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it outsourcing

Why some IT Outsourcing projects fail – and how Next Technology maximizes the chances of success

IT outsourcing can give companies fast access to specialists, increase team flexibility and allow them to scale projects without having to build an entire structure internally.

Yet not every outsourcing project ends successfully.

From our experience, the problem is often not the outsourcing model itself, but the way the cooperation is set up and managed from the very beginning.

1. The client does not know exactly who they need

The process often starts with an unclear requirement. A client may know they need, for example, a highly experienced Cloud specialist, but some of the key elements of the future role have not yet been defined.

We had a situation where a client wanted to start searching for a very experienced Cloud specialist, but at that stage it was still unclear which cloud platform would ultimately be used in the project.

Instead of starting the search anyway, we advised the client to put it on hold.

Why?

Because without such a key piece of information, we could find a very strong specialist who, a few weeks or months later, might turn out not to be a good match for the actual role.

Sometimes the best solution is not to start recruiting immediately, but to first properly define the problem the recruitment process is supposed to solve.

2. The vendor promises more than it can realistically deliver

An outsourcing company wants to win the project, so it says “yes” even when it knows that finding someone who meets all the requirements will be extremely difficult.

However, a good vendor should not just be an executor. It should also be a partner who understands the market and is willing to tell the client when expectations are unrealistic.

Sometimes the best answer is not:

“We will look for someone.”

It is:

“With these requirements and this budget, finding such a person will be very difficult. Let’s discuss which elements we can change.”

3. The budget has not been properly agreed upfront

One of the common problems is starting a search without clearly defining the financial framework. Before a project begins, both sides should understand the expected rate range for a particular specialist and the commercial model that applies to the cooperation. If these points are not clear from the start, we may reach a situation where we find the right candidate, only to discover that their expectations do not fit the client’s budget. Transparency at the beginning reduces problems at the end.

4. Poor communication

Outsourcing should not work like this:

client → account manager → recruiter → candidate → account manager → client.

The more intermediaries there are and the less direct the communication, the greater the risk of losing important information along the way.

That is why we believe the recruiter responsible for a particular process should have direct contact with the client and be involved in relevant discussions.

This gives the recruiter a much clearer picture of who we are actually looking for, allows them to adjust the candidate profile more quickly and gives them a better understanding of the project context.

Day-to-day communication matters just as much. When the recruiter is regularly included in the communication, feedback reaches the right person faster and the response time on both the candidate and client side is significantly shorter.

5. The process takes too long

Time is one of the biggest enemies of outsourcing.

A candidate who is available today may have another offer in just three days. A client who needs a particular specialist today may have completely different project assumptions a month from now.

The structure of the process itself can also become a problem.

Three or more interviews, lengthy decision-making processes or very time-consuming take-home assignments can discourage strong candidates from continuing.

Especially when a candidate is expected to spend many hours preparing an assignment they will not be compensated for, while another company may offer a much simpler and faster recruitment process.

That is why speed should not mean sending a large number of CVs.

It means making decisions quickly, communicating efficiently, keeping the number of stages reasonable and constantly moving the process forward.

6. The process is poorly structured

No briefing call with the hiring manager at the beginning. No regular communication. No feedback. No follow-up. No clearly defined ownership on either side. Each of these things may seem minor on its own. In practice, together they can cause even a well-started project to stall. A good process should have a clear starting point, clearly defined next steps and people responsible on both sides.

7. The candidate has not been properly verified

Recommending a candidate is about more than checking a CV and a few keywords.

If the vendor does not properly verify the candidate’s actual skills, the problem may only become visible during the client interview.

For example, a candidate may use AI during the screening process or otherwise overstate their level of expertise. They pass the initial stage, are presented to the client, and then it turns out during the technical interview that their actual knowledge does not match what was presented.

That is why the vendor’s responsibility does not end with finding a CV.

8. The candidate’s motivation has not been properly assessed

Even an excellent technical specialist may be the wrong candidate for a particular project. We need to understand why they want to change jobs, what they expect, which type of cooperation works for them and whether there are any practical constraints.

The example is simple: the client offers a B2B contract, while the candidate is planning to apply for a mortgage and needs an employment contract.

Technically, everything fits.

In practice, the deal will probably never be signed.

That is why understanding motivation is just as important as assessing technical skills.

9. The wrong person is closing the process

Finding a strong candidate and having the client approve them does not mean the process is over.

At the very end, the candidate may have doubts, receive a counteroffer or simply not be fully convinced about the project.

We had a situation where a candidate went through several interviews and was approved by the client, but the recruiter was unable to handle the final negotiations effectively. The candidate eventually withdrew, even though the process was practically complete.

Appropriate training, combined with support from people for whom negotiation and closing are a natural part of their work, helped increase the number of successful agreements at this final stage.

This shows that successful outsourcing requires more than good sourcing and recruitment. It also requires the ability to successfully close the process.

How does Next Technology Professionals approach outsourcing differently?

At Next Technology, we do not see outsourcing as simply delivering CVs. We see it as a joint process where both sides share responsibility for the outcome. We start by understanding the client’s actual needs rather than blindly launching a search. If we see that the requirements are unrealistic or that key information is missing, we say so openly and work with the client to find a better solution. We agree on the commercial framework and financial assumptions before the search begins.

We combine the experience of the Account Manager with the expertise of the recruiter who is directly involved in the process and understands both the candidates and the current market situation.

We focus on speed, efficient communication and regular feedback.

We assess not only candidates’ skills, but also their motivation and fit with the proposed model of cooperation.

And above all, we do not see presenting a candidate as the end of our job.

Success is not sending a great CV. Success is having the right person start working with the right client.

That is how we understand effective IT outsourcing.