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News from ARP Ideas

Fixed Price vs. Time and Material

Modern IT solutions are no longer just a curiosity in the world of business. On the contrary, they are the foundation of its functioning for years. It is nearly impossible to imagine a production company without an ERP system implemented, or a sales department that does not use CRM. The implementation of this type of solution has become inevitable. 

Why is it worth outsourcing IT specialists?

Building competitive advantage in modern business is based, among others, on the outsourcing of the processes necessary for the effective operation of the company, including those related to IT. This is a consequence of the fact that it is increasingly difficult to recruit experienced experts and project managers on the market. This process is time-consuming and expensive. Being time-consuming is even a higher threat to the company than its price, especially when you need to finish a priority project up to the deadline. That is one of many reasons why it is often worth outsourcing activities to the external company.

You don’t have to deal with recruitment anymore

As it goes for the IT market, especially in the context of software developers, we can talk about the employee’s market. Finding a programmer who will have the right set of skills and wants to join your team at the same time is a difficult task.

As a consequence, many companies that would theoretically prefer to have in-house programmers, consider outsourcing at least some specialists. First of all, it is a real-time-saver, but apart from that, the costs associated with conducting recruitment and keeping personnel records are eliminated.

Avoid the costs associated with employer branding for programmers

The high requirements of potential IT employees translate into the fact that you need to attract them effectively.  Creating a brand of a good employer for IT specialists requires the involvement of marketing and HR departments. At the same time, they could be involved in acquiring potential leads or carrying out internal HR tasks. 

Specialists with a specific range of skills are obtained

Situations in which a company needs a programmer with a particular set of skills for a relatively short time – two weeks, a month, half a year tend to happen quite often. Let’s assume that you are about to deploy a project that requires specific skills which are not needed for any regular tasks in your company. Keeping a specialist who is capable of delivering it on a full-time basis would make no sense and would only generate costs. Finding someone to work just for one project is often even more difficult. And employee training that would allow creating a project team that is able to execute such tasks, will cost time and money. As a rule – building teams is expensive.

IT outsourcing is here to save the day. Recruiting a dedicated development team including experts with extensive experience, in most cases, will be basically the most effective solution.

Transparent conditions, little formalities

Starting outsourcing cooperation does not have to be formally complicated. In most cases, it starts with sending an inquiry to a potential business partner with a description of the competencies that a potential employee should have, some information about the project, and its duration. Then you receive CVs of the candidates who meet your requirements with a description of the technologies in which they specialize and projects in which they have already participated.

If you decide to employ each specialist, you just need to sign the order or contract. The contract is primarily recommended if you intend to establish long-term cooperation between companies and consider outsourcing more people for a given project. In this case, you have a guarantee that the already established terms of cooperation will not change, and outsourcing more people will be just a matter of sending an e-mail.

Thanks to the simplified formal path and general principles of cooperation, the responsibility for the employee rests primarily within the company that provides specialists, while at the same time you can fully use their skills and experience.

Replacement in the event of vacation or illness

Each everyone of us gets sick from time to time. Usually, it is unpredictable. When your in-house programmer gets sick, it’s your problem. If at the moment he or she is not working on an urgent project it’s not a huge problem, if the key business operations don’t stop – you can just wait it out. However, there are also situations in which the deadlines are chasing, and your client doesn’t really care whether your developer is ill or not. In such a case the replacement is needed as soon as possible.

This is another classical case in which you might need to outsource programmers. It allows you to replace your developer for a short or a long time. What is more – if the hired IT specialist gets sick, then the responsibility is on the company that provided you with him or her. In such a situation we guarantee, we will always replace such an employee with one who has the same or very similar set of knowledge, experience, and skills.

Non-wage labor costs go away

Developers are well paid professional group. Considering non-wage labor costs, employing in-house IT specialists can be a really massive cost for a company. Even if some cases, the cost of outsourcing might be comparable to hiring in-house programmers, it does not change the fact that the advantages of this model are measurable.

The primary responsibility for the verification and recruitment of competent IT specialists is on the provider. What is more, you do not have to worry whether the specialist is sick, HR costs go away, and the company’s flexibility goes higher.

 

Contact us using the form HERE, call us at +48 61 624 86 40, or e-mail This email address is being protected from spambots. You need JavaScript enabled to view it..

How to choose the right CRM system?

An overwhelming number of companies start to use the Customer Relationship Management system within the first five years of their market activity. Currently, it is possible to find many solutions of this kind on the market – from the simple and free ones, through more advanced and expensive, ending with dedicated automation tools based on the technologies of such companies like Microsoft, Oracle, SAP, SalesForce, or Comarch.

Thanks to the wide selection of CRM systems on the market – the crucial problem is not the lack of necessary functionalities but selecting CRM that is tailored to the needs and the budget of each company. Based on our experience, we learned that there is no such thing as a perfect CRM, which can outstand any other in all aspects. Even the most extensive solution of this type, which has a considerable amount of interesting and useful features, may completely not match your company.

That is why we have decided to write down some general rules that will allow you to choose the best solution.

Set the goal

According to research carried out by Capterra, the most common usage of CRM systems is sales support. No wonder they are being implemented in over 80% of sales departments. As we wrote earlier, the implementation of CRM allows you to organize the sales process, increase its effectiveness, and the company’s income.

The second place goes for marketing. In this case, the implementation of CRM concerns 46%. The most common usage is segmenting and saving leads and transferring them to the sales department what translates into improved cooperation between the two departments.

The third department in which CRM systems are most often used is customer care. According to the report, the implementation of CRM concerns 45% of them. It is worth noting that, at the same time, according to Capterra, the implementation of CRM has the most significant impact on increasing the efficiency of the customer care department. The survey showed that in 47% of cases, the level of customer satisfaction and customer retention increased significantly.

A large impact on the increase in customer satisfaction results mainly from more efficient customer service, shortening the waiting time for responses and, due to reminders which reduce the risk of negligence by the employees. Before deciding on the choice of CRM, it should be considered which of the following departments needs to be improved most and choose the solution that suits best its problems. 

Analyze your needs

In the next step, after identifying the areas to which the improvement is most needed, you should analyze which functionalities will be needed. This is a crucial stage because lack of the appropriate ones is one of the most common reasons for CRM implementation failures.

You can find a few most popular CRM functions among users, according to Capterra research:

– calendar management,

– e-mail marketing,

– responding to customers’ queries,

– marketing automation,

– lead assessment.

What is also interesting – the research of Innoppl Technologie showed that the ability to use the CRM system via mobile devices has a massive impact on whether companies consider the implementation to be successful.https://www.slideshare.net/slideshow/embed_code/key/pUndBQR6LaJXcfMobile CRM from Sathish Mariappan

Technical support and development

Undoubtedly, the most significant advantage of less known or smaller CRM systems is the price. In lots of cases, such CRMs are cheaper or are even partially free. These types of solutions have a chance to work well in small organizations without significant needs. However, ultimately, it is worth choosing a dedicated solution created by some of the biggest CRM providers.

Let’s assume that a small company uses a niche, but quite functional CRM system. Over the years, the company develops, acquires new customers, builds new relationships, and the database becomes bigger and bigger. The demand for new functionalities is also growing.

Therefore, a problem arises. The existing CRM is not enough, and it is not easy to change it. Migration of customer databases becomes a must-have, but in most cases, it is quite costly and labor-intensive. Additionally, it might happen that the small CRM provider stopped developing its CRM or in the worst case ceased to exist at all. This might cause a threat of partially or entirely losing vital data.

Of course, it’s the worst-case scenario, and it doesn’t have to happen. However, you need to be aware that it can happen and such a threat is real. Therefore, we recommend implementing a CRM based on the solution of one of the leading providers, for example, Microsoft Dynamics 365. That guarantees you to maintain and keep your customer base secure for many years.

This, of course, goes with the incomparably greater stability of the company that provides the CRM. Besides, there is a vast amount of modifications, plug-ins, and possibilities to adapt the solution to the individual needs of each company. The CRM of this type can be simplified or developed according to customers’ needs.

Intuitive to use

A user-friendly interface is one of the most critical features of the CRM system. The implementation of a solution that lacks it will raise problems at all levels of the company hierarchy.

Employees will consider it as an unnecessary difficulty in their work, which steals their time, while not helping in any specific way. It won’t help because users will use it to the smallest possible extent without entering relevant data into it.

This will translate into irritation of the middle-level management and create conflict situations. People responsible for managing teams or departments will demand from the CRM-resistant employees to start using it, which will cause mutual frustration. At the same time, management facilities provided by many CRM systems, also won’t work due to the lack of the relevant data that was not included in the system by employees.

In the end, the management board will be dissatisfied, as it allocated a specific budget to the implementation of CRM, which does not translate into any measurable effects. If you do not want such a situation to happen, you should choose a dedicated solution based on for example Microsoft Dynamics 365, which will provide a solid technological foundation and can be tailored to the individual needs of the company and its employees. It is worth remembering that if the CRM system has an appropriate range of functionalities and at the same time is intuitive to use, convincing employees to it is not difficult at all. They will want to use it due to ease their work, same time and improve efficiency.

Adequate to the size of the organization

Some organizations need only a few simple functionalities. Marketing automation tools, business process analysis, integrated process management, assisted sales tools, and other additional services are not a must-have for all companies and industries. Whatsmore in such a case, implementing an advanced CRM system might cause more problems than it could solve.

On the other hand, in many cases, the implementation of a straightforward tool in an organization that requires an advanced solution won’t be effective as well. The essential functions will be missing all the time.

Both cases described above may lead to unsuccessful implementation or generally to bad results. That is why it is imperative to properly analyze and define your needs or choose an external partner which will help to do this.

Price

When selecting a CRM system, it is necessary to specify the budget and define which settlement model will be optimal. For instance, in the case of small and simple implementation, the Fixed Price model might work better.  For larger, more advanced projects, we strongly recommend the Time and Material model, which allows great flexibility. To learn more about these two models click here.

Security

CRM systems offer a varied level of security. The highest level is guaranteed by the largest providers of such solutions. For example, in the case of Microsoft, the data is being stored in a data center protected by state-of-the-art digital security, multi-stage procedures, and armed guards. Additionally, all information is secured thanks to the extensive policy of back-ups. What allows users to restore any information or return to an older version of files.

Company that will implement CRM

After you choose a specific CRM system, you need to select the company which will implement CRM. We highly recommend reading references, past implementations, and checking the skills and experience of individual team members. This is very important because the quality of the implementation process will decide on its success.

 

Contact us using the form HERE, call us at +48 61 624 86 40, or e-mail This email address is being protected from spambots. You need JavaScript enabled to view it..