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How to Spot the Red Flags of an IT Service Consulting and Outsourcing Scam

Almost everyone knows the pain and regret of being a scam victim. The same remains valid for IT outsourcing scam. IT consulting outsourcing involves an executed scheme where dubious individuals pose as legitimate IT consulting firms or services to engage in fraudulent practices. These scams can range from fraudulent financial requests to unauthorized access to a client's database for ransom purposes. These outsourcing scam can crash your business temporarily or permanently. Here are a few signs that indicate that you are about to fall prey to an outsourcing scam.

Outsourcing Scam in IT Consulting

Signs that your Partnership is an Outsourcing Scam

Many outsourcing scams are well-planned and executed flawlessly. Outsourcing scammers create a legitimate background with excellent websites, credentials, and fake reviews. Unfortunately, at the heart of it, these ventures only aim to dupe unsuspecting victims. Some glaring signs that show that a particular IT consulting company is a scam include:

Many scammers pressure clients to make a hasty decision about employing their services.
Outsourcing scammers must often refrain from signing NDAs or documents to protect client and customer data.
Sometimes, these scams come to you by unsolicited email calls or text messages.
Be sure to verify an outsourcing firm's references, as scammers may provide fake references for reference checks.

What Seven Red Flags and Outsourcing Scam in IT Consulting

Below are a few more tangible red flags to help you distinguish a fake IT consulting outsourcing firm from the real thing.

1
Too Good to be Fake?

Outsourcing 101 tells us that outsourcing aims primarily to save costs, but at what cost? IT consulting outsourcing scammers often glamour themselves with 'too good to believe' pricing.' They present meager prices for large tasks to trap people into paying for their services, after which they abscond. While consulting pricing may differ based on the outsourcing firm, some prices indicate a red flag.

2
Sketchy Online Sources and Referrals

Many outsourcing scammers have every one-of-the-box ticket except for their sources and referrals. These firms employ the services of fake reviewers to provide referrals or unsolicited offers to lure clients into using their services. Thus, the golden rule for outsourcing your projects to third-party firms is not to trust a source you cannot verify.

3
Experience: The Best Teacher

As expected, outsourcing scams need more experience. These firms will balk under pressure and technical inquiries. You should have your questions handy and treat every prospective IT consulting firm as an interviewee. Be sure to ask detailed and technical questions to understand their experiences clearly. You can also undertake in-depth research about their portfolio and experiences online. 

4
Fee Advancement

The priority of these outsourcing scam is money. As such, many can insist on getting paid upfront in part or whole. In several instances, they demand large payments upfront before they begin any task and are always keen on getting fee talks under their belt. Authentic companies often wait to undertake studies or while the work is ongoing before sending in the bills.

5
Shady Responses

Poor communication indicates all forms of red flags, which is true of outsourcing scams. Many dubious firms need better communication habits, are sometimes unreachable, slow to respond to messages and inquiries or ignore the client. This habit may make it challenging to register concerns to track the state of the project, mainly when a deposit has been completed. 

Conclusion

Outsourcing scam can bring a startup to the ground - literally. It is essential to undertake all measures necessary to avoid being a victim of these scams. In many cases, these scams are glaring from a mile away, but sometimes they are not. This article has been curated to help you recognize and prevent the latter.

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