Exclusive interview with Vitaliy Dyachenko - CEO UppLabs on "Top App Firms"

In this exclusive interview, He shared his insights on outsourcing and several more things. Let’s check his success story and thoughts.

1. What are the different types of outsourcing?

If we talk about outsourcing in IT, I’d highlight two main types: fixed-price contracts and dedicated development teams. Here in UppLabs, we work with both models.

2. Why do you think companies outsource, what benefits does outsourcing provide them?

Among the essential advantages of hiring an outsourcing company/agency are the next: 1.The whole teamwork is easier to synchronize 2.It enables the communication between the team members to be efficient 3.The workflow within the entire team is clearer and transparent 4.Mutual cooperation creates equal responsibilities 5.The development capacity can be easily scaled 6.The team is motivated as it focuses on long-term cooperation 7.It’s a fast way to form a team

3. What would you say are the top risks of outsourcing?

The TOP risks of outsourcing: 1.Finding a good agency or company, especially in a specific area, maybe a difficult and expensive task 2.It can be difficult to communicate directly 3.Lack of direct control and close communication 4.Difficulties with system maintenance and compliance 5.Risk of information leakage 6.At the initial stage, you will have to spend time trying to establish a cooperation process 7.There is a risk of reduced flexibility

4. What challenges do companies face when outsourcing their call center functions and how should they minimize risk to their core business?

First of all, outsourcing the call center functions might result in decreased customer satisfaction and provoke linguistic and cultural barriers. You might have less control over business functions, and outsourcing partners might know less about your company and business, not enough to provide value for your clients. Furthermore, there are security and privacy concerns. To minimize the risk of the core business, hire separate professionals instead of a whole team. Make regular checks of the performance.

5. What are the top 3 questions a company should ask a potential outsourcer?

About vendor’s experience, reporting & communication, and price policy.

6. What industry sector outsources the most?

If we talk about IT outsourcing, all existing domains are in need of quality outsourcing partners. UppLabs works with Fintech, Healthcare, and Real Estate sectors. During COVID-19, Healthcare demanded a lot of updates and brand-new software products.

7. What are the top 5 reasons organizations outsource?

1.Lack of in-house specialists 2.Outsourcing can help save a company money in the form of not having to hire additional employees 3.Not enough experience in the particular technology or field 4.Need of the additional resources (servers, hosting, etc.) that might be too expensive to buy because of their expenditure 5.Speed of the development and implementation

8. What effects do legislation (e.g. DMA/FTC etc) have on the outsourcing industry and what are your views on this?

So far, I have no objections in regulating the outsourcing industry.

9. What challenges do offshore outsourcers face that domestic ones do not?

Offshore outsources often have to face time lag and communication issues (different culture or language). It might be also harder to set up a working process due to being far away from the client and not understanding the situation in the client’s company and business.

10. What are the key drivers for companies to outsource offshore?

Prices and pool of talents. Usually, offshore vendors provide the same or better quality services cheaper. Also, the competition offshore is high, and you have the access to thousands of high-skilled specialists ready to start working immediately.

11. How have the campaigns and projects companies outsource changed over the last 5 years?

Competition and complexity grew significantly. Also, digitalization resulted in deep technology penetration covering all parts of human lives. So software became smarter, more sophisticated, more secure.

12. What would you say are the top 5 questions a company should ask a prospective outsourcer?

1.About experience 2.About technology stack 3.About software development methodologies 4.About reporting and communication mode 5.About escalation policies for handling incidents

13. Do you feel that a client of an outsourcer should have unrestricted access to agents/reps working on their behalf and why do you believe this?

It depends on the type of contract and responsibilities agents/reps perform in the frame of this contract.

14. What industry sectors tend to outsource more than others (e.g. financial services, utilities etc)

As we see the influence of coronavirus on our daily lives, more and more people tend to use digital banking (mobile banking) and different healthcare apps (like those which are used for telemedicine). So far, the demand for outsourcing software professionals to develop products in Fintech and Healthcare rise.

15. What management and motivation challenges do outsourcing companies face with their staff?

In recent months, these challenges mostly concern work from home and the organization process, remote work control, and different management tools. Coronavirus changed a lot of things, but we all tend to get used to the “new normal”.

16. How can outsourcers and clients ensure a fair partnership agreement?

A fair partnership agreement can be ensured by regular monitoring work results, measuring agreed milestones, and setting transparent communication.

17. What are the main advantages of using brokers when considering outsourcing some, or all, of your contact center functions?

Brokers might save a lot of your time as they perfectly know the market.

18. What is the role of service standards when outsourcing?

Service standards ensure that a customer will get a functional, compliant and secure product.

19. What role do associations play in helping companies select and use outsourcing services?

Associations might set some standards vendors will follow to eventually win a client.

20. Have you seen any trends in your area on the type of outsourcing companies that have established themselves in your area and what would you attribute this to?

Among trends, I see that outsourcing companies try to position themselves as multy-industry specialists. They say to be proficient in everything.