Is your offshore venture a Success?

What do you think are the main reasons  that made you go in for an offshore set up? Is it cost savings, and only cost savings? If then, you need a huge reality check!

Gone are the days when companies considered cost factor as the cornerstone for any form of outsourcing. In an interview with, Mary Lacity and Joseph Rottman,   shared what they think as the best and worst beliefs the industry has about  offshore outsourcing, or outsourcing in general.

The worst beliefs or practices include:

  • Choosing an offshore location because it  provides cost benefits
  • Going in for multiple suppliers with the belief that it will reduce  costs, and not for domain expertise or efficiency reasons
  • Believing that employees at the offshore location will do their work without any support from you
  • Concentrating only on the processes

Apparently every company who  had these beliefs  had bad  experiences and  were forced to scale back their projects or look for alternative ways to redeem it. . So now the obvious question would be,

“Then what are the best practices?”

  • Building a social capital: Work gets done by people and not processes. It is critical that you  foster lasting relationships with your supplier and his team.
  • Rigorous Knowledge Transfer: It is important you  have a good understanding about the idiosyncrasies of your business processes. If you  stop short at explaining your need to your suppliers, and do not give them the entire story, they will always be ill equipped to  meet your expectations, and that can affect you adversely. Tightly integrate your suppliers to your business, in short!
  • The more you get involved with the outsourcer the better!!
  • Concentrate on quality, agility and flexibility, and cost effectiveness WILL BE the end result

Be it just domestic outsourcing or off shoring, finding the right partner and building a relationship with your partner is a good way to do business in this global economy!!  And if you are looking for one, check Suyati’s Dedicated Global Team out. Our DGT model focuses on creating nimble, focused IT teams that become an extension of your in-house software team. And don’t take our word for it. Read what our customers have to say about DGT.

We’re listening.

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Author : mkrishna Date : 21 Nov 2011