Is It Worth to Outsource? How one can outsource wiselyLearn Management Articles on management-info.biz. Is It Worth to Outsource? How one can outsource wisely article will help answer your questions on Management Articles.We at management-info.biz specialize in Management Articles. Management Articles at management-info.biz provides the most up to date news and articles. If you have questions please do not hesitate to contact us.
International division of labour has done its work. So nowadays, if you ask anybody about the regions he associates with IT-industry, you’ll get quite a short list: India, China, Russia, Eastern Europe. No wonder, historically these regions had the most efficient technically oriented education. In addition to lower cost of labour in the East, that is their main selling point, which determines their competitive strength. As a logical sequence, almost each leading company engaged in IT sphere, whether publicly or secretly, outsources a part of its current work to third parties, often offshore. No wonder that Indian and other offshore software development companies prosper. So what are the key factors that make companies outsource? 1. Cost of labour is often several times less than onshore. 2. There is no need to maintain the whole technical infrastructure 3. Company can concentrate mainly on marketing tasks Although that sounds good and promises several times bigger profits, incautious outsourcing can be a trap for any company. Don’t forget that you entrust your reputation to a company that is thousands miles away. Hence, if you have made a decision to outsource a part or the whole project to some company, you should take into consideration five simple tips. Make proper research The simplest way to find offshore software development companies is to try search engine or relative online directories. However, there is no guarantee that under inspirational promises any website has, you won’t find cheaters. Spend several hours and try to find the most info about the companies you have selected. Search engines should be your best friend in these efforts. Consult alliances and associations Almost each country where IT industry is well developed has national alliances of software development companies. These pools of developers can become your first step in search for an outsourcing company. Communicate carefully When you have decided to contact several, as you think, most reliable companies, you shouldn’t provide them with complete info regarding your project at once. Keep a little intrigue and give the info partially. That will make you aware about professionalism of companies’ project managers as well as about their communication policy. Communication is what you will appreciate during the whole project’s development. Therefore, it is better to find out whether they are communicative enough before you sign the contract. Ask for references/samples Although offshore developers cannot disclosure their recent contracts, anyway, they have several clients that can provide you with references whether they are bad or good. If there are no references at all, ask for some software the company has developed. See and try each example of their work you can. That will make you aware about the quality of their services. Phone or visit them The best way to test the company, which you would like to outsource to, is contact them directly. Emails are good, but you can find out more info about the possible partners if you phone them. At least you will know about their command of English (don’t forget, you are going to outsource abroad) and their real interest. Additionally, you can make them relax a little, so they will be less defended against your research of true situation. If you visit them personally you’ll see exactly who and where will work for you. At least, if the company doesn’t mind you visit them, that can mean that they are open enough for collaboration and they have provided you with more or less true info. If you can do at least three of these five steps, there will be little chances for you to be cheated by an unreliable company thousands miles away. You’ll be able to experience that kind of wise outsourcing that can give you required competitive ability. Each time you are going to give some project for offshore development, take into account that you should be an initiator and wise decisions maker. Research, consult, and communicate. That’s the motto of any company that is successful in outsourcing. It’s not too complicated, is it?
|
More Articles:1. EQ vs. IQ: Why Do Smart People Fail? Why do smart people fail? Why people who are emotionally intelligent succeed while those with merely a moderate IQ considerably fail? First we need to understand that emotional intelligence (EQ) is not the opposite of IQ; EQ is actually complementary to IQ resembled in academic intelligence and cognitive skills, and studies actually show that our emotional states affect the way our brain functions as well as its processing speed (Cryer qtd. in Kemper). Studies have even shown that Albert Einste… 2. The “Better People” Fallacy By Arvind Kumar It’s easy enough to convince your own staff that better people will prevail, even against the odds. It’s what they want to hear. And surely in a marketing war quality is a factor as well as quantity.It is, but superiority of force is such an overwhelming advantage that it overcomes most quality differences.We have no doubt that the poorest team in the National Football League could consistently beat the best team in the NFL if it could field 12 men against the opposition’s 11.In business, wher… 3. Sarbanes Oxley 404 Compliance - How Nov. 15, 2004 Deadline Affects You By Chris Anderson Fast Relief for Sarbanes Oxley Section 404 ComplianceSection 404 of the Sarbanes-Oxley Act requires management to confirm the effectiveness of their IT and financial controls in an "internal control report", which is contained within the annual report (10-K) issued to the public. But what exactly is an internal control report, and why is it important to you?The Section 404 Internal Control ReportFirst, the internal control report must affirm management’s responsibility for controls and procedu… 4. How Roman Abramovich Became a Billionaire at Age 34, and Why Most Managers Struggle By David Ferrers When he was only 36 years old Roman Abramovich bought Chelsea Football Club. Within a year he had spent £90m on new players and Chelsea finished 4th in the league.Mr. Abramovich’s reaction was to fire the Manager in 2004 and bring in Portuguese coach Jose Marinho. In 2005 Chelsea won the Premiership, The League Cup and the Community Shield. They also made the semi final of The Champions League.Mr. Abromovich’s behavior differs from that of most other senior managers in four important ways.Do … |
||||