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.