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IT outsourcing, it’s not all about rates!

By Brenda V.

 

Outsourcing is referred as the act of a company to contract a third party vendor to provide that specific service, due to the fact that accomplishing those activities in-house would represent (most of the time) higher costs and the need of additional staff.

The act of outsourcing has been around for many years now, small to large companies are born from the act of specializing in a certain activity to offer that experience and specialization to other companies whose core activity is completely different.

When speaking about IT outsourcing, the interest for this type of service providers is normally focused on eastern countries like India or Pakistan, but sometimes outsourcing difficult project work can bring a lot more trouble than benefits for the client; and I’m not only speaking of the different language (which brings a very strong accent), I am speaking about the different culture which will always bring a different way of looking at things, a simple email can be interpreted in different ways by two or more people.

We, as humans, have the tendency of reading or listening to what other people say accordingly to our own experience and assumptions, making it very difficult to communicate clearly with someone else; we can find these communication problems everywhere, in our home, at work, etc., but just imagine having to deal with this in a project work with people from a totally different country and that they live and work in a different time zone. Not only do I need to wake up extremely early or stay up late for phone meetings, but I need to make sure that whatever it is I am saying goes through clearly to the other person on the line, someone I might never even get to meet him or her in person.

Are you willing to put your money in the hands of someone you have never met? Well maybe they have lower rates, but sometimes it’s just not about the money.

When seeking an IT outsourcing firm it would be always wise to find an IT partner that has been working with similar companies and that can have references and testimonials of their work. Someone who might not have the exact same work culture than me but that has the base of knowledge needed of how I do things, how I work and how I like things done; someone that is reliable and above everything, someone that has the experience and resources to help me out with my project.

Do your research, listen to your business partner’s referrals and maybe even consider outsourcing companies closer to you than on the other side of the world… Maybe you will find that you can obtain much more benefits by considering a nearshore software development partner.

 

 

Comments

On 16 May 2010 08:59, Inbound Call Centers said:

Outsourcing is not only about cost, but it is rarely viable unless there are cost savings. If the motivation behind outsourcing is to force change into business operations, cost is almost always utilized as a key metric. In my experience, intelligent outsourcing (not just offshoring, but even domestic outsourcing) can provide a strategically oriented company with the nimbleness and flexibility that can never be acheived by staying completely in-house. An effective outsourcing strategy involves more than just cost reductions - it targets the accessing of expertise and capabilities that are either beyond the reach of the company, or more affordable than developing those capabilities in-house. In addition, for some companies, outsourcing provides an opportunity to secure third party or objective perspectives on particular business issues, and forces a company out of the "not-invented-here" sydnrome that can effectively burden a company with the weight of limited in-house expertise and lack of vision. Outsourcing has become a hot-button term, but in fact, every single company in some way, shape, or form does in fact outsource, whether it is IT expertise, legal advice, or manufacturing. IF the outsourcing label hinders a company or management from pursuing an otherwise credible strategy, the company is doomed to shortly find itself atop the scrap heap of slow, inflexible, and ultimately stubborn-to-the-end firms who couldn't match their competitors in the global marketplace and were relegated to oblivion. Charlie

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