software outsourcing

A blog related to software development company and offshore software outsourcing

Monday, January 09, 2006

Offshore Outsourcing and Contract Management

The process of Offshore Outsourcing has brought a revolution in the path of the business process worldwide. As it provides lots of advantages to the business along with the cost, all the business industries are moving towards it, whether it is a small one or big giants. This process of offshoring also seems pretty simple and full of advantages. The companies who are willing to expand their business without the heavy burden of increased overheads, selects this process without any real hesitation. Still its not that simple as it sounds or looks. The process of Offshore Outsourcing can bring lots of threats with danger in the business if done in improper way.

Proper Offshore Outsourcing requires proper management experts and contracts to run it in profitable manner. There are some of the threats and the problems listed below which may occur in the case of the improper planning and management.

If you are a person whose company is providing the offshore services, it may be possible that your contractor may make direct contact with your client and de-list your company name from the whole process of Offshore Outsourcing. So its better to keep valuable informations with you as much as possible. Also bound your contractor with legal contracts regarding such matters. Here are some more possible options given below regarding the Offshore Outsourcing and Contract Management.

Offshore Outsourcing

You should always do the communication with the client through the system. In this way the contractor would not come to know about the clients email address and further informations. And client will not come to know that you are using contract management team as the email will directly come from the system of the project management to you.

As a part of contract management of Offshore Outsourcing, do not allow your contractors to have the client’s contact in the first place. So by this way also you will be able to keep the grid on the clients and over the contractors. This solution also helps in avoiding the situation by which the contractors directly approach the clients, as they might not come to know that in real scenario they are dealing with which party. Actually this situation of the threat only appears when you allow your contractor to contact the client directly. This is not the only problem that one might face by the contractor. People like the webpage designers can also play the same game with you. Your hired designers may also require contacting the client directly for some presentation concepts, amendments and many more problems. Such a deal also needs some precautionary steps from your side. Such problems and many other do arise in the deals of the Offshore Outsourcing which has to be taken into consideration.

To reduce the risks in the Offshore Outsourcing, it is better to hire a Project Manager who can effectively act as a middleman in the whole relationship chain. Project Manager will be the man who would effectively connect you, your client and the contractor staff with each other. This might be one of the best possible ways to deal in the process of Offshore Outsourcing to reduce the overall business risk.