Outsourcing Mistakes: Negotiating Terms (Rates)

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.

AboutMaksym Potomakha
Delivery Officer at Glorium Technologies.