Outsourcing Mistakes: Negotiating Terms (Rates)

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Outsourcing Mistakes: Negotiating Terms (Rates)


One common mistake made when choosing a future supplier is negotiating rates. Many people tend to be too insistent on lowering them. As a result, you will get a cheaper specialist, or the supplier will try to save money somehow to reduce the cost of the project.


Of course, this will harm the future product because:

  • The quality of the final product suffers
  • The implementation time increases

Do not forget – outsourcing companies must earn. If they are not allowed to, they will save on your project.

How to avoid it?

  • Study the market.
  • Make sure that you are offered average market rates – do not lower the bar below the market.
  • Do not try to pressure the supplier to lower tariffs below the market value.

Remember, in the end, you get what you pay for.

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At Glorium, we provide tech companies the strategic & technical expertise you need to build your vision faster & for less than the cost of hiring in-house employees. We complement in-house software development teams with your choice of pre-vetted offshore developers – each with extensive experience building apps & developing software in their area of expertise. Essentially, you can shop for a developer based on the specific skills you require for your project – all to help you prevent production delays, accelerate time to market & scale at will.

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Andrei Kasyanau – CEO & Co-Founder of Glorium Technologies. Andrei leverages his 20+ years of experience in the industry to help tech startups bolster their teams with agile product development services on demand. His vision of custom software development & management can reduce time to market by up to 30% with 40% in savings compared to in-house teams.

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