7 Pitfalls to Avoid When Choosing IT Outsourcing Company in 2025

Many CEOs, CTOs, and IT leaders in the U.S. believe that collaborating with the right IT outsourcing company is all about making a strategic choice. But that’s not true. While making a well-informed decision plays a vital role, addressing and eliminating the drawbacks is what matters the most. In 2025, business stakeholders should not only focus on ‘What to Prioritize’ but also be mindful about ‘What to Avoid’. This will ensure trusted partnerships with the top companies outsourcing IT services for U.S. businesses.

As per Statista, a global data and business intelligence platform, the worldwide IT outsourcing market is about to reach a whopping $812.71 billion by 2029. Researchers also state that this market will grow at a CAGR of 8.28 percent during the forecast period 2025 - 2029. To stand tall in such a competitive scenario, organizations in North America need to join forces with a reliable IT outsourcing partner. However, this is only possible when business owners know which crucial gaps to avoid for business success.

With advancements like AI taking the center stage, new layers of complexities are getting added to technology partnerships. It’s time IT decision-makers take the necessary steps to choose an experienced offshore outsourcing partner, such as Clarion Technologies. This will enable failsafe software development outsourcing to break barriers, fast-track workflows, and maximize ROI.  

Why do Technology Partnerships Fail? Why Selecting the Right Outsourcing Company Matters?

Technology partnerships can accelerate or limit business success. Choosing the right technology partner is nothing less than a challenge. Many North American organizations have experienced setbacks while partnering with software development outsourcing companies. Why? Due to misaligned business requirements, unrealistic deadlines, lean technology investments, and massive communication gaps.

In today’s modern era of technology advancements, digital transformation is the foundation of successful technology collaborations. According to McKinsey, an American multinational strategy and management consulting firm, 70 percent of businesses fail to embrace digital transformation. The reason is – inappropriate balance between technology capabilities and strategy building.

Business leaders and decision-makers often end up selecting IT outsourcing services with legacy engagement models, conventional workflows, and outdated competencies. However, the increasing use of Agentic AI, GenAI, cloud, and other key technologies demand alliance with a veteran technology partner.

Clarion has been a strategic outsourcing partner for businesses in the US and across the globe looking to meet their software development requirement. Our technology experts specialize in faster implementations, quality deliverables, AI-driven development, and stringent data security.

Clarion uses Top Grading methodology to onboard versatile professionals with 90 percent chance of achieving desired outcomes that only the top 10 percent of experts can achieve. These pre-vetted software mavens are not just developers. They are passionately committed to think beyond and create powerful solutions that exceed business goals in challenging real-world scenarios.

Partnering with an experienced IT outsourcing company like Clarion is a game-changing move to avoid resource constrains, skills gap, lack of ownership, limited business opportunities, and cost overheads. It can help businesses experience various advantages, such as:

• Creating technology breakthroughs without compromising quality
• Building AI-powered products with faster time-to-market and time-to-value
• Adopting IT outsourcing services that future-proof business capabilities
• Onboarding certified software developers with 4+ years of industry experience
• Introducing automation to reduce development costs by 30 percent
• Enhancing operational scalability to increase business profits by 2X

7 Critical Mistakes to Avoid When Selecting IT Outsourcing Company

There are many software development outsourcing companies across the globe. However, organizations can only make the most of custom software development services if they partner with the right company. For which, CEOs, CTOs, and IT leaders need to focus on avoiding the common mistakes when selecting a software vendor or opting for IT outsourcing services.

• Overlooking Domain Expertise and Industry Experience

One of the top pitfalls in outsourcing software development is partnering with a technology solutions provider without considering their industry proficiency and experience. This mistake can lead to prolonged onboarding of developers, misaligned solutions, poor service delivery, and increased workloads.

On the other hand, collaborating with the best IT outsourcing company, such as Clarion brings in domain-specific expertise related to Healthcare, FinTech, eCommerce, and other industries. This partnership can accelerate development time, reduce overheads by 25 percent, provide a competitive edge, and maximize productivity by 20 percent.

Hence, businesses in the U.S. should prioritize proven expertise over basic capabilities to find outsourcing partner that delivers value at scale.

• Making Decisions Solely Based on Decreased Costs

According to Deloitte, a multinational professional services company, 70 percent of organizations consider reduced costs as one of the significant aspects defining their IT outsourcing strategy. While cost-effectiveness is a key driver for software outsourcing, considering it as the only factor for decision-making can hamper the entire software development lifecycle.

Successful IT outsourcing in 2025 requires moving ahead of costs. Today’s IT outsourcing partners deliver more than just affordability and reduced overheads. They help emerging startups, established businesses, and large-scale enterprises in the U.S. and worldwide tap into revenue gains, opportunity cost realization, and higher business productivity.

Clarion is one of the best outsourcing companies that can help organizations in the U.S. create the right balance between cost, quality, and long-term business value. Our technology experts have created a custom IT Outsourcing ROI Calculator to identify business profits of outsourcing software development. This easy-to-use tool provides ROI breakdown for IT outsourcing in just 30 seconds.

• Leveraging Unreliable Engagement Models

Another critical pitfall to avoid when choosing an outsourcing partner is relying on traditional engagement models. Many organizations often approach freelancers or hire in-house developers. While dependency on freelancers can limit operational capabilities, onboarding internal development teams comes with its own set of challenges.

A survey by Society for Human Resource Management (SHRM), a professional HR membership association, states that the average per hire recruitment cost is about $4,700. The survey also suggests that it takes ‘forty-two days’ to fill a required position. To avoid such complex scenarios, businesses in North America need to partner with leading IT outsourcing firms, such as Clarion. This will help them build own offshore development team and start their software development project in just 1 day - 2 weeks.  

With Clarion’s IT Outsourcing ROI Calculator, organizations can get actionable insights into how to evaluate a software development partner. They can assess different outsourcing scenarios and explore value beyond costs. They can compare the advantages of vEmployee™ engagement model against onsite full-time employees, onsite full-time contracted employees, outsourcing to Indian large IT firms, and outsourcing to low-cost regions.

• Isolating Business and Technology Priorities

Software outsourcing partnership shouldn’t be a siloed and contractual execution. Instead, it should be a combination of strategic association and shared leadership. However, many IT leaders are unable to align business KPIs with technology priorities while selecting an IT outsourcing company. This leads to individualized dependencies, cross-functional miscommunications, and operational anomalies.

On the contrary, top IT outsourcing companies like Clarion can combine business-focused metrics and technology capabilities to build desired solutions. Organizations in the U.S. will be able to develop software architecture and implementation roadmap that perfectly suit their business requirements.

A multi-location medical facility was looking to integrate AI into their remote patient monitoring app with the help of an outsourcing partner. They approached Clarion with overarching business requirement to automate data handling and analysis. We helped them build an AI-based solution for faster patient data processing and management. With this solution, the client was able to handle critical cases 5X faster, generate 98 percent accurate data, and reduce human efforts by 30 percent.

Collaborate with the Best IT Outsourcing Company to Maximize Development Productivity by 40% and Business ROI by 20%.

• Failing to Prioritize AI Development Capabilities

With AI accelerating the digital transformation wave, neglecting its competence can be one of the biggest slipups businesses can make when selecting an IT outsourcing company. It can negatively impact the overall business success and limit capabilities to compete with leading industry players. It can keep organizations away from modern integrations, custom features support, and automation environments.

To dominate the technology landscape in 2025 and beyond, North American businesses need to partner with the best IT outsourcing company. Clarion stands tall as one of the top software outsourcing companies with proven experience in building scalable software products backed by AI. Our AI industry experts have hands-on expertise in enabling intelligent automation to reduce overheads by 30 percent, avoid costly hiring cycles, and accelerate product launches.

• Ignoring Data and PoC Confidentiality

In search of the best IT outsourcing company, businesses in USA often undervalue data privacy and PoC confidentiality. Lax security arrangement can hamper business vision for MVP development. A software vendor with zero access control mechanisms in place, poor IP defense, and no NDA implementation can expose your idea to unwanted thefts and compliance breaches.

Top outsourcing companies like Clarion safeguard data and PoC throughout the development cycle. An NDA is signed at the start of the project to ensure robust data governance, code security, and prototype protection. Enterprise-grade security frameworks are implemented to avoid data leakages and shield business idea.

• Underestimating Post-Deployment Support

Software launch is just the beginning. The real challenge is to support the software after deployment. That’s where many CTOs, CEO, and IT decision-makers fail. They choose an IT outsourcing company that doesn’t offer post-deployment support. In such a case, businesses have to deal with unwanted bugs, slow performance, malicious activities, and upgrade issues.

Clarion has been a trusted software development partner for businesses in North America and globally, delivering post-deployment assistance without hidden costs. Our technology experts not only meet desired milestones but also focus on achieving long-term stability. We ensure dedicated maintenance and updates with utmost transparency.

Change Your IT Outsourcing Game with Clarion

As a business owner in the U.S., you can eliminate the pitfalls of outsourcing technology projects only when you partner with the best IT outsourcing company, such as Clarion. You will get access to vEmployee delivery model for building an extended offshore development team for your company. With our IT outsourcing services, your business is bound to achieve – developer onboarding in 1 day - 2 weeks, A-player advantage, 98 percent project success rate, SLA-based delivery, agile development, faster team ramp-up/down, and increased profits.

A leading outsourcing partner with more than two decades of software development experience, Clarion is well-versed with the modern cloud and AI technologies, business nuances, and industry trends. We have been creating success stories for our esteemed global clients across various industries, including Healthcare, PropTech, InsurTech, eCommerce, FinTech, and SCM. Our technology experts provide 360-degree assistance from requirement gathering and solution development to QA and post-deployment support.

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