For any company which wants to outsource its software related requirements be it a local company or a company which has its operations based out of the country where development is going to take place. Well people tend to think that if we outsource our requirements locally it would be easier to get the work done in terms of some legal issues, issues related to constant communication with the outsource company individuals, constant update on work, as well one can physically view the premises of the local software company just to verify that it has enough infrastructure/resources in terms of manpower and skilled personnel to get the work done, also in case of any legal issues related to copyright infringement and issues where the company’s business model could get exposed to outsiders and issues related to government wherein currently the government is giving a push in terms of information technology companies providing them with special economic zones it’s possible that the government later changes its mind and comes with new frameworks and rules in terms of increasing taxes thereby causing losses to the company involved in the sector.
However in this era of globalization, outsourcing of software related services companies located locally is not a good idea. The reasons are:
- It turns out that outsourcing locally is far more expensive than to outsource it to a third world country like India or Philippines, sometimes up to 2-3 times of the difference in terms of outsourcing locally to a vendor.
- Apart from the cost factor which is very significant factor in all outsourcing projects is availability of the resources in desired skillsets. The availability of domain experts in a particular domain is difficult to find with so many new technologies coming in day to day life along with people switching over to new technologies which gives them more salaries as compared to remain stuck to a particular technology. For example nowadays it is very difficult to find experienced people in Mainframe technology as very few companies use it nowadays however still many companies especially in the banking sector still use mainframe technologies as its quite robust and secure and currently they do not have an alternative which is as robust as mainframe based platform.
- The other reason is why people tend to outsource globally is that company’s get a lot of options from various companies along with different solutions/estimates offered by each company so that they have a huge number of choices available from while making a decision. Since a lot of options are available to companies/individuals which want to outsource they prefer the one who has the highest experience with skilled personnel along with some who can deliver quality within the expected timeframe and the budget to be adhered to not someone who initially quotes a very low price just to grab a project and then gives so many change requests so that the overall project cost becomes 2-3 times the initial budget planned for the project.
Companies/individuals who want to outsource their requirements have to be very careful before they choose a vendor who is going to fulfill their requirements. The points they can keep in mind before outsourcing are:
- View the previous portfolio of the projects along with the technologies in which they were implemented.
- Whether previous projects were implemented within the timeframe proposed or reasons for delay.
- Feedback from previous clients about the project executed.
- Reputation in the market as a brand.
- Social presence in social media tools such as Facebook, LinkedIn, Twitter etc.
- Case Studies and Patents developed by the company.
- Duration of the company in the market, the no of employees working in the company.
- No of offices through which the company is operating out of which how many are sales and how many are development offices.
- Style of working, Whether CMMI level certified Microsoft Certifications is a plus; Project Managers who are PMP certified are preferred.
- Ability to converse in English fluently with neutral accent is preferred globally and is one of the main factors nowadays companies in The United States look out for before awarding a project to a vendor in a different country as communication plays a very important role in the successful execution of the project.
- Availability of the company to provide support resolution 24*7 to ensure that any kind of bugs or post implementation operations are smoothly carried out.
- Proper documentation is extremely important, any organization where proper documentation is not created leads to chaos, ambiguities in terms of understanding and in worst cases lead to legal cases which is a loss for both the parties involved as it affects their work and operations. Creation of a proper Scope document which forms the basis for a base reference wherein the work can begin. Before making any changes to the project all the parties consent must be taken.
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