Insights | Is It Time to Switch Your Outsourcing Vendor?

Is It Time to Switch Your Outsourcing Vendor?

By Andy Hilliard | February 17, 2016

change.pngAs software development outsourcing continues to be an integral part of how we do business today, the decision to change outsourcing vendors, before or after the termination of a contract, has become a foreseeable reality for many. Worldwide, companies are eager to get on board with new outsourcing agreements, hoping to gain the advantages of better quality and greater innovation at a lower cost.

However, many companies want to avoid the frustrating process of finding a new outsourcing partner, and become hesitant to switch even if they are having issues of cost, performance quality, or cultural fit.

Look for these four things to know when it’s time to consider switching to a different outsourcing partner.  


Service and/ or Communication Issues
Perhaps your chosen outsourcing partner doesn’t live up to the agreed upon requirements. Problems can come about when customers and their outsourcing partners are not entirely prepared to work together after the contracts have been signed. When this happens, services may never be delivered, operational activities can get halted, client and vendor staff are both frustrated and the schedule for accomplishments is delayed. This can occur for multiple reasons such as:

  • Expectations are not set before the contract is signed
  • Service agreements laid out in the contract are not met by the vendor
  • The vendor does deliver on service agreements, but the client notices less value than hoped for
  • The company culture is not focused on their clients


Vendor Streamlining
In addition to dissatisfaction with performance, another reason you may consider replacing your outsourcing partner is to avoid risk. Outsourcing clients often spread their workload between several vendors, which causes some clients to experience a decrease in purchasing power. In this case, you could reduce your number of outsourcing partners in order to consolidate and enhance your bargaining power. This may require transitioning specific outsourced roles from one outsourcing partner to another.


Outlook Changes
Maybe you are looking for a vendor that is able to offer you a better value. You may feel like you have matured past your present vendor and so you’re searching for one that will give you a better competitive advantage. In addition, you might have realized that your regional outsourcing partner isn’t able to service your global needs. If you decide to change Accelerance can help by evaluating the multitude of international outsourcing vendors for you and matching you to the outsourcing vendor that best fits your company’s culture and business needs. Best of all it's free to you!   


Vendor Market Fluctuations
Companies often look for new outsourcing partners when changes in the market such as fluctuations in exchange rates or other economic conditions cause the originally selected firm to raise rates. Also the availability of new or specialized firms for new technologies can occur. Once an outsourcing contract is underway, organizations recognize that the outsourcing marketplace has grown so much that there are many more options now that can assist them to build a competitive lead.

If you’ve experienced any of these above, it may be time to consider switching outsourcing partners. However, you need to be aware of the risks that may affect the process of transitioning to a new outsourcing partner.  Whether you decide mid-contract or post-termination, it’s important to weigh the all of the risks involved in switching partners to ensure the smoothest transitioning process. Understanding the factors contributing to a successful changeover is vitally important.  


Here at Accelerance our clients have learned that a successful vendor relationship requires more than just technical skills. It is our communication skills and dedication to customer satisfaction coupled with our outsourcing experience that has fueled our success. We have a global view of the market and are able to assist organizations in finding the most cost efficient and effective vendor for their specific needs, so contact us to get started! 

More from Accelerance

September 18, 2020

Spotlight on Colombia: Thriving Software Development Outsourcing Industry

I’ve been to Colombia four times on business trips – twice as a client, working on projects with there; and most recently, after joining the company myself, introducing a new client to the...

July 29, 2020

Spotlight on Costa Rica: Central America's Calling Card

When it comes to work/life balance, Costa Rica gets it right. In this beautiful and peaceful country, a “work hard and play hard” approach to life is the perfect mix. If you’re heading over on a...

July 27, 2020

Spotlight on Uruguay: South America’s Best-Kept Secret

Uruguay may be the second-smallest country in South America, with a population of just 3.5 million, but it’s the leading software exporter per capita in the region. Lying between Argentina and...

Whitepapers

August 15, 2020

2020 Guide to Software Outsourcing Rates

Gain insight into the latest rates for software development outsourcing resources with our proprietary benchmarking guide that offers:

July 27, 2020

2020 Guide to Software Outsourcing in Latin America

Qualified software engineering teams are not easily found. 

September 17, 2019

What CTOs Need to Tell CFOs About Software Development Outsourcing

Alignment between your company’s CFO and IT strategy is significant to outsourcing software development

Tech leaders and CFOs need to speak the same language when selecting a software outsourcing...

How can we help you succeed?

We make outsourcing successful with innovative partner selection services and tailor-made consulting solutions to ensure your desired outcomes.

Let’s Get Started