software outsourcing

A blog related to software development company and offshore software outsourcing

Wednesday, February 08, 2006

Offshore Outsourcing and its Failure Ratio

Offshore Outsourcing process which is used very frequently in all the industries for the purpose of success in the business process doesn’t really bring success all the times. But the reality is that almost half the times the deals fail because of one or the other reasons and this is the only fact behind all the myths of the success of the process. Wide range of expertise and knowledge is must to gain the success in not only such deals but for any business process. This is the process in which you are going to deal with the overseas party that might be unknown to you in many of the cases. So some times it becomes very difficult to take any decisions regarding them. At this time the power of knowledge and expertise plays a major role. In such deals there are lots of companies who are adopting it for the single reason of cost savings. And in most of the cases it becomes the main reason why such deals get fail in almost half of the cases of Offshore Outsourcing.

In Offshore Outsourcing deals one more important reason behind the failure of the deal is the lack of comparative informations with the company. Market survey and study is must before entering into such risky deals. Survey about your vendor’s skills and potential is also carrying the same importance. What are his skills and expertise? His experience in the market, his status and work style, his commitment, his policies and many more points are there which are very important in such Offshore Outsourcing deals. In present market lots of cases of theft and cheats are coming in to the picture regarding the Offshore Development and services. One more fact companies are finding is much of the cost savings done through is lost in managing the relationship with the vendors and in many cases its true. In many cases it has happened the opposite vendor is totally different what he seems on paper, so chances of frauds increase in such cases of Offshore Outsourcing deals.

Offshore Outsourcing

In failure of Offshore Outsourcing, changing in policies by the vendors also plays a major role in many cases. It is also found that many times the vendors change overall price policy or some other work strategies so it also causes lots of problems to the vendors. In many cases of failure is not meeting the deadlines from the side of the vendors also leads to the failure of the overall project. Misuse of the data and information is also found in many cases which ultimately lead to the failure of the contract in Offshore Outsourcing process.

So in Offshore Outsourcing it is really a big mistake to consider that every deal would bring success to the company, but in fact most of the deals get fails in many of the cases. So proper investigation about the internal and the external resources is must. One more important thing is not to enter into such deals for the shake of the cost savings, because in many deals because of this purpose only many companies has made a lots of lost in Offshore Outsourcing.