projectOutsourcing Concerns

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The world has become a global village where you can communicate with people across the globe as well as work from ‘anywhere’. Having said this, offshore outsourcing is here to stay. Are you too working on an offshoring model or planning to hire developers from offshore? Let’s explore what it is.

Offshore outsourcing is the process of collaborating with organizations based in a foreign country. So, you can hire a team of experts or just individual developers to work on any project of yours. With offshore outsourcing, you can save the time for hiring an internal team and also save costs massively. But every perk comes with a cost. Moreover, there are some factors that make offshore outsourcing a matter of concern.

Here, we have discussed some issues that should be kept in mind while offshore outsourcing. Also, we have mentioned our exclusive approach to those issues for solving them effectively.

1. Selection of Vendor

Selecting the correct vendor among the hordes of available businesses is one of the most important things to do. So proper research is very essential before selecting a vendor. Then compare vendors on various parameters. Don’t just look for a cheaper vendor. As you outsource from offshore, the technical skills of the team become an important matter. Generally, outsourcing for Information Technology is seen to fail due to the selection of the wrong vendors. Here, the most common mistake that companies make while selecting a vendor is that they look for cheaper vendors and that results in poor quality work. Cost: Profit is the main driving force behind any organization’s work, whether it is a product-based, service-based, or offshore provider. Negotiating to the limits where a company finds itself at a break-even level may lead the company to earn money from any other way. And that may result in poor quality. Technical skills: Every offshore company comes with various tech skills and expertise. Therefore, you must first assess your requirements based on the project you are cultivating. And then select a vendor that has expertise in your required domain.

2. Issues related to Intellectual Property Rights

Intellectual Property Rights and Offshore outsourcing are serious topics of discussion together. Concerningly, there have been numerous cases of IPR thefts and breaches of contract. So now companies going for offshore outsourcing raise many questions regarding Intellectual Property Rights.

  • Is my source code safe? What if it is sold to my competitors?
  • What if the offshoring company uses my code after making minor changes and produces another product in its name?
  • What if the tech team working on my project steals my code and uses it for private purposes?

3. Creating Trust with the Internal Team

Maintaining trust and credibility among the internal team while offshoring your projects is another critical thing. As you will never want your internal team to be dejected and play a blame game with the outsourcing team. Unfortunately, this will only bring disadvantages to the team.

Citing the benefits of offshore outsourcing, most businesses are looking to adapt to this model. But in the process, forget about the internal team. Depending too much on the outsourced team may create a sense of dissatisfaction among the employees working internally.

It infuses the feeling of job insecurity among the internal employees and they may not agree to openly co-operate with the outsourced team. Hence, it is always advisable to have a meeting with the internal team and tell them the reason for outsourcing. And if possible, also have a mock Q&A session with them.

4. Management of Offshore Development Team

Offshore software outsourcing is all about managing people and projects simultaneously with utmost efficiency to get the best results.

There are a lot of companies out there providing Software Outsourcing services. But not all can manage the teams and the projects simultaneously. It is simply because efficient management of teams and projects both together is not everyone’s cup of tea. When it comes to efficient management, a well-skilled team, the experience of the team to a top-class project manager, and the vision of the company; everything gets into account.

5. Communication

Companies in search of the best talent go across geographical boundaries to hire software developers. Because of this, most of the team members stay geographically dispersed and in different time zones. And this stands as a crucial communication barrier for software development companies that provide offshoring services.

The Project Manager needs to be very careful while scheduling meetings with clients as he/she has to take into consideration the client’s time zone, team member’s time zone, and his time zone. Emailing may not always work as it has its drawbacks. For an instance, a client asking for a critical change may send an email at noon but it may reach the developer at midnight, which may not always be a feasible option to do.

6. Approach and Methodology

Not all offshoring services providing companies fulfill every requirement of a client or even their own promises. And this is a major difference between the approaches of various offshoring companies.

Many a time, the Software Outsourcing companies fail to understand and comprehend the requirements and needs of the client, which is one of the basic steps in providing offshoring services.

7. Challenges of Retaining Manpower

Software outsourcing has witnessed a massive paradigm shift in recent times. It is noticed that skilled and experienced manpower is swiftly replacing the traditional team and producing 2X results. So, this has led the software outsourcing companies to put in extra efforts to retain the manpower that is skilled, efficient, as well as experienced.

Today, every skilled developer is on the lookout for better opportunities. Hence, this stands as a massive challenge for the offshoring service providers to retain the team. Sometimes, it happens that a client has interacted with a particular team, shared his/her ideas with the team, and suddenly a key member of the team resigns citing better opportunities.

8. Multiple Testing

Software development offshoring services usually require testing at each stage and also in multiple locations. This is because the codes are developed and designed at one location and are implemented and used at another. So this requires testing of codes on both the locations.

Additionally, it is necessary as the codes may run without any bugs on the location of the development but may show errors in the systems where it is to be deployed. Also, there could be some other issues at the place of the deployment that may prevent codes to run efficiently.

10. Turn down the Deal mid-way

Turning down the deal mid-way through a project development is like a disaster for anyone. No client would like to have such an experience with service providers on board that may turn down the deal at any point due to any discrepancies.

This is one of the darkest sides of software outsourcing. Moreover, the Statistics say that out of every four offshore deals, at least one fails mid-way. Although, there may be numerous reasons for this like communication gaps, clashes between the technical team of client and service providers, poor performance, and many others. Ultimately, this costs both time and money for the client along with a bad experience.


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