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Managing an Outsourced Team – Common Mistakes

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Zespół Mindbox

6 minutes


In this article, you will learn:

  • How remote management affects a team
  • What are the main challenges in managing a remote team
  • Which mistakes to avoid when managing an outsourced team
  • What is worth implementing when managing an outsourced remote team

Effective remote team management requires more than just implementing Scrum – the key is finding the golden mean between necessary control and specialist autonomy. Although remote work in IT has become a market standard, managers still struggle with communication barriers and declining engagement in distributed structures. Learn how to optimize the management of an outsourced team to eliminate micromanagement errors and build high performance without the risk of burnout for your people.

Effective remote team management

55.5% of IT professionals performed their duties remotely – these were the realities of the IT industry in 2023 as described by the No Fluff Jobs report. And although companies are offering this type of work less frequently in job postings, one of the useful skills in this work model remains team management – because leaders do not have daily physical contact with the members of the teams they oversee, they must approach work time organization and the division of responsibilities and tasks appropriately. One of the most important elements of managing an outsourced team is communication. The lack of daily office contact necessitates organizing regular meetings (e.g., daily stand-ups in the Scrum methodology often used in this work model) and establishing clear rules regarding when and how to communicate via various channels (e.g., emails, instant messengers, or video conferences). Another important aspect is skillful task management – tools like Trello, Asana, or Jira can be used for this purpose, but it is definitely more important to clearly define specific goals, deadlines, and expectations for each team member. Task management is linked to the next element – building trust. The remote work mode makes full control over task execution difficult or impossible, but it is not worth obsessing over a sense of control – providing team members with autonomy in task execution and transparent decisions and actions can make the team work just as effectively as on-site employees.

Main challenges of remote team management

Although evidence in the form of reports shows that remote employees can be just as productive as on-site ones, there are several challenges in remote work that are unknown in the “classic” work model. One of the most easily noticeable is communication – because asynchronous communication (e.g., emails) often dominates in remote teams, it can cause delays and hinder immediate reactions. Sometimes assigning responsibility can also be problematic, and members of outsourced teams must demonstrate greater self-discipline and accountability, which in some situations can be difficult without supervision. At the same time, it must be remembered that remote work can cause motivation problems, e.g., due to the blurring of boundaries between professional and private life, which can lead to professional burnout. The IT industry stands out from others due to greater globalization, and teams composed of members residing in different countries are nothing unusual in this sector. For this reason, problems with managing a team across different time zones can sometimes arise – when a team works in two or three zones, everything can be coordinated relatively easily, but when the manager resides in New York, part of the team in Warsaw, and another in Mumbai, problems may arise. Remote teams may also have a greater tendency to generate conflicts, which may, for example, result from unclear communication rules. They may also be harder to resolve in a remote environment because the lack of direct interaction makes it difficult to identify problems. It is also worth remembering that remote employees may have different needs and expectations, which requires a flexible leadership style from the manager.

Mistakes to avoid when managing an outsourced team

One of the biggest mistakes that can be made in managing a distributed team is excessive time and task management – this is known as micromanagement. Although it may have positive effects in crisis situations, micromanagement in the long run can be an ineffective way of organizing work – if employees feel that someone is constantly controlling them and limiting their autonomy, their productivity and engagement may drop. For this reason, it is good to give team members a free hand where possible and hold them accountable for results, not for time or effort. As already mentioned, managing people in remote work in the IT industry involves working with people from different parts of the world. For this reason, it is worth taking into account cultural differences, which can manifest in work styles, communication, and approaches to problem-solving. You also need to remember local holidays, working hours, or social norms – including them in management can help improve performance. The most mistakes can be made in time management – this refers not only to time differences but also to imposing deadlines that are too short without considering the team’s limitations. Also, infrequent or irregular meetings can lead to a loss of control over the project and a sense of isolation among team members. It is also worth ensuring regular and as complete feedback as possible, because shortcomings in this area can lead to repeating mistakes and frustration in the team. Managing an outsourced team also requires investment in relationships – treating remote employees only as suppliers, not partners, can lead to a lack of engagement. You also need to ensure that the outsourced team feels part of a larger whole.

Advice for remote team managers

How to control remote work well? IT companies that have been working in such conditions for at least a few years have already learned how to effectively manage the work of an outsourced team. They have understood, among other things, that apart from management issues, financial issues must not be ignored – outsourcing involves communication or coordination costs, so the lack of clear billing models and cost structures can lead to financial problems and unnecessarily increase operating costs. A distributed team should also have access to appropriate tools and technology – it is the client’s responsibility to ensure that outsourced employees can use the tools used in the company and can also obtain technical support if needed. In remote work, you also need to motivate the team appropriately – apart from regularly recognizing achievements not only with a good word but also with financial and non-financial benefits, it is good to organize social meetings that allow for building relationships – as far as possible, it is good to do this in a specific location, but virtual meetings will also work. In remote work, you also need to take care of organizational issues and the right atmosphere – a good remote team manager should create an environment where team members feel comfortable sharing opinions and suggestions. They should also be available and solve problems that team members may encounter as best as possible. Another piece of advice for remote team managers is to take care of the health and well-being of employees – it is good to encourage them to maintain a healthy work-life balance, as well as to establish clear rules regarding breaks and working hours. At the same time, remote employees should have the same access to training and mentoring programs as on-site employees.

@mindbox

Zespół Mindbox

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