software outsourcing

A blog related to software development company and offshore software outsourcing

Thursday, February 02, 2006

Offshore Outsourcing is not of that much Threatening

Offshore Outsourcing is the process which is considered to be bit risky. Though it is the process with lots of benefits to the company but equal risks and threats are also attached with the overall process. As innovations are taking place in the technology, risks and threats are also increasing with the advantage list. But it is not like that such problems and risks can not be taken care off. With the innovation in technology lots of techniques are there by which one can easily take care of such risks. No doubt that there are risks involved in such process but it is also easy to overcome such process. Some caring and mature steps taken from the side of the clients would definitely keep him away from such threats of the business. Let’s see some of the threats involved and how to overcome them during the process of the Offshore Outsourcing.

In Offshore Outsourcing there are threats like Identity of the Vendor, Privacy of the Data, Political and Legal risk, Country risk, Internal Dispute and many more. But all these risks can easily be overcome.

Offshore Outsourcing

Identity of the Vendor:
In such deals if possible for the clients he should take at least one visit to the place of the vendor. It would help in understanding the condition of the vendor in better way, because it might be possible that vendor might be different from what he seems on paper. So one visit from client to the vendor would be helpful.

Data Privacy:
In Offshore Outsourcing deals Data Privacy is again one of the most concerned topics. You must show interest about the security system of the vendors regarding the data privacy. You should also know that how and where the data would be stored? Who else is going to use the data of the company? And many more. Discontinue the contract with the vendor at once if you find your data at risk.

Political and Legal Risk:
In Offshore Outsourcing process you should also study the Political and Legal structure of the country very well before entering into any transaction. Fluctuation in the Political or Legal structure would also put your project on risk.

Country Risk:
In such Offshore Outsourcing deals you should also study the policies of the country very well before entering into any deals. What are the geographical and other advantages you are going to get as well as price difference and many more aspects should also be studied well before such deals.

Internal Risk:
Internal Risk in Offshore Outsourcing means the dispute that might take place between the management and the employees. So the company should keep proper communications with the employees that why the company is going for the overseas dealing and what benefits it will have from such business deals to avoid any controversy. Proper communication with internal staff and external vendor is the most important aspect in such Offshore Outsourcing deals.

In short in Offshore Outsourcing process lots of risks are involved. But proper care would definitely help the clients to overcome such risks and help him to expand his business in the best possible way.