Offshore Outsourcing is not a plug and play feature. Though cost is the prime factor driving current boom, there are many issues which are to be considered first. One out of every four outsourcing deals fails, because cost saving is the only issue considered by companies and service providers. In any offshore software development deal, there are bound to be glitches, but at TatvaSoft, we miming it by implementing proven methodologies and building trusted relationship.
Below are some of the issues to be considered while offshore outsourcing and TatvaSoft approach:
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1. Vendor Selection
There are different horses for different courses, and you have to select right one. Don't bet on a dark horse. Price is not the only factor to be considered while choosing vendor. Technical skills and experience are equally important.
Information Technology Outsourcing deals many times fails because of wrong vendor selection, as vendor selection is based on price alone. Cost is often the prime factor for outsourcing, and it is definitely important. However, cost should not be the only driving factor of vendor selection process.
Cost : Every company is in the business to make money and so are the offshore service providers. If you push them on the wall for price, at the end, they will find a way to earn money. It is better to have a contract which is fair to both parties.
Technical skills : There are different horses for different courses. And you have to choose the right one for your job. You need to assess the capabilities and experience of service provider.
TatvaSoft Approach
While discussing Information Technology Outsourcing with our clients, we are very much open. Many of our clients know about the salary of employees and profit margin of TatvaSoft. We give rates which are fair at both ends and our rates depends on level of programmer's skills, experience and ability. Rather than employing any body, we maintain standards while selecting people. We access our strength and weakness, capabilities and limitations. We are not one stop Information Technology service providers. We concentrate in our domain to get maximum expertise.
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2. Intellectual property rights issue
A serious concern while going offshore software outsourcing is, intellectual property rights and theft of intellectual property.
Outsourcing Services and intellectual property rights issues are discussed many times at many places.
- What if source code developed for me is also sold to my competitors ?
- What if service provider makes minor changes in code of the product developed for me and put his own product in the market?
- What if any employee of service provider steal code and sell to my competitors?
TatvaSoft Approach
Intellectual property is like genie. If stolen, it can not be put back in bottle. We sign intellectual property rights agreement with our client. At the end of project, when client informs, we delete every piece of code from our computers. We do not offer so called "REUSABLE LIBRARIES" like many other offshore service providers.
We make legal agreements with our employees to protect client source code. Limited internet access, Email scanning, disabled floppy drives and cd-writers etc. are the other measures we take.
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3. Your existing development team
This is the most critical issue while your existing IT team works with offshore software development team. Without proper measures it may become a blame game with no advantage to company.
Software Outsourcing and offshore job shifting is a hot issue and has many negative impact. When any company starts offshore outsourcing, employee dissatisfaction because of job insecurity will arise. It may happen that, technical team may not co-operate with offshore development team and at the end it becomes a blame-game. It is always better to discuss with staff and have mock Q&A session before going offshore outsourcing rather than giving surprise.
TatvaSoft Approach
When we feel, working with client IT team is not going on course, we take following measures :
- Find out where problem is. We reexamine how relationship is managed and who is managing how, and discuss with client for improvement.
- Talk...Talk and more Talk. It is everyday occurrence of offshore outsourcer. A healthy discussion always brings solution.
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4. Offshore development team & management
People and project management is often what separates a winning combination and failure in offshore software outsourcing.
Software Outsourcing companies are many. But what separates a successful company from the also-rans is, people and project management, experience and vision. We are not just body shoppers who hire developers from market, create a team and sell.
TatvaSoft Approach
People who work on client project are actually working for service provider. We match vision of client with vision of development team. We create code ownership and responsibility feeling in developers. Also we provide web based project management tool for client to manage development team and analyse their day by day performance, manage project requirements and bugs management.
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5. Communication
Because of geographically dispersed team and different time zone, communication is an issue. Company and service provider has to schedule meetings at a compatible time.
Offshore software Outsourcing to a geographically dispersed companies often creates communication problem because of time zone difference. Client and service provider has to schedule phone calls and meetings. Emailing works but it can be unsatisfactory when email sent on critical change at the afternoon of one country and reaches to development team at midnight.
TatvaSoft Approach
Our employees consider communicating with clients during off hours as a part of job. We try to adjust our schedule with client's time zone whenever required.
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6. Approach and Methodology
"When we give a list of things to get done, half would and half would not." This is what you may hear from many companies having offshore software development team.
Software Outsourcing companies are many. But what separates a successful company from the also-rans is, people and project management, experience and vision. We are not just body shoppers who hire developers from market, create a team and sell.
TatvaSoft Approach
We match vision of client with vision of development team. We create code ownership and responsibility feeling in developers. Also we provide web based project management tool for client to manage development team and analyze their day by day performance, manage project requirements and bugs management.
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7. Manpower Turnover of software outsourcing service provider
With recent boom of software outsourcing in India, programmers are shifting jobs frequently. A newly hired manager or engineer always wants to work his way and may prefer to make change in architecture of development work.
Software Outsourcing is booming in India and human resource turnover is fact of life in most companies. A newly hired manager or engineer always wants to work his way and may prefer to make change in architecture of project. He may interpret requirements differently. It may also create communication gap.
TatvaSoft Approach
While selecting candidates, we test candidates for technical compliance as well as psychological compatibility with our values and work culture. We look for Stability in the candidate's personality and commitment for 1.5 years.
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8. Testing at different location
In offshore software outsourcing, testing is required to be done at several locations as code is designed and developed at one place and implemented at other
Software Outsourcing at offshore destination requires testing to be done at several locations. When code is developed at one location, it should be tested there. But it also needs to be tested where it is to be deployed. It may interact with other components at the place of deployment.
TatvaSoft Approach
We test code locally as well as on testing server of our client. Generally clients provide access to testing server for full development cycle and provide limited access to actual server whenever required.
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9. After project services
Project may require minor changes or upgradation anytime and fastest turn-around can be provided by those who have developed it.
No software is going to work for life-time. With changes in business, requirements change and so does software. Project may require minor changes or upgradation anytime and fastest turn-around can be provided by those who have developed it. But those who are in another geographical location, have developed the projects and working for somebody else. They may respond quickly or may not respond at all.
TatvaSoft Approach
Documentation and commenting are the best approach. We also stay engaged after completion of project and try to reply as promptly as possible. It is also required from companies to manage relations with service providers.
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10. Walking away from the deal
Breaking up is the hardest part to do when project development is at mid stage.
This is the hardest part of software outsourcing. It is not easy to walk away from deal when project is at half way mark. One out of every four offshore deals fail. Reason are many - communication gap, differences between technical members of client and service providers, mismatch between expectation of client and performance of provider etc. It is costly to both parties and whenever possible it should be avoided.
TatvaSoft Approach
When project does not move on course, we try and figure out why its not moving on course. We try to get as much information and problems from the developers and the clients for analysis. Based on that, we try to find solution. Communication is key in solving problem and we emphasize on communication, communication and more communication. If all approaches fail, we discuss with client for proper exit which can minimize client loss.