software outsourcing

A blog related to software development company and offshore software outsourcing

Thursday, December 22, 2005

The secrets of Offshore Outsourcing Success

Offshore Outsourcing is a volatile topic, because it puts both, jobs and even careers at risk. But Outsourcing of IT strategy needs calm and sober looks at it. The main problem in dealing with a remote supplier, especially in IT, is the proper communications. When you are given a project to an Offshore Outsourcing supplier, even after explaining everything, and assigning a deadline, you must keep proper communications during the project. Because without proper communication you may face the danger that the work returned to you may not be what you expected form the Offshore Outsourcing.

In Offshore Outsourcing, people are paid at a higher rate, but are well worth it. They act as proxies who are responsible for all the project work that must be done with proper accuracy and within the deadline. First they review the work and then distribute it to the people in.

In Offshore Outsourcing, it does not work properly if, after defining requirements, needs and wants of the project and signing the contract, the client continues to make changes to the given specification. It always creates difficulty and pain if the outsourcer is working on a moving target. A change management process with a change control board is recommended where the clients, not the outsourcer, would take the lead in Offshore Outsourcing.

Offshore Outsourcing Services

As far as Offshore Outsourcing is concern frequent and regular communication between client and suppliers is must even if the work or specification doesn’t change much. Technologies like WebEx, NetMeeting, and IM can be used to great advantage in the process of Offshore Outsourcing.

Offshore Outsourcing can be proceeding with a very unique protection plan i.e. "de-risking". After the supplier sets up the whole infrastructure and hires the required resources, the client can take over the entire center at a predetermined price to make a proper Offshore Outsourcing deal.

Offshore Outsourcing is really a difficult issue at the end of the day. One thing is sure that a coder sitting in China or India is costing the companies about 60 to 70 percent less than an equivalent stateside programmer. As Offshore Outsourcing demand increases and the international skilled worker pool gets benefits, Offshore outsourcing costs will definitely rise worldwide. At that point of time, something other than only payroll considerations will be the differentiating factor for hiring in the process of Offshore Outsourcing.

In Offshore Outsourcing, still the bottom line is “Proper communication between the vendors and the clients is critical”.