8 Red Flags to Look Out for When Choosing a Technology Partner
02 Mar 2023 / 5min
Selecting a tech partner is crucial for your project's success, especially if you're developing custom software. Here are 8 warning signs to watch out for before signing or extending a contract.
Why Do You Need a Tech Partner?
A development partner is critical in creating an offer on local and international markets. The most successful companies strive for business expansion; they usually manage this with the help of a diligent technology partner. An external IT provider will bring you many benefits, such as:
Shorter implementation times
IT companies have proven action plans and procedures that have resulted from experience with their existing customers. Because of this, transferring technological solutions will run more smoothly; any reduction in your company's productivity will be minimal. However, onboarding a new employee or an entire IT department may take time.
Reduced costs
An external IT supervisor offers lower costs as compared to an internal department. Your cooperation is based on a subscription or one-time fee, not on hiring a team. You do not incur the costs of recruiting or maintaining employees. You only pay for the service.
Outsourced troubleshooting
You do not have to worry about failures and technical problems. IT partners offer a helpdesk to turn to in case of software malfunctions or more serious errors. Help is often provided around the clock.
Access to new technologies and solutions
IT companies employ certified specialists. These are highly qualified and constantly develop their competencies. Reliable companies care about being updated with the latest solutions in new technologies.
Tailored to your company's needs
IT companies’ project teams are not only made up of developers. They also include business analysts, UX and content specialists, and other professionals. Thanks to this experience as well as to personalized in-depth workshops, your business needs will be understood and supplemented. You pay for what you need, not for opportunities you may never use.
Many IT companies promise to provide very similar solutions. How can you be sure you choose one that will meet your needs? You can start by looking for signs of an inefficient tech partner.
Don’t Ignore These 5 Red Flags When Choosing a New Tech Partner
The IT market is still evolving. New companies offering tailor-made software are constantly emerging. An experienced and reliable software house can be an amazing business find. However, there are also unprofessional suppliers on the market that can cause more harm than good – even undoing your previous digitization efforts. To avoid losses and disappointments, look for these warning signs of an unreliable software provider:
No Positive Reviews
Satisfied customers are happy to post positive reviews about their tech partners. This is due to friendly cooperation, an established business relationship, and a successful partnership. Clutch.co is a well-known website for detailed information about IT companies. It collects opinions about companies in development, design, IT services, and other areas. You can use this site to view references, case studies, quantitative and qualitative data on projects, rankings, and more.
No Clear Deadlines
Today's IT market is extensive, and there is a lot of competition in acquiring new contractors. Every client is priceless. For this reason, many software companies sign contracts with several business owners simultaneously. They want to ensure financial continuity and maximize profits.
The problem arises when the technology provider poorly manages deadlines. As a result, they cannot reach project stages according to the set timeline. This may prevent you from confirming a future launch date for your product or service. It also makes it difficult to plan other activities, such as promotions and marketing.
Make sure your potential technology partner can provide you with a precise schedule of milestones from the start. A reliable service provider will not be afraid of possible contractual penalties for failure to meet deadlines.
A Lack of Understanding of Your Business Needs
You’ve probably thought carefully about your business goals and needs. Tailor-made software is the perfect way to invest revenue, increase efficiency and profits, and optimize processes.
However, you need a reliable business analysis if you’re going to choose the right software. Experienced tech partners will pay attention to many aspects you have not considered. If, during talks, the company does not show understanding for your business model and does not take the initiative in proposing solutions, be careful!
An Inexperienced Team
The core of each software house is a qualified and experienced team. By choosing a company with a competent team, you reduce the risk of lateness or dissatisfaction. To find out what human resources your potential technology partner has, ask them for a blind CV. You’ll learn the skills and experience of the people who will implement your project.
Poor Employee Morale/Reviews
Treating employees well and increasing their job satisfaction may seem a secondary consideration when you’re interviewing a potential tech partner. But the best software houses care about their image as a good, honest, and appreciative employer. This reduces employee turnover and increases employees’ morale and motivation, which directly affects the quality and timeliness of projects. It also shows the company's work culture.
3 Red Flags You Should Change Your Current IT Provider
Perhaps you already have some experience working with technology suppliers. If your experiences are positive and you are satisfied with your joint work and its results, you've found a good fit. Sometimes, however, even a long-time working relationship ceases to be satisfactory. How do you know when it's high time to change your tech provider? If they have any of the following red flags, it may be time to consider making a change.
Exclusively Short-Term Focus
Your technology partner should prepare and continuously refine a long-term business vision for you. Project realization and implementing agreed functionalities alone is insufficient. Your partner should care about achieving KPIs and welcome open conversations about your expectations and business needs. A tech partner’s myopia will keep your project or service from reaching its full potential. If you suspect you're working with a team that doesn't see the big picture, start looking for a partner who will give you the best results in the long run.
Poor Development Methodology and Communication
The quality of work management and efficient communication is essential for your success. Experienced suppliers work based on proven technology project management methodologies, such as Agile or Waterfall. Your partner should have experience with at least one of the popular project management methods. This ensures the organization of work, both in the technological and the communication layer. It also ensures mutual understanding and the ability to react quickly to necessary changes.
Frequent Errors and Timeline Changes
Implementing your business assumptions depends on the timeliness and reliability of the software. So if your supplier regularly delays delivery, changes the budget, or delivers features with errors, it is a signal to change partners. You may be afraid of downtime when switching suppliers and possible complications. But when you look at the situation holistically, cooperation with an unreliable supplier means more losses.
You Can Find a Good Tech Partner!
An extensive portfolio, time on the market, experience in your industry, and a professional and experienced team are the key factors you should look for in a tech provider. A company with a higher price tag may ultimately be a money saver; fixing bugs, switching technology partners, and delays are much more costly in the long run. So it is worthwhile to establish cooperation with proven, experienced, and respected suppliers.