Is It Worth to Outsource? How one can outsource wisely.
By Alex Polonski |
Recent trends in software development market show that it is no longer the most
efficient way to work onshore. Competition is too high and in some particular
cases, US or European IT people even go farming rather than admit the situation
and adapt themselves. This article is mainly for those who are going to stay
straight in the industry whatever surprises it keeps
bringing.
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?
About the
Author
Alex Polonski is a Senior Sales Manager at XITEX
Software Company, Ukraine. The company works in offshore software development
market since 1999 anâ has a fair expertise in J2EE and .NET technologies. Among
company’s own-developed and marketed solutions, one can see a J2EE content
management system, Xitex WebContent M1. http://webcontent-m1.com/
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