software outsourcing

A blog related to software development company and offshore software outsourcing

Wednesday, December 28, 2005

Offshore Software Outsourcing and reasons why offshore deals shatter

In the world of Offshore Software Outsourcing the businesses of offshoring is touching the sky day by day. More and more IT companies are trying to satisfy their business needs through the process of Offshore Outsourcing. With this one thing is also fact that many of the Offshore Software Outsourcing deals will fail because of improper planning and management.

While dealing in Offshore Software Outsourcing, some enterprises are sprinting into the deals with the hope to gain a competitive advantage by the way of cost cutting or a boost in production process. But there are many factors which can really smash the desired of expected gains if not taken care of. Here are given few reasons or factors, where the outsourcers should try to focus more attention while dealing Offshore Outsourcing.

In Offshore Software Outsourcing deals there might be lots of hidden expenses or charges which should be properly thought of. These may include factors like, communications, cultural training, travel and infrastructure. These expenses may cause real difference. One more important thing is the time duration. Try to make a deal which may last more than one year, because short time duration deals may not gain you desired advantage if the planning and startup costs are relatively very high. Smaller time deals with high cost of startup will also affect the profit margin of the business in Offshore Outsourcing.

Offshore Outsourcing

Another important factor in Offshore Software Outsourcing is proper and timely communication between the vendors and the clients. Both the parties need to engage in the deal constantly and properly after the deal or the project is signed between them. It is often marked that either party looses the concentration, which leads to the failure of the whole project or deal. At the end of the day good and proper communications between both parties plays a vital role in the deal of Offshore Outsourcing. Proper communication includes constant discussion about projects, goals and expectations. Both the parties should also be able to explain that why the Offshore Outsourcing deal is made and what benefits will they gain at the end of the project.

Again the deal of the Offshore Software Outsourcing should not be done by focusing on the salary factors only. Sometimes this may also lead to the mistakes. It is also true that offshore service providers staff is not that much productive in the initial stages as compared to the internal staff. This may lead to the loss of productivity in the initial stages. The programmers of the offshore service provider are relatively new and inexperienced with your business. Internal staff may lose morale or confidence and may feel insecure, if more and more work is outsourced. Difference in the culture also plays a vital role in the deal of Offshore Outsourcing. Difference in the style of the communication and attitudes towards authority can also cause some undesired problems. So the proper advice about the offshoring company and their culture is also required before dealing in Offshore Software Outsourcing.

One more important aspect in Offshore Software Outsourcing deal is the lack of offshore expertise and willingness. The offshorers sometimes demand to have everything in place internally and secure themselves before dealing offshore projects. It is advisable for the outsourcers to find out the maturity of the process of IT. Standardized methodologies are also required along with established mechanisms for making the project mature. Any careless steps in these areas of the project may turn into the poor result or failure of the Offshore Software Outsourcing project.