dimensions. They will come up with innovative ideas and concepts which will be a learning experience for both the professional and the client.
- Lack of infrastructure
A common problem that most of the start ups face is the lack of adequate hardware, software, and equipments. So before entering into a contract the client should evaluate the infrastructure capabilities of the service providers in order to prevent problems in the future in terms of deliverables.
- Potential in resource utilization for cost savings
One of the main drivers behind outsourcing is cost reduction. Outsourcing to a mid size service provider will provide further cost reduction as they will offer service at a cheaper rate than existing vendors in order to compete in the market.
So clients should look into the above factors before they outsource their process to a mid sized software service provider.