Application outsourcing as defined by bitpipe.com is the deployment, management and upgrades of packaged or customized software that is contracted out to an external provider. Today, due to the massive volume of data, companies are opting to find application outsourcing companies. However, there is always the question of security. Some companies think twice before entrusting their data to an outsource company.  A company is under pressure to save cost and at the same time increase productivity, and then it has to know some tips on how to choose a good application outsourcing company.

1. What kind of outsourcing does the company need? There are many options to choose from depending on the scale. If email is needed then hosting is better. Managed services may be the best choice if a company has to scale among different countries or regions.

2. Are there hidden costs? Would the option to outsource incur more operational costs than what was expected? If yes, better think twice. A good example is in the case of collocation where the company has to think of additional expenses such as staffing, office space rents and others. There are also hidden fees from providers, which the company should know in advance.

3. Do the services come with guarantees? Companies should know whether providers could give guarantees in cases of problems. Guarantees can also help in customer retention.

4. Does the provider provide support when the company needs it? The company should make sure that there are available representatives every time in cases of problems. Application outsourcing is not an easy decision for a company especially if they are handling sensitive data. But choosing the right one and asking the important questions can make a big difference.

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